Decision Support System : A Snap Shot

The concept of a decision support system (DSS) isincome statements (they were called P & L's
extremely broad and its definitions vary dependingback then), balance sheets and sales reports. They
upon the author's point of view. A DSS can take manywere trying to perform a decision making support role,
different forms and the term can be used in manybut they were not up to the task.
different ways.By the 1970s "decision support systems" were
In a more precise way, it can be defined as:introduced. They were interactive in the sense that
"An interactive, flexible, and adaptable computer-basedthey allowed the user to choose between numerous
information system, especially developed for supportingoptions and configurations. Not only was the user
the solution of a non-structured management problemallowed to customize outputs, they also could
for improved decision making. It utilizes data, providesconfigure the programs to their specific needs.
an easy-to-use interface, and allows for the decisionThe main development in the 1980s was the
maker's own insights."introduction of decentralized computing. Instead of
DSS are computer-based support for managementhaving one large mainframe computer for the entire
decision makers who are dealing with semi-structuredenterprise, numerous PC's were spread around the
problems. With respect to computer terminology it canorganization. This meant that instead of submitting a
be defined as:job to the computer department for batch processing
"Interactive computer-based systems that helpand waiting for the experts to perform the procedure,
decision makers utilize data and models to solveeach user had their own computer that they could
unstructured problems."customize for their own purposes. Many poor souls
Though, it is impossible to give a precise definitionfought with the vagaries of DOS protocols, BIOS
including all the facets of the DSS. Nevertheless, thefunctions, and DOS batch programming.
term decision support system remains a useful andAs people became comfortable with their new skills,
inclusive term for many types of information systemsthey discovered all the things their system was
that support decision making. Every time acapable of. Computers, instead of creating a paperless
computerized system is not an on-line transactionsociety, as was expected, produced mountains of
processing system (OLTP), someone will be temptedpaper, most of it valueless. This information overload
to call it a DSS. As it can be see that there is nowas mitigated somewhat in the 1980s with the
universally accepted definition of DSS.introduction of "executive information systems". They
Additionally, the specifics of it is what makes it lessstreamlined the process, giving the executive exactly
generalized and more detailed. In addition, a DSS also iswhat they wanted, and only what they wanted.
a specific Software application that helps to analyzeThe 1980s also saw the first commercial application of
data contained with a customer database. Thisartificial intelligence techniques in the form of "expert
approach to customers is used when deciding onsystems". These programs could give advice within a
target markets as well as customer habits.very limited subject area. The promise of decision
History of DSSmaking support, first attempted in management
The concept of decision support has evolved frominformation systems back in the 1960s, had
two main areas of research: the theoretical studies ofstep-by-step, come to fruition.
organizational decision making done at the CarnegieThe 1990s saw the introduction of "strategic
Institute of Technology during the late 1950s and earlyinformation systems". This was largely because of
1960s, and the technical work on interactive computerdevelopments in the subject of strategic management
systems, mainly carried out at the Massachusettsby scholars like M. Porter, T Peters, J. Reise, C.
Institute of Technology in the 1960s. It is consideredMarkides, and J. Barney in the 1980s. Competitive
that the concept of DSS became an area of researchadvantage became a hot management topic and
of its own in the middle of the 1970s, before gaining insoftware developers were happy to provide the tools.
intensity during the 1980s. In the middle and late 1980s,Applications
executive information systems (EIS), group decisionThere are theoretical possibilities of building such
support systems (GDSS), and organizational decisionsystems in any knowledge domain.
support systems (ODSS) evolved from the single userOne of the examples is Clinical decision support
and model-oriented DSS. Beginning in about 1990, datasystem for medical diagnosis. Other examples include
warehousing and on-line analytical processing (OLAP)a bank loan officer verifying the credit of a loan
began broadening the realm of DSS. As the turn ofapplicant or an engineering firm that has bids on
the millennium approached, new Web-based analyticalseveral projects and wants to know if they can be
applications were introduced.competitive with their costs.
It is clear that DSS belong to an environment withA specific example concerns the Canadian National
multidisciplinary foundations, including (but notRailway system, which tests its equipment on a regular
exclusively) database research, artificial intelligence,basis using a Decision Support System. A problem
human-computer interaction, simulation methods,faced by any railroad is worn-out or defective rails,
software engineering, and telecommunications.which can result in hundreds of derailments per year.
Historical developmentUnder a DSS, CN managed to decrease the incidence
The role of business information systems has changedof derailments at the same time other companies
and expanded over the last four decades.were experiencing an increase.
In the incipient decade (1950s and '60s), "electronic dataDSS has many applications that have already been
processing systems" could be afforded by only thespoken about. However, it can be used in any field
largest organizations. They were used to record andwhere organization is necessary. Additionally, a DSS
store bookkeeping data such as journal entries,can be designed to help make decisions on the stock
specialized journals, and ledger accounts. This wasmarket, or deciding which area or segment to market
strictly an operations support role. By the 1960sa product toward. DSS has endless possibilities that
"management information systems" were used tocan be used anywhere and anytime, for its decision
generate a limited range of predefined reports, includingmaking needs.