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ROLE OF THE DECISION SUPPORT SYSTEM (DSS) FOR SELAK

DECISION MAKER MANAGEMENT

ABSTRACT

The technology in the global era of business in the world, makes the decision to make the
decision to be faced with the competition in the business world. The decision making can be
influenced by a few aspects, which can influence the decision maker to accelerate perfectly and
correctly the decision making.

The development of information systems and information technology is birth to a


decision support system or DSS. DSS is a computer based system, almost always interactive,
designed to assist a manager (or another decision maker) in decision making. The purpose of this
paper is to assess the benefits of DSS to management as a decision maker. More specifically, this
paper provides a summary of DSS that can result in a decision and a decision that affects
decision, and give a report in order to understand why this software chooses that decision.

Key words: Decision Support System, Management, Decision Maker, Information System,
Information Technology

PRELIMINARY

The development of computer technology that is increasingly rapid today is also


followed by the development of communication technology which is the main infrastructure that
provides transportation facilities for the capabilities of computer technology and its output
(Wijianto, 2000). Today computers are an integral and increasingly used part of the company's
business. Not only used to replace activities that are manual but also as a tool for management in
decision making. Decisions made with the support of this computer system are expected to not
only be more efficient, but also more effective in achieving goals. Every business person always
competes with other business people. The use of information technology in this case the decision
support system becomes strategic because it is used not only for the company's operations but
also to win the competition. The use of a Decision Support System (DSS) in a company is
important because of its ability to assist management in the process of making economic
decisions.

The rapid development of computer hardware is also offset by the rapid development of
software. This results in computers becoming very flexible and easy to use (user friendly) in
various fields and costs that are more efficient and more effective in achieving goals. One of the
uses of the computer is to help management in making decision (decision support). This decision
support system was introduced by Michael S. Scott Morton, G. Anthony Bory and Peter G. W.
Keen of the Massachusetts Institute of Technology in the 1980s, which is now known as the
Decision Support System (Jogiyanto, 2003). The purpose of this article is to discuss the various
important roles of using the Decision Support System (DSS) for management as decision
makers.

DISCUSSION

Information Systems In general, information systems are a collection and components in


a company or organization that are related to the process of creating and flowing information.
Meanwhile, according to Jogiyanto (2001: 13), "Information systems are a set of hardware,
software, brainware, procedures and or rules that are integrally organized to process data into
useful information to solve problems and make decisions".

An information system is a collection or set of related and supporting components with


the function of collecting, processing, storing, and distributing information. The results of the
process are used by management as a basis for making organizational decisions. In addition, a
good information system can also assist in analyzing and visualizing problems in the creation of
new products.
The use or role of information systems can vary in each company according to its
function. A company can see that the existing information system is only limited to a tool to
improve company efficiency, but it can also be something that functions very strategically, in the
sense that it can significantly provide customer satisfaction with the products and services
provided by the company.

There are several management views of information systems that exist in the company
according to their functions. First, it is something that is very familiar in the company to improve
the efficiency of work processes or operational activities, especially for administrative matters
and documentation, so as to encourage investment in computer purchases to be able to increase
efficiency, effectiveness in managing the company.

As in the previous description that information systems in companies can be said to have
strategic value if the system can support the success of increasing revenue, so if a system does
not affect the creation of products that are cheaper, better, and faster in accordance with product
concepts in competitive advantage cheaper, better and faster, then it does not need to be applied.
Computers can handle various types of activities in large volumes. Computer systems have the
ability to process which includes filtering, summarizing, classifying and manipulating data into
forms that are useful for decision making.

The company's efforts to survive and develop in the global business environment are
highly dependent on the company's competency in utilizing all the potential contained in
information technology to break through various obstacles and change that potential into
increased speed, flexibility, integration, and continuous innovation. Breakdown of various
obstacles requires reliable enablers. One of the main facilitators is information technology.
Information technology itself consists of three components, namely telecommunications,
electronic office equipment, and computers.

