Investigate implementation decision support system (DSS)’s impact on predicting and reducing the costs of organizations

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Investigate implementation decision support system (DSS)’s impact on predicting and reducing the costs of organizations

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    Academic Journal of Research in Economics & Management www.newscienceseries.com sra   Vol. 2, No. 3, March 2014, 50-56 ISSN: 2311-3278 Investigate implementation decision support system (DSS )’s impact on predicting and reducing the costs of organizations Arsalan Gholami 1 *   and Younes Salimi 2   rganizations need to present new and unique services with low  price, to survive in today’s competitive and complex environment; however it should has a desired benefit for them. Many companies have to seek some solutions for predicting and reducing their costs, to ensure that their products and services with current quality and  price will be successful in the market. Given that many decisions in  business and economic institutions have not been organized, and considering the fact that one of the important features of decision support system is solving unstructured problems, so this system can have an appropriate performance in these affairs. Hence, this paper at first attempts to consider the concept of decision support system and its capabilities in the organizations, and then examine the impact of implementation this system on predicting and reducing costs of organizations. According to the discussions it can be concluded that implementation of decision support system has a positive impact on  predicting and reducing operational, personnel, and staff costs, and also those costs which are resulted from irrelative and inaccurate information. At the end, according to the obtained results, a series of suggestions are presented to improve the process of implementing this system in the organizations Keywords: Cost Estimation and Reduction, Decision Support System DSS 1* -Corresponding Author: Young Researchers and Elite club, Sarab Branch, Islamic Azad University, Sarab, Iran, htmarsalan@gmail.com 2  - Master, Department of Executive Management, Islamic Azad University, Science and Research Branch of Ardabil, Ardabil, Iran, Younessalimi1@gmail.com Abstract    5 Academic Journal of Research in Economics & Management Vol. 2, No. 3, March 2014 Introduction Effect of technology on business and economic development is given prosperity in companies' interactions and International financial transactions. On the economic side, importance of rapid access to the right information in the area of global competition is the key to victory. (Sadeghi, 2006) Making decision in principle to a finance manager duties and management decision making capabilities appears in performance of duties and the quality of the services that he provides. (Momeni, 2009) management information system is based on information. As we know, we cannot ignore two factors to manage in the twentieth century :  -   Competition strategy   -   Cost reduction The later is potentially an export competition policy. In terms of these two strategies, the use of information and communication systems is necessary (Mohammadi, 2011) Development of today organizations has to follow a certain complexity, in general decision making without the use of technology and statistical investigations will not met the targets favorably. In order to benefit from an efficient management in the organization, in addition to the manager, who must have sufficient expertise to be able to run the organization, information system management is also required; Decision Support System DSS is one of these systems which serves as support for the decisions of management of the organization (Aghamohamad and Tajer, 2004) In fact, Decision Support System DSS is a management tool that can support managers in decision-making, but it will not be in place of management judgment (Laudon and Brien, 2004) Decision support system is an information computer based system, compliant, flexible and interactive that uses models and database rules to guide insights of decisions maker to decisions applicable in solving problems which are not solved with models of management, , so a decision support system DSS Support complex decisions and increases its effectiveness (Bomba and Land, 2006) According to the fact that forecasting and reducing costs across the organization is considered as a  business strategy, optimal decision which requires a system providing fast and comprehensive information will be necessary in this case. So, in this article the concept of decision support system and the abilities of that in the organization is considered first and then we will concentrate on the effect of applying this system to forecast and cost reduction. An overview of the concepts of Decision Support System DSS and its philosophy Decision support systems using mathematical models were born from the early centuries AD. the srcin of decisions is Similar to many new approaches which " had military applications ," and this approach has gradually found its way into the industrial field of business . The term of decision support system DSS first was invented in 1991 by Gregory and Scott Morton , both professors of MIT. They described such systems as interactive computer-based systems helping decision makers to use data and models for undetected issues (Mohammadi, 2011)    52 Gholami & Salimi Decision Support System DSS has attracted many fans as primary kinds of management information systems (MIS) (Feyzi and Moghadasi, 2006) It is the system providing the data and information needed for managers and decision makers for their vital strategic decisions across the entire organization. The system is designed to answer two of the following questions basically: 1) What information from what source and by what is needed for a proper decision? 2) What steps should be over to decide? Philosophy of existence of decision support systems: Floyd and his colleagues believe that what makes the Philosophy of DSS decision support system distinctive from the common system of data and information is making use of the system. This component is emphasized on past experience of making decisions and the inclusion of Wet insight. In DSS decision support systems, the user launches and control system instead of being guided by the system. so the philosophy of DSS decision support system is on this basis that in support of structured tasks the half part of the decision process can be devolved to the computer but some aspects of it, especially in the case of qualitative analysis and evaluation of abstract and subjective, it needs  judgment and management. Despite this Turban and his colleagues based on the fact that it does not have a backup of the system believe that there is no agreement about the capabilities and characteristics of such systems as well as. On this basis they have a list of these features and capabilities. It is worth noting that most of decisions have one or more of the features of this list. 1) Supporting these systems is done for various levels of management, both for individuals and groups, from senior managers to provide operational. 