Tools such as Decision Support Systems allow the creation of models of real decision problems in a structured way and analyze them to better understand them and improve the quality of the resulting decisions. This allows people who make decisions, by being able to generate several decision scenarios for the same situation, to make their decisions faster and more accurately, which gives companies a great competitive advantage.
This article presents a view of what DSS is, the advantage and importance of companies having it. The article presents some points to consider to know what type of DDS (commercial or personalized) should be purchased for each type of company, as well as the main characteristics that a DSS provides us.
Content
Decision support systems are part of the revolution of the information technology era and are born from the need to solve complex problems because today we have so much data that it is difficult to process it into useful information to improve the performance of the organizations.
Today, many companies worldwide are implementing decision support systems (DSS) to improve their decision making, meanwhile, many others are just learning what a DSS can provide as a competitive advantage.
Decision support systems are a class of computerized systems that aid in decision-making activities. They are interactive systems based on computers and subsystems that help decision makers to make the process successful using communication technologies, data, documents, knowledge and models.
DSS allow people at different levels of a company to collect necessary data and process it in different ways simulating various real situations and thus being able to choose the best option, so that decision-making is more effective and correct.
There is an idea in many companies that implementing a DSS is very expensive, and that only large organizations can do it, however it is not like that, there is great ignorance about the ways and tools that exist to implement it.
First we must say that there are two types of software: commercial and custom. Commercial software are systems that already exist in the market, for which they have the advantage that the cost is not high and the implementation time is almost immediate, however, they do not fully meet the needs of the company. On the other hand, custom software is more expensive, takes longer to implement but has the advantage that it is adjusted to the company's own needs.
As we can see, the most feasible software for small companies that want to achieve a competitive advantage is the commercial one, which is why they should look for a software in the market that best suits them according to their requirements and needs, fortunately there are more and more systems support to decisions in the market that can be adapted as much as possible to your needs, therefore, the ideal thing for companies looking for this type of software is to analyze and even test various tools, this with the help of both internal consultants as external to the company to find the best solution.However, small businesses that are interested in implementing a customized DSS that is inexpensive can contact programmers with experience in DSS or educational institutions where courses on these technologies are taught.
Now, for large companies that have a budget to acquire personalized software, there are several options of companies that are dedicated to the development of personalized decision support systems, for this it is important to create an evaluation team, define the requirements with help of experts and evaluate several companies that offer us the best solution to achieve a competitive advantage.
SSDs have four main characteristics: they incorporate data and models, they are designed to assist managers in decision processes (they do not replace, but rather support decision-making) and their objective is to improve the effectiveness of decisions and not the efficiency with which those decisions are made.
Some other important features and benefits of DSS to consider are the following:
- Decision type: Supports the process of making structured and unstructured decisions. Structured decisions are those in which there is already a defined way to do it, for example a budget analysis, unstructured decisions are those in which there is no way to do it, for example, hiring staff. Friendly interface: ability to interact in a friendly way and with responses in real time with the decision-maker. Provides individual and group support. Provides support at various managerial levels, from the highest executive level to the lowest. Ease of Operation: Simple, easy to learn and use by the end user, they support a wide variety of decision-making processes and styles.Variety of Users: It can be used by users from different functional areas such as sales, production, administration, finance, human resources, etc. Flexibility: It allows to adapt to a certain variety of administrative styles: Autocratic, Participative, etc. Support in all phases of the decision-making process End users are able to build and modify simple systems by themselves, without needing the help of systems experts provide support for various sequential decisions. These decisions can be made once, several times, or repeatedly. Environmental Interaction: Allows the possibility of interacting with external information as part of the decision models. Organizational Internal Communication: Facilitates the communication of relevant information from high levels to operational levels and vice versa Use of a standard model adapted to needs Enables the execution of sensitivity analysis (ability to see the significance of decision making) Record history of decisions and monitoring.
conclusion
DSS is a very powerful tool that is being used more and more in organizational activities, there are more and more applications in various fields. The success of its implementation depends a lot on the adequate relationship that exists between the developers and the end users at the time of the analysis, so that it is finally a useful tool adjusted to the reality of the company. A well-implemented DDS with the necessary technology will give us the ability to select an appropriate solution, with the lowest cost and in the shortest time, as well as the satisfaction of customers and workers.
It is important to mention that a DSS does not make decisions on its own, those in charge of it in companies rely on these tools to achieve better decision-making in a given situation, analyzing various scenarios, but ultimately those who have the last word are the persons. However, DSS is an important technology, since by providing timely data and analysis that supports decisions, it leads us to have a great competitive advantage, since they are not only based on individual judgments, but on information generated through methods analytical and deductive.
The DDS were born from the need to have a competitive advantage, since they support in all phases of the decision process, both in structured, semi-structured and unstructured problems. Large companies invest up to millions of dollars in DSS, but there are also opportunities for small companies to purchase one within their budget. It is important to take advantage of the competitive advantage that this technology offers to companies of all kinds.
Bibliography
Turban, E., & Aronson, JE (2003). Decision Support System and Intelligent Systems (6th Edition). Singapore: Pearson Education, Inc. (Original edition published 2001).
Decision Support System (DSS). (online).
Decision Support Basics. Decision Home Page Support Systems Resources.
Ríos S., Bielza, C., and Mateos, A. Main page of Ra-Ma Editorial
What are Decision Support Systems ?. Home Page of the National Institute of Agricultural Technology. Daniel J. Power. (2001). Supporting Decision – Makers: An Expanded Framework. Electronic document available at
