Tribium DECISIONS Blog

blog about how to make good decisions

When should you use DSS

without comments

Everyone would agree that there is many benefits of attentive and organized decision making process, especially with aid of computerized support. But what are these benefits exactly and when they really shine and in what situation they are just superfluous similar to drawing gun to kill the mosquito?

There are two main factors which may allow easy way of finding out if the decision situation is worth of investing more effort into more systematic approach: risk related with the decision which s about to be made and about of information required to be collected in order to reduce the uncertainty about the decision. Risk is direct effect of the unwanted consequences (their cost) and the probability of uncertainties. The amount of information required to make informed decision is in turn related to the complexity of the decision: number of criteria needed to be  evaluated against and the number of sensible alternatives we need to account for, or number of stakeholders involved in decision. The reliable information is usually difficult to acquire so it is important to focus on the most important data.

This situation has been presented on the figure below.

Use of Decision Support System is best suited when the risk of decision is considerable and amount of information necessary to collect is high.

So when we face decisions which require to collect considerable amount of information and carry important risk, it is generally good to make more systematic approach to process of making the decision especially when helped with use of software handling all the complexity, storing data about facts and preferences and performing all tedious tasks of calculating, documenting and presenting the information.

In next posts (not necessarily consecutive) I will describe some of most important benefits of using DSS in more detail.

Written by Stan Pak

October 19th, 2010 at 9:39 am

Posted in Benefits,General

Leave a Reply

You must be logged in to post a comment.