A decision support system (DSS) is a computer-based information system that

supports business or organizationaldecision-making activities. DSSs serve the

management, operations, and planning levels of an organization and help to make
decisions, which may be rapidly changing and not easily specified in advance.

A properly designed DSS is an interactive software-based system intended to help

decision makers compile useful information from a combination of raw data,
documents, personal knowledge, or business models to identify and solve problems
and make decisions.
The following is my list of the characteristics of a DSS.

1. Facilitation. DSS facilitate and support specific decision-making activities and/or

decision processes.

2. Interaction. DSS are computer-based systems designed for interactive use by

decision makers or staff users who control the sequence of interaction and the
operations performed.

3. Repeated Use. DSS are intended for repeated use. A specific DSS may be used
routinely or used as needed for ad hoc decision support tasks.

4. Task-oriented. DSS provide specific capabilities that support one or more tasks
related to decision-making, including: intelligence and data analysis; identification
and design of alternatives; choice among alternatives; and decision
implementation.

5. Identifiable. DSS may be independent systems that collect or replicate data from
other information systems OR subsystems of a larger, more integrated information
system.

6. Decision Impact. DSS are intended to improve the accuracy, timeliness, quality
and overall effectiveness of a specific decision or a set of related decisions.

Types of Decision Support System Models

It is important to note that the DSS field does not have a universally accepted model. That is
to say, there are many theories vying for supremacy in this broad field. Because there are
many working DSS theories, there are many ways to classify DSS.
For instance, one of the DSS models available bears the relationship of the user in mind. This
model takes into consideration passive, active, and cooperative DSS models.
Decision Support Systems that just collect data and organize it effectively are usually called
passive models. They do not suggest a specific decision, and they only reveal the data. An
active decision support system actually processes data and explicitly shows solutions based
upon that data. While there are many systems that can be active, many organizations would
be hard pressed to put all their faith into a computer model without any human intervention.
A cooperative Decision Support System is when data is collected, analyzed, and then given to
a human who helps the system revise or refine it. Here, both a human and computer
component work together to come up with the best solution.
While the above DSS model considers the user’s relationship, another popular DSS model
sees the mode of assistance as the underlying basis of the DSS model. This includes the
Model Driven DSS, Communications Driven DSS, Data Driven DSS, Document Driven
DSS, and Knowledge Driven DSS.
A Model Driven DSS is one in which decision makers use statistical simulations or financial
models to come up with a solution or strategy. Though these decisions are based on models,
they do not have to be overwhelmingly data intensive.
A Communications Driven DSS model is one in which many collaborate to come up with a
series of decisions to set a solution or strategy in motion. This model can be in an office
environment or on the web.
A Data Driven DSS model puts its emphasis on collected data that is then manipulated to fit
the decision maker’s needs. This data can be internal or external and in a variety of formats.
It is important that data is collected and categorized sequentially, for example daily sales,
operating budgets from one quarter to the next, inventory over the previous year, etc.
A Document Driven DSS model uses a variety of documents such as text documents,
spreadsheets, and database records to come up with decisions as well as further manipulate
the information to refine strategies.
A Knowledge Driven DSS model uses special rules stored in a computer or used by a human
to determine whether a decision should be made. For instance, many day traders see a stop
loss limit as a knowledge driven DSS model. These rules or facts are used in order to make a
decision.
The scope in which decisions are made can also be seen as a DSS model. For instance, an
organizational, departmental or single user decision can be seen in the scope-wide model.