Decision Support System (DSS) has significant importance in the decision making process. It mostly serves operational and planning level management of the organization. Decision Support System is a computer based application that compiles, combine and analyze raw data and identify problems faced by the organization and solutions to overcome such problem. The DSS was introducing in the late of 1960s with model driven DSS. In 1980s, spread sheet based DSS was introduced in the organization. The business intelligence, data warehouse, organization Decision Support System became part of the decision support system in 1990s. There are basically four categories of the decision support system such as a) model- driven b) Data – driven c) communication-driven & d) Documentation-driven e) Knowledge –driven and f) Web-based DSS. Model-driven was the basic form of the Decision Support System. It used limited data of the financial model. This category of the DSS was mostly used in production planning, scheduling and management. The data driven DSS mostly emphasize on the access and manipulation of data relevant to the specific task & activity. Communication-driven DSS used network technologies and communications to facilitate decision making process of the organization. Document-driven DSS used large documents database to support decision making process. In knowledge-driven DSS, the human- computer systems are used for the problem solving purpose in the organization. The web-based DSS is considered as very sophisticated decision support system. It extends the capabilities through use of the worldwide web and internet.
DSS has four major components such as input, expertise/ user-knowledge, output and decision. Input means rules, problems, spreadsheet, text or database that require to carryout analysis. User knowledge is the manual analysis by the users and Output is the outcome either comparative or generic.
DSS has significant importance in the modern era of the business. It assists to improve performance and effectiveness of the users. It provides help to make fast decision making. It reduces time required to solve issues or problems within organization. DSS improve collaboration and communication within groups. It provides more supporting evidence of a decision. The Decision Supporting System increase satisfaction of the decision makers. It plays an important role to automate various business systems. DSS play vital role for the right decision at the right time. It assists to overcome barriers of the good decision making such as:
Shortage of time for the decision
Lack of experience
Arguments in favour of DSS:
Decision Support System reduces the cycle time of the decision making. It increased productivity of the employees and provide more timely information for the decision making process of the organization. It also improves quality of the decision by providing right information at the right time.
Decision Support System provides help to examine & improve decision making effectiveness. It improves communication and collaboration among decision makers. It provides platform to share facts and figures of the organization. It encourages fact-based decision making of the managers. DSS creates competitive edge through intelligence systems and web based DSS.
DSS reduce frustration of the decision makers and increase his satisfaction. The on-going use of the DSS increases learning of the user. It assists to learn new concepts and development of the better factual understanding of the business. The Decision Support System increases organizational control. In DSS, transaction data are available for the monitoring of the performance. It also enhances the understanding of the management relevant to the business operations. DSS is useful to reduce time required to solve problems within organization.
Counter Arguments of DSS
DSS sometime result in overload of the information. It creates a dilemma for the user to decide which information is to be considered and which is not. Because not each bites of the information is necessary for the decision making purpose. In DSS, it becomes difficult for the decision maker to ignore information on the priority basis.
In DSS, some decision makers depend too much on the computer decision rather than on their own mind. In such way decision makers lose their own decision making abilities. The DSS promote element of the objectivity in the decision that badly impact overall business of the organization. In DSS, there are too much emphasizing on the machines which make user machine dependent. The overload information in DSS reduces efficiency of the decision makers. In DSS, there is possibility to shift responsibility and blame machine for any mistake. The use of DSS demotivates employees because they feel that they are doing only clerical work.
The cost of the implementation and development of the DSS is very high. In case of tight budget, it becomes difficult to implement DSS.
In this report we concentrated on the important topic of the management information system called Decision Support System (DSS). It is a computer base system that provide help to compile, combine and analyze data for the decision making purpose. Decision Support System was introduced in the 1960s. There are six main categories of the DSS such as a) model- driven b) Data – driven c) communication-driven & d) Documentation-driven e) Knowledge –driven and f) Web-based DSS. We focus on the importance of the Decision Support System for the decision making process. DSS helps to make right decision on the right time. It provide comprehensive data and information for the decision making purpose. In the modern era of the business, DSS play vital role for the achievement of the overall objective of the organization. In our report we focused on the pros and cons of the DSS for the organizations. We mentioned some arguments in the favour of the DSS and some counter arguments. It reduces time required for the decision taken by the top management of the organization. DSS provides information on time to assist senior management to take strategic decision on time.