Page 37 - DCAP208_Management Support Systems

Management Support Systems

Notes The rapid expansion of the Internet provided additional opportunities for the scope of Decision
Support Systems and consequently many new innovative systems such as OLAP and other
web-drive systems were developed. In this unit, we will discuss the concept of decision support
systems.

3.1 Decision Support Systems

Decision support systems are software tools that are developed for the specific purpose of
assimilating pertinent data and generating a detail analysis of a given situation. The results of
the decision support system, or DSS, can then be utilized in making an informed decision
regarding just about any action or set of circumstances.
A decision support system (DSS) is a computer program application that analyzes business data
and presents it so that users can make business decisions more easily. It is an “informational
application” (to distinguish it from an “operational application” that collects the data in the
course of normal business operation).
Typical decision support systems are designed for easy use by end users who may or may not be
comfortable with using computer technology as part of the decision making process. Often, the
software will be make use of formats such as spreadsheets or databases that work with the use
of fields to enter data.

Notes The process of entering data into the program is usually very straightforward, and
often includes tips and other forms of assistance as the data is entered into the fields.
Once the information is entered, it is possible to query the system with a series of questions that
can allow the user to project not only a range of possible courses of action, but also get some idea
on the possible outcomes associated with each option.

In terms of dealing with many managerial and executive decisions that are made daily in the
workplace, decision support systems can be a great tool for supervisors, department heads, and
site managers. The system can be configured to work within just about any area that involves
dealing with labor issues. Human resource personnel can make use of decision support systems
that include data about all applicable local and federal laws governing the rights and protections
relevant to employees, making the process of administering promotions, dealing with a leave
of absence, or developing an equitable approach to disciplinary action much easier. Supervisors
can also use decision support systems as part of the identifying strengths and weaknesses among
employees in their charge, which can take a lot of the guesswork out of performing period
employee evaluations.
Over the last few years, decision support systems have become better known as Business
Intelligence systems. However, many persons who have made use of the software for a number
of years still tend to make use of the identification of decision support software, which has led
many producers of the software to continue use of the DSS identification.
Typical information that a decision support application might gather and present would be:
Comparative sales figures between one week and the next

Projected revenue figures based on new product sales assumptions
The consequences of different decision alternatives, given past experience in a context that
is described

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