Decision Support System - Essay Example

Decision Support System Insert Insert Overview Technology has made great contributions to decision-making. Recently, decision support systems which are computerized have been developed and are working tremendously well. This paper will explain the development of a decision support system and methodology followed in designing the decision support system. Introduction A Decision support system is information system software that supports decision-making activities in a business or organization. It is used to make decisions at management level, operations level and planning levels (Chuang & Yadav, 1998) Decision support systems can be computerized, or manual depending on the use. The process (methodology) of designing a decision support system includes the following; 1. Identification of the problem based on the problem context is identified- the user requirements are identified especially the end-user viewpoint nurses or the managing directors. Data integration requirement and the maintenance requirements including the backup requirements (Forgionne, 2000) 2. Conceptual design is the second step- this is a step whereby the suitable design and implementation of the decision support system is determined. Input/output formats which can gratify the user interface are identified. Hardware and software requirements are also determined. Conceptual; specifications for the general transactions and backup databases are identified. 3. Logical design and architectural provisions- this includes designing a user interface and prototyping. The modeling process is carried out which include registration to treatment procedures. Strategic design and data modeling of the backup system and general maintenance. 4. System design – components and platforms to be used are determined and the most effective chosen for the development of an effective decision support system. 5. System implementation- this is a stage where system testing occurs, the system is evaluated and a test group is trained and the components of the system are produced. 6. System modification- evaluation test is carried out which can determine user approval, system incorporation, architectural flexibility and the system scalability (Forgionne, 2000). Test procedures are used on the test group for each feature contained in the decision support system. 7. Operational deployment of the system- This is the final stage where the final design and implementation of the system occurs. All users are trained, and continuous monitoring is carried out to ensure full exploitation of the system and until the rightful system is achieved. The stakeholders of the decision support system include the management, the executive, the system analyst and the customers. The Advantages of using a decision support system include; 1. Time savings- Decision support system has reduced decision-making time as research shows, employee productivity has greatly increased and information for decision-making information is timelier. A lot of time has been saved when computerized decision support is used in an organization. Decisions made have improved in quality and a number of decisions can be made at ago. 2. Efficiency is enhanced- decision-making has been made effective through the use of a decision support system. Though it’s hard to measure the quality, the final outcome conveys a lot 3. Improve interpersonal communication. Decision Support System can develop communication and partnership among decision makers. Communications- driven system and group Decision Support System have done this. The Model-driven Decision Support System provides a platform for sharing facts and hypothesis. Data-driven Decision Support System make "one version of the truth" about company processes available to managers and hence can support a fact-based decision-making (Raghunathan, 1996). Improved data convenience is often a major inspiration for building a data-driven Decision Support System, but this advantage has not been effectively confirmed for most types of Decision Support System. 4. Competitive advantage- this can be gained from high risk, novel, and inward facing Decision Support System. 5. Reduction in decision-making cost- a cost which could have been incurred in long-term decision-making procedures are reduced when decisions are made at the shortest time possible. 6. Increase decision maker contentment-The originality of using computers has and may continue to puzzle analysis of the outcomes. Decision Support System reduces dissatisfaction of decision makers, creates an opinion that better information is being used and/or creates a view that the person involved is a "better" decision maker. Fulfillment is a complex measure and researchers often measure this with the Decision Support System rather than fulfillment when using a Decision Support System in making decisions. Some studies have compared satisfaction with and without computerized decision aids. Studies show the complexity and stress of using computers for decision support. 7. Promote learning- Learning occurs as a final product of initial and ongoing use of the decision support system. Two types of learning do occur: learning of new ideas and the development of a better accurate understanding of the business and decision-making environment. Some the decision support system serves as "de facto" guidance tools for new employees. 