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What Are Decision Support Systems?

Decision Support Systems (DSS) are computer applications that analyze data to help inform decisions. They can sift through large amounts of data to identify trends and patterns that can be used to develop strategies and solutions. DSS models include passive systems that only present data, active systems that suggest solutions based on data analysis, and cooperative systems where humans and computers work together. Key aspects of DSS include the type of assistance provided, such as model-driven, communications-driven, data-driven, document-driven, and knowledge-driven systems. Ultimately, while computers can process and analyze data, humans are still needed to execute strategies and decisions.
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0% found this document useful (0 votes)
55 views18 pages

What Are Decision Support Systems?

Decision Support Systems (DSS) are computer applications that analyze data to help inform decisions. They can sift through large amounts of data to identify trends and patterns that can be used to develop strategies and solutions. DSS models include passive systems that only present data, active systems that suggest solutions based on data analysis, and cooperative systems where humans and computers work together. Key aspects of DSS include the type of assistance provided, such as model-driven, communications-driven, data-driven, document-driven, and knowledge-driven systems. Ultimately, while computers can process and analyze data, humans are still needed to execute strategies and decisions.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A Decision Support System (DSS) is a way to model data and make quality decisions based on it.

Making the right decision in business is usually based on data quality and ones ability to sift through
and analyze the data to find trends that solutions and strategies can be created from/for. Decision
Support Systems are usually computer applications with a human component. They can sift through
large amounts of data and pick between the many choices.
What are Decision Support Systems?
While many people think of a DSS as a specialized part of a business, most companies have
actually integrated them into their day to day operating activities. For instance, many companies
constantly download and analyze sales data, budget sheets, and forecasts. They update their
strategy once they analyze and evaluate the current results. Decision Support Systems have a
definite structure in businesses. In reality, however, the data and decisions that are based on them
are fluid and constantly changing.
Decision Support Systems are used to collect data, analyze and shape the data that is collected,
and make sound decisions or construct strategies from analysis. Whether computers, databases, or
people are involved usually does not matter.
It is important to note that although computers and artificial intelligence are at work, it is ultimately up
to humans to execute these strategies or formulate the data into a usable hypothesis.
Types of Decision Support System Models
It is important to note that the DSS field does not have a universally accepted model. That is to say,
there are many theories vying for supremacy in this broad field. Because there are many working
DSS theories, there are many ways to classify DSS.
For instance, one of the DSS models available bears the relationship of the user in mind. This model
takes into consideration passive, active, and cooperative DSS models.
Decision Support Systems that just collect data and organize it effectively are usually called passive
models. They do not suggest a specific decision, and they only reveal the data. An active DSS
actually processes data and explicitly shows solutions based upon that data. While there are many
systems that can be active, many organizations would be hard pressed to put all their faith into a
computer model without any human intervention.
A cooperative Decision Support System is when data is collected, analyzed, and then given to a
human who helps the system revise or refine it. Here, both a human and computer component work
together to come up with the best solution.

While the above DSS model considers the users relationship, another popular DSS model sees the
mode of assistance as the underlying basis of the DSS model. This includes the Model Driven DSS,
Communications Driven DSS, Data Driven DSS, Document Driven DSS, and Knowledge Driven
DSS.
A Model Driven DSS is one in which decision makers use statistical simulations or financial models
to come up with a solution or strategy. Though these decisions are based on models, they do not
have to be overwhelmingly data intensive.
A Communications Driven DSS model is one in which many collaborate to come up with a series of
decisions to set a solution or strategy in motion. This model can be in an office environment or on
the web.
A Data Driven DSS model puts its emphasis on collected data that is then manipulated to fit the
decision makers needs. This data can be internal or external and in a variety of formats. It is
important that data is collected and categorized sequentially, for example daily sales, operating
budgets from one quarter to the next, inventory over the previous year, etc.
A Document Driven DSS model uses a variety of documents such as text documents, spreadsheets,
and database records to come up with decisions as well as further manipulate the information to
refine strategies.
A Knowledge Driven DSS model uses special rules stored in a computer or that a human uses to
determine whether a decision should be made. For instance, many day traders see a stop loss limit
as a knowledge driven DSS model. These rules or facts are used in order to make a decision.
The scope in which decisions are made can also be seen as a DSS model. For instance, an
organizational, departmental, or single user decision can be seen in the scope-wide model.

