Introduction to DSS and CRM

A DSS is an interactive computer-based system designed to help in decision making situations by utilizing data and models to solve unstructured problems.

The aim of DSSs is to improve and expedite the processes by which management makes and communicates decisions -in most cases the emphasis in DSSs is on increasing individual and organizational effectiveness. It is very difficult to tell precisely where the interrelatedness of various business functions to one another vertically and horizontally is emphasized (Talvinen, 1995).

A DSS is a coordinated collection of data, system tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and the environment and turns it into a basis for making management decisions[1]. The system, usually based on a model and computer software package, describes the implications of specific marketing decisions and/or recommends specific marketing actions, using a set of input information. This information may either reside permanently in the DSS or be input for the particular scenario of interest (or both). The information can consist of primary information (e.g. sales and cost information from company records, or subjective judgments by managers about the likely impact of increased advertising spending) and/or secondary information (e.g. sales of competitors' products from a syndicated database constructed via store audits).

An important aspect of many DSSs is the facilitation of "what if" analyses, i.e. the sensitivity of optimal marketing strategy to the assumptions in the input information. DSSs are divided into four main parts in systematic view:

1 Input: low-volume data or massive databases, analytical models.

2 Processing: interactive, simulations, data analysis tools.

3 Output: special reports, decision analyses, responses to queries.

4 Users: professionals, managers.

Organizations are becoming increasingly complex with emphasis on decentralized decision making. This trend necessitates enterprise DSSs for effective decision making. In the process of decision-making, decision makers combine different types of data (e.g. internal data and external data) and knowledge (both tacit knowledge and explicit knowledge) available in various forms in the organization. The decision-making process itself results in improved understanding of the

Behrooz Noori and Mohammad Hossein Salimi problem and the process, and generates new knowledge. In other words, the decision-making and knowledge creation processes are interdependent.

0 0

Post a comment