What is a decision support system (DSS)?
What is a decision support system (DSS)? A decision support system (DSS) is a computer program application used to improve a company's decision-making capabilities. It analyzes large amounts of data and presents an organization with the best possible options available.
What is an enterprise-wide decision support system?
In this paper, we present an enterprise-wide decision support system (EDSS) that leverages existing model and data resources distributed at various organizational sites to facilitate decision making. The EDSS supports remote model executions and database access via a variety of methods.
What is the difference between ERP and decision support system?
ERP also helps in better customer service and satisfaction. DSS is called a decision support system that relies on computer generated information with the intention of helping in decision making process. Its main role is at the level of planning and operations where decisions keep changing all the time and it is not easy to anticipate in advance.
What are some examples of Decision Support Systems in education?
Examples of this can be seen in the intense amount of discussion of DSS in the education environment. DSS can theoretically be built in any knowledge domain. One example is the clinical decision support system for medical diagnosis.
What does enterprise decision support system mean?
ERP (enterprise resource planning) dashboards can use a decision support system to visualize changes in production and business processes, monitor current business performance against set goals and identify areas for improvement.
What is EIS in decision support?
An executive information system (EIS) is a decision support system (DSS) used to assist senior executives in the decision-making process. It does this by providing easy access to important data needed to achieve strategic goals in an organization. An EIS normally features graphical displays on an easy-to-use interface.
What are the 5 types of decision support system?
Decision Support Systems (DSS) are a class of computerized information system that support decision-making activities....These can be categorized into five types:Communication-driven DSS. ... Data-driven DSS. ... Document-driven DSS. ... Knowledge-driven DSS: ... Model-driven DSS.
What is an example of a decision support system?
Decision support system examples Example uses include: GPS route planning. A DSS can be used to plan the fastest and best routes between two points by analyzing the available options. These systems often include the capability to monitor traffic in real-time to route around congestion.
What are the examples of EIS?
LightShip and Forest & Trees are examples of EIS software that popularized the concept. The EIS systems in the 1980s were the progenitors of the business intelligence (BI) software in the 1990s. See decision support system, EII and BI software.
What is EIS explain its features?
An Executive Information System (EIS) is a kind of decision support system (DSS) used in organizations to help executives in decision making. It does so by providing easy access to important data needed in an organization to achieve strategic goals. An EIS usually has graphical displays on a user-friendly interface.
What are the objectives of DSS?
The primary purpose of using a DSS is to present information to the customer in an easy-to-understand way. A DSS system is beneficial because it can be programmed to generate many types of reports, all based on user specifications.
What are the characteristics of DSS?
Attributes of a DSSAdaptability and flexibility.High level of Interactivity.Ease of use.Efficiency and effectiveness.Complete control by decision-makers.Ease of development.Extendibility.Support for modeling and analysis.More items...
What are the advantages of DSS?
3 minWhat is a decision support system (DSS): A system in which the CEO and top management of the company take decisions by using computer software, data mining, communication, and presentation. ... Advantages of a decision support system (DSS):Fast: ... Automation: ... Efficient: ... Training: ... Communication: ... Low cost:More items...•
What are three major components of a DSS?
The three main components of a DSS framework are:Model Management System. The model management system S=stores models that managers can use in their decision-making. ... User Interface. The user interface includes tools that help the end-user of a DSS to navigate through the system.Knowledge Base.
Which company uses DSS?
A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities....Product Landscape.Company NameProduct NameTypeParamount DecisionsParamount DecisionsCommercialPowernoodlePowernoodle platformCommercial20 more rows
What is the most important component of DSS?
Solution(By Examveda Team) Dialogue Management, Model Management and Model Management are the important components of DSS.
What is difference between DSS and ESS?
While DSS is decision support system that are designed to help managers come up with solutions to problems on the basis of a data base or knowledge base, ESS is executive support system that presents summarized information that is used by executives to come up with best possible solution to problems.
What are the elements of EIS?
Some key components of the EIS are described below:Summary. The summary presents an overview of the contents of the EIS and a comparison of impacts expected for the proposal and alternatives.Purpose and Need. ... Proposed Action and Alternatives. ... Affected Environment. ... Expected Impacts. ... Consultation and Coordination. ... Appendices.