Despite the vast improvements in information technology, computers (on which modern IT is
based) cannot as yet take over business management. However, business information systems
have transformed the effectiveness, power and efficiency of management. In an earlier article on
business management software, we looked at surface aspects of how modern management
information systems help businesses. We saw how computers speeded up and improved the
quality of operations. We also mentioned the existence of broad categories of business software office suites, functional software such as accounting and inventory, and industry software such as
retail management software. In this article, we seek to look more analytically at the role of
information management systems. Decision Support, Problem Analysis and Overall Control
Business managers often need to make decisions that can affect the business' fortunes one way or
other. For example, a company with sales outlets or distributors spread over a wide geographic
area might want to optimize the logistical operations of delivering merchandise to the outlets.
The best solution might be affected by numerous factors such as demand patterns, availability of
merchandise, distances involved and the option of using external carriers (who can find two way

loads and might prove a lesser cost option over long distances) instead of own vehicles. While it
might be possible to use complex mathematical formulas by hand to compute the best solution,
computers transform the whole process into a routine task of feeding certain information as input
and obtaining suggestions for best solutions as output. The task can typically be done in a few
minutes (instead of hours or even days) and it becomes possible to examine several alternatives
before deciding upon one that seems most realistic. Identifying problems and analyzing the
factors that cause them also has been transformed by modern computer information systems. In a
typical MIS environment, standard reports are generated in a routine manner comparing actual
performance against original estimates. The software that generates the report can be instructed
to highlight exceptions, i.e. significant variations between original estimates and actual
performance. Managers will thus become aware of problem areas in the daily course of their
work simply by looking at the reports they receive, without having to do detailed data collection
and computations themselves Identifying the factors responsible for the problem can also be
routinized to some extent by using such tools as variance analysis. Variance analysis is an
element of standard costing system that splits deviations from estimates (or standards) into
causative factors such as increase in price of materials used, excessive usage of materials,
unexpected machine downtimes, etc. With such a detailed report, managers can delve deeper into
the problem factor, such as why there was excessive usage of materials. Control is also exercised
through variance analysis. Budgets are prepared for all business operations by concerned
managers working in a coordinated fashion. For example, estimated sales volumes will
determine the levels of production; production levels will determine raw material purchases; and
so on. With good information system management, it then becomes possible to generate timely
reports comparing actual sales, production, raw material deliveries, etc against estimated levels.
The reports will help managers to keep a watch on things and take corrective action quickly. For
example, the production manager will become aware of falling sales (or rising sales) of particular
products and can prepare to make adjustments in production schedules, and purchasing and
inventory managers will become quickly aware of any mounting inventories of unused materials.
MIS thus enhances the quality of communication all around and can significantly improve the
effectiveness of operations control. Effective MIS Involves Humans and Computers Working
together The major aspect to note is that MIS provides only the information; it is the
responsibility of concerned managers to act on the information. It is the synergy between
efficient, accurate and speedy equipment and humans with commonsense, intelligence and
judgment that really gives power to MIS. Gopinathan is a business writer who writes Web
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Aslongastherehavebeenpeople,therehasbeentechnology.Indeed,thetechniques
ofshapingtoolsaretakenasthechiefevidenceofthebeginningofhumanculture.On
thewhole,technologyhasbeenapowerfulforceinthedevelopmentofcivilization,all
themoresoasitslinkwithsciencehasbeenforged.Technologylikelanguage,

