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Advantages & Disadvantages of Decision Support Systems

Assess the advantages and disadvantages of using decision support systems for decision making. Include a discussion of whether you believe decision support systems can be used successfully for strategic decision making in an organization.

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Decision support systems (DSS) have both advantages and disadvantages, and in most large firms, we find that the advantages outweigh the disadvantages. DSS's include several main components, and those components are designed to bring a wealth of information into one central pool. The information can then be utilized in various forms by management to aid in decision making. The basic components of a DSS include databases (usually more than one), models that can be manipulated by the user as needed to a certain extent, and an interface that allows the information, through various inputs, to be extracted for the decision making purposes. The greatest advantage is that when a DSS is used properly and competently, it leads to outputs that are well-formed enough that it can actually give a company a competitive advantage in their given industry.

Other advantages of a DSS include speed of processing and eliminating non-value added activities within the company. As processing ...

Solution Summary

This solution comprehensively explains the advantages and disadvantages of decision support systems. A detailed discussion of whether a decision support system can be used successfully for strategic decision making is also included.