Decision-support systems are vital tools businesses need in order to improve their companies. Decision-support systems offer the potential to generate higher profits, lower-cost, and better products and services.(2) Other benefits include improved personal efficiencies, faster decision-making processes, increased organizational control, faster problem-solving, promoting learning and training, creating competitive advantage over competition, and many more aspects. (2) It is obvious DSS plays a major role in business structure. This post will mainly focus on the additional benefits of ad hoc DSS and briefly analyze how institutional DSS works to better understand these systems role and business.
Ad hoc DSS is defined as, "a DSS concerned with situations or decisions that come up only a few times during the life of an organization." (1) A particular business may have a problem they may only see once in a lifetime. Although use of ad hoc DSS is rare these decisions can make or break a business. "For instance an ad hoc DSS would determine whether or not to build a new manufacturing facility somewhere. Another example would be a business or company deciding to merge with someone else."(1). Although these situations are rare the DSS is necessary in order to weigh the benefits of the company. "The design of an ad hoc DSS must focus on responding quickly as needed information and analysis and analysis on a one-time specific basis."(3).
Institutional DSS is defined as, "a DSS that handles situations or decisions that occur more than once, usually several times per year or more. An institutional DSS is used repeatedly and refined over years," (1). These types of systems are also important and are consistently being perfected because of the rate of their use. However, when it comes to making big changes in a corporation or business ad hoc DSS needs to be used, not the everyday DSS system decision makers use for problems they frequently face.
Ad hoc DSS is defined as, "a DSS concerned with situations or decisions that come up only a few times during the life of an organization." (1) A particular business may have a problem they may only see once in a lifetime. Although use of ad hoc DSS is rare these decisions can make or break a business. "For instance an ad hoc DSS would determine whether or not to build a new manufacturing facility somewhere. Another example would be a business or company deciding to merge with someone else."(1). Although these situations are rare the DSS is necessary in order to weigh the benefits of the company. "The design of an ad hoc DSS must focus on responding quickly as needed information and analysis and analysis on a one-time specific basis."(3).
Institutional DSS is defined as, "a DSS that handles situations or decisions that occur more than once, usually several times per year or more. An institutional DSS is used repeatedly and refined over years," (1). These types of systems are also important and are consistently being perfected because of the rate of their use. However, when it comes to making big changes in a corporation or business ad hoc DSS needs to be used, not the everyday DSS system decision makers use for problems they frequently face.
As previously stated, ad hoc DSS are used to make important infrequent decisions. How they work is a company uses them and the system provides the outcome of events based on all of the companies current information assets, comparative sales figures between one week and the next, projected revenue figures based on new product and sales assumptions, and the consequences given past experiences (5). When company decision makers are faced with a once in a life time deal they need to know all of the possible outcomes and the pros and cons of making a deal or going forward with a huge project. Ad hoc DSS can help decision makers make the right decisions and watch their businesses grow.
DSS allows managers to make informed decisions at the life of the business relies on. Important capabilities of DSS issues include, but are not limited to "providing support in structured and unstructured situations, support to managers, supporting all phases of the decision-making process, adaptiveness, user-friendliness, and more."(4) Basically they allow decision makers to make to make better decisions more consistently in a timely manner. Without any DSS systems business would really struggle to grow and continue. They allow managers to understand markets and make educated decisions that will help the company flourish in the economy.
1. Information systems textbook
2.http://en.m.wikipedia.org/wiki/Decision_support_system#_
3. http://insy2303-scott.wikispaces.com/Ad+Hoc+DSS
4.http://www.csun.edu/~hcmgt004/DSS2.ppt
1. Information systems textbook
2.http://en.m.wikipedia.org/wiki/Decision_support_system#_
3. http://insy2303-scott.wikispaces.com/Ad+Hoc+DSS
4.http://www.csun.edu/~hcmgt004/DSS2.ppt
