Decision Support System

DSS concepts

Broadly defined, a decision support system (DSS) is a compute-based information system that combines models and data in an effort to solve semi-structured and some unstructured problems with extensive user involvement. But the term decision support system (DSS), like the terms MIS and MSS, means different things to different people. DSSs can be seen as an approach or philosophy rather than a precise methodology. However, a DSS has certain recognized properties that we will present later. First, let’s look at a classic case of a successfully implemented DSS that emerged a long time ago, and yet the scenario is typical.

The case demonstrates some of the best features of a DSS. The risk analysis, which was performed first, was based on the decision maker’s initial definition of the situation using a management science approach. Then, using his experience, judgment and intuition, the executive vice president felt that the model needed to be changed. The original model, though mathematically correct, was incomplete. With a regular simulation system, changing the computer program would have taken a long time, but DSS provided a very quick analysis.

Many companies turn to DSSs to improve decision-making. Reasons that leaders cite for the increasing use of DSSs include the following: New and accurate information was needed. information was needed quickly; and it was increasingly difficult to track the company’s many business activities. Or the company operated in an unstable economy; it faced increasing foreign and domestic competition; The company’s existing computer system did not properly support the goals of increasing efficiency, profitability and access to profitable markets. Other reasons include: The IS department was unable to meet the diversity of business needs or management ad-hoc queries, and business analytics capabilities were not inherent within the existing system.

In many organizations that have introduced a DSS, the conventional information systems built to support transaction processing were not sufficient to support several of the company’s critical response activities, especially those requiring last and / or complex decision making. A DSS, on the other hand, can do just that.

Another reason for the development of DSS is the end user’s computer movement. With the exception of large-scale DSSs, end users can build systems themselves using DSS development tools such as Excel.

Group Decision Support System

Decision making is often a shared process. For example, meetings between groups of leaders from different areas are an essential element for reaching agreement. The group may be involved in making a decision or in a decision-related task, such as creating a short list of acceptable alternatives or deciding criteria for accepting an alternative. When a decision-making group is supported electronically, the support is called group decision support. Two types of groups are considered: a group with a room whose members are one place (such as a meeting room), and a virtual group whose members are different places.

A Group Decision Support System (GDSS) is an interactive compute-based system that facilitates the solution of semi-structured and unstructured problems when made by a group of decision makers. The goal of a GDSS is to support the process of coming to a decision. The first generation of GDSSs were designed to support face-to-face meetings in what is called decision-making space.

Some applications of GDSSs

An increasing number of companies are using GDSSs, especially when virtual groups are involved. An example is the Internal Revenue Service, which used a one-room GDSS to implement its quality improvement programs based on the participation of a number of its quality teams. GDSS was helpful in identifying problems, generating and evaluating ideas, and developing and implementing solutions. Another example is the European automotive industry, which used a one-way GDSS to examine the competitive automotive business and produce ten-year forecasts needed for strategic planning.