ritual,values,commerce,andtheartsisanintrinsicpartofaculturalsystemandit
bothshapesandreflectsthesystem'svalues.Intoday'sworld,technologyisa
complexsocialenterprisethatincludesnotonlyresearch,design,andcraftsbutalso
finance,manufacturing,management,labor,marketing,andmaintenance.
Inthebroadestsense,technologyextendsourabilitiestochangetheworld:tocut,
shape,orputtogethermaterials;tomovethingsfromoneplacetoanother;toreach
fartherwithourhands,voices,andsenses.Weusetechnologytotrytochangethe
worldtosuitusbetter.Thechangesmayrelatetosurvivalneedssuchasfood,shelter,
ordefense,ortheymayrelatetohumanaspirationssuchasknowledge,art,or
control.Buttheresultsofchangingtheworldareoftencomplicatedand
unpredictable.Theycanincludeunexpectedbenefits,unexpectedcosts,and
unexpectedrisksanyofwhichmayfallondifferentsocialgroupsatdifferenttimes.
Anticipatingtheeffectsoftechnologyisthereforeasimportantasadvancingits
capabilities.
Thischapterpresentsrecommendationsonwhatknowledgeaboutthenatureof
technologyisrequiredforscientificliteracyandemphasizeswaysofthinkingabout
technologythatcancontributetousingitwisely.Theideasaresortedintothree
sections:theconnectionofscienceandtechnology,theprinciplesoftechnologyitself,
andtheconnectionoftechnologyandsociety.Chapter8,TheDesignedWorld,
presentsprinciplesrelevanttosomeofthekeytechnologiesoftoday'sworld.Chapter
10,HistoricalPerspectives,includesadiscussionoftheIndustrialRevolution.
Chapter12,HabitsofMind,includessomeskillsrelevanttoparticipatingina
technologicalworld.

TECHNOLOGYANDSCIENCE
TechnologyDrawsonScienceandContributestoIt
Inearliertimes,technologygrewoutofpersonalexperiencewiththepropertiesof
thingsandwiththetechniquesformanipulatingthem,outofknowhowhandeddown
fromexpertstoapprenticesovermanygenerations.Theknowhowhandeddown
todayisnotonlythecraftofsinglepractitionersbutalsoavastliteratureofwords,
numbers,andpicturesthatdescribeandgivedirections.Butjustasimportantas
accumulatedpracticalknowledgeisthecontributiontotechnologythatcomesfrom
understandingtheprinciplesthatunderliehowthingsbehavethatis,fromscientific
understanding.

Engineering,thesystematicapplicationofscientificknowledgeindevelopingand
applyingtechnology,hasgrownfromacrafttobecomeascienceinitself.Scientific
knowledgeprovidesameansofestimatingwhatthebehaviorofthingswillbeeven
beforewemakethemorobservethem.Moreover,scienceoftensuggestsnewkindsof
behaviorthathadnotevenbeenimaginedbefore,andsoleadstonewtechnologies.
Engineersuseknowledgeofscienceandtechnology,togetherwithstrategiesof
design,tosolvepracticalproblems.
Inreturn,technologyprovidestheeyesandearsofscienceandsomeofthemuscle,
too.Theelectroniccomputer,forexample,hasledtosubstantialprogressinthestudy
ofweathersystems,demographicpatterns,genestructure,andothercomplexsystems
thatwouldnothavebeenpossibleotherwise.Technologyisessentialtosciencefor
purposesofmeasurement,datacollection,treatmentofsamples,computation,
transportationtoresearchsites(suchasAntarctica,themoon,andtheoceanfloor),
samplecollection,protectionfromhazardousmaterials,andcommunication.More
andmore,newinstrumentsandtechniquesarebeingdevelopedthroughtechnology
thatmakeitpossibletoadvancevariouslinesofscientificresearch.
Technologydoesnotjustprovidetoolsforscience,however;italsomayprovide
motivationanddirectionfortheoryandresearch.Thetheoryoftheconservationof
energy,forexample,wasdevelopedinlargepartbecauseofthetechnological
problemofincreasingtheefficiencyofcommercialsteamengines.Themappingof
thelocationsoftheentiresetofgenesinhumanDNAhasbeenmotivatedbythe
technologyofgeneticengineering,whichbothmakessuchmappingpossibleand
providesareasonfordoingso.
Astechnologiesbecomemoresophisticated,theirlinkstosciencebecomestronger.In
somefields,suchassolidstatephysics(whichinvolvestransistorsand
superconductors),theabilitytomakesomethingandtheabilitytostudyitareso
interdependentthatscienceandengineeringcanscarcelybeseparated.New
technologyoftenrequiresnewunderstanding;newinvestigationsoftenrequirenew
technology.
EngineeringCombinesScientificInquiryandPracticalValues
Thecomponentoftechnologymostcloselyalliedtoscientificinquiryandto
mathematicalmodelingisengineering.Initsbroadestsense,engineeringconsistsof
construingaproblemanddesigningasolutionforit.Thebasicmethodistofirst
deviseageneralapproachandthenworkoutthetechnicaldetailsoftheconstruction

