Final_question n0.2

TOPIC: THE DECISION SUPPORT SYSTEM (DSS)Question # 3:


1. Describe or define DSS.
it attempts to integrate the decision maker, the data base, and the quantitative models being used.

2. Distinguish DSS from MIS.
DSS is extensively used in business and management. Executive dashboard and other business performance software allow faster decision making, identification of negative trends, and better allocation of business resources. MIS provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy.

3. Illustrate (give examples) how DSS can improve company's competitive advantage and organizational performance.
A specific example concerns the Canadian National Railway system, which test its equipment on a regular basis using a decision support system. A problem faced by any railroad is worn-out or defective rails, which can result in hundreds of derailments per year. Under a DSS, CN managed to decrease the incidence of derailment at the same time other companies were experiencing an increase.


3. Decision support systems can potentially help a firm create a cost advantage. Decision support systems can provide many benefits including improving personal efficiency and reducing staff needs, expediting problem solving and increasing organizational control. Managers who want to create a cost advantage should search for situations where decision processes seem slow or tedious and where problems reoccur or solutions are delayed or unsatisfactory. In some cases, DSSs can reduce costs where decision makers have high turnover and training is slow and cumbersome, and in situations where activities, departments and projects are poorly controlled.
Also, DSSs can create a major cost advantage by increasing efficiency or eliminating value chain activities. For example, a bank or mortgage loan firm may reduce costs by using a new DSS to consolidate the number of steps and minimize the number of staff hours needed to approve loans. Technology breakthroughs can sometimes continue to lower process costs, and rivals who imitate an innovative DSS may nullify or remove any advantage.





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Cherry Ann Bedayo BSC-MA4