Throughout the years many have argued about different definitions for DSS; however they have all agreed that in order to succeed in the decision-making process, companies or individuals need to choose the right software that best fits their requirements and demands. The beginning of business software extends back to the early 1950s. Since the early 1970s, the decision support technologies became the most popular and they evolved most rapidly (Shim, Warkentin, Courtney, Power, Sharda, & Carlsson, 2002). With the existence of decision support systems came the creation of decision support software (DSS). Scientists and computer programmers applied analytical and scientific methods for the development of more sophisticated DSS. They used mathematical models and algorithms from such fields of study as artificial intelligence, mathematical simulation and optimization, and concepts of mathematical logic, and so forth.
Key Terms in this Chapter
Executive Information Systems (EIS): Systems that can extract data from an enterprise system to provide managers a view of quantitative performance measures online.
Model Integration: Many models are looked over when making decisions, and model integrations help look for a common point between these scenarios.
Group Decision Support Systems (GDSS): Grouping management together to come up with a decision using a room full of micro-computers and having the group say what they believe is the best way to solve a situation.
Risk Management: Decisions to accept exposure or to reduce vulnerabilities by either mitigating the risks or applying cost effective controls.
Model: It’s a conceptual representation of reality that helps creating forecast and simulations. It allows decision makers to convert data into useful information that can be used in specific plans for decision making.
Analytical Hierarchy Process (AHP): An approach to decision making that involves structuring multiple choice criteria into a hierarchy, assessing the relative importance of these criteria, comparing alternatives for each criterion, and determining an overall ranking of the alternatives.
Solver: It serves as a connection between the model and the solution or answer by using specific mechanisms that allow reaching a goal.
Decision Support Software: An interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions.
Sensitivity analysis: Models that can be changed easily and provide answers to “what if” questions.