ofrequisiteobjects(suchasanautomobileengine,acomputerchip,oramechanical
toy)orprocesses(suchasirrigation,opinionpolling,orproducttesting).
Muchofwhathasbeensaidaboutthenatureofscienceappliestoengineeringaswell,
particularlytheuseofmathematics,theinterplayofcreativityandlogic,theeagerness
tobeoriginal,thevarietyofpeopleinvolved,theprofessionalspecialties,public
responsibility,andsoon.Indeed,therearemorepeoplecalledengineersthanpeople
calledscientists,andmanyscientistsaredoingworkthatcouldbedescribedas
engineeringaswellasscience.Similarly,manyengineersareengagedinscience.
Scientistsseepatternsinphenomenaasmakingtheworldunderstandable;engineers
alsoseethemasmakingtheworldmanipulable.Scientistsseektoshowthattheories
fitthedata;mathematiciansseektoshowlogicalproofofabstractconnections;
engineersseektodemonstratethatdesignswork.Scientistscannotprovideanswersto
allquestions;mathematicianscannotproveallpossibleconnections;engineerscannot
designsolutionsforallproblems.
Butengineeringaffectsthesocialsystemandculturemoredirectlythanscientific
research,withimmediateimplicationsforthesuccessorfailureofhumanenterprises
andforpersonalbenefitandharm.Engineeringdecisions,whetherindesigningan
airplaneboltoranirrigationsystem,inevitablyinvolvesocialandpersonalvaluesas
wellasscientificjudgments.

DESIGNANDSYSTEMS
TheEssenceofEngineeringIsDesignUnderConstraint
Everyengineeringdesignoperateswithinconstraintsthatmustbeidentifiedandtaken
intoaccount.Onetypeofconstraintisabsoluteforexample,physicallawssuchas
theconservationofenergyorphysicalpropertiessuchaslimitsofflexibility,
electricalconductivity,andfriction.Othertypeshavesomeflexibility:economic(only
somuchmoneyisavailableforthispurpose),political(local,state,andnational
regulations),social(publicopposition),ecological(likelydisruptionofthenatural
environment),andethical(disadvantagestosomepeople,risktosubsequent
generations).Anoptimumdesigntakesintoaccountalltheconstraintsandstrikes
somereasonablecompromiseamongthem.Reachingsuchdesigncompromises
including,sometimes,thedecisionnottodevelopaparticulartechnologyfurther
requirestakingpersonalandsocialvaluesintoaccount.Althoughdesignmay

