Decision support system

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities, typically resulting in ranking, sorting or choosing from among alternatives. DSSs serve the management, operations, and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance—i.e. Unstructured and Semi-Structured decision problems. Decision support systems can be either fully computerized, human-powered or a combination of both.

While academics have perceived DSS as a tool to support decision making process, DSS users see DSS as a tool to facilitate organizational processes. Some authors have extended the definition of DSS to include any system that might support decision making; Sprague (1980) defines a properly termed DSS as follows:

DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, and personal knowledge, or business models to identify and solve problems and make decisions.

Typical information that a decision support application might gather and present includes:

Though DSSs exist for the various stages of structuring and solving decision problems – from brain-storming problems to representing decision-maker preferences and reaching decisions – most DMS focuses on choosing from among a group of alternatives characterized on multiple criteria or attributes.

DMS is a tool that is intended to support the analysis involved in decision-making processes, not to replace it. "DMS should be used to support the process, not as the driving or dominating force." DMS frees users "from the technical implementation details [of the decision-making method employed – discussed in the next section], allowing them to focus on the fundamental value judgements". Nonetheless, DMS should not be employed blindly. "Before using a software, it is necessary to have a sound knowledge of the adopted methodology and of the decision problem at hand."

The concept of decision support has evolved mainly from the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the implementation work done in the 1960s. DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s. In the middle and late 1980s, executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS.

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