Showing posts with label Computerized Decision Support System. Show all posts
Showing posts with label Computerized Decision Support System. Show all posts

Decision Support Systems

The need for company executives to make better decisions and the rapid evolution of computing power led to the birth of decision support systems (DSSs). A DSS is a type of computer information system whose purpose is to support decision making processes. A well-designed DSS is an interactive software system that helps decision makers aggregate useful information from raw data, documents, and business models to solve problems and make decisions.

While these systems were first implemented in executive circles, they have quickly grown to be used by trained professionals as well. Various remnants of DSS software implementations can be found everywhere from the Internet to your local bank branch. For example, when you go to a bank and apply for a loan, complex DSS software is used to determine the risk to the bank based on your financial history. The result of this information will aid the loan officer as to whether the bank should make the decision to loan you money.

DSSs gained tremendous popularity in the late ’80s and early ’90s. The first systems that were deployed targeted large-scale organizations that needed help with large amounts of data which included the government, and the automobile and health care industries. These systems were very successful and delivered tremendous return on investment.

Early DSS projects, while largely successful, did have some challenges however:
  • Customizability: DSS software did not exist in the way it does today. A vendor couldn’t simply download a tool or customize a preexisting system. Usually, these tools had to be designed and programmed from scratch.
  • Multiple vendors: Implementations of early DSSs were a mix of software, hardware, servers, networking, and back-end services. In the ’80s and early ’90s, there wasn’t a single company that could provide all of the necessary components of complex systems at once. Multiple vendors usually worked on a single project together on a single DSS implementation.
  • Uniqueness: Early DSS software was unique and often the first of its kind. This usually meant that a great deal of planning had to be done to get concepts moved from theory into a working information system. Architects and programmers in the early days of DSS couldn’t rely on how-to guides to implement a unique custom system.
  • Long deployments: Projects that included custom software and hardware from multiple vendors obviously led to implementations that took a long time to complete.
  • Expensiveness: DSS systems in the ’80s and ’90s were very expensive and easily carried budgets of tens of millions of dollars.
DSSs allowed for entire organizations to function more effectively, as the underlying software powering those organizations provided insights from large amounts of data. This aided human decision makers to apply data models into their own decision making processes.

DSS software at its start was considered a luxury, as only the largest of organizations could afford its power. Since the software was custom and worked with the cooperation of multiple vendors, it was hard to apply these systems as reusable and resalable deployments. Tens of thousands of hours were invested in making these systems come to life. In the process of designing these complex systems, many innovations and great strides were made in the young software industry. These innovations were screaming to be let out into the wild and used in conjunction with other pieces of software.

The demand for DSS software was ripe and the vendors were beginning to taste the huge amounts of potential profits. If only they could make the software a little more generic and resalable, they could start selling smaller DSS implementations to a much larger audience. This idea led to applying the core innovations of complex DSS software into many smaller principles like data mining, data aggregation, enterprise reporting, and dimensional analysis. Enterprise software vendors started delivering pieces of DSS as separate application packages, and the early seeds of BI were sown.


Computerized Decision Support System

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.

 
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