What do you mean Decision Support System (DSS)? Describe DSS with a relevant example of its application to sales and marketing.

A Management Information System ICT Revision Questions and Answers

Answer
Decision support system is a computer-based information systems that provide interactive information support to managers and business professionals during the decision-making process using the following to make semi structured business decisions
– Analytical models
– Specialized databases
– A decision maker‘s own insights and judgments
– An interactive, computer-based modeling process
Decision support system itself is not a decision maker nordoes it replace human managers from decision making. It provides the analysis about the problem from various prospects and it‘s the duty of the human managers to choose the decision based upon all those. Thus, DSS is that type of system which supports managers while solving the semi-structured problems providing the options from different prospects. DSS gives the analysis based upon the mathematical/ statistical model.
Here is an example of use of DSS in sales and marketing.
The total units of sales are assumed to be the function of following parameters (not only this):
• Incentives to the sales persons
• Promotion
• Rivalry
• Quality of product
• Customer economic status
These parameters do not have equal weightage while determining the sales. Thus the total units sales will be the products of the weightage and the variables. The product of weightage factors and variable will be the mathematical model for the DSS. Now the analysis can be done based upon this model.
Now decision maker can make the analysis with the help of DSS changing the cost of promotion on sales. Similarly the effect of sales can be analyzed with the change in the incentives to the sales persons. At the same time, the effect of more than one parameters also can be checked.



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