8. Increase organizational control- The decision support system which is normally Data-driven often makes business data available for performance examination and ad hoc questioning. Systems like this can develop management understanding of business operations, and this is perceived useful. What is not always evident from this is the financial benefit from increasingly comprehensive data. Disadvantages of Decision Support System Though the decision support system has advantages, it can also create negative outcomes in some situations. 1. Fiscal cost- The decision support system requires an organization to invest in a good information system which is costly. The information system will assist in the collection of data from many different sources and analyze them to support the decision-making process. Some scrutiny done on Decision Support System needs the advance of data inspection, statistics, econometrics and information system which requires a specialist. For reasons of hiring one specialist so as to perform system set up and will cost the organization a lot of money. 2. Exaggerate decision-making- implementation of a decision support system may overemphasize the decision process and decision-making (Raghunathan, 1996). Managers must be taught in the broader context of decision-making and the social, political and emotion factors that impact organizational success. It is especially important to investigate when and under what circumstances Decision Support System should be built and used. 3. Assumption of significance- "Once a computer system has been installed it is difficult to avoid the assumption that the things it can deal with are the most relevant things for the managers concern" (Wino and Flores, 1986). The looming danger is that once the Decision Support System becomes a common figure in an organization, the managers will tend to use them inappropriately. Effective training must be carried out to avoid this potential problem. 4. Transfer of power- Designing a Decision Support System, especially knowledge-driven Decision Support System, may be seen as transferring decision-making powers to a software program. 5. Unexpected effects- Implementing decision support technologies may have unexpected costs. It is likely, and it has been established that some Decision Support System reduce the skill needed to perform a decision-making task. Some Decision Support Systems have been known to load up the decision takers with huge information which reduces decision-making efficiency. 6. The unintelligible responsibility-The computer does not make a "bad" decision, people do. Unfortunately, some managers may deflect personal duties to a Decision Support System. 7. Bogus belief in neutrality. The issues of objectivity come into play when such decisions are made. Computer software can encourage more balanced action, but managers can also use decision-support knowledge to trim down their actions (Kopacek, 2006). 8. Status reduction- Some manager’s belief that using a Decision Support System will reduce their position and force them to do secretarial work. 9. Information overload-Too much information provided by the DSS is a major problem for people and decision makers thus shady decisions may be made using the information than doing a thorough survey of decision-making requirements. Need for a decision support system Since decision-making is perceived a difficult venture, there is a high need for a decision support system. Due to the complexity of the decision-making environment, a computerized decision-making system is required. This ensures improves decision quality, effectiveness, and efficiency. Conclusion A good decision support system to be developed should depend on data needed and the source of data, number of users, the model, and analytical tool to be used. Small decision support systems can be built using rapid prototyping while enterprise-wide DSS can be built using complicated equipment. Despite the differences, they both support the decision-making process. The simplicity of the system will attract more people to use it. Creation of simple DSS is paramount to ensure the system is effectively used for the intended purpose. Before developing a DSS first do a decision-oriented diagnosis whereby the decision and the process involved is analyzed, a feasibility study is then conducted if the project is feasible then implementation begins. A well-organized methodology will ensure the development of a perfect decision-making system. References Chuang, T., & Yadav, S. (1998). The development of an adaptive decision support system. Decision Support Systems, 24(2), 73-87. doi:10.1016/s0167-9236(98)00065-7 Forgionne, G. (2000). Decision support system design and development issues: the HRSOS experience. Journal Of Decision Systems, 9(2), 159-182. doi:10.1080/12460125.2000.9736709 Kopacek, P. (2006). Improving stability in developing nations through automation 2006. Oxford: Elsevier for International Federation of Automatic Control. Ngai, E., & Wat, F. (2005). Fuzzy decision support system for risk analysis in e-commerce development. Decision Support Systems, 40(2), 235-255. doi:10.1016/j.dss.2003.12.002 Raghunathan, S. (1996). A structured modeling based methodology to design decision support systems. Decision Support Systems, 17(4), 299-312. doi:10.1016/0167-9236(96)00006-1 Sapatnekar, S. (2008). Variability and Statistical Design. IPSJ Transactions on System LSI Design Methodology, 1, 18-32. doi:10.2197/ipsjtsldm.1.18 Read More