What factors distinguish DSS from EIS?
DSSs work well with unstructured or semi-structured problems that have a quantifiable dimension. EISs use menus, graphics, and color to provide a friendly interface to DSSs for executives who want to minimize their interaction with the system.
What is difference between MIS and DSS?
MIS is used to in control process. DSS is used in planning, staffing and decision making. MIS is used by middle level, low level users and senior executives in some cases. DSS is used by analysts, professionals and managers.
What Is a Decision Support System?
A decision support system (DSS) is a computerized program used to support determinations, judgments, and courses of action in an organization or a business. A DSS sifts through and analyzes massive amounts of data, compiling comprehensive information that can be used to solve problems and in decision-making .
What is a DSS system?
Using a Decision Support System. The DSS can be employed by operations management and other planning departments in an organization to compile information and data and to synthesize it into actionable intelligence. In fact, these systems are primarily used by mid- to upper-level management. For example, a DSS may be used to project ...
What is DSS data?
A DSS sifts through and analyzes massive amounts of data, compiling comprehensive information that can be used to solve problems and in decision-making . Typical information used by a DSS includes target or projected revenue, sales figures or past ones from different time periods, and other inventory- or operations-related data.
What is a DSS?
In organizations, a decision support system (DSS) analyzes and synthesizes vast amounts of data to assist in decision-making. With this information, it produces reports that may project revenue, sales, or manage inventory. Through the integration of multiple variables, a DSS can produce a number of different outcomes based on ...
Why is DSS important?
A DSS system is beneficial because it can be programmed to generate many types of reports, all based on user specifications. For example, the DSS can generate information and output its information graphically, as in a bar chart that represents projected revenue or as a written report.
Can DSS be used on a laptop?
As technology continues to advance, data analysis is no longer limited to large, bulky mainframe computers. Since a DSS is essentially an application, it can be loaded on most computer systems, whether on desktops or laptops. Certain DSS applications are also available through mobile devices.
Can DSS be computerized?
The DSS can either be completely computerized or powered by humans. In some cases, it may combine both. The ideal systems analyze information and actually make decisions for the user. At the very least, they allow human users to make more informed decisions at a quicker pace.
What is a decision support system (DSS)?
A decision support system (DSS) is a computer program application used to improve a company's decision-making capabilities. It analyzes large amounts of data and presents an organization with the best possible options available.
Decision support system components
A typical DSS consists of three different parts: knowledge database, software and user interface.
Intelligent decision support system (IDSS)
Users can also bake artificial intelligence ( AI) into decision support systems. Called intelligent decision support systems (IDSS), the AI mines and processes large amounts of data to get insights and make recommendations for better decision-making.
Types of decision support systems
Decision support systems can be broken down into categories, each based on their primary sources of information.
Decision support system examples
Organizations use decision support systems in several different contexts, including the following:
How many phases are there in the Early Framework of Decision Support System?
The Early Framework of Decision Support System consists of four phases:
When did decision support start?
The concept of decision support has evolved mainly from the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the implementation work done in the 1960s. DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s.
What is DSS in business?
DSS emphasizes flexibility and adaptability to accommodate changes in the environment and the decision making approach of the user.
What is DSS in decision making?
While academics have perceived DSS as a tool to support decision making processes, DSS users see DSS as a tool to facilitate organizational processes. Some authors have extended the definition of DSS to include any system that might support decision making and some DSS include a decision-making software component;
What is a DSS in forest management?
DSS is also prevalent in forest management where the long planning horizon and the spatial dimension of planning problems demands specific requirements. All aspects of Forest management, from log transportation, harvest scheduling to sustainability and ecosystem protection have been addressed by modern DSSs. In this context, the consideration of single or multiple management objectives related to the provision of goods and services that traded or non-traded and often subject to resource constraints and decision problems. The Community of Practice of Forest Management Decision Support Systems provides a large repository on knowledge about the construction and use of forest Decision Support Systems.
What is a cooperative DSS?
An active DSS can bring out such decision suggestions or solutions. A cooperative DSS allows for an iterative process between human and system towards the achievement of a consolidated solution: the decision maker (or its advisor) can modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation, and likewise the system again improves, completes, and refines the suggestions of the decision maker and sends them back to them for validation.
