Explain the concept, need for and importance of a Decision
Support System
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Answer Posted / puneet chawla
A Decision Support System (DSS) is a class of information systems (including but not limited to computerized systems) that support business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers
compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.
Computerized decision support systems became practical with the development of minicomputers, timeshare operating systems and distributed computing. The history of the implementation of such systems begins in the mid-1960s. In a technology field as diverse as DSS, chronicling history is neither neat nor linear. Different people perceive the field of Decision Support Systems from various vantage points and report different accounts of what happened and what was important (cf., Arnott & Pervan, 2005; Eom & Lee, 1990b; McCosh & Correa-Perez, 2006; Power, 2003; Power, 2004a; Silver, 1991). As technology evolved new computerized decision support applications were developed and studied. Researchers used multiple frameworks to help build and understand these systems. Today one can organize the history of DSS into the five broad DSS categories explained in Power (2001; 2002; 2004b), including: communications-driven, data-driven, document driven, knowledge-driven and model-driven decision support systems.
DSS components may be classified as:
1. Inputs: Factors, numbers, and characteristics to analyze
2. User Knowledge and Expertise: Inputs requiring manual analysis by the user
3. Outputs: Transformed data from which DSS "decisions" are generated
4. Decisions: Results generated by the DSS based on user criteria
Benefits of DSS
• Improves personal efficiency
• Expedites problem solving (speed up the progress of
problems solving in an organization)
• Facilitates interpersonal communication
• Promotes learning or training
• Increases organizational control
• Generates new evidence in support of a decision
• Creates a competitive advantage over competition
• Encourages exploration and discovery on the part of the
decision maker
• Reveals new approaches to thinking about the problem space
• Helps automate the managerial processes
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