Decision Support System - Characteristics, Benefits & Elements (MIS 01.06.2021)

Decision Support System - Characteristics, Benefits & Elements

Decision making is an important part managing organizations successfully. Decision support systems (DSS) is a computer-based software application system where the business data is analyzed in the form of information and presents it to the user so that the user can take meaningful business decisions more easily. It is intended to help managers in decision-making by accessing large volumes of information produced from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

The unique executive user configuration of the Decision Support System (DSS) is based on the following characteristics:

1. Specialize in Easy-to-use Software:

The DSS specializes in easy-to-use software that uses simple English commands rather than technical computer terms

2. Employs Interactive Processing:

The rapid response time of a DSS permits interactive processing.

3. Use and Control Rests with the User:

The use and control of the DSS rests with the user and not the central information management department.

4. Flexible and Adaptable:

The DSS is flexible and adaptable to change in the executive’s style or in the external environment.

5. Executive Decisions are the Focal Points:

The data for the DSS and associated models are organized around the executive’s decisions rather than around existing databases.

 

Benefits of DSS

1. Improves efficiency and speed of decision-making activities.

2. Increases the control, competitiveness and capability of futuristic decision-making of the organization.

3. Facilitates interpersonal communication.

4. Encourages learning or training.

5. Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.

6. Helps automate managerial processes.

 

A typical DSS consists of the following elements:

1. An MIS that supports several methodologies for accessing and summarizing data

2. A sophisticated database that allows information to be accessed in various ways

3. A user-friendly interface that allows the user to use simple commands rather than technical computer terms when communicating with the DSS

4. A database built from both external and internal sources so that the manager can relate internal events to external forces

5. Rapid response time, which makes DSS an easy and rewarding system to use.

 

A DSS must provide information to managers whenever it is needed in a form they can easily understand. A typical DSS places the information under the manager’s direct control.