FINAL BLOG Question # 2:

1.Decision Support Systems (DSS)

- are a specific class of computerized information system that supports business and organizational decision-making activities. A properly-designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

-Abbreviated DSS, the term refers to an interactive computerized system that gathers and presents data from a wide range of sources, typically for business purposes. DSS applications are systems and subsystems that help people make decisions based on data that is culled from a wide range of sources.

-DSS applications are not single information resources, such as a database or a program that graphically represents sales figures, but the combination of integrated resources working together.

2.Distinguish DSS from MIS

The terms MIS and DSS stand for Management Information Systems and Decision Support Systems respectively. There has been a lot of talk regarding these two, whether they are actually the same thing or if there are any significant differences between the two.

MIS is basically a kind of link to facilitate communcation between managers across different areas in a business organization. MIS plays a pivotal role in enabling communications across the floor of an organization, between various entities therein.

DSS, many consider, is an advancement from the original MIS. However,this is not the sole difference between the two. While there may not be too much separating the two, the difference is still there,as is apparent when we say DSS is an advancement over MIS. The essential difference between the two is in focus.

DSS, as the term indicates, is about leadership and senior management in an organization providing good, reliable judgment as well as vision.

3. Illustrate (give examples) how DSS can improve company's competitive advantage and organizational performance

DDS can improve company's competitive advantage and organizational performance by 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.

If a company is trying to develop a decision support system that provides a competitive advantage, managers and analysts should ask how the proposed DSS affects company costs, customer and supplier relations, and managerial effectiveness. Managers should also attempt to assess how the proposed strategic system will impact the structure of the industry and the behavior of competitors. Finally, companies must continuously improve their information and decision support technology to gain and maintain any competitive advantage.

For example, information technology has altered the bargaining relationships between companies and their suppliers, channels and buyers. Today it is easy for information systems to cross company boundaries. These inter-organizational systems have become common and, in some instances, they have changed the boundaries of the participating industries. Decision support systems can reduce the power of buyers and suppliers. Decision support systems can erect new barriers that reduce the threat of entrants. Decision support systems can help differentiate products and services and reduce the threat from substitutes. Also, decision support systems can help managers reduce the cost of rivalry actions and, in some cases, reduce the need for competitive actions and reactions.



References:
Kettinger, W., Grover, V., Guha, S., and Segars, A., “Strategic Information Systems Revisited,” MIS Quarterly, 1994, pp. 31-55.

Porter, M. E. and V. E. Millar, “How Information Gives You Competitive Advantage,” Harvard Business Review, July-August, 1985.

Porter, M. E., "How Competitive Forces Shape Strategy," Harvard Business Review, March-April, 1979.

Power, D. J., Decision Support Systems Hyperbook. Cedar Falls, IA: DSSResources.COM, HTML version, Fall 2000, accessed on November 6, 2007.

Power, D. J., Decision Support Systems: Concepts and Resources for Managers, Quorum/Greenwood, 2002.