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Decision support systems and business technologies

Table of contents:

Anonim

In such a fast-paced environment, constant changes (Dowding Hill, 2001), the opening of borders, new businesses, a globalized market where the struggle for survival is a determining factor (Palazuelos, 2004), the large number of companies (INEGI, 2004), speaking of micro, small, medium and large, they face new challenges, new rules, and therefore, they have to be prepared to stay in the market (Kalakota and Robinson, 2001). That is why each one of them, to achieve this survival, it is necessary to maintain a competitive advantage, which to achieve this is supported by the use of information technologies which, well aligned, drive the organization and generate the competitive advantage so desired.The decision support system is an information technology in which companies are relying on due to the benefits it gives them. (Palazuelos, 2004; Turban and Aronson, 2001).

Introduction:

Undoubtedly, today we live in a very fast-paced environment, as mentioned by Dowding Hill (2001), the environment is dynamic, speed and complexity increase every day in business, which has an impact on the difficulty of responding to the opportunities and threats. (Brenix, 2003).

All this is reflected in three main elements that Kalakota and Robinson (2001) identify as the new economy that uses new tools and is governed by new rules. That is why all this revolution and constant changes must be taken into account by companies, in such a way that they achieve survival in the current market (Palazuelos, 2004). That is why today the administrators of each of the companies face a large number of challenges in order to maintain their company in the market. That is why companies, whether micro, small, medium and large companies (MPMyEs), seek to generate competitive advantages that allow them to compete in such a wide environment, a globalized environment as Palazuelos (2004) points out, in such a way So this fight for survival is not easy.

Decision support systems help companies with their objective of creating a competitive advantage, because they are computer-based systems that provide users with the information necessary for decision-making, (Turban et al, 2001)

Through these systems, the user can respond in a more specific way in decision-making, as it provides an overview of the problem and a series of alternatives for solving it. Likewise, the benefits that can be obtained from them are: decision quality, communication improvement, cost reduction, productivity increases, etc. (Turban et al, 2001)

Methodology:

To carry out this research work, a series of resources were used to obtain bibliographic sources, in order to provide the reader with supported information. The bibliographic sources used are: Books, ITESM digital library, electronic magazines, Web pages of SSD provider companies, and the Internet.

Text complete:

For the development of the article, two main topics are disclosed, which are declared in the title, which are regarding (a) Companies and (b) Decision Support Systems.

1. "Business Sector in Mexico"

When making comparisons at the global level, we are faced with the problem that there is no single classification to identify SMEs, since each country has the same and therefore does not assume the same criteria. For example, in the United States, a small and medium company is considered to be one with up to 500 workers, in Japan less than 300, in Mexico less than 250. (Cota Yáñez, 1998).

The stratification of companies by size is established based on the economic sector and the number of employees. The current classification in INEGI (2004) is presented in Table 1.

Table 1 Stratification of companies by size.

According to INEGI, in Mexico there are around 2 million 844 thousand business units, of which 99.7 percent are Micro, Small and Medium Enterprises (MPyMEs), which together generate 42 percent of the Gross Domestic Product (GDP) and 64 percent of the country's employment.

Table 2 Composition of the business sector in Mexico

Given this panorama, it is remarkable that each of the companies uses technology to generate a competitive advantage and stay in the market because their competition is great and therefore, they will take advantage of every tool, every opportunity and every benefit that they can. grant.

2. "Decision Support Systems"

Decision support systems, DSS (Decision Support Systems), are defined by Turban (2001) as computer-based information systems which combine models and data to try to solve unstructured problems using a friendly interface. for the user. Likewise, Olson and Courtney (1992) say that a decision support system is the use of interactive computation to learn about decision problems, often through access to data and models. It is also necessary to clarify that the DSS were made to help decision makers to expand their capabilities but not to replace them and make decisions. (Turban et al, 2001).

To achieve this help, the system must be a special system, as stated by Bonczek, Holsapple and Whinston (1980) cited in Turban et al (2001) which defines a decision support system as a computer-based system that It consists of three interacting parts: a language system, a knowledge system, and a problem-processing system. To obtain this information from the decision support systems, it is enough to ask a question and then, an answer is obtained as established by Hall (2002), this is the basic calculation that a DSS generates, and that since 1960 has been used Thus, through this, the reports that the user wishes can be generated and in such a way that it can provide enough information to extend their decision-making ability, of course, within this,A series of routine processes is implicit that allows this generation of alternatives.

