Finals' Question #2
To cover the lectures to miss during my absence, please answer questions #3-5. REFRAIN FROM COPYING AND PASTING TEXTS FROM THE NET. THIS WILL ONLY INCUR VERY VERY VERY LOW SCORES.TOPIC: THE DECISION SUPPORT SYSTEM (DSS)Question # 3:
1. Describe or define DSS.2. Distinguish DSS from MIS.3.
Illustrate (give examples) how DSS can improve company's competitive advantage and organizational performance.
Cite your reference.


1.A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions more easily. It is an "informational application" (to distinguish it from an "operational application" that collects the data in the course of normal business operation).

2.Management Information System (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. While A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions more easily. It is an "informational application" (to distinguish it from an "operational application" that collects the data in the course of normal business operation).

ADVANTAGES:
Decision support systems can potentially create a differentiation advantage. Providing a DSS to customers can differentiate a product and possibly provide a new service. Differentiation increases profitability when the price premium charged is greater than any added costs associated with achieving the differentiation. Successful differentiation means a firm can charge a premium price, and/or sell more units, and/or increase buyer loyalty for service or repeat purchases. In some situations, competitors can rapidly imitate the differentiation, and then all competitors incur increased costs for implementing the DSS.
Finally, decision support systems can be used to help a company better focus on a specific customer segment and hence gain an advantage in meeting that segment’s needs. Management information systems and decision support systems can help track customers, and DSSs can make it easier to serve a specialized customer group with special services. Some customers won’t pay a premium for targeted service, and larger competitors also target specialized niches using their own DSSs.

For Example:
For example, a bank or mortgage loan firm may reduce costs by using a new DSS to consolidate the number of steps and minimize the number of staff hours needed to approve loans. Technology breakthroughs can sometimes continue to lower process costs, and rivals who imitate an innovative DSS may nullify or remove any advantage.