Information technology is able to shorten the response time to customers, so that


companies can increase customer value and cycle effectiveness. Information technology facilities
enable companies to break through cost barriers through increasing productivity and improving
the quality of decision making so that cost effectiveness increases.
Decision Support System (DSS)

Understanding Decision Support System according to Wainright Martin (2002: 203)


states that DSS is a computer based system, almost always interactive, designed to assist a
manager (or another decision maker) in making decisions. Whereas according to Jogiyanto
(2003: 327), DSS or decision support system is an information system to help middle level
managers for semi-structured decision making processes to be more effective by using analytical
models and available data.

In general, DSS is a system that is capable of providing both ability to solve problems
and the ability to communicate for semi-structured problems. In particular, DSS is a system that
supports the work of a manager and a group of managers in solving semi-structured problems by
providing information or proposals towards certain decisions.

In DSS a model is used as a basis for developing alternatives that are related to the nature
of the problem that must be solved, namely semi-structured or even unstructured, and the use of
computers as the driving force (computer based systems).

According to Turban (1999), the components of the Decision Support System can be
constructed from the following subsystems:

1. Data Management Subsystem, which includes database-data that contains data that is
relevant to the state and managed software called DBMS (Database Management
System).

2. Model Management Subsystem, in the form of a software package that contains


financial, statistical, management science, or quantitative models, which provide analysis
capabilities and appropriate management software.

3. Knowledge Management Subsystem, a subsystem (optional) that can support other


subsystems or act as an independent component.

4. User Interface Subsystem, is a subsystem that can be used by users to communicate


and give commands (providing a user interface).
5. Users (users), including users (users), managers, and decision makers.

Meanwhile, according to Jogiyanto (2003), the Decision Support System Component


consists of three main components, namely:

1. Dialogue Management or user interface, which is a component for dialogue with


system users. This component in the information system is an input component and an
output component.

2. Model management, which is a component that converts data into relevant


information. Models that are widely used in decision support systems are mathematical
optimization models such as linear programming, dynamic programming, and others.

3. Data Management, which is a database component consisting of all databases that can
be accessed. Like information systems in general, decision support systems also have
other components, namely technology and control components. The technology
component consists of hardware and software. Specific software used by DSS for
example are spreadsheets, database management systems, and query languages.

The Role of the Decision Support System (DSS) for Decision Maker Management

Decision Support System (DSS) is used by managers as a tool to make decisions, not as a
substitute for managers. So that any decision remains in the hands of the manager. As explained
by Jogiyanto (2003: 327), the definition of DSS or decision support system is an information
system to help middle-level managers for semi-structured decision making processes to be more
effective by using analytical models and available data. Helpful words here can be translated into
the assistance of managers in collecting data, analyzing data, habits, events and recapitations of
company activities in the past. With the collection of this data, of course managers will be
facilitated more in taking a decision both semi-structured and unstructured.

According to Budi Sutedjo (2002: 177) with reference to the opinion of Peter G.W. Keen
and Scott Morton, there are three main objectives that must be achieved by DSS, namely:
1. Helps managers make decisions to solve semi-structured problems that are where most
problems lie.

2. Supporting the assessment of managers rather than trying to replace them. Where
computers can be set on a structured problem section, but managers are responsible for
unstructured parts - applying judgment or intuition, and carrying out analysis.

3. Increase the effectiveness of decision making rather than efficiency; Where managers
may spend extra time to refine the solution so that it reaches optimum, but accuracy is
increasing and the main benefits for the best decisions are worth the time and effort that
has been spent.

These objectives refer to the three basic principles of a decision support system, namely:

1. Structure of Problems For structured problems, solutions can be done using appropriate
formulas, while for unstructured problems it cannot be computerized. Meanwhile, DSS
was developed specifically to solve semi-structured problems.

