Decision Support Systems in Organizational Decision Making
Decision making refers to the process of finding and selecting options according to the priorities and values of the person making the decision. Since there are many choices involved, it is important to identify as many options as possible so as to pick the option that best fits a company’s target, goals, values and vision. Due to the integral role of decision making in company growth and financial progress, many firms such as Amazon.com and EBay are pumping in huge investments in business intelligence systems, which are made up of certain technological tools and technological applications that are created for the purpose of facilitating improved decision making process in business. In this paper, I take a critical look at Decision Support Systems and how they affect organizational Decision making.
Advantages of Decision Support Systems
Decision Support Systems (DSS) help with time management. All groups of DSS enhance reduced time circle involved in the decision making process. At Amazon.com, DSS enhance the productivity of employees and facilitate timely acquisition of information that is necessary for the decision making process.
DSS facilitate enhanced interpersonal communication among those responsible for decision making. Communication-Driven Decision Support Systems and Group Decision Support Systems lead in more lubricated communication process and sharing of information. Moreover, Model-Based Decision Support systems offer a platform for sharing certain facts and suppositions regarding the decision making process. At Amazon.com Data-driven Decision make certain information about the company available to managers to make it easy for them to make decisions that ensure the company’s growth and continued success.
DSS improve the effectiveness of decision making and leads to informed, and applicable decisions. The quality of decisions made and effectiveness of the effectiveness of the decision making process are, however, not easily computable. DSS also provide companies like Amazon.com with competitive age over their rivals. Web-based DSS used at Amazon.com, for instance, provides the company with original, high risk, company-wide DSS that ease decision making and company growth in the highly competitive e-commerce market.
DSS also increase the satisfaction level of the decision maker by minimizing the frustrations involved in the process. In addition, DSS also reduce the costs associated with decision making in a company. This is good news to managers and decision makers. DSS (especially Data-driven Decision Support Systems) also increase the level of control that managers and decision makers have over the company.
Decision Support Systems promote a learning culture in an organization. Employees and managers learn new concepts and more efficient ways of improving the organization, either as a byproduct of the application of DSS or from the...