TYPES AND CHARACTERISTICS OF DSS

TYPES OF DSS

Basically, there are two types of DSS. One is data-driven DSS and the other is modeldriven
DSS. The data driven DSS, helps in generating useful information from huge quantity of

data in organizational databases, data warehouses and websites. Data mining techniques are
employed to generate useful information. The model-driven DSS contains mathematical models
to carry out “what if” analysis and sensitivity analysis.

CHARACTERISTICS OF DSS

1. It is designed and run by managers.
2. It contains a database drawn from internal files and external environment.
3. It focuses on decision processes rather than on transaction processing.
4. It is concerned with a small area of managerial activity or a small part of a large problem.
5. It permits managers to test the probable results of alternative decisions.
6. It supports decision-making, usually in solving semi-structured complex problems.
7. It helps in refining managerial judgment applied to problem solving.
8. It improves managerial decisions and thereby managerial effectiveness.
9. The decision maker retains control over decisions throughout the decision process.