People Creepin'

Wednesday, January 16, 2013

DSS

Businesses are always looking for way to improve on everything they do, including making difficult decisions easier. A Decision Support System or DSS is an organized collection of people, procedures, software, databases, and devices used to help make decisions that solve problems. [1 Pg. 288] A DSS is often a computer-based program that will support ones decision making.These systems ultimately will make costs lower, generate higher profits, and make better products.

"Decision Support Systems analyzes business data and provide interactive information support to managers and business professionals during the decision-making process, from problem recognition to implementing your decision." [2]

Decision Support Systems use:
(1) Analytical models
(2) Specialized databases
(3) A decision maker’s own insights and judgments
(4) An interactive, computer-based modeling process to support semi-structured business decisions.
[2]

When decisions need to be made within a business data is always needed relevant to the situation and a DSS provides user's with this information at lightning quick speeds.

TurboRouter is a DSS that was developed in Norway to reduce shipped costs a cut emissions of merchant ships. [1 Pg 288] Before they had a DSS to assist with this, it was a job done by someone with pen and paper and had vast experience. The job was getting done, but one person can only evaluate a few ships at a time. MARTINEK is the company that developed TurboRouter which combines the experience of these people with the intelligence and calculating capabilities of a computer. [3] This system will make suggestions to a user at much faster speeds and the user always has the ability to edit or decline suggestions made by TurboRouter. [3] The TurboRouter has increased the speed of production for this process and brought more profit to various shipping companies.

There are many occurrences that a DSS can be implemented. Some examples are:

1. A large stock of inventory, where decision support system applications can provide guidance on establishing supply chain movement that works for a business.

2. A sales process, where decision support systems software is a "crystal ball" that helps managers theorize how changes will affect results.

3. Other specialized processes related to a field or industry.
[4]

As you can see DSS can be used for many different applications. They provide businesses with many benefits that help increase profits, cut costs, optimize inventory. Some of these major benefits include:
  • Speeding up process of decision making
  • Increasing organizational control
  • Speeding up problem solving in an organization
  • Helping automate managerial processes
  • Improving personal efficiency
  • Eliminating value chain activities [2]
However even though a DSS seems like a benefit, there are some disadvantages to having one as well. A DSS costs a good amount of money to buy and you must invest a lot data into the system depending on what you want to do with it. These DSS provide data and sometimes can overemphasize decision processes. Once people get to using these DSS they may rely of them too heavily to make decisions for them when they are use to assist with decisions. [5]
I believe that businesses should use a DSS if they are making decisions that involve a lot of data, and become time consuming. If you have the money for them and use them correctly they can be heavily beneficial to your business and generate lower costs, higher profit and improve your services.

[1] Introduction to Information Systems by Gregory Stair
[2] http://www.targit.com/en/LandingPages/DecisionSupportSystem
[3] http://www.sintef.no/Projectweb/TurboRouter/
[4] http://www.business.com/guides/decision-support-systems-dss-applications-and-uses-34372/
[5] http://dsssystem.blogspot.com/2010/01/disadvantages-of-decision-support.html

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