What information system do managers use to support their decision
An information system that aids a business in decision-making activities that require judgment, determination, and a sequence of actions Show
What is a Decision Support System (DSS)?A decision support system (DSS) is an information system that aids a business in decision-making activities that require judgment, determination, and a sequence of actions. The information system assists the mid- and high-level management of an organization by analyzing huge volumes of unstructured data and accumulating information that can help to solve problems and help in decision-making. A DSS is either human-powered, automated, or a combination of both. Purpose of a Decision Support SystemA decision support system produces detailed information reports by gathering and analyzing data. Hence, a DSS is different from a normal operations application, whose goal is to collect data and not analyze it. In an organization, a DSS is used by the planning departments – such as the operations department – which collects data and creates a report that can be used by managers for decision-making. Mainly, a DSS is used in sales projection, for inventory and operations-related data, and to present information to customers in an easy-to-understand manner. Theoretically, a DSS can be employed in various knowledge domains from an organization to forest management and the medical field. One of the main applications of a DSS in an organization is real-time reporting. It can be very helpful for organizations that take part in just-in-time (JIT) inventory management. In a JIT inventory system, the organization requires real-time data of their inventory levels to place orders “just in time” to prevent delays in production and cause a negative domino effect. Therefore, a DSS is more tailored to the individual or organization making the decision than a traditional system. Components of a Decision Support SystemThe three main components of a DSS framework are: 1. Model Management SystemThe model management system S=stores models that managers can use in their decision-making. The models are used in decision-making regarding the financial health of the organization and forecasting demand for a good or service. 2. User InterfaceThe user interface includes tools that help the end-user of a DSS to navigate through the system. 3. Knowledge BaseThe knowledge base includes information from internal sources (information collected in a transaction process system) and external sources (newspapers and online databases). Types of Decision Support Systems
Advantages of a Decision Support System
Disadvantages of a Decision Support System
Related ReadingsThank you for reading CFI’s guide on Decision Support System (DSS). To keep advancing your career, the additional CFI resources below will be useful:
Which type of information system is used by managers for decisionGroup decision-support systems (GDSS) are specialized systems that provide a group electronic environment in which managers and teams can collectively make decisions and design solutions for unstructured and semistructured problems. Making decisions consists of several different activities.
How information systems support management decisions?Management information systems help decision-makers understand the implications of their decisions. The systems collate raw data into reports in a format that enables decision-makers to quickly identify patterns and trends that would not have been obvious in the raw data.
What are the information system used for decisionSome widely adopted decision-making information systems include management information systems, decision support systems, geographical information systems, group decision support systems, online analytical processing, executive information systems, artificial intelligence, data mining, among many others.
What are the 5 types of decision support system?Decision Support Systems (DSS) are a class of computerized information system that support decision-making activities.. Communication-driven DSS. ... . Data-driven DSS. ... . Document-driven DSS. ... . Knowledge-driven DSS: ... . Model-driven DSS.. |