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Decision making and dss systems

Anonim

A decision support system is a management information system that combines analysis models (of information, processes, etc.) and data to solve semi-structured and unstructured problems involving the user through a friendly interface. Its main purpose is to support and improve the decision-making process throughout its stages: intelligence, design, selection and implementation. This support is given at different management levels, from senior management executives to line managers, and can be used individually (by users) or in groups. DSS are mainly used for strategic and tactical decisions in top-level management,where situations considered as problematic occur with low frequency, but nevertheless have high potential consequences; Due to this, the organization must focus on finding a solution and obtaining beneficial long-term results.

As a definition of a decision support system, it is a management information system that combines analysis models (of information, processes, etc.) and data to solve semi-structured and unstructured problems involving the user through a friendly interface.. Its main purpose is to support and improve the decision-making process throughout its stages: intelligence, design, selection and implementation.

  • Intelligence. It is the stage of the decision-making process in which the individual collects information to identify problems that occur in the organization. Design. Stage in which the individual conceives the possible alternatives to the problem in the organization. Selection. Stage in which the individual selects an alternative among the possible solutions. Implementation. It is the stage in which the individual finally executes the decision and reports the progress of her decision.

This support is given at different management levels, from senior management executives to line managers, and can be used individually (by users) or in groups.

Typical application areas for DSS include the following: business planning and management, healthcare, military. As more specific applications in different sectors we have: planning and market research focused on consumer purchasing patterns; market prediction, evolution and growth; operation and short-term strategic planning for monitoring, analysis and reporting of market trends, financial indices, consumption and production; MELSIS in the health sector for medical engineering in the management of information and health care, education and medical research for increasing attention to the problems of treatment of patients; and geographic information systems (GIS) of INEGI.

DSS are mainly used for strategic and tactical decisions in higher-level management, where situations considered problematic occur with low frequency but have high potential consequences; Due to this, the organization must focus on finding a solution and obtaining beneficial long-term results.

Among the benefits that can be obtained with the proper implementation and successful use of a DSS are: cost reduction and low dependence on people outside the decision-making process, increased productivity, better communication, time savings, satisfaction of clients and employees, as well as flexibility to adapt to a variety of decision styles -autocratic, participatory, etc.-, flexibility in the development of decision models by the user, external interaction and Inter-organizational communication, increase in the quality and efficiency of the value chain, and achieve a competitive advantage in the performance sector due to an efficient,Conscientious and truthful transformation of data into relevant information in value processes whose objectives and results are aligned with the organization's strategy.

Depending on the type of problem that the organization faces, there are different types of decision support systems, such as Executive Information Systems (EIS), Group Decision Support Systems, GDSS), Management Support Systems (MSS) or Executive Support Systems (ESS).

Regardless of the type of problem, these decision support systems aim to facilitate the knowledge acquired through experiences under certain circumstances through which the organization has passed. The accumulation of experience is one of the riskiest processes since the greater the learning, the consequence of the mistakes themselves and the reaching a high level of experience in the business world can have a high cost. Therefore, the ideal of this type of decision support systems should be used to minimize risks (cost) so that all the experience can be gained without the effects that could be derived from an erroneous decision or simply from a decision not optimal.

The DSS does not replace the decision-making process, but presents the different solution alternatives and projection of results from the analysis and transformation of data into information through structured models to generate useful information with the help of intuitive and easy-to-use interfaces.. By transforming data into strategic information, the DSS will provide the ability so that the decision maker will not only be able to have answers to the questions Who? and that? But also to What if…? and because? The system will then provide a vision and certain recommendations based on the knowledge generated that was provided to the system in a transactional way.

Depending on the needs of the organization, there are four categories of DSS tools listed below, which can be implemented with various products -from spreadsheets, query tools, applications for tool development, browsers, level reporting systems. business, statistical packages, etc.

  • Query and Reporting Tools OLAP Tools (slice and dice skill) Executive Information Systems (EIS) tools - access to data under user-selected formats Data Mining or Knowledge Data Discovery - for pattern search of information in the data.

The aforementioned tools have the function of providing information in a timely manner –just in time- when the data relationships are complex and it is required regardless of the dimension or level of the data, so that the user does not have to have knowledge of the complex relational structures of the transactional system tables, facilitating the understanding of the information and a streamlined decision-making process.

Nowadays, to ensure a successful DSS implementation, technological aspects, data integration and organizational culture must be considered. The strategic goals must be clearly transmitted and understood by users, and the organizational culture and its policies must include information management in the decision-making process to standardize definitions, concepts, and actions. Senior executives must be committed to strategic objectives and define performance measures and indicators, since a clear vision of the scope of a DSS is a critical success factor because the value of the organization will depend on the administrative and managerial commitment. to base decisions on the information presented by the system,thus also obtaining as a parallel benefit an added value to the decision-making process within the organization.

conclusion

Decision support systems facilitate and streamline the decision-making process in the intelligence, design and selection stages through the transformation of data into useful information (intelligence) for the application of the model (design) of information necessary to solve a problem by providing possible solution options (selection) in the environment in which the organization lives in the administrative, financial, productive areas, etc. However, it is essential that senior and middle management levels are committed to the organizational strategy and objectives established in the process model approach so that the use of DSS is successful and the return on investment is convenient in terms of profits vs. costs.

References:

Shut up, Kathy. (August, 2000). Preparing for a decision support system. Topics in Health Information Management. Vol. 21, Iss. one; pg. 84, 7 pp.

Maya L., Julian. Information Systems to aid in Decision Making (DSS). UEAFIT University.

Moussaoui, L. (2001). The Strategic Role Of Information Systems In Organizations. DIT. Telematic systems engineering department.

Picaza JM; Sobrado FJ; Garcia JJ; Ocariz C.; Aldamiz-Echevarria L. MELSIS: a framework for the construction of Decision Support Systems in monitoring problems. ERABAKI Group. Medical Informatics Laboratory

Department of Computer Languages ​​and Systems. Faculty of Informatics (UPV / EHU). Donosita-San Sebastián.

Rivera A., Manuel. (March, 2001). DSS, Impact on the Decision-Making Process. Enterprise Solutions.

Turban, E., Aronson, JE Decision Support Systems and Intelligent System, Ed. Prentice Hall, 1998.6a. Edition, 3.1-3.4, pp. 94-100; 8.2-8.5, pp. 306-314.

Decision making and dss systems