Decision support system is a computer based information system that supports business or organizational decision making activities. It serves the management, operations and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. This is a way to model data and make quality decisions based upon it, because the right decision in a business is usually based on the quality of the data and the ability to sift through and analyze the data and find trends in which you can create solutions and strategies for the business. The application works as a human component that can sift through large amounts and data and pick between the many choices.
It does not only act as the specialized part of the business, but most companies have integrated this system into their day to day operating activities. Most companies constantly download and analyze sales data, budget sheets and forecast and they update their strategy once they analyze and evaluate the current results. The decision support system has a definite structure in business, but in reality is the data and decisions that are based on it are fluid and constantly changing. The use of the system is to collect data, analyze and shape the data that is collected and then try to make sound decisions or construct strategies from analysis. If people or the data base are involved does not matter, it is the process of taking raw or unstructured data, containing and collecting it and then using it to help aid decision making.
It is important to know that although computers and artificial intelligence is at work or in play with data, at the end of the day it is us humans who will execute the strategies or make the information that is given to us usable there is not one universally accepted model as there are or many theories but there are various ways to classify the decision support system. There are those that just collect data and organize it effectively that are called Passive Models, they do not suggest a specific decision and they only reveal data. While the Active Model will process data and explicitly show solutions based upon that data. But even if the system is active many organizations will still use human intervention to make the decisions
Cooperative decision support system is when data is collected, analyzed and then is to man to who helps the system or revises it. So this means both the computer and man will work together to come up with the best solution. While the above model takes the relationship of the user in mind, another popular model takes into consideration the mode of assistance as the underlying basis of the DSS model. This includes the Model Driven system-this is when decision makers use statistical, simulations or financial models however they do not have to be overwhelming data intensive. A communication driven system is when many collaborators work together to come up with a series of decisions to set in motion a solution or strategy. This can be in an office or the web.
A Data Driven model puts its emphasis on collected data that is then manipulated to fit the decision maker's needs. This data can be internal, external and in a variety of formats. A Document Driven model uses documents in a variety of data types such a text documents, spreadsheets and database records to come up with decisions a well as further manipulate the information to refine strategies. The model you use will really depend on the company and what it is involved in that suite them.
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This article touched the basics of the topic. I have 2 more resources related to the above. They are decision support system and decision support system . They are worth a read.
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