Blog post # 2

A. Decision Support Systems – DSS (definition)

Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.
(http://www.informationbuilders.com/decision-support-systems-dss.html)

B.Distinguish DSS from MIS

Manager can obtain some information from the AIS and considerably more from the MIS. These systems, however, are tailored to the information needs of large numbers of managers-those composing the management of the entire firm or an organizational unit.

The DSS's provides both problem-solving information and a communications capability for solving semistructured problems.
DSS's support managers as they solve semistructured problems. The emphasis is on the effectiveness of the decisions rather than the efficiency of the decision-making process.

The DSS and MIS models are very similar. Both consist of database, report writing software, and mathematical models. In the MIS model, the users are called organizational problem solvers, whereas in the DSS model there are two types of users-individual problem solvers and other group members. The DSS model also includes a third category of software-group ware, which establishes communications links among the problem solvers and between the problem solvers and the database.

C.illustrate (give example) how DSS can improve company's competitive advantage and organizational performance.

A decision support system creates a competitive advantage if three criteria are met. First, once the DSS is implemented, it must be used and it must become a major or significant strength or capability of the organization. Second, the DSS must be unique and proprietary to the organization. Third, the advantage provided by the DSS must be sustainable until an adequate payback is received, usually at least three years. Managers who are searching for strategic investments in information technology need to keep these three criteria in mind. Just because a vendor says a product will create a competitive advantage doesn’t make the claim true. A competitive advantage means an organization does something important much better than its competitors.

Reference:
Mnanagement Information System By: Raymond Mcleod Jr.
http://www.b-eye-network.com/view/6501