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    Decision Support Systems

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    Ayesha Siddiqa
    Decision support systems (DSS) are interactive software tools that help managers at different levels of an organization make decisions. They provide access to large volumes of internal and external data, as well as analytical models. While a DSS helps compile useful information, it does not make the final decision. The key components of a DSS are a database management system, model management system, and support tools. Common types of DSS include status inquiry systems, data analysis systems, information analysis systems, accounting systems, and model-based systems.

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    Decision Support Systems

    Uploaded by

    Ayesha Siddiqa
    174 views3 pages
    Decision support systems (DSS) are interactive software tools that help managers at different levels of an organization make decisions. They provide access to large volumes of internal and external data, as well as analytical models. While a DSS helps compile useful information, it does not make the final decision. The key components of a DSS are a database management system, model management system, and support tools. Common types of DSS include status inquiry systems, data analysis systems, information analysis systems, accounting systems, and model-based systems.

    Original Description:

    Management Information Sysytems

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    Decision support systems (DSS) are interactive software tools that help managers at different levels of an organization make decisions. They provide access to large volumes of internal and external data, as well as analytical models. While a DSS helps compile useful information, it does not make the final decision. The key components of a DSS are a database management system, model management system, and support tools. Common types of DSS include status inquiry systems, data analysis systems, information analysis systems, accounting systems, and model-based systems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    174 views3 pages

    Decision Support Systems

    Uploaded by

    Ayesha Siddiqa
    Decision support systems (DSS) are interactive software tools that help managers at different levels of an organization make decisions. They provide access to large volumes of internal and external data, as well as analytical models. While a DSS helps compile useful information, it does not make the final decision. The key components of a DSS are a database management system, model management system, and support tools. Common types of DSS include status inquiry systems, data analysis systems, information analysis systems, accounting systems, and model-based systems.

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    of 3
    At a glance
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    The key takeaways are that managerial decision making still exists in different levels like strategic, tactical and operational management even in flattened organizations. Decision support systems help managers at different levels in decision making by providing access to large volumes of information.

    The different levels of managerial decision making are strategic management typically done by top executives, tactical management typically done by business unit managers, and operational management typically done by operating managers and self-directed teams.

    Characteristics of a DSS include support for semi-structured and unstructured problems, support for individuals and groups, and support over time. Benefits include improved efficiency, increased control and competitiveness, facilitated communication, and encouraged learning.

    It is important to understand that the framework of the classic managerial pyramid shown in

    Figure 10.2
    applies even in todays downsized organizations and flattened or nonhierarchical organizational structures. Levels of management decision making still exist, but
    their size, shape, and participants continue to change. Thus, the levels of managerial decision
    making that must be supported by information technology in a successful organization are:

    Strategic Management. Typically, a board of directors and an executive committee of the


    CEO and top executives develop overall organizational goals, strategies, policies, and
    objectives as part of a strategic planning process. They also monitor the strategic performance
    of the organization and its overall direction in the political, economic, and competitive
    business environment.
    Tactical Management. Increasingly, business professionals in self-directed teams as well as
    business unit managers develop short- and medium-range plans, schedules, and budgets and
    specify the policies, procedures, and business objectives for their subunits of the company.
    They also allocate resources and monitor the Performance of their organizational subunits,
    including departments, divisions, process teams, project teams, and other workgroups.
    Operational Management. The members of self-directed teams or operating managers
    develop short-range plans such as weekly production schedules. They direct the use of
    resources and the performance of tasks according to procedures and within budgets and
    schedules they establish for the teams and other workgroups of the organization.
    Decision Support Systems
    Decision support systems (DSS) are interactive software-based systems intended to help
    managers in decision-making by accessing large volumes of information generated from
    various related information systems involved in organizational business processes, such as
    office automation system, transaction processing system, etc.
    DSS uses the summary information, exceptions, patterns, and trends using the analytical
    models. A decision support system helps in decision-making but does not necessarily give a

    decision itself. The decision makers compile useful information from raw data, documents,
    personal knowledge, and/or business models to identify and solve problems and make
    decisions.
    Characteristics of a DSS

    Support for decision-makers in semi-structured and unstructured problems.

    Support for managers at various managerial levels, ranging from top executive to line
    managers.

    Support for individuals and groups. Less structured problems often requires the
    involvement of several individuals from different departments and organization level.

    Support for interdependent or sequential decisions.

    Support for intelligence, design, choice, and implementation.

    Support for variety of decision processes and styles.

    DSSs are adaptive over time.

    Benefits of DSS

    Improves efficiency and speed of decision-making activities.

    Increases the control, competitiveness and capability of futuristic decision-making of


    the organization.

    Facilitates interpersonal communication.

    Encourages learning or training.

    Since it is mostly used in non-programmed decisions, it reveals new approaches and


    sets up new evidences for an unusual decision.

    Helps automate managerial processes.

    Components of a DSS
    Following are the components of the Decision Support System:

    Database Management System (DBMS): To solve a problem the necessary data


    may come from internal or external database. In an organization, internal data are
    generated by a system such as TPS and MIS. External data come from a variety of

    sources such as newspapers, online data services, databases (financial, marketing,


    human resources).

    Model Management System: It stores and accesses models that managers use to
    make decisions. Such models are used for designing manufacturing facility, analyzing
    the financial health of an organization, forecasting demand of a product or service,
    etc.
    Support Tools: Support tools like online help; pulls down menus, user interfaces,
    graphical analysis, error correction mechanism, facilitates the user interactions with
    the system.

    Types of DSS
    Following are some typical DSSs:

    Status Inquiry System: It helps in taking operational, management level, or middle


    level management decisions, for example daily schedules of jobs to machines or
    machines to operators.

    Data Analysis System: It needs comparative analysis and makes use of formula or an
    algorithm, for example cash flow analysis, inventory analysis etc.

    Information Analysis System: In this system data is analyzed and the information
    report is generated. For example, sales analysis, accounts receivable systems, market
    analysis etc.

    Accounting System: It keeps track of accounting and finance related information, for
    example, final account, accounts receivables, accounts payables, etc. that keep track
    of the major aspects of the business.

    Model Based System: Simulation models or optimization models used for decisionmaking are used infrequently and creates general guidelines for operation or
    management.

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