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Saturday, December 28, 2013

Discuss the importance of Decision Support Systems for gaining the Competitive Advantage

In a world of constant flux, informed and thoughtful decision-making is the cornerstone of business success. As a manager, you must make decisions that affect your business every day, some critical and some not so important. Decision Support Systems allow faster decision making, identification of negative trends, and better allocation of business resources all to the benefit of you and your organization. 

Decision Support Systems (DSS): DSS are a specific class of computer-based information systems that support your decision-making activities. A decision support system analyzes business data and provides interactive information support to managers and business professionals during the decision-making process, from problem recognition to implementing your decision. Decision Support Systems use 
(1) Analytical models, 
(2) specialized databases, 
(3) a decision maker‘s own insights and judgments, and 
(4) an interactive, computer-based modeling process to support semi-structured business decisions. A key component to any DSS is Business Intelligence reporting tools, processes, and methodologies. These provide you with rich reporting, monitoring, and data analysis, which are necessary for effective and fast decision-making.

Gain competitive advantage with Decision Support Systems In today‘s competitive business environment, what you need for maximum performance is to achieve competitive advantage. Without competitive advantage, your company will not be able to operate and will eventually cease to exist. One way of gaining competitive advantage is through the use of computerized Decision Support Systems. The simplest and most tangible benefit of a Decision Support System is the ability to help you toward making better decisions. Your decisions are better in the sense that, once they are implemented, they have such effect as reducing costs, using assets more efficiently, increasing revenue, reducing risks, improving customer service, and so on. However, Decision Support Systems can provide your company with many other benefits including: 
Speeding up process of decision making 
Increasing organizational control 
Speeding up problem solving in an organization 
Helping automate managerial processes 
Improving personal efficiency 
Eliminating value chain activities

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