There are certain characteristics and capabilities that decision support systems must have to help users in the decision-making process. These characteristics make DSS a technological tool that considerably helps the organization. These characteristics as mentioned by Turban et al are:

  1. DSS provides support for decision makers mainly in semi-structured and unstructured situations Provides support for different administrative levels Can be applied for groups and individuals Provides support for interdependent or sequential decisions Supports all phases of the decision-making process Supports a variety of decision processes and styles are adaptable over time easy to use to interact effective and not efficient DSS helps and does not replace human easy to build by end users uses models and analysis data access

Each and every one of these ideal characteristics in a decision-making support system will allow obtaining a series of well-founded alternatives according to the analyzes and models that will provide the user with a better decision-making process, better consistency and savings. of time for the same. Likewise, there are a series of benefits that DSS provide to companies, these benefits provide meaning for decision makers to carry out their task based on complete information and analysis. Olson and Courtney (1992) report a list of 12 DSS benefits based on Keen (1981).

These benefits are:

  1. Increased numbers of alternatives examined, use of sensitivity analysis Better understanding of the business, through relationships that allows decision makers and that can be used to provide an overview of it Quick response to unexpected situations. Through model review and quick view of changes Ability to do temporary analysis New understanding and learning Identifying resources and stimulating new approaches Improves communication Control. There are more consistent plans and procedures are standardized. Cost savings. Better decisions. More effective work team. Time savings. Better use of data.

Likewise, as stated by Mark Cross (2002), the DSS allow users to easily take advantage of the information that is previously stored in the repositories, possibly having a view through a diagram, graph or some specific format. This is not limited to a specific area but can cover a wide geographic area in the organization, which can provide all the necessary requirements.

Taking into account all the information provided, and making a study of the organization, it is possible to suggest the use of a decision support system and demonstrate the benefits that would be obtained with its implementation, then, it is necessary to make the entrepreneurs their benefits and get approval from them. (Palazuelos, 2004)

"Examples of Decision Support Systems"

There are several software for decision support systems according to the needs of the organization in terms of volume of information, capacity, etc., this is how we can find DSS for large, medium, small and micro companies.

Examples of DSS.

  • Microstrategy, http://www.microstrategy.com/es/ Cognos, http://www-01.ibm.com/software/analytics/cognos/ SSD-AAPP

For a micro or small company, a DSS can be carried out with the use of an Excel Sheet, which can be linked to a database in Access, through which the requirements of a company of this size are covered.

Conclusions:

Every day, companies, whatever they may be, are facing continuous change, continuous growth of the industry, of its competitors, in all facets, the environment is very aggressive and therefore requires to be on the lookout For this reason, companies must seek to create a competitive advantage, seek technological tools that allow them to grow, and use technology to boost their business. There are new challenges, there are new opportunities, but there are also new threats, all of these exist for all markets, for all industries, and it depends on who takes them, and faces them, will be the one who will take a step further than their competitors, it is for This means that it is necessary to take on these new challenges, and be alert to each of the threats that may exist.

One of the technological tools that allows organizations to have an ability and flexibility to change are the decision support systems since through them, companies can act according to established patterns, to models that provide consistent information and improves decision making, an activity of great weight. Administrators know that according to their decisions is the future of the organization, the consequences are according to the decision made, that is why in the face of this reality, decision support systems provide decision makers with support that allow them to facilitate this task, not to eliminate people, but to be a help to them. The alternatives that these systems offer are the result of a series of information analysis,all through a process made up of statistics, sensitivity analysis, scenarios, etc.

Therefore, decision support systems are applicable to any company, of any size and sector to help the decision-making process.

Bibliographic references:

1. Brenix, "Supplement.- On the road to demand-driven manufacturing, Strategy to survive in e-business", Brenix - Business Union Contact, 2003 July 4, Mexico.

2. Cota Yáñez María del Rosario (1998, March, 16), "The importance of small and medium-sized enterprises",, Gaceta Universitaria, No. 7, p.13, 3. Dowding Bill. "A road map to e-business success". Industrial Distribution, New York, April 2001, Vol. 90, Issue 4, pp. D10-D12

4. Hall Mark, (2001, July, 1), “Decision-support systems”, Computerworld, Framingham, July 1, 2002, Vol. 36, Iss.27, pg. 31.

5. INEGI, (2004), "National Institute of Statistics, Geography and Informatics"

6. Mark Cross, (2002), “Decision support systems: using technology for successful management”, CMA Management, Hamilton, Dec. 2001-January 2002, Vol.75, Iss.9, pg. 48

7. Palazuelos, Jorge W. (2004), "Decision support systems: technology within the reach of SMEs", 8. SSD-AAPP (No date), “SSD-AAPP: Decision Support System”, 9. Turban Efraim, Aronson Jay E., “Decision Support systems and Intelligent systems”, Sixth Edition, Ed. Prentice-Hall, 2001.

Decision support systems and business technologies