Decision Support System

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Decision support system
What is a Decision support system, DSS, and what role does goal-seeking analysis play? In short, a Decision support system is a type of information system, that is run by computers, and arranges a wide variety of data that helps managers to make appropriate choices concerning organizational and business related activities. The data is compiled by computers and transformed into charts, scales, in addition to a wide variety of ways that allows random variables and statistics to be useful. Business models are also compiled from all of the given data which can not only be used to make decisions, but can be used to see what potential problems could develop. Some potential information that can be compiled consists of sales figures, customer relations or spending patterns and consumer demographics. Goal-Seeking analysis simply informs managers what, based on the arranged data, requirements needed to be met in order to reach their goals. A Decision Support System example in Everyday life A real life example is has a huge warehouse of products available online. When consumers make a purchase, like a blu-ray player, the data from the individuals purchase is stored and managers can see how well particular brands are selling. Say a Sony blu-ray player was purchased, managers could take the data and compile it and could also pair the player with a new HD television, in order to help the blu-ray player to sell faster. On the other hand, since blu-ray players are so new, and rather expensive in comparison with traditional DVD players, managers could offer discounted blu-ray DVDs with every purchase of a player. This was the case when blu-ray players and HD-players first came out. Managers had to determine which of these two brands would triumph, and which machine should be dropped from the company’s website. Sales records and data from customer purchases were complied and managers took this information and determined what the best course of action would be. In the long run blu-ray players, in addition to blu-ray DVD’s, outsold HD DVD's and HD players, becoming the standard for the ultimate movie experience. Eventually, due to slow sales, HD players and DVD’s were not longer sold through The data compiled from consumers purchases allowed managers to make the decision on what format would sell better. However, a Decision Support System is not just a matter of determining what goals need to be met in order to reach maximum profitability, it is composed into three different parts, which are as follows: The 3 Parts that make up DSS, 1.) Sensitivity analysis: which is the study of how different variables effect one and other, when change occurs. For example, sticking with the example from Amazon, when DVD players become cheaper due to a new technology such as a blu-ray player, DVD sales are affected. Money that could have been spent, by consumers on regular DVD’s, is now directed towards the sale of blu-ray players. A change in the sales of DVD’s, will affect the sale of DVD players. Sales could decrease due to the new technology, or sales could skyrocket due to the falling price on DVD players. Change does not just affect one element, it also effects surrounding products.

2.) What-If analysis : is used to determine what some of the possible changes could be on a theoretical solution. For example, say that I aim to sell 1,000 blu-ray players, within one month, over In addition, say that I aim to lower, the prices of the players by 20% to increase the sales and reach my quota. What-if analysis comes into play, but showing what the possible outcomes could be. Blu-ray could become more popular or less popular and sales could remain constant regardless of the given discount. 3.) Goal-Seeking analysis: Is the most important portion of DSS, in my opinion, because it compiles all of the given data and determines what inputs are required to reach specific goals. Sensitivity analysis is great and can be used to determine what portions of DSS, effect one and other. However, it does not look at the bottom line. It just demonstrates how portions interact with one and other. In addition, What-If analysis just looks as the possibilities and given scenarios. It attempts to determine how well things could or could not go. These are both great however, they fail to look at the overall picture. In order to reach goals, these specific requirements need to be met. In addition, What-if analysis uses Goal-seeking analysis. It looks at what numbers and goals are required in order to well, just average, and to do poorly. The whole purpose of the DSS is to compile raw data into useful information that managers can use effectively and apply to organizational and business decisions. Electronic commerce Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, consists of the buying and selling of products or services over electronic systems such as the Internet and othercomputer networks. It is more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as etailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-tobusiness or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited

to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-toconsumer or B2C. This is the type of electronic commerce conducted by companies such as Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time such as for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. Enterprise resource planning Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracingfinance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.[1] ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information.[2] ERP systems typically include the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates.[citation needed]
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A common database, which supports all applications. A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by the Information Technology (IT) department.[3] Finance/Accounting General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation Human resources payroll, training, benefits, 401K, recruiting, diversity management

Manufacturing Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions Project management Costing, billing, time and expense, performance units, activity management Customer relationship management Sales and marketing, commissions, service, customer contact, call center support Data services Various "self–service" interfaces for customers, suppliers and/or employees Access control Management of user privileges for various processes

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