| Decision Support System: | | | | support system provide. So in most of the organization, |
| A Decision Support System is an integrated set of | | | | managers used the computer based Data processing |
| computer tools allowing a decision maker to interact | | | | applications. This leads to develop the decision support |
| directly with computer to retrieve information useful in | | | | system in business world. |
| making semi structured and unstructured decisions. | | | | A widely held notion is that modern decision -making is |
| Example of this decisions include such things as | | | | a highly structured process. According to this view, |
| merger and acquisition decisions, plant expansion, new | | | | management makes decisions by gathering and |
| product decisions portfolio management and marketing | | | | analyzing all the relevant information, reviewing all |
| decisions. | | | | possible alternatives and then calmly and rationally |
| Decision making is a fundamental managerial activity. It | | | | choosing the course of action that provides maximum |
| may be conceptualized as consisting of four stages: | | | | benefits at minimal risk. |
| intelligence, design, choice and implementation. | | | | Managers play three types of roles in carrying out their |
| Important aspects of the Decision Support System: | | | | functions. Interpersonal roles are mainly based on |
| 1) The most important consideration is the Decision | | | | face-to-face interactions; through in some cases |
| Support System's ease of use - its ability to allow non | | | | computerized communications media may be |
| -technical people to deal with it directly. The single | | | | employed. Informational and decision roles are |
| greatest and most enduring problem with computers | | | | supported by variety of information system, which |
| has been their inflexibility, their inability to let the person | | | | make information available, assist in decision making |
| who actually needs the data to deal directly with the | | | | and serve as means of communication. |
| computer. | | | | All the managerial roles have an element of decision |
| 2) The ability to access information should not be | | | | making: the decision roles are the ones where this is |
| restricted to only the part of an organization or to only | | | | the crucial aspect. The manager brings together |
| certain managerial or professional groups. Instead the | | | | resources in a novel way. Decision support system |
| resource should be distributed to all of the people and | | | | assists an entrepreneur in considering options, selecting |
| part of an organization needing it without widespread | | | | one and planning for its implementation. Handling |
| access; the power of advanced Distributed Processing | | | | disturbances is a part of managerial control. Resource |
| System will go untapped as they typically have in the | | | | allocation is the essence of planning and decision |
| past. | | | | support systems have become indispensable in many |
| 3) The ideal Decision Support System in sharp | | | | organizations for their purpose. |
| contrast to previous method of designing applications | | | | The manager is a problem solver, and the fundamental |
| should not be a 'system' at all in the strict sense of the | | | | activity in problem solving is decision making. Decision |
| term. Rather, it should be a highly adaptive decision | | | | making is the process of identifying a problem, |
| support generator that can easily be used by | | | | developing alternative solution and choosing and |
| professionals to quickly design data support prototypes | | | | implementing one of them. An experienced manager |
| suited to each specific decision-making task. This | | | | recognizes a problem as similar to one he or she has |
| adaptive tool must allow quick design changes if the | | | | already encountered. The intuitive grasp of a problem |
| original design does not closely match a person's | | | | most often relies on such an ability to establish an |
| information gathering style or needs. | | | | analogy. The systems approach to problem solving |
| 4) To adequately support the human element, this | | | | helps to manage complexity. |
| highly adaptive support capability must be able to | | | | Decision support system in the organizational |
| provide access to operational data and as well as to | | | | environment: |
| summary data that already has been processed by | | | | Organizations that have been the most successful in |
| application programs designed for other specific | | | | the implementing DSS have much in common. They |
| operational tasks. Equally important this tool must | | | | have well established, well controlled and well |
| provide the professional with access to an | | | | structured data processing system which provides |
| organization's raw data and it must allow the access | | | | transaction processing data necessary for DSS. Such |
| to be accomplished in one step using a single | | | | organizations have spent extra money and personnel |
| uncomplicated procedure or command and without | | | | necessary to maintain a research and development |
| having to re-key non summary data. | | | | focus. All the departments in the organization have |
| 5) The organizations need to access original data | | | | communicated with central groups of computer. The |
| sometimes because efficiency is related to how well | | | | entire departments have sufficient confidence to initiate |
| the original data is organized in the system; the | | | | and manage systems projects. The central computer |
| Decision Support Generator should be able to interface | | | | groups have several people on its staff that either |
| with a true DBMS. It should also be able to access | | | | came from all other departments'. Education and |
| standard 'flat' files indirectly using the power of the | | | | training programs are used by the organizations to build |
| host computer to facilitate both the user interface and | | | | mutual understanding between departments and the |
| data access without changing existing files. | | | | computer group. |
| 6) The Decision Support Generator should let the user | | | | Capabilities offered by DSS: |
| decide whether information should be displayed on the | | | | 1) Support decision making in ill-structured situations- in |