What are the components of a DSS?
Three fundamental components of a DSS architecture are: the database (or knowledge base ), the model ( i.e., the decision context and user criteria) the user interface. The users themselves are also important components of the architecture.
Abstract and Figures
Abstract Organizations that operate from multiple locations have data and model resources distributed at various sites of the organization. Decision making is facilitated when these resources are brought to bear as part of an enterprise-wide decision support system.
References (32)
Organizations that operate from multiple locations have data and model resources that are distributed at various sites of the organization.
What Does Enterprise Decision Management (EDM) Mean?
Enterprise decision management (EDM) is an enterprise approach that applies analytical and rule-based systems to manage and deploy all operational decisions , such as relationships with employees, suppliers and customers.
Why do we use EDM?
Enterprises apply EDM processes to business and technology infrastructures for the following reasons: To generate a higher return on older investments. To increase business decision complexity.
What are some examples of decision support systems?
For example, GPS route planning determines the fastest and best route between two points by analyzing and comparing multiple possible options . Many GPS systems also include traffic avoidance capabilities that monitor traffic conditions in real time, allowing motorists to avoid congestion. Farmers use crop-planning tools to determine the best time to plant, fertilize and reap. Medical diagnosis software that allows medical personnel to diagnose illnesses is another example. Most systems share a common attribute in that decisions are repetitive and based on known data. However, they aren't infallible and may make incorrect or irrational decisions, something many early GPS users discovered.
Why was the executive information system developed?
Instead, researchers developed the concept of using executive information systems to analyze organizational data and produce concise executive information to support decision-making. Over time, and as computer capabilities improved, this approach was expanded to include the use of sophisticated software that modeled business processes, allowing users to evaluate the outcomes of various scenarios. In this way, it was possible to assess which of several alternatives offered the best business return.
Where did the DSS come from?
The core principles of DSS evolved from theoretical work done in the last century at the Carnegie Institute of Technology on the theory of organizational decision-making. This work recognized that while human instinct and gut feel often resulted in good decisions, there were numerous instances where gut-driven decisions were wrong.
Is manual DSS a good decision support tool?
Although manual and hybrid DSS solutions are relatively slow and unwieldy, in the right hands, they are powerful decision support tools and many organizations rely on them.
Is historical DSS a good place to start?
If the organization is new to analytics, historical DSS systems would be a good place to start, while those involved in activities such as trading and commodities may benefit more from a predictive decision support system example.
What is an enterprise system?
An enterprise system, also known as an enterprise resource planning (ERP) system, is a cross-functional information system that provides organization-wide coordination and integration of the key business processes and helps in planning the resources of an organization. With the help of enterprise resource planning systems, ...
How to obtain maximum benefit from enterprise resource planning software?
Thus, to obtain the maximum benefit from enterprise resource planning software, the organizations should change their way of working according to the business processes of software instead of customizing the software.
What is ERP system?
An ERP system is driven by the ERP software suite-a set of integrated software modules–and a common centralized database. The software modules support the basic business processes under different functional areas and the database stores data from and feed the data to various applications supporting the internal business activities.
What are some examples of business processes supported by ERP software?
Some examples of business processes supported by ERP software include accounts payable, general ledger, cash management, and forecasting, personnel administration, payroll, time management, inventory management, product pricing, billing, etc. Initially, ERP software was designed for automating a firm’s internal ‘back-office business processes, but now, it can also communicate with customers, suppliers, and other business partners.
How to improve quality and efficiency of customer service, production, and distribution?
Improve the quality and efficiency of customer service, production, and distribution by integrating the company’s internal business processes in sales, finance, production, custom logistics, etc.
What Are ERP System Modules?
If the ERP system is the toolbox, the modules are the screwdriver, wrench, hammer, and other tools in the box that each has specific uses.
Why is DSS important in ERP?
It can lead to improved efficiency, performance and productivity levels. ERP also helps in better customer service and satisfaction. DSS is called a decision support system that relies on computer generated information with the intention of helping in decision making process.
What is DSS in business?
