A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve as a tool to help decision makers use data and models to identify and solve problems, make decisions, and support decision making processes.
DSSs typically consist of a combination of software, databases, and specialized models and algorithms that enable users to access and analyze data from various sources in order to support decision making. They can be used in a variety of decision-making contexts, including strategic planning, operational management, and problem solving.
One key characteristic of DSSs is their interactive nature. They typically allow users to input various types of data and parameters, and then use that information to generate reports, charts, or other types of outputs that can be used to inform decision making. This interactive nature allows decision makers to explore different scenarios and "what-if" scenarios, and to see the potential consequences of different decisions.
DSSs are an important part of management information systems (MIS), which is the field of study concerned with the effective use of information technology to support and improve business operations. MIS professionals are responsible for the design, implementation, and maintenance of DSSs, as well as the training and support of users.
There are several types of DSSs, including:
Executive DSSs: These systems are designed to support high-level decision makers, such as executives and managers, and typically provide a broad overview of an organization's operations and performance.
Strategic DSSs: These systems are used to support long-term planning and decision making, and may include tools for analyzing market trends, competitive analysis, and financial forecasting.
Tactical DSSs: These systems are used to support medium-term planning and decision making, and may include tools for scheduling, resource allocation, and project management.
Operational DSSs: These systems are used to support day-to-day decision making, and may include tools for inventory management, production scheduling, and customer relationship management.
Overall, DSSs are an important tool for businesses and organizations to support informed decision making and improve operational efficiency. They allow decision makers to access and analyze data from various sources, explore different scenarios and "what-if" scenarios, and make informed decisions based on evidence and analysis.
Management Information System (MIS)
Knowledge based management sub-system can act as a independent component or can provide support to any other sub-system. Acting as an organisation's main information centre, it makes use of a central database to collect, store, process, update, analyse and share information from the different departments of the organisation. An enterprise-wide DSS is linked to a large data warehouse and serves many managers within one company. Purpose of a Decision Support System A decision support system produces detailed information reports by gathering and analyzing data. In the internet era, firms are bombarded with too much data, not just relevant data. MIS implementation is an expensive investment that includes the hardware and software purchases, as well as the integration with existing systems and training of all employees.
Decision Support System (DSS)
Methlie, Wiley, 2007, Knowledge-based Decision Support Systems: With Applications in Business Peter G. Broadly speaking, decision support systems help in making more informed decisions. The public Internet is creating communication links for many types of inter-organizational systems, including DSS. For that, employees need access, and the system should be maintained. Generally, they help managers to make semi-structured decisions, the solution to which can be arrived at logically.
Decision Support Systems
Much of the information was from accounting and transaction systems. Firms collect data in files, documents, cloud storage, hard copies, and soft copy formats. They can also keep track of their orders, reorders, cancelled orders and refunds. MIS streamlines data and enables easy access. A decision support system may compromise different models where each model performs a specific function. With this information, it produces reports that may project revenue, sales, or manage inventory.
MIS: Decision Support Systems
Depending on the information processing, DSS can be distinguished from MIS. The information presented by a DSS may result from analysis of transaction data, it may be the result of a decision model, or it may have been gathered from external sources. Related: Top 50 MIS Executive Interview Questions and Sample Answers Sales and marketing systems Organisations use sales and marketing systems to stay informed about product development, sales predictions, distribution channels, marketing strategies, promotions, marketing costs and product pricing. Less structured problems often requires the involvement of several individuals from different departments and organization level. In the late, 1960s, a new type of information system became practical model-oriented DSS or management decision systems. The user can select the appropriate option to view the output according to his requirement.
