Decision Support Systems Overview

Designing and Developing Decision Support Systems

• Decision support systems (DSS) are diverse in functions and software used for their development
• A methodology is an organized set of practices and procedures for developers
• Information systems (IS) literature has followed three different conceptual paths in creating DSS
  • One path involves using traditional systems analysis and design
  • A second path suggests an iterative, prototyping, or "quick-hit" approach
  • The third path, end-user development, allows managers to develop their own personal DSS
• DSS failures often arise from designing and developing from the programmer/developer perspective, instead of that of the manager and user
• The Systems Development Life Cycle (SDLC) approach involves initiation and diagnosis, acquisition (build or buy), and introduction of the new system.
• Prototyping and end-user development are alternatives to the SDLC approach.
  • Prototyping is similar to rapid application development (RAD)

Decision-Oriented Diagnosis

• Increasing decision-making effectiveness through changes in how decisions are made is a major objective for DSS projects (e.g., Stabell, 1983)
• Predesign description and diagnosis of decision-making is key to securing a decision-oriented approach
• Diagnosis of current decision-making, and specifying changes in decision processes, provide key input to DSS design
  • This includes determining how decisions are currently made, how they should be made, and why they aren't currently being made correctly
• Stabell's approach to diagnosis involves collecting data, developing a coherent description of the process, and specifying a norm for how decisions should be made, using methods like interviews, observations, questionnaires, and historical records
• Decision process auditing is a diagnostic activity that can identify areas for improvements in technology and cost reduction
• A decision process audit includes:
  • Defining the decisions, processes, and related business processes that must be audited
  • Formal design and diagramming of the process, including participants, data, and criteria
  • Observational analysis of the decision process
  • Assessing the performance of the process and identifying opportunities for improvements in cycle time, appropriateness of decisions, timeliness, cost-effectiveness, and meeting of business objectives
  • Reporting on the audit, including recommendations for improvement

Prepare a Feasibility Study

• Crucial steps for determining a DSS's feasibility:
  • Key Business Needs: Identifying the company's needs that the DSS will address
  • Issues: Understanding the current problems and challenges that the DSS will solve
  • Solutions: Defining possible solutions or modifications to the current processes
  • Benefits and Costs: Assessing the projected benefits and costs of implementing the DSS
  • Critical Success Factors: Identifying success factors that are critical to the DSS's effectiveness
  • Project Management: Establishing clear project management procedures

Choose a Development Approach

• A flowchart illustrates the various components in a decision making approach to create a DSS, starting with initiation, followed by decision-oriented diagnosis, feasibility study, make/buy decision, various development approaches
• The development approach options are:
  • Systems Development Life Cycle
  • Rapid Prototyping
  • End-User Development

Development Life Cycle Approach

• The SDLC is a structured methodology involving formal steps.
  • Confirm user requirements
  • System analysis
  • System design
  • Programming
  • Testing
  • Implementation
  • Use and Evaluation

Rapid Prototyping

• A rapid prototyping methodology typically includes these steps:
  • Identifying user requirements
  • Developing and testing a first iteration prototype
  • Creating next-iteration prototypes
  • Testing prototypes, returning to the previous step if necessary
  • Pilot testing, phased or full-scale implementation

End-User DSS Development

• End-user development puts the responsibility of building and maintaining a DSS on the manager or user to improve the process
• Major advantages are increasing end-user involvement and making sure the computer support meets the user needs
• Potential disadvantages are the user may have limited expertise or select inappropriate software or hardware, potential errors in the development process, inconsistent documentation, limited testing, poorly structured databases, and difficulties in maintaining the systems; difficulty of support when the developer leaves the company and poor performance under concurrent use
• The development is frequently error-prone
• Errors include checking formulas and auditing the DSS
• Unnecessary databases are sometimes created
• Limited testing and documentation can be issues for end-user developed DSS
• End-user DSS involves potential problems in leaving the DSS to be maintained by a third parties
• Applications may not work efficiently with multiple concurrent users

DSS Project Management

• Executive sponsorship and a project manager are important.
• Initial tasks include diagnosis, feasibility study, and defining project objectives and scope
• The sponsor chooses whether to continue or postpone
• Large-scale projects may require co-project managers for business and technical oversight
• The project plan, methodology, and a team should be assembled
• Outsourcing processes may need to be set up if the project will be outsourced, along with criteria for selection and evaluation of proposals
• To keep the sponsor informed, identifying tasks, resources, and deliverables is critical
• The CIO and business managers may be involved in monitoring large-scale or high-visibility projects
• Effective DSS management requires understanding and meeting stakeholder expectations to meet expectations

Outsourcing

• Outsourcing involves contracting with outside consultants, software houses, or service bureaus for DSS development activities
• Outsourcers need to be evaluated as long-term assets and sources of ongoing value

Outsourcing Risks

• Loss of control over critical capabilities
• Long-term contracts and dependency on a provider
• Potential decrease in in-house technical knowledge of staff

Outsourcing Benefits

• Potentially lower costs
• Access to expertise in new technologies
• Freeing up internal resources

DSS Project Participants

• Participants include users, executive sponsor, project manager, DSS analyst, technical support staff, and DSS toolsmiths.

This quiz focuses on key concepts and methodologies related to Decision Support Systems (DSS). Participants will explore the decision-making processes, the Systems Development Life Cycle (SDLC), and the roles of data collection and end-user development in DSS projects. Test your understanding of the objectives and phases involved in DSS implementation.