High-Level Computer Language Programs Are Directly Understood By A Computer Role of Decision Support System For Decision-Making Process in Global Business Environment

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Role of Decision Support System For Decision-Making Process in Global Business Environment

Decision support system:

A Decision Support System is an integrated set of computer tools that allow a decision maker to interact directly with the computer to retrieve information useful for making semi-structured and unstructured decisions. Examples of these decisions include things like merger and acquisition decisions, plant expansion, new product decisions, portfolio management, and marketing decisions.

Decision making is a fundamental managerial activity. It can be conceptualized as consisting of four stages: intelligence, design, choice and implementation.

Important aspects of the Decision Support System:

1) The most important consideration is the ease of use of the Decision Support System – its ability to allow non-technical people to deal with it directly. The single biggest and most persistent problem with computers has been their inflexibility, their inability to let the person who really needs the data to deal directly with the computer.

2) The ability to access information should not be restricted to only part of an organization or only to certain managerial or professional groups. Instead the resource must be distributed to all the people and part of an organization that needs it without generalized access; the power of the advanced Distributed Processing System will go untapped as they have typically been in the past.

3) The ideal decision support system in sharp contrast to the previous method of designing applications should not be a “system” in the strict sense of the term. Rather, it should be a highly adaptive decision support generator that can be easily used by professionals to quickly design data support prototypes suitable for each specific decision-making task. This adaptive tool should allow rapid design changes if the original design does not closely match a person’s information gathering style or needs.

4) To properly support the human element, this highly adaptive support capability must be able to provide access to operational data as well as summary data that have already been processed by application programs designed for other tasks specific operatives. Equally important, this tool must provide the professional with access to the raw data of the organization and must allow access to be carried out in one step with a single procedure or command without complicated and without having to retrieve the non-summarized data .

5) Organizations need to access the original data sometimes because the efficiency is related to how the original data is organized in the system; the Decision Support Generator must be able to interface with a real DBMS. It is also able to access standard “flat” files indirectly by using the power of the host computer to facilitate user interface and data access without changing existing files.

6) The Decision Support Generator should allow the user to decide whether the information should be displayed on the CRT screen for immediate use or whether it should be printed for later use. The best way to achieve such flexible data presentation is through a workstation. The management or information professional workstation would incorporate a keyboard, display screen, and an interface to a printer that could print everything from plain text to graphics such as pie charts, bar charts, and line graphs. .

7) The support tool must interface with many different systems and capabilities, it must be compatible with all of them, the tool must provide the user with a single language easily used to access manipulate and present data in a way that best supports the end . user

8) To facilitate the formation and manipulation of displayed data, the decision support generator should ideally be able to interface with text processing software. With this capability, the DSS becomes the critical link between data processing and office automation, integrating both functions into an easy, simple and extremely powerful system.

Characteristics of decision making in the global business environment:

Firm Strategy/Decision Making Characteristics

Multinational: (decentralized federation) Decentralized decisions to subsidiaries, informal relations between headquarters and branches

International: (coordinated federation) Most vital decision and general knowledge developed at headquarters and transferred to subsidiaries

Global: (centralized federation) Decisions made centrally Knowledge developed and retained centrally

Transnational: (integrated network) Decision-making and knowledge generation distributed between units

Managers and Decision Support System:

The daily work of a manager, like hundreds of short activities of great variety, which require rapid changes of attention from one issue to another, very often initiated by emerging problems. A manager maintains a complex web of contacts outside and within the organization. A successful manager is not overwhelmed by the onslaught of these activities: he maintains a personal agenda. An effective manager digs to be his own informal structure in the corporate structure and uses this network to keep informed and influence others. It has been absorbed that proactive managers make special efforts to develop a long-term vision and a long-term agenda.

