Question # 3:
1. Describe or define DSS.
2. Distinguish DSS from MIS.
3. Illustrate (give examples) how DSS can improve company's competitive advantage and organizational performance. Cite your reference.
1. Decision Support System is a term referring to an interactive computerized system that gathers and presents data from a wide range of sources, typically for business purposes. It is a computer-based system that enables management to interrogate the computer system on an ad hoc basis for various kinds of information on the organization and to predict the effect of potential decisions beforehand. This system supports technological and managerial decision making by assisting in the organization of knowledge about ill-structured issues.
2. DSS and MIS are similar from each other. MIS supports DSS because it is a system that provides the organizations managers with the tools that helps them organize, evaluate and efficiently run their deparments. In order to provide past, present and prediction information
MIS helps or supports DSS in making operational, tactical and strategic decisions. It gathers relevant datas both from outside and inside the organization and also supports technological and managerial decision making in assisting the organization of knowledge about ill-structured issues.
3. 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. For example, providing a DSS to customers can differentiate a product and possibly provide a new service. Differentiation increases profitability when the price premium charged is greater than any added costs associated with achieving the differentiation. Successful differentiation means a firm can charge a premium price, and/or sell more units, and/or increase buyer loyalty for service or repeat purchases. In some situations, competitors can rapidly imitate the differentiation, and then all competitors incur increased costs for implementing the DSS.
SOurces:(http://www.answers.com/topic/decision-support-system);
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