Decision Support System and Managerial Decision Making

Topics: Decision theory, Decision making, Decision support system Pages: 15 (4576 words) Published: March 5, 2012
ADMS 4300 FALL 2011
Decision Support System and Managerial Decision Making
Prof. Hassan Qudrat-Ullah
Due Date: December 8, 2011
By: Farazeh Khalid Mian
Abhishek Sahi

Table of Contents

| Abstract| 3|
11.11.2| IntroductionWhat is decision making? What is a Decision Support System?| 3, 44, 5, 6|| Literature Review DSS in the business environmentImportant attributes of the Decision Support SystemCapabilities offered by DSS| 77, 8, 910|| Discussion and AnalysisHow are Decision Support Systems and managerial decision-making linked?Managers and Decision Support SystemsDSS implementationA real-life case on how a company’s problem was transformed into a DSSTransforming the GSK problem into a Decision Support System — a conceptual viewSimulation Model| 11, 1213, 1414, 15, 1617, 1818, 1920, 21, 22| 4| Conclusion| 22, 23|

| References| 24, 25|

In today’s world, business is rapidly evolving and there’s a greater need to make better-informed decisions using the fast flowing and wide variety of information available. This paper focuses on how Decision Support Systems (DSS) contribute positively to organizations and how managers across several industries use a DSS to assist in tactical decision-making. We discuss what a DSS is, and it plays a significant role in managerial decision-making. Computer-based information systems play a critical role in providing significant support for unstructured and disoriented problems. We discuss how DSS allows organizations to gain advantage in their daily processes and allows them to tackle their problems in an organized and informed manner. We discuss and analyze an example on Glaxo Smith Kline (GSK), an organization that transformed a GSK problem into a decision support system framework by creating a model outline for the proposed DSS, and then implementing the DSS. We conclude that Decision Support System is a powerful support tool that significantly contributes to boosting individuals and an organization’s productivity, given it is planned and integrated effectively. Keywords: DSS, Decision-making, Managers, Glaxo Smith Kline

1- Introduction:
1.1 - What is decision making?
A decision is a mental process that can make or break an organization’s success. Decision-making involves analyzing and calculating the mathematical probabilities of success and failure of the different alternatives in a given situation, and then taking action based on one of the alternatives. A decision is the process of taking a stand for something, or a position or belief or conclusion reached after deliberation of alternatives and options. The importance of a right or a wrong decision in an organization cannot be stressed on enough. A decision could lead to outright success, or failure. The consequences are far-reaching for the rest of the organization’s life. Figure 1 illustrates the decision making process.

Fig 1: The decision-making process 1.2 - What is a Decision Support System?
Decision Support Systems (DSS) are a branch of computer-based information systems that’s main purpose is to support decision-making activities in an organization. Computer- based information systems include management information systems, transacting processing systems and office automation systems. Support systems that are used to help the management level in an organization include DSS, executive information systems, dashboards and expert systems.

Model and data management in DSS are entangled fields: data is a fact that is produced as output from observing occurrences such as daily production quantity, daily sales quantity and inventory levels of products. The database is the component that integrates interrelated files; and the database management system uses the database to produce results the...

References: 1. Jennifer Shang, Pandu R. Tadikamalla, Laurie J. Kirsch, Lawrence Brown, A decision support system for managing inventory at GlaxoSmithKline, Decision Support Systems, Volume 46, Issue 1, December 2008, Pages 1-13, ISSN 0167-9236, 10.1016/j.dss.2008.04.004. (
2. M. C. Er. 1988. Decision support systems: a summary, problems, and future trends. Decis. Support Syst. 4, 3 (September 1988), 355-363. DOI=10.1016/0167-9236 (88) 90022-X
3. Information Systems in Management Science: Decision Support Systems: The New Technology of Decision Making? Andrew Vazsonyi, Interfaces, Vol. 9, No. 1 (Nov., 1978), pp. 72-77 Published by: INFORMS Article Stable URL:
4. Nolan, Dr. Richard L., Decision support systems: Managerial tools enhance decision-making, Tymshare, Inc., 1977
5. Veena, Tewari, and Raman Dr. VVR. "Decision Support System and Managerial Decision Making." . International Journal of Knowledge and Research in Management & E-Commerce Vol.1, Issue 1, January 2011. Web. 7 Dec 2011.
6. Sean B. Eom, "Decision Support Systems," International Encyclopedia of Business and Management, 2nd Edition, Edited by Malcolm Warner, International Thomson Business Publishing Co., London, London, England, 2001, forthcoming.
7. F.J. Radermacher, Decision support systems: Scope and potential, Decision Support Systems, Volume 12, Issues 4-5, November 1994, Pages 257-265, ISSN 0167-9236, 10.1016/0167-9236 (94) 90044-2. ( Keywords: Artificial intelligence; Biases; Decision support; Decision theory; Modelling; Optimization
8. Salvatore T. March, Alan R. Hevner. Integrated decision support systems: A data warehousing perspective. Decision Support Systems, 2007: 1031~1043
9. Power, D, and R Sharda. “Model-driven decision support systems: Concepts and research directions.” Decision Support Systems 43.3 (2007): 1044-1061.
10. J. P. Shim, Merrill Warkentin, James F. Courtney, Daniel J. Power, Ramesh Sharda, and Christer Carlsson. 2002. Past, present, and future of decision support technology. Decis. Support Syst. 33, 2 (June 2002), 111-126. DOI=10.1016/S0167- 9236(01)00139-7
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