UNIT 1: INTRODUCTION TO DECISION SUPPORT SYSTEM
The impact of computer technology on organization and society is increasing as new technologies evolve and existing technologies expand. Interaction and cooperation between people and machines is rapidly growing to cover more and more aspects of organizational activities. Thus, computerized systems assist managers in building, analyzing, and utilizing models, graphs and charts, managing time and projects, electronically writing and transmitting memos, e-mails and reports. Managers have found that computers are like a very reliable staff assistant; it works endlessly without pay, complaint, mistakes, or criticisms of other people. Information now is at the finger tip of the manager in decision making instead of waiting for the Information Service Center to provide them the information they need. Computer-based technologies have greatly reduced the time delay in making decision, thus providing managers an effective and efficient decision making.
Management Support Systems Technologies: Decision Support Systems (DSS), Group Support Systems (GSS) including Group DSS, Executive Information System (EIS), Expert Systems (ES), Artificial Neural Networks (ANN), Managerial Decision Making and Management Information Systems, Hybrid (Mixed) Support Systems.
Management is defined as a process by which organizational goals are achieved through the use of resources. These resources (people, money, energy, materials, space, and time) are considered as inputs and the attainment of the goals is viewed as the output of the process.
Productivity is the degree of success of the organization and the manager’s job is often measured by the ratio between outputs and inputs. It is a major concern for any organization because it determines the well-being of the organization and its members.
Now we can relate that management decision making relates to managing those resources (inputs) with a set of goals to achieve certain standard of productivity. Thus, managers that use computer-related technologies as a tool will have significant impact on productivity. However, managers must realize that with computer technologies, the business environment changes too. Business competition becomes more competitive and aggressive. As a result of these changes, managers must become more sophisticated by learning how to use new tools and techniques that are being developed in their field.
Definition 1: First proposed in 1971 by Scott-Morton. “Interactive computer-based systems, which help decision makers, utilize data and models to solve unstructured problems”.
Definition 2: Proposed by Keen and Scott-Morton . Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision makers who deal with semi-structured problems.
Definition 3: T.J. OLeary and B.K Williams . A complex set of computer programs and equipments that allows end-users-usually managers and professionals-to analyse, manipulate, format, display, and output data in different ways.
Six main reasons why major corporations started large-scale DSS:
|Factors |Percentage | |Accurate information is needed |67 | |DSS viewed as organizational winner |44 | |New information is needed |33 | |Management mandate (command) the DSS |22 | |Timely information is provided |17 | |Cost reduction is...
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