Decision Support Systems Overview

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Questions and Answers

What is the primary purpose of the DSS developed by Mrs. Field's Cookies?

To control operations and improve management decision making (correct)

To enhance customer engagement

To increase sales through marketing initiatives

To automate inventory management systems

Which of the following companies utilized a handheld computer to gain a competitive edge in their DSS?

Wal-Mart

Mrs. Field's Cookies

Frito-Lay (correct)

Lockheed-Georgia

What was a significant aspect of the DSS used by Wal-Mart?

It lacked data integration features.

It utilized electronic data interchange and satellite technologies. (correct)

It was based solely on manual data entries.

It focused exclusively on customer feedback collection.

Which characteristic is NOT mentioned as a consideration for developing a DSS to achieve competitive advantage?

Impact on employee morale Signup and view all the answers

What was the function of the Executive Information System (EIS) purchased by Lockheed-Georgia?

To provide timely and relevant information for decision making Signup and view all the answers

What aspect is crucial for the Information Systems planning process to be effective?

It must be integrated with business strategic planning. Signup and view all the answers

Which company is known for implementing a Sales data warehouse as part of their DSS?

Wal-Mart Signup and view all the answers

How should the process of IS planning be characterized?

Ongoing and open-ended Signup and view all the answers

What is one way DSS can benefit decision-making?

Confirming assumptions or generating new facts Signup and view all the answers

What is a significant concern managers have regarding the use of DSS?

It may diminish their status Signup and view all the answers

Which of the following is a reason managers might resist using DSS?

Information overload can be a problem Signup and view all the answers

What is a possible risk of using information systems and technology for competitive advantage?

Financial outlay for development Signup and view all the answers

Why might certain DSS models and interfaces be poorly received by managers?

They are often designed without user input Signup and view all the answers

How do managers’ work habits relate to their resistance to DSS?

Many rely on nonverbal cues in decision processes Signup and view all the answers

What can project champions do to support DSS implementation?

Address managers' concerns about resistance Signup and view all the answers

What describes a common misconception about DSS among managers?

They add unnecessary complexity to decisions Signup and view all the answers

What is a potential technology risk when implementing a Decision Support System (DSS)?

Using a technology that may soon become obsolete Signup and view all the answers

Which of the following is NOT a benefit of using a Decision Support System?

Increasing the efficiency of data storage Signup and view all the answers

What aspect of decision-making does a Decision Support System primarily aim to enhance?

Quality of decisions Signup and view all the answers

How can a Decision Support System affect the decision-making process?

By enforcing the structure of decision-making Signup and view all the answers

Which benefit does a Decision Support System NOT typically provide?

Increasing bureaucratic processes Signup and view all the answers

What is one way that Decision Support Systems improve individual productivity?

By extending a decision maker’s ability to process information Signup and view all the answers

How can a Decision Support System potentially create a competitive advantage for an organization?

By transforming data into actionable insights Signup and view all the answers

Which of the following describes a benefit of a Decision Support System in dealing with complex problems?

Restructuring or reconceptualizing a problem space Signup and view all the answers

What role does technical infrastructure play in information systems planning?

It determines current possibilities and facilitates enhancements. Signup and view all the answers

Which factor influences the risk associated with DSS projects?

The sophistication of the technology used. Signup and view all the answers

What is an important consideration for managers developing effective IS plans?

Engaging in broad consultations and attending relevant conferences. Signup and view all the answers

What is a common misconception about Decision Support Systems (DSS)?

DSS can create new capabilities beyond solving existing problems. Signup and view all the answers

What financial consideration may arise from the implementation of DSS?

A large financial investment may be required to gain advantages. Signup and view all the answers

How can the development of a strategic information system affect market dynamics?

It can potentially shift power within an industry. Signup and view all the answers

Which of the following statements about the risks of DSS projects is true?

Risks vary based on the number of users and database size. Signup and view all the answers

What type of search should IS planning involve?

Both problem-oriented and opportunistic search. Signup and view all the answers

Study Notes

Gaining Competitive Advantage with Decision Support Systems

Decision support systems (DSS) can provide competitive advantage.
Managers and analysts should consider project uniqueness, IS/IT capabilities, cost impacts, customer/supplier relationships, and managerial effectiveness when developing a DSS.

Some Examples of Strategic DSS

Frito-Lay: Developed handheld computers to enable strategic data collection. Route sales personnel collected customer sales data, used in a data-driven DSS.
Lockheed-Georgia: Implemented an online reporting system to provide top executives with concise, timely, relevant information for decision-making. Later purchased a commercial Executive Information System (EIS) called Commander EIS.
Mrs. Field's Cookies: Designed an information system for two purposes: control and improved store management decision-making.
Wal-Mart: Implemented Retail Link and a Sales data warehouse. Utilized electronic data interchange and satellite technologies for competitive advantage.

Identifying Opportunities and IS Planning

Information Systems planning should methodically evaluate opportunities.
IS planning should be integrated with business strategic planning and ongoing, adaptable.
IS planning should analyze current technical infrastructure to identify potential enhancements for new capabilities, involve broader consultation and utilize both problem-oriented and opportunistic searches.
DSS projects may not always solve specific problems but might create new capabilities. Project scope (number of users and database size) affects the risk assessment of projects.
Technological sophistication and developer experience impact project risk. Managers should attend relevant IS, industry, and vendor conferences to develop effective plans and evaluate DSS projects.

DSS Benefits, Limitations, and Risks

DSS development and implementation involves risks and may require significant financial investment.
Strategic information systems might shift power from a specific company or entire industry.
Technology risks involve choosing the wrong vendor, using new technology too early, or selecting technology that becomes obsolete. To gain an advantage, new DSS must function as planned and stakeholders must recognize its strategic value.
All DSS types and categories improve decision-maker effectiveness rather than streamlining data management.
How do computerized support systems improve managerial effectiveness?

Individual and Organizational Benefits of DSS

Increased individual productivity
Enhanced decision quality and faster problem-solving
Better interpersonal communications.
Improved decision-making skills
Increased organizational control

Other Benefits for DSS

DSS extend decision-makers' abilities to process and analyze information.
DSS help address complex, large-scale problems by reducing time-consuming analysis requirements.
DSS can reduce the time needed to make decisions.
DSS improve decision process reliability and structure.
DSS encourage exploration and discovery within unstructured and novel decision-making scenarios.
DSS help reshape or reframe a problem space or decision-making context.
DSS confirm assumptions and generate new data to support reasoning and decisions.
DSS can create a competitive or strategic advantage for an organization.

Resistance to Using Decision Support Systems

Managers may lack sufficient computer training.
Some managers fear that DSS reduce their status, requiring them to perform secretarial tasks.
DSS might not align with managers' problem-solving styles.
DSS might not align with managers’ work habits (verbal/nonverbal problem-solving in face-to-face settings.)
DSS models, interfaces, and systems often have poor design.
Implementing and using DSS is often seen as expensive and time-consuming.
Information overload, especially for managers already handling large amounts of data.

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Description

Explore how decision support systems (DSS) can lead to a competitive advantage in various industries. This quiz highlights examples from companies like Frito-Lay and Wal-Mart, detailing how they use DSS for strategic decision-making. Understand the factors managers must consider when developing these systems.