When managers want make a decision they need considerable amounts of relevant data, information and knowledge. Processing these, managers must be done quickly, frequently in real-time and usually requires some computerized support system.
1. Speedy computations
A computer enables the decision maker to perform many computations quickly and at a low cost. Timely decisions are critical in many situations, ranging from a physician in an emergency room to a stock trader on the trading floor. With a computer thousands of alternatives can be evaluated in the seconds.
2. Improved communication and collaboration
Many decisions made today by groups whose numbers maybe in different locations. Groups can collaborate and communicate readily by using web-based tools. Collaboration is especially important along the supply chain where partners must share information.
3. Increased productivity of group members
Assembling a group of decision makers especially experts in one place can be costly. Computerized support can improve the collaboration process of a group and enable its members to be at different locations by saving travel costs. Also increase the productivity of staff support such as financial, legal analyst by using software optimization tools that help determine the best way to run a business.
4. Improved data management
Huge amounts of data can be stored in different databases anywhere in the organization and even possibly at web sites outside the organization. The data may include text, sound, graphics and video and they can be in foreign languages. It may be necessary to transmit data quickly from distant locations. Computers can search, store and transmit needed data quickly, economically, securely, transparently and paperless.
5. Managing giant data warehouse
Large data warehouse like the one operated by Wal-Mart contain terabytes and even petabytes of data. Computers can provide extremely great storage capabilities for any type of digital information and this information can be accessed and searched very rapidly.
6. Quality support
The more data can be accessed the more alternatives can be evaluated, forecasts can be improved, risk analysis can be performed quickly and the views of experts can be collected quickly and at a reduced cost. Expertise can even be derived directly from a computer system using artificial intelligence methods.
7. Agility support
Competition today is based not just on price but also on quality, timeless, customization of products and customer support. In addition, organization must be able to frequently and rapidly change their mode of operation, reengineer processes and structures, empower employees and innovate in order to adapt to their changing environments. Decision support technologies such as intelligent systems can empower people by allowing them to make good decisions quickly even if they lack some knowledge.
8. Overcoming cognitive limits in processing and storing information
The human mind has only a limited ability to process and store information and people sometimes find it difficult to recall and use information in an error-fashion due to their cognitive limits. The term of cognitive limits indicates that an individual’s problem solving capability is limited when a wide range of diverse information knowledge is required. Computerized systems enable people to overcome their cognitive limits by quickly accessing and processing vast amounts of stored information.
9. Using the web
Since the development of the Internet and Web servers and tools, there have been dramatic changes in how decision makers are supported. Most important, the Web provides the access to a vast body of data, information and knowledge available around the world, user-friendly graphical user interface that is easy to learn to use and readily available, the ability to effectively collaborate with remote partners and availability of intelligent search tools that enable managers to find the information they need quickly and inexpensively.
10. Anywhere, anytime support
Using wireless technology managers can access information anytime and from anyplace, analyze and interpret it and communicate with those involved.