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Decision Support Systems

There are many definitions of a decision support system (DSS). The broadest definition would be any use of readily available computer systems to aid decision makers in making a decision. This entry will review the more academic definitions of DSS.

Decision support system is a term that arose from research conducted at MIT in the 1970s. The definition was commendably broad, including the use of computerized systems to aid human decision makers by providing them better and more timely information, as well as the processing of this data in models. The type of model could range from database query to complex optimization. As the 1970s and 1980s proceeded, divergent views of DSS emerged. In the information systems academic discipline, the focus was on systems, providing data from various sources (internal or external), a tool-kit of models, and a user interface that was available in a timely manner. This view is reflected in the earliest DSS texts. Peter Keen and M. S. Scott Morton defined DSS as using computers to (a) assist managers in their decision processes in semi-structured tasks; (b) support, rather than replace, managerial judgment; and (c) improve the effectiveness of decision making rather than its efficiency. Ralph Sprague and Eric Carlson soon followed with another popular text, using this definition—interactive computer-based systems that help decision makers utilize data and models to solve unstructured problems. At that time, interactive computer access was a new concept. That no longer is the case, so that aspect isn’t so important anymore. DSS is still important to management theory because the other elements of their definition remain useful in distinguishing using computer systems to help humans learn about the implications of the various options available to them, hoping to lead to better, more effective decision making. The term was used early on in connection with commercial software products, a practice that continues to this day. Since the 1980s, there has been more focus on branches of DSS, to include computer system architecture, group communication support, and continued widespread use of the term in connection with models to aid interesting and important decisions. In this entry, fundamentals of DSSs are described in terms of their benefits. Types of DSSs are described, and the importance of DSSs in supporting human decision making is discussed.

Fundamentals

DSSs come in many forms. Their primary feature is harnessing computer power to aid decision maker learning about decision environments. DSSs generally accomplish this through access to data and models appropriate to the decision. There have been literally hundreds of papers using DSS as a keyword every year since 1990 by one incomplete search engine. These papers include many studies of DSS effectiveness. Some of these sources have contributed to the Wikipedia site. Benefits of DSSs include (a) improving personal efficiency, (b) speeding up the decision-making process, (c) increasing organizational control, (d) encouraging decision maker exploration and discovery, (e) speeding up organizational problem solving, (f) facilitating interpersonal communication, (g) promoting learning or training, (h) generating new evidence to support particular decisions, (i) creating competitive advantage, (j) revealing new approaches to thinking about particular problems, and (k) helping automate managerial processes.

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