DSS has acquired many capabilities over the years. Some of the major capabilities are as
follows:
1. What if Analysis:
This helps in analyzing the cause-effect relationship of variables. For example, if
advertisement budget for a year is increased by 30% what will be its effect on total sales that
year?
2. Model Building:
Model building is a central task in most decision support systems. It involves
mathematically specifying the relationship between variables. For example, a sales forecasting
model based on advertisement expenditure will specify the relationship between sales and
advertisement in terms of mathematical statement as:
Sales = 10.94 X Advertisement expenditure
It means sales turnover will be 10.94 times the advertisement expenditure for the period.
3. Sensitivity Analysis:
This capability offers facility ot analyze the effect of multiple variables. For example,
what should be the cost of financing a project to get a return on investment of 20% after meeting
costs of interest and other operations.
4. Risk Analysis:
This facility provides a useful probability distribution to the decision maker to assess the
risk involved. For example, a probability distribution of profit helps the decision maker to
expect certain profit level with certain probability.
5. Goal Seeking Analysis:
This facility is the reverse of ‘what if’ analysis. It answers questions like what should be
the price per unit to generate a profit of Rs. 10, 00,000 from a project. This facility is normally
available in spreadsheets.
6. Graphic Capability:
This facility portrays data in the form of charts, graphs and diagrams to reveal underlying
trends and patterns.
7. Exception Reporting Analysis:
This facility tracks exceptions like over due accounts, production runs that result in more
power consumption than estimated, sales men who could not meet sales targets etc.
8. Hardware Capabilities:
It can be implemented on a wide rage of hardware configuration ranging form PC to
mainframes.
9. Access to Database:
DSS accesses data stored in databases also in external files. DSS tools have the
capability to maintain internal files once data is retrieved form other sources.
follows:
1. What if Analysis:
This helps in analyzing the cause-effect relationship of variables. For example, if
advertisement budget for a year is increased by 30% what will be its effect on total sales that
year?
2. Model Building:
Model building is a central task in most decision support systems. It involves
mathematically specifying the relationship between variables. For example, a sales forecasting
model based on advertisement expenditure will specify the relationship between sales and
advertisement in terms of mathematical statement as:
Sales = 10.94 X Advertisement expenditure
It means sales turnover will be 10.94 times the advertisement expenditure for the period.
3. Sensitivity Analysis:
This capability offers facility ot analyze the effect of multiple variables. For example,
what should be the cost of financing a project to get a return on investment of 20% after meeting
costs of interest and other operations.
4. Risk Analysis:
This facility provides a useful probability distribution to the decision maker to assess the
risk involved. For example, a probability distribution of profit helps the decision maker to
expect certain profit level with certain probability.
5. Goal Seeking Analysis:
This facility is the reverse of ‘what if’ analysis. It answers questions like what should be
the price per unit to generate a profit of Rs. 10, 00,000 from a project. This facility is normally
available in spreadsheets.
6. Graphic Capability:
This facility portrays data in the form of charts, graphs and diagrams to reveal underlying
trends and patterns.
7. Exception Reporting Analysis:
This facility tracks exceptions like over due accounts, production runs that result in more
power consumption than estimated, sales men who could not meet sales targets etc.
8. Hardware Capabilities:
It can be implemented on a wide rage of hardware configuration ranging form PC to
mainframes.
9. Access to Database:
DSS accesses data stored in databases also in external files. DSS tools have the
capability to maintain internal files once data is retrieved form other sources.
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