2. Decision support system or DIS support , decision makers with putting together human judgment and a computer information, primarily in the non-structured situation and half on structured. 3. Decision support system or DIS supports several decisions that have a specific combination or interdependence. 4. DSS or decision support system supports all stages of the decision-making process. These steps include the recognition, design, selection and implementation. 5. DSS decision support system promotes learning and development. This learning, leads to refine the system and update the new demand. 6. DSS decision support system use models most of the times. Modeling provides the ability to test various strategies in different circumstances (Mohammadi, 2011) Decision support systems DSS is a data-driven system helping managers in solving problems and getting semi-structured decisions. These systems combine the computer somehow with the process of deciding and make it a part of that and therefore allow utilizing information instead of being the recipient it (Mohammadi, 2011)    53 Academic Journal of Research in Economics & Management Vol. 2, No. 3, March 2014 the cost of development of such systems in the event that they are little is insignificant and so result of that is not of importance but not the cost of a medium or large system can be very high. Therefore, these systems should be entitled as a reason for investments which must not only have the desired result, but compared to other investment options also have a benefit. There exist many problems regarding justification of this system before development and evaluation of the results of the development and application. From these difficulties is that benefits of DSS decision support systems are qualitative that have a growing importance on the existing problems and also determine the economic value of information as the main output of the system.(Feyzi and Moghadasi,2006) Benefits of decision support system or DSS: In justifying the decision support systems DSS in case all the costs and benefits related to it could  be quantified, cost-benefit analysis was simply possible by comparing the costs and benefits and if the  benefits are greater than costs, the system will be justified. However, the problem can be caused  because of the fact that many benefits are intangible and difficult to be estimated. In Peter Kane investigation on the results of the case study, the benefits of backup systems are listed as follow. Among these benefits, only the first five items can be easily measured: -The possibility of rapid response to unforeseen situations -Ability to perform the analysis without a history -Cost saving -Save time -Better use of data sources -Increasing the number of tested options -Providing new learning and attitudes -Development and improvement of communication -Betterment of the decision.(Mohammadi, 2011) DSS decision support system capabilities and its impact on forecast and decreasing costs at organizations Some of the main features of DSS decision support system are as below: 1) DSS is mainly used in semi-structured and structured data and supports the decision of the recipients associated with human judgment. Such issues can not or cannot easily solve with other computer systems, or quantitative methods and tools of standard. 2) This support consists of different levels of the management (from top level executives to ordinary category managers). 3) This support is provided for people like groups. 4) This support is provided for multiple sequential dependent decisions.    54 Gholami & Salimi 5) Matching DSS with time is possible. The decision maker may react and to be able to deal with variable fast conditions and get ready the DSS for dealing with these changes. 6) DSS is flexible. So users can add, remove, mix, modify or sort basic elements. 7) DSS try to improve the effect of the decision instead of efficiency (cost) of decision.(The accuracy, timing and quality) (Mohammadi, 2011) Time is an important factor in the system and can be considered as one of the elements of the competitive strategy. The system is also capable of meet the unpredictable needs that could be important in getting a decision. Decision support system attracted many fans as the primary fans management information systems (MIS). This approach could be formulated using the methods of mathematical planning, optimization, and decision patterns with administrative issues (MCDM) and mathematical models as default (Mohammadi, 2011) Today, the establishment of information systems, including systems of macro-management for an organization seems to be necessary. Reviews the impact of the implementation of the decision support system DSS on prediction and reduction of the cost in organizations is the main goal of this study. The formal structure of any organization is defined as the pyramidal shape on the basis of the distribution of authority and responsibility to employees and in the top layer of it managers and technical experts and individuals are and the underlying layers occupied by the executive staff. Managers as the main layers of as any organization are responsible for the decision in all cases and the most important challenges of management is different decisions that must be taken every day by the Director (Khalesi Zadeh and   Kochuie, 2006). With attention to the necessity of implementation of methods to predict and reduce the costs of the Organization, right decision at the right time must be taken and it would be useful to have system to be able to manage data and use information and models to solve various issues.(Batty,1991) The systems which are not satisfied just by giving information and participate in the even simple decision are known decision backup system The more decisions about providing the model for prediction and reduction of the cost of the organization are based on intuitive. That's neither logical nor illogical. But this kind of decisions is  based on past experiences in similar situations, it can be said that this kind of decision is not logical  but it is analog. In the unknown system pattern model, decision-makers dare to become far from the logical criteria and suggest that the decision-making is a process in which problems, solutions, participants and if all the options coexist relatively in an independent manner (Labib, 2004) and analysis, managers and other organization professionals are able to help organizations to reduce costs and make decisions through providing information, models or tools and analysis (Mohammadi, 2011) DSS decision support system with an impact on the speed and accuracy of semi-structured and structured issues can also help managers to decide. This makes simulation of physical system very
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