2. Decision Support DSS is not intended to replace managers, because computers are in a
structured part, while managers are in an unstructured section to provide assessment and
conduct analysis. Managers and computers work together as a semi-structured problem-
solving team.

3. Decision Effectiveness The main purpose of DSS is not to shorten the time of decision
making, but so that the resulting decision can be better.

Like the SIA and SIM models, similar structures can be used for DSS models. Data and
information are entered into the database from the corporate environment. The contents of the
database are used by three software subsystems:

1. Report Writer Software. Produce periodic reports and special reports. Periodic reports
are prepared according to a specific schedule, for example monthly sales analysis
according to customers. Special reports are prepared as answers to unexpected
information needs and something extraordinary happens, for example an accident report,
or something else.

2. Mathematical Model. Produce information as a result of simulations involving one or


several components of the company's physical system. Mathematical models are the
types that play a very important role in DSS. One advantage for managers who use a
mathematical model that is the speed of the simulation process can evaluate the impact of
decisions in a short period of time, where in minutes, a company operating simulation can
be made for several months, quarters or years.

3. GDSS (Group Decision Support System) Software. This device allows several problem
solving, working together as a group to reach a solution.

The use of DSS is intended to help high and middle level managers make decisions that
are not routine operations. DSS is able to absorb information from the database, reconfigure data,
calculations, statistical analysis, optimization, nonprobabilistic statistical analysis (what if
analysis), and why analysis, which is carried out through the Artificial Intelegent program.
Therefore, using this DSS appropriately will increase the effectiveness of decisions made by
managers and encourage the efficiency of the decision-making process. So DSS will be able to
create a dimension of support for making decisions, both tactic and strategic.

Informational support to managers is provided through data collection and publishing


reports. From the input side, non-routine and transactional data are mostly obtained from outside
sources. On the output side, special reports and routine reports can be provided on time. So
another manager or decision maker who uses DSS, will get a report from the relevant report
system, such as an example of profitability reports. But they can also request special reports from
this DSS through terminals or microcomputers.

Furthermore, a manager who uses DSS can use models to experiment interactively with
relevant data, for example by changing the values of certain factors and observing the results. So
DSS allows managers to obtain various perspectives on complex problem situations and carry
out interactions of significant factors. A manager can thus find and evaluate better ways of
alternative decision choices (Wilkinson, 2000).

CONCLUSION

Information technology has developed very rapidly, both in terms of hardware and
software. This has given birth to a decision support system or DSS, a specific information system
aimed at assisting management in making decisions related to issues that are semi-structured by
having facilities to produce various alternatives that can be interactively used by users.

DSS is very important for managers in helping the decision making process. DSS is
designed with emphasis on aspects of flexibility and high adaptability, so that it is easily adapted
to the needs of users. DSS applications can improve the effectiveness of manager's decision
making.

SUGGESTION

Based on the discussion that has been described, then the advice that can be conveyed
regarding the important role of DSS is that the DSS expands the decision maker's ability to
process data or information for the user, DSS helps the decision maker to save the time needed to
solve problems, DSS can produce solutions faster and the results are reliable, DSS is able to
present various alternatives, DSS can provide additional evidence to provide justification so that
it can strengthen the position of the decision maker, DSS can solve complex problems, and DSS
can increase productivity and control of managers.
BIBLIOGRAPHY

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Sutedjo D., Budi (2003). Information System Planning & Development. Andi Offset Publisher
Yogyakarta. Turban; McLean; Wetherbe. 1999. Information Technology For Management. John
Wiley & Sons, Inc. USA. Wainright, Martin E., Carol V. Brown, Daniel DeHayes, Jeffrey A.

Hoffer, and William C. Perkins (2002). Managing Information Technology. Fourth Edition.
Prentice-Hall, New Jersey.

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Vasant Raval, and Bernard Wong-On-Wing (2000). Accounting Information System: Essential
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