The full form of DSS is: DECISION SUPPORT SYSTEM
What is DSS?
Decision support systems help organizations and businesses to make a well-strategized decision based upon the previously accumulated information or data.
They consist of Interactive Software help which by using these data analytical models.
A DSS doesn’t help in zeroing down on a decision but helps map out trends, patterns, predictions etc.
What are the characteristics of DSS?
- High levels of interaction is there for decision makers.
- Adaptability and flexibility in developing and deploying projects.
- Complete control by decision makers
- Supportive of the decision system that leads to a solution.
- Ease in developing as a integrated web-based system
What is the Financial Decision Support System?
FDSS consists of interactive software which helps in making decisions on structures as well as non-structured problems with various analytical tools in the field of finance.
FDSS is mainly used by top-level management to make a more logical decision which benefits their enterprise.
What are the types of DSS?
Following are some common types of DSS:
Status Inquiry System- Helps in taking mid-level management decisions
Accounting System - To keep a tab on accounts or finance-related processes
Information Analysis System - Transcript is generated based on the previously accumulated data
Data Analysis System - Studying the accumulated data to uncover the underlying pattern or trend
Model Based System - Optimization models which help in creating a structure for operations
What are the main components of the Decision Support System?
The main components of DSS are:
The User Interface
Also Read : What is the full form of QMS in Finance?
What are the benefits of Decision Support System?
Improves the quality of decisions
Saves time in decision making
Improves the effectiveness and speed of decision making
Helps automate the process of administration
Cost and time saving
Promotes learning of new concepts
Improves collaboration among the decision-makers
What are the disadvantages of DSS?
- Failure of system design: DSS are meant for specific decision makers but if you do not know what should you do with a DSS it will not be possible to create a suitable system design. And a vague DSS may not result into what you are looking for.
- Difficulty in measuring data: In DSS measuring data is important but it’s difficult to analyze unclear and elusive data. Even though DSS may measure some of the data but in reality some values are not defined in specific numbers.
- Unaware of assumption: One may not be entirely aware of the assumption which a decision support system makes as a decision maker while analyzing data for a problem.
- Lack of technical knowledge: Sometimes for the lack of technical knowledge one may not understand the decision support system, although it has become much simpler.
- Difficulty to collect data: While collecting data it’s not possible to collect all data. Some of the data is always left behind. Hence the result presented by DSS may not be 100% true.
What are the differences between MIS and DSS?
- The primary task of MIS is to identify the required information whereas DSS identifies the tools used in decision making process.
- The focus of MIS is on efficiency whereas DSS focus on the effectiveness.
- In MIS the focus is on data storage while DSS focuses on data manipulation.
- MIS is dependent on computer whereas DSS is dependent on management jurisdiction.