DEFINITION of 'Decision Support System - DSS'

A decision support system (DSS) is a computerized information system used to support decision-making in an organization or a business. A DSS lets users sift through and analyze massive reams of data and compile information that can be used to solve problems and make better decisions.

The benefits of decision support systems include more informed decision-making, timely problem solving and improved efficiency for dealing with problems with rapidly changing variables.

BREAKING DOWN 'Decision Support System - DSS'

A DSS can be used by operations management and planning levels in an organization to compile information and data and synthesize it into actionable intelligence. This allows the end user to make more informed decisions at a quicker pace.

What Can a DSS Analyze?

The DSS is an information application that produces comprehensive information. This is different from an operations application, which would be used to collect the data in the first place. A DSS is primarily used by mid- to upper-level management, and it is key for understanding large amounts of data.

For example, a DSS could be used to project a company's revenue over the upcoming six months based on new assumptions about product sales. Due to the large amount of variables that surround the projected revenue figures, this is not a straightforward calculation that can be done by hand. A DSS can integrate multiple variables and generate an outcome and alternate outcomes, all based on the company's past product sales data and current variables.

How Can a DSS Present the Information?

The primary purpose of using a DSS is to present information to the customer in a way that is easy to understand. A DSS system is beneficial because it can be programed to generate many types of reports, all based on user specifications. A DSS can generate information and output it graphically, such as a bar chart that represents projected revenue, or as a written report.

Where Can a DSS Be Used?

As technology continues to advance, data analysis is no longer limited to large bulky mainframes. Since a DSS is essentially an application, it can be loaded on most computer systems, including laptops. Certain DSS applications are also available through mobile devices. The flexibility of the DSS is extremely beneficial for customers who travel frequently. This gives them the opportunity to be well-informed at all times, which in turn provides them with the ability to make the best decisions for their company and customers at any time.

RELATED TERMS
  1. Data Anonymization

    A data privacy technique that seeks to protect private or sensitive ...
  2. Data Mining

    A process used by companies to turn raw data into useful information. ...
  3. Information Management Technology ...

    Information management technology is the distribution, organization ...
  4. Decision Theory

    Decision theory is an interdisciplinary approach to determine ...
  5. Material Insider Information

    Material information, about certain aspects of a company, that ...
  6. Data Science

    Data science is a field of Big Data which seeks to provide meaningful ...
Related Articles
  1. Financial Advisor

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  2. Financial Advisor

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  3. Investing

    Accounting Basics

    What is accounting? Learn the basics of this essential way of recording and summarizing financial information.
  4. Trading

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  5. Tech

    Introduction To Accounting Information Systems

    Learn what an accounting information system is and the six main parts of this indispensable business asset for managing a company's financial data.
  6. Tech

    Data Analyst: Job Description & Average Salary

    Learn about a data analyst career and how much money you can expect to make. Understand the skills and education needed to become a data analyst.
  7. Insights

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  8. Personal Finance

    Financial Data Analyst: Job Description & Average Salary

    Learn about the average salary for a financial data analyst position and the skills, education and experience employers require of candidates.
  9. Insights

    Financial Media 4-1-1 For Investors

    Cut through the information clutter and decipher the useful news from the useless.
  10. Tech

    How Big Data Has Changed Finance

    The vast proliferation of data and increasing technological complexities continues to transform the way industries operate and compete.
RELATED FAQS
  1. What are some common functions of business intelligence technologies?

    Understand the common functions of business intelligence technologies, and learn how business intelligence is used to increase ... Read Answer >>
  2. What is the difference between direct costs and variable costs?

    Learn about variable costs and direct costs, how direct costs and variable costs are classified and the differences between ... Read Answer >>
  3. How does the Federal Government track the business cycle?

    Learn more about the agencies used by the federal government to research business cycle changes and inform decisions about ... Read Answer >>
Hot Definitions
  1. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  2. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  3. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  5. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center