| CRT screen for immediate use or whether it should be | | | | which ,precisely owing to the lack of structure, problem |
| printed for later use. The best way to accomplish such | | | | do not lend themselves to full computerization, and yet |
| flexible data presentation is through a work station. | | | | require computer assistance for access to and |
| The management or professional information | | | | processing of voluminous amount of data. |
| workstation would incorporate a keyboard, display | | | | 2) Help to rapidly obtain quantities results needed to |
| screen and an interface to a printer which could print | | | | reach the decision. |
| everything from straight text to graphics like pie charts, | | | | 3) Operate the ad hoc mode to suit the current needs |
| bar charts and line charts. | | | | of the user, as opposed to operating in a generally |
| 7) The support tool must interface with several | | | | scheduled fashion as management reporting system |
| different systems and capabilities, it must be | | | | do. |
| compatible with all of them, the tool must provide users | | | | 4) Support various stages of the decision making |
| with a single easily used language to access | | | | process. |
| manipulate and present data in a way that will best | | | | 5) Foster high-quality decision making by encouraging |
| support the end-user. | | | | decisions based on the integration of available |
| 8) To facilitate formatting and manipulating displayed | | | | information and human judgment. |
| data, the decision support generator should ideally be | | | | 6) Offer flexibility as opposed to a preordained pattern |
| able to interface with word processing software. With | | | | of use - making it easy to accommodate the particular |
| this capability, the DSS becomes the critical link | | | | decision making style of an individuals. |
| between data processing and office automation, | | | | 7) Facilitate the implementation of the decisions which |
| integrating both functions in an easily-used, straight | | | | frequently cut across department boundaries. |
| forward, extremely powerful system. | | | | 8) Support group decision making particularly through |
| Decision making characteristics in the Global Business | | | | group DSS (GDSS). |
| Environment: | | | | 9) Give managers the opportunity to gain a better |
| Business Strategy/Decision Making Characteristics | | | | understanding for their business by developing and |
| Multinational: (decentralized federation) Decision making | | | | working with models. |
| decentralized to subsidiaries, informal relationships | | | | Conclusion: |
| between head quarters and subsidiaries | | | | With in the past several years, `computers have been |
| International: (coordinated federation) More vital | | | | used increasingly in areas of financial management, |
| decision and knowledge in general developed at head | | | | production analysis, short-term planning and |
| quarters and transferred to subsidiaries | | | | geographical analysis.Today's business worlds, |
| Global: (centralized federation) Decisions made at the | | | | Computers are used for decision making process as a |
| center knowledge developed and retained at the | | | | Decision support system. Decision Support System is |
| center | | | | types of management information system whose |
| Transnational: (integrated network) Decision making | | | | principal objective is to support a human decision |
| and knowledge generation distributed among units | | | | maker during the process of arriving at decision. The |
| Managers and Decision Support System: | | | | strength of DSS lies in supporting decision making in |
| The daily work of a manager, as hundreds of brief | | | | situations where both human judgment and the power |
| activities of great variety, requiring rapid shifts of | | | | of the computer are required. DSS primarily support |
| attention from one issue to another, very often initiated | | | | for strategic, tactical and operational planning. |
| by emerging problems. A manager maintains a | | | | Properly designed and integrated, the DSS becomes a |
| complex web of contacts outside and inside of the | | | | very powerful support tool that enhances the |
| organization. A successful manager is not swamped | | | | productivity of professionals' at all organizational levels |
| by onslaught of these activities: he or she maintains a | | | | in all departments. It can effectively extend the |
| personal agenda. Effective manager carve out as it | | | | organization's present staff by reducing its workload, |
| were, their own informal structure within the corporate | | | | thereby increasing productivity. And with today's |
| structure and they use this network to keep | | | | technology and state of the art software tools, it can |
| themselves informed and influence others. It has been | | | | bring us even closer to bridging the chasms and |
| absorbed that proactive manager make special | | | | operations reach worlds. These features can offer |
| efforts to develop a long-term view and long-term | | | | today's organizations pressed more than ever before |
| agenda. | | | | to maximize efficiency while reducing costs |
| The need for types of information produced by | | | | unprecedented benefits in the utilization and |
| decision support system has always been present. | | | | management of both their human and computer |
| Decision support systems have become popular | | | | resources. |
| primarily because of their capability to fill this need. | | | | Reference: |
| Nowadays availability of the computer hardware, the | | | | 1) "Management Information System" by Viladimir |
| advent of the Database Management System in the | | | | Zwass |
| 1970's provided means for storage and management | | | | 2) "The nature of Organizational Decision Making and |
| of large amount of data, large increase in number of | | | | the Design of Decision Support System" by George .P |
| software packages incorporating the functions of a | | | | Huber. |
| decision support system. Finally many MBAs who | | | | 3) "Introduction to Business Data Processing" by |
| were trained analytic techniques are now reaching the | | | | Lawrence S. Orillia |
| middle and upper levels of corporations .These | | | | 4) "Management Information System" by James O. |
| individuals know how to use the tools that decision | | | | |