Decision Support Systems

A decision support system (DSS) helps managers make decisions using interactive computer models that describe real-world processes. The DSS also uses data from the internal database but looks for specific data that relate to the problems at hand. It is a tool for answering "what if" questions about what would happen if the manager made certain changes. In simple cases, a manager can create a spreadsheet and try changing some of the numbers. For instance, a manager could create a spreadsheet to show the amount of overtime required if the number of workers increases or decreases. With models, the manager enters into the computer the values that describe a particular situation, and the program computes the results. Marketing executives at a furniture company could run DSS models that use sales data and demographic assumptions to develop forecasts of the types of furniture that would appeal to the fastest-growing population groups.

Companies can use a predictive analytics program to improve their inventory management system and use big data to target customer segments for new products and line extensions.

Decision support systems help businesses by providing quantitative data and predictive models that aid problem-solving and decision-making. Now the health-care industry wants this technology in hospitals to improve the practice of medicine. Spearheading the effort for a clinical decision-support system is the American Medical Informatics Association, which believes a national DSS could help physicians with diagnosing and treating illnesses. What are the pros and cons to having medical professionals rely on a DSS for help in treating patients?