DECISION Support System is an effective tool to make the right decision
DSS or Decision Support System is one of the knowledge management systems that have a role in supporting decision-making processes for companies or organizations.
We must agree that decision-making for a company or organization cannot be done carelessly. Any little mistake in making decisions will cause a large number of losses if the company that has business operations still has passive properties.
For example, most of us must know the world-famous mobile brand, Nokia. In the past, they were claimed to be the leading company in the telephone industry and were able to present innovations that were loved by all consumers almost all over the world.
But, because it always underestimates the latest mobile technology, then Nokia loses competitiveness with other businesses and ends bankrupt. This experienced by Nokia was due to their mistakes in making decisions. As a result, Nokia, which used to become a leading company in the world, is now just history.
This Nokia case is one of the many examples of the importance of companies or organizations in terms of making decisions. There are still many things that must be considered by a company to choose the right decision for the benefit of its business.
Well, now the company can easily make decisions by using decision support systems or decision support systems. Let’s get to know more about Decision Support System below.
Definition of Decision Support System is
Decision Support System is computerized-based information. DECISION Support System is part of a knowledge management system that has an important role in supporting the decision-making process for an organization or company
DECISION Support System is a computer system that can change data to be important in making decisions on specific and semi-structured problems.
With DSS, the company can be easier to solve problems or communicate with any structured and unstructured problems.
Moore and Chang explained that the Decision Support System is a system that can support the ad hoc analysis process in data, modeling a decision, planning orientation in the future, and oriented to a decision.
The characteristics of the decision support system are
Based on the explanation above, the Decision Support System can be determined based on several characteristics. Some of the characteristics of the Support System system are as follows:
1. Help the decision-making process and also focus on management based on existing perceptions.
2. Having a human or machine interface, where humans or users still have control in the series of decision-making processes
3. Support a variety of decision-making processes on the discussion of more structured, unstructured, or semi-structured problems.
4. Have various subsystems that are integrated in such a way and can function in a reliable system unity.
Requires a more comprehensive data structure and can meet information needed for all levels of the company and organizational management.
Stages in Decision Support Systems
In assisting the decision-making process, there are several stages or phases carried out by Decision Support System. Some of the Decision Support System stages are as follows.
1. Intelligence phase
The activities covered generally will suppress the identification of situations and opportunities and problems. Intelligence in this decision-making consists of environmental empowerment both continuously or intermittently.
Some activities that are classified as the stage of this intelligence are identifying problems or opportunities, classification of problems, and also the owner of a problem.
2. Phase design
The design phase is the process of discovery or development and analyzing actions that must be done. In this phase there is an understanding of the problem and also tests a promising solution.
Some examples of this design phase activity are choosing a choice principle, generating or developing choices, and also calculating the entire results.
3. Phase options
The choice phase is an activity in making decisions more critically. In this stage, companies or organizations will make a real decision and also take commitment to follow certain actions.
This phase of choice includes evaluation, search, and recommendations on solutions that are more suitable for models. The solution to this model is a specific range of collections for some decision variables on an alternative that has been selected.
4. Phase implementation
The implementation phase is an initiation in controlling the company’s change. This phase of implementation will feel a little difficult to define because it has a long series of processes and also involves a variety of very unclear limitations.
To be sure, in this phase of implementation it is done so that it can ensure that the solution that has been selected and recommended can work properly without the implementation of a computer system.
The limitations contained in the choice phase and also the design phase is often not visible because certain activities can be done simultaneously in these two phases and also decision making often switches back to the design when it’s already on the preferred market.
An example is when a new alternative can be made when someone has evaluated another alternative that was previously available.
The component on the decision support system is
As a tool to help solve a problem, some of the components owned by the Decision Support System are as follows
- Data Management, this data includes a database that contains relevant data for a variety of conditions and situations. The database on this component has been regulated by software or software known as the Database Management System.
- Model Management, this model involves financial models, statistical science management, and various other qualitative models. For this reason, with this component, the Decision Support System can provide an analytical ability to the system and management needs on a software.
- Communication, with this component, the Decision Support System users can communicate and also give orders to the computer system.
- Knowledge Management, management is a more optional component. The function of this subsystem is to support other components and also have the task as a component that can stand with itself.
The purpose of using a decision support system is
Some goals and also the benefit of using the Decision Support System are as follows:
1. Help the manager or company officials in making decisions from various problems that are semi-structured.
2. Increasing the effectiveness of a decision taken by the manager.
3. Able to overcome all cognitive limits when processing or storing information.
So, various benefits are corporate or organizational goals in using decision support systems in the decision-making process.
Three types of decision support systems and information needed
In the discussion of the Decision Support System above, we mention the structured decisions of the semi-structured and also unstructured. Then, what is meant by the three types of decision support systems?
For structured decisions is a clear and continuous decision-making activity and is generally carried out by the management at the level.
For this reason, there is a need for more specific, narrow, scheduled information, real-time internal and interactive details in using this type of decision support system.
Examples of Decision Support System The type of structure is a decision to order goods, collect debt fill stock products, and many more.
As for semi-structured decisions, the decision will be determined by computers, and others are determined by decision making. For this reason, the law of information needed on this type of decision is data that is more focused, interactive, real-time, internal, and scheduled.
Simply put example is when evaluating credit, scheduling company production activities, and also new stock control.
Finally, unstructured decisions are decisions that the handling process feels very difficult. Because it usually does not occur regularly or in certain conditions.
The object of the decision-making process in this type will require experience and external sources. Generally, this type of decision will occur in higher-level management.
The information needed certainly is internal and also external, wider and also more general. Examples of unstructured decision-making activities are the development of a new technology testing process with other companies and recruiting executive employees.
Thus the explanation of us about Decision Support System. So, we can conclude that Decision Support System is more computerized information. The role is very important in supporting the decision-making process for a company.
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