DSS can be model driven, communications driven, data driven, document driven, or knowledge driven.
What is the role of DSS?
Its main role is at the level of planning and operations where decisions keep changing all the time and it is not easy to anticipate in advance. Some instances where DSS proves helpful are in medical diagnosis, examining loan applications, bidding process of an engineering firm and so on.
Why do managers make better decisions?
It is obvious that managers can take better decisions at the right time when armed with complete information that when they have inaccurate or incomplete information about the organization. In any big company, a huge amount of data is generated with sales, inventories and number of clients going up with passage of time.
Types of Decision Support Systems
Advantages of A Decision Support System
- A decision support system increases the speed and efficiency of decision-making activities. It is possible, as a DSS can collect and analyze real-time data.
- It promotes training within the organization, as specific skills must be developed to implement and run a DSS within an organization.
- A decision support system increases the speed and efficiency of decision-making activities. It is possible, as a DSS can collect and analyze real-time data.
- It promotes training within the organization, as specific skills must be developed to implement and run a DSS within an organization.
- It automates monotonous managerial processes, which means more of the manager’s time can be spent on decision-making.
- It improves interpersonal communicationwithin the organization.
Disadvantages of A Decision Support System
- The cost to develop and implement a DSS is a huge capital investment, which makes it less accessible to smaller organizations.
- A company can develop a dependence on a DSS, as it is integrated into daily decision-making processes to improve efficiency and speed. However, managers tend to rely on the system too much, which t...
- The cost to develop and implement a DSS is a huge capital investment, which makes it less accessible to smaller organizations.
- A company can develop a dependence on a DSS, as it is integrated into daily decision-making processes to improve efficiency and speed. However, managers tend to rely on the system too much, which t...
- A DSS may lead to information overloadbecause an information system tends to consider all aspects of a problem. It creates a dilemma for end-users, as they are left with multiple choices.
- Implementation of a DSS can cause fear and backlash from lower-level employees. Many of them are not comfortable with new technology and are afraid of losing their jobs to technology.
Related Readings
- Thank you for reading CFI’s guide on Decision Support System (DSS). To keep advancing your career, the additional CFI resources below will be useful: 1. Operations Management 2. Opportunity Cost 3. Quality Management 4. Systemic Risk
Overview
A decision support system (DSS) is an information system that supports business or organizational decision-making activities. DSSs serve the management, operations and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance—i.e. unstructured …
Taxonomies
Using the relationship with the user as the criterion, Haettenschwiler differentiates passive, active, and cooperative DSS. A passive DSS is a system that aids the process of decision making, but that cannot bring out explicit decision suggestions or solutions. An active DSS can bring out such decision suggestions or solutions. A cooperative DSS allows for an iterative process between human and system towards the achievement of a consolidated solution: the decision maker (or i…
History
The concept of decision support has evolved mainly from the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the implementation work done in the 1960s. DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s.
In the middle and late 1980s, executive information systems (EIS), group decision support syste…
Applications
DSS can theoretically be built in any knowledge domain. One example is the clinical decision support system for medical diagnosis. There are four stages in the evolution of clinical decision support system (CDSS): the primitive version is standalone and does not support integration; the second generation supports integration with other medical systems; the third is standard-based, and the fourth is service model-based.
Components
Three fundamental components of a DSS architecture are:
1. the database (or knowledge base),
2. the model (i.e., the decision context and user criteria)
3. the user interface.
Development frameworks
Similarly to other systems, DSS systems require a structured approach. Such a framework includes people, technology, and the development approach.
The Early Framework of Decision Support System consists of four phases:
• Intelligence – Searching for conditions that call for decision;
• Design – Developing and analyzing possible alternative actions of solution;
Classification
There are several ways to classify DSS applications. Not every DSS fits neatly into one of the categories, but may be a mix of two or more architectures.
Holsapple and Whinston classify DSS into the following six frameworks: text-oriented DSS, database-oriented DSS, spreadsheet-oriented DSS, solver-oriented DSS, rule-oriented DSS, and compound DSS. A compound DSS is the most popular classification for a DSS; it is a hybrid syst…
See also
• Argument map
• Cognitive assets (organizational)
• Decision theory
• Enterprise decision management