Information Technology Reference
In-Depth Information
Support for Problem-Solving Phases
The objective of most decision support systems is to assist decision makers with the phases
of problem solving. As previously discussed, these phases include intelligence, design, choice,
implementation, and monitoring. A specific DSS might support only one or a few phases.
By supporting all types of decision-making approaches, a DSS gives the decision maker a
great deal of flexibility in getting computer support for decision-making activities.
Support for Different Decision Frequencies
Decisions can range on a continuum from one-of-a-kind to repetitive decisions. One-of-a-
kind decisions are typically handled by an
ad hoc DSS
. An ad hoc DSS is concerned with
situations or decisions that come up only a few times during the life of the organization; in
small businesses, they might happen only once. For example, a company might need to decide
whether to build a new manufacturing facility in another area of the country. Repetitive
decisions are addressed by an institutional DSS. An
institutional DSS
handles situations or
decisions that occur more than once, usually several times per year or more. An institutional
DSS is used repeatedly and refined over the years. Examples of institutional DSSs include
systems that support portfolio and investment decisions and production scheduling. These
decisions might require decision support numerous times during the year. For example, DSSs
are used to help solve computer-related problems that can occur multiple times throughout
the day. With this approach, the DSS monitors computer systems second by second for
problems and takes action to prevent problems, such as slowdowns and crashes, and to recover
from them when they occur. One IBM engineer believes that this approach, called
autonomic
computing
, is the key to the future of computing. Between these two extremes are decisions
that managers make several times, but not regularly or routinely.
ad hoc DSS
A DSS concerned with situations
or decisions that come up only a
few times during the life of the
organization.
institutional DSS
A DSS that handles situations or
decisions that occur more than
once, usually several times per year
or more. An institutional DSS is used
repeatedly and refined over the
years.
Support for Different Problem Structures
As discussed previously, decisions can range from highly structured and programmed to
unstructured and nonprogrammed.
Highly structured problems
are straightforward, re-
quiring known facts and relationships.
Semistructured
or
unstructured problems
, on the
other hand, are more complex. The relationships among the pieces of data are not always
clear, the data might be in a variety of formats, and it is often difficult to manipulate or
obtain. In addition, the decision maker might not know the information requirements of
the decision in advance. For example, a DSS has been used to support sophisticated and
unstructured investment analysis and make substantial profits for traders and investors. Some
DSS trading software is programmed to place buy and sell orders automatically without a
trader manually entering a trade, based on parameters set by the trader.
highly structured problems
Problems that are straightforward
and require known facts and
relationships.
semistructured or
unstructured problems
More complex problems in which
the relationships among the pieces
of data are not always clear, the
data might be in a variety of formats,
and the data is often difficult to
manipulate or obtain.
Support for Various Decision-Making Levels
Decision support systems can provide help for managers at different levels within the orga-
nization. Operational managers can get assistance with daily and routine decision making.
Tactical decision makers can use analysis tools to ensure proper planning and control. At the
strategic level, DSSs can help managers by providing analysis for long-term decisions requir-
ing both internal and external information (see Figure 10.15).
Strategic
Figure 10.15
Strategic managers
involved with long-term
decisions
Decision-Making Level
Strategic managers are involved
with long-term decisions, which are
often made infrequently.
Operational managers are involved
with decisions that are made more
frequently.
Operational
managers involved with
daily decisions
Tactical
Operational
High
Low
Decision Frequency