sometimesrequireonlyroutinedecisionsaboutthecombiningoffamiliar
components,oftenitinvolvesgreatcreativityininventingnewapproachesto
problems,newcomponents,andnewcombinationsandgreatinnovationinseeing
newproblemsornewpossibilities.
Butthereisnoperfectdesign.Accommodatingoneconstraintwellcanoftenleadto
conflictwithothers.Forexample,thelightestmaterialmaynotbethestrongest,orthe
mostefficientshapemaynotbethesafestorthemostaestheticallypleasing.
Thereforeeverydesignproblemlendsitselftomanyalternativesolutions,depending
onwhatvaluespeopleplaceonthevariousconstraints.Forexample,isstrengthmore
desirablethanlightness,andisappearancemoreimportantthansafety?Thetaskisto
arriveatadesignthatreasonablybalancesthemanytradeoffs,withtheunderstanding
thatnosingledesigniseversimultaneouslythesafest,themostreliable,themost
efficient,themostinexpensive,andsoon.
Itisseldompracticaltodesignanisolatedobjectorprocesswithoutconsideringthe
broadcontextinwhichitwillbeused.Mostproductsoftechnologyhavetobe
operated,maintained,occasionallyrepaired,andultimatelyreplaced.Becauseall
theserelatedactivitiesbearcosts,theytoohavetobeconsidered.Asimilarissuethat
isbecomingincreasinglyimportantwithmorecomplextechnologiesistheneedto
trainpersonneltosell,operate,maintain,andrepairthem.Particularlywhen
technologychangesquickly,trainingcanbeamajorcost.Thus,keepingdown
demandsonpersonnelmaybeanotherdesignconstraint.
Designsalmostalwaysrequiretesting,especiallywhenthedesignisunusualor
complicated,whenthefinalproductorprocessislikelytobeexpensiveordangerous,
orwhenfailurehasaveryhighcost.Performancetestsofadesignmaybeconducted
byusingcompleteproducts,butdoingsomaybeprohibitivelydifficultorexpensive.
Sotestingisoftendonebyusingsmallscalephysicalmodels,computersimulations,
analysisofanalogoussystems(forexample,laboratoryanimalsstandinginfor
humans,earthquakedisastersfornucleardisasters),ortestingofseparatecomponents
only.
AllTechnologiesInvolveControl
Allsystems,fromthesimplesttothemostcomplex,requirecontroltokeepthem
operatingproperly.Theessenceofcontroliscomparinginformationaboutwhatis
happeningwithwhatwewanttohappenandthenmakingappropriateadjustments.
Controltypicallyrequiresfeedback(fromsensorsorothersourcesofinformation)and
logicalcomparisonsofthatinformationtoinstructions(andperhapstootherdata

input)andameansforactivatingchanges.Forexample,abakingovenisafairly
simplesystemthatcomparestheinformationfromatemperaturesensortoacontrol
settingandturnstheheatingelementupordowntokeepthetemperaturewithina
smallrange.Anautomobileisamorecomplexsystem,madeupofsubsystemsfor
controllingenginetemperature,combustionrate,direction,speed,andsoforth,and
forchangingthemwhentheimmediatecircumstancesorinstructionschange.
Miniaturizedelectronicsmakespossiblelogicalcontrolinagreatvarietyoftechnical
systems.Almostallbutthesimplesthouseholdappliancesusedtodayinclude
microprocessorstocontroltheirperformance.
Ascontrolsincreaseincomplexity,theytoorequirecoordination,whichmeans
additionallayersofcontrol.Improvementinrapidcommunicationandrapid
processingofinformationmakespossibleveryelaboratesystemsofcontrol.Yetall
technologicalsystemsincludehumanaswellasmechanicalorelectroniccomponents.
Eventhemostautomaticsystemrequireshumancontrolatsomepointtoprogram
thebuiltincontrolelements,monitorthem,takeoverfromthemwhenthey
malfunction,andchangethemwhenthepurposesofthesystemchange.Theultimate
controllieswithpeoplewhounderstandinsomedepthwhatthepurposeandnatureof
thecontrolprocessareandthecontextwithinwhichtheprocessoperates.
TechnologiesAlwaysHaveSideEffects
Inadditiontoitsintendedbenefits,everydesignislikelytohaveunintendedside
effectsinitsproductionandapplication.Ontheonehand,theremaybeunexpected
benefits.Forexample,workingconditionsmaybecomesaferwhenmaterialsare
moldedratherthanstamped,andmaterialsdesignedforspacesatellitesmayprove
usefulinconsumerproducts.Ontheotherhand,substancesorprocessesinvolvedin
productionmayharmproductionworkersorthepublicingeneral;forexample,sitting
infrontofacomputermaystraintheuser'seyesandleadtoisolationfromother
workers.Andjobsmaybeaffectedbyincreasingemploymentforpeopleinvolved
inthenewtechnology,decreasingemploymentforothersinvolvedintheold
technology,andchangingthenatureoftheworkpeoplemustdointheirjobs.
Itisnotonlylargetechnologiesnuclearreactorsoragriculturethatareproneto
sideeffects,butalsothesmall,everydayones.Theeffectsofordinarytechnologies
maybeindividuallysmallbutcollectivelysignificant.Refrigerators,forexample,
havehadapredictablyfavorableimpactondietandonfooddistributionsystems.
Becausetherearesomanyrefrigerators,however,thetinyleakageofagasusedin
theircoolingsystemsmayhavesubstantialadverseeffectsontheearth'satmosphere.