The need for types of information produced by the decision support system has always been present. Decision support systems have become popular primarily because of their ability to fill this need. Today availability of computer hardware, the advent of the Database Management System in the 1970s provided the means for the storage and management of large amounts of data, a great increase in the number of software packages that incorporate the functions of a decision support system. Finally, many MBAs who were trained in analytical techniques are now reaching the middle and upper levels of corporations. These individuals know how to use the tools that the decision support system provides. So in most organizations, managers used computer-based data processing applications. This leads to developing the decision support system in the business world.

A widely held notion is that modern decision-making is a highly structured process. According to this view, management makes decisions by gathering and analyzing all relevant information, reviewing all possible alternatives and then calmly and rationally choosing the course of action that provides the maximum benefits at the least risk.

Managers play three types of roles in the performance of their duties. Interpersonal roles are primarily based on face-to-face interaction; in some cases, computerized communication media may be employed. The informative and decision-making roles are supported by a variety of information systems, which make information available, help decision-making and serve as means of communication.

All managerial roles have a decision-making element: decision-making roles are those where this is the crucial aspect. The manager gathers resources in a new way. The decision support system helps the entrepreneur to consider the options, select one and plan its implementation. Disturbance management is a part of managerial control. Resource allocation is the essence of planning and decision support systems have become indispensable in many organizations for their purpose.

The manager is a problem solver, and the fundamental activity in solving the problem is the decision. Decision making is the process of identifying a problem, developing an alternative solution and choosing and implementing one of them. An experienced manager recognizes a problem as similar to one he has already encountered. The intuitive understanding of a problem is often based on such an ability to establish an analogy. The systems approach to problem solving helps manage complexity.

Decision support system in the organizational environment:

The organizations that have been most successful in implementing DSS have a lot in common. They have a well-established, controlled and well-structured data processing system that provides the transaction processing data required for DSS. Such organizations have spent extra money and personnel necessary to maintain a research and development focus. All departments in the organization communicated with central groups of computers. All departments are confident enough to initiate and manage systems projects. Central IT groups have many people on their staff who come from all the other departments. Education and training programs are used by organizations to build mutual understanding between departments and the IT group.

Capabilities offered by DSS:

1) Decision support in poorly structured situations – in which, precisely because of the lack of structure, the problem does not lend itself to complete computerization, and also requires computer assistance for access and treatment of volume amount of data.

2) Help to quickly obtain the necessary results to reach the decision.

3) Operate the ad hoc mode to suit the actual needs of the user, as opposed to operating in a generally planned manner such as the management reporting system.

4) It supports different stages of the decision making process.

5) Foster high-quality decision-making by encouraging decisions based on the integration of available information and human judgment.

6) It offers flexibility as opposed to a pre-ordained usage pattern – making it easy to accommodate an individual’s particular decision-making style.

7) Facilitate the implementation of decisions that often cross the boundaries of the department.

8) Support group decision-making particularly through the DSS group (GDSS).

9) Give managers the opportunity to gain a better understanding for their business by developing and working with models.

Conclusion:

With in the last several years, computers have been used more and more in the areas of financial management, production analysis, short-term planning and geographic analysis. In today’s business world, computers are used for the decision-making process as and a Decision support system. The Decision Support System is a type of management information system whose main purpose is to support a human decision-maker during the process of reaching a decision. The strength of DSS lies in decision support in situations where human judgment and computer power are required. DSS mainly supports for strategic, tactical and operational planning.

Well designed and integrated, the DSS becomes a very powerful support tool that increases the productivity of professionals at all organizational levels in all departments. It can effectively extend the organization’s current staff by reducing their workload, thereby increasing productivity. And with today’s technology and leading software tools, we can get even closer to the bridge and the operations reach the worlds. These features can offer today’s organizations pressed more than ever to maximize efficiency while reducing costs unprecedented benefits in the utilization and management of their human and IT resources.

Reference:

1) “Management Information System” by Viladimir Zwass

2) “The Nature of Organizational Decision Making and Decision Support System Design” by George .P Huber.

3) “Introduction to Business Data Processing” by Lawrence S. Orillia

4) “Management Information System” by James O. Hicks JR

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