We will discuss Decision Support System (DSS) in this opportunity, which you may not be familiar with. A Decision Support System (DSS) is a computerized program that helps an organization or business make decisions, make judgments, and take actions. DSS shifts and analyzes massive amounts of data, gathering a detail information that you can use to solve problems and make decisions.
DSS standard data includes target or projected revenue, sales or past figures from various periods, and other inventory or operations data. You can collect data and analyze it by decision support systems to generate comprehensive reports. As an information application, DSS differs from a standard operating application in that it does more than just collect data.
Humans can completely automate or manage the DSS. It is also possible to combine the two. The ideal system analyses data and makes decisions on behalf of the users. Hence, they enable human users to make better decisions more quickly.
Don’t worry, HashMicro presents the most complete ERP software in Singapore. With excellent features, integrated with the best modules, it makes it easy for you to create the reports that the company needs. This article will then go over the system’s characteristics, types, and goals.
Table of Content
- Characteristics of Decision Support System
- Stages in a Decision Support
- Four Components in a Decision Support System
- The Purpose of Using a Decision Support System
- Three Types of Decision Support Systems and the Information Needed
Characteristics of Decision Support System
DSS systems benefit from programing them to generate various reports based on user specifications to communicate information to customers clearly and understandably. A DSS, for example, can create and output information graphically, such as a bar chart representing projected revenue or as a written report.
Data analysis is no longer limited to large, bulky mainframe computers as technology advances. Because DSS is essentially an application, it can be installed on most computer systems, including desktops and laptops. Mobile devices can also access specific DSS applications. Additionally, DSS flexibility is advantageous to users and those of you who may travel frequently.
Stages in a Decision Support
System This system has several stages or phases in assisting a decision-making process. The following are the stages:
1. Intelligence Phase
This activity will generally emphasize identifying the situation and the available opportunities and problems. This intelligence in decision-making consists of continuous or intermittent environmental empowerment. This stage includes identifying problems or opportunities, classifying problems, and taking ownership of the problem.
The second phase is finding, developing, and analysing the necessary actions. There is an understanding of the problem and testing of promising solutions during this stage. Selecting the principle of choice, generating or developing options, and calculating all the final results are some activities in this design phase.
Phase This subsequent phase is a phase that involves more critical decision making. At this point, the company or organization will make a firm decision and commit to taking specific actions.
This stage of the selection process includes evaluating, searching, and recommending a better solution for the model. The explanation for this model is a specific set of several decision variables on an alternative like your chosen one.
The implementation phase begins with the company’s change management. This implementation phase will be challenging to define because of the lengthy process and ambiguous boundaries. This phase ensures that the selected and recommended solution works appropriately without needing a computer system.
Limitations in the choice and design stages are generally concealed since certain tasks can be completed in both processes concurrently, and decision making often moves back to design while in the options market. For example, you can develop new alternatives by evaluating old options.
Four Components in a Decision Support System
The following are some components of a decision support system that you might use to assist in solving a problem:
- Data management is data management that includes a database containing relevant data for various conditions and situations. The system manages the database on this component, which is part of the software.
- The management model is a component that includes financial models, statistical management science, and various other qualitative models. As a result, decision support systems can provide the analytical capabilities of the system as well as software management requirements with these components.
- Communications; Users of decision support systems can communicate with and give commands to computer systems through the use of these components.
- Knowledge management; Management is a more optional component. This subsystem aims to support other members while fulfilling their responsibilities as independent components.
The Purpose of Using a Decision Support System
Some of the purposes of a DSS are to assist managers in making decisions to solve problems, support managers’ judgments, and increase the effectiveness of managers’ decision-making rather than the efficiency of the decision-making process. However, DSS does not seek to replace the manager’s role but rather as a tool to assist managers in their daily activities.
Three Types of Decision Support Systems and the Information Needed
What are the three types of decision support systems currently available? We discuss as follows.
This type is often carried out by management at that level and is distinguished by unambiguous and ongoing decision making. As a result, more particular, narrow, planned, real-time and interactive internal information is necessary when employing this decision support system.
In addition, decisions regarding ordering goods, collecting accounts payable, filling product inventory, and many other types of decisions are examples of this type of decision support system structure.
In this type, the decision will be determined by the computer, and some other choices are on the part of the decision-maker who decides. Therefore, the law of information needed in this decision is more focused, interactive, real-time, internal, and scheduled. A simple example is evaluating credit, organising company production activities, and controlling new stock.
The last type of decision-making process is complicated. Because it doesn’t happen regularly or under certain conditions, this decision-making process will require experience and outside sources. In general, decisions like this are made at higher levels of management.
The information needed is, of course, both internal and external and broader and more general. The development of new technologies, the process of testing with other companies, as well as hiring executive employees are examples of unstructured decision-making activities.
In conclusion, the decision support system is more computerized information. Its role in assisting the decision-making process within the company is significant. This is undoubtedly very useful for every company, especially in managing finances or carrying out accounting activities that are more complex than other activities. Furthermore, Accounting Software from HashMicro can make accounting tasks more accessible and more automated. If your company requires Accounting Software, do not hesitate to contact us. HashMicro provides Accounting Software with the complete modules and features to help you prepare financial reports more quickly and efficiently. Click here for a free demo.