Somesideeffectsareunexpectedbecauseofalackofinterestorresourcestopredict
them.Butmanyarenotpredictableeveninprinciplebecauseofthesheercomplexity
oftechnologicalsystemsandtheinventivenessofpeopleinfindingnewapplications.
Someunexpectedsideeffectsmayturnouttobeethically,aesthetically,or
economicallyunacceptabletoasubstantialfractionofthepopulation,resultingin
conflictbetweengroupsinthecommunity.Tominimizesuchsideeffects,planners
areturningtosystematicriskanalysis.Forexample,manycommunitiesrequireby
lawthatenvironmentalimpactstudiesbemadebeforetheywillconsidergiving
approvalfortheintroductionofanewhospital,factory,highway,wastedisposal
system,shoppingmall,orotherstructure.
Riskanalysis,however,canbecomplicated.Becausetheriskassociatedwitha
particularcourseofactioncanneverbereducedtozero,acceptabilitymayhavetobe
determinedbycomparisontotherisksofalternativecoursesofaction,ortoother,
morefamiliarrisks.People'spsychologicalreactionstoriskdonotnecessarilymatch
straightforwardmathematicalmodelsofbenefitsandcosts.Peopletendtoperceivea
riskashigheriftheyhavenocontroloverit(smogversussmoking)orifthebad
eventstendtocomeindreadfulpeaks(manydeathsatonceinanairplanecrash
versusonlyafewatatimeincarcrashes).Personalinterpretationofriskscanbe
stronglyinfluencedbyhowtheriskisstatedforexample,comparingtheprobability
ofdyingversustheprobabilityofsurviving,thedreadedrisksversusthereadily
acceptablerisks,thetotalcostsversusthecostsperpersonperday,ortheactual
numberofpeopleaffectedversustheproportionofaffectedpeople.
AllTechnologicalSystemsCanFail
Mostmoderntechnologicalsystems,fromtransistorradiostoairliners,havebeen
engineeredandproducedtoberemarkablyreliable.Failureisrareenoughtobe
surprising.Yetthelargerandmorecomplexasystemis,themorewaystherearein
whichitcangowrongandthemorewidespreadthepossibleeffectsoffailure.A
systemordevicemayfailfordifferentreasons:becausesomepartfails,becausesome
partisnotwellmatchedtosomeother,orbecausethedesignofthesystemisnot
adequateforalltheconditionsunderwhichitisused.Onehedgeagainstfailureis
overdesignthatis,forexample,makingsomethingstrongerorbiggerthanislikely
tobenecessary.Anotherhedgeisredundancythatis,buildinginonebackupsystem
ormoretotakeoverincasetheprimaryonefails.
Iffailureofasystemwouldhaveverycostlyconsequences,thesystemmaybe
designedsothatitsmostlikelywayoffailingwoulddotheleastharm.Examplesