Saturday, 7 March 2015

Need of Decision Support System (DSS)

Question Format: Why it is necessary to install Decision Support System in today's organization for better decision making process. OR If you are technical personnel, how will you convince your top management to implement Decision Support System in your organization?

Today, decision making is more difficult. The need for decision-making speed has increased, overload of information is common, and there is more distortion of information. 

On the positive side, there is a greater emphasis on fact-based decision making. A complex decision-making environment creates a need for computerized decision support. 

Research and case studies provide evidence that a well-designed and appropriate computerized decision support system can encourage fact-based decisions, improve decision quality, and improve the efficiency and effectiveness of decision processes.

Most managers want more analyses and specific decision-relevant reports quickly. Certainly, we have many and increasing information needs. The goal of DSS is to create and use better information. 

Today, there is a pressing need to use technology to help make important decisions. Decision makers perform better with the right information at the right time. In general, computerized decision support can help transfer and organize knowledge. 

Effective decision support provides managers more independence to retrieve and analyze data and documents to obtain facts and results, as they need them.

From a different perspective, cognitive decision-making biases exist and create a need for decision support. 

Information presentation and information availability influence decision makers both positively and negatively. Reducing bias has been a secondary motivation for building DSS. 

Most managers accept that some people are biased decision makers but often question if a proposed DSS will reduce bias. 

For example, decision makers ‚anchor‛ on the initial information they receive and that influences how they interpret subsequent information. In addition, decision makers tend to place the greatest attention on more recent information and either ignore or forget historical information.

Changing decision-making environments, managerial requests, and decision-maker limitations creates a need for more and better decision support. 

We should consider building a computerized decision support system when 

(a) good information is likely to improve the quality of decisions and 

(b) potential DSS users recognize a need for and want to use computerized support.

Introducing more and better decision support in an organization does create changes and challenges for managers. 

Using a smart phone with decision support applications or a Tablet PC with wireless connectivity to the Internet and corporate databases requires new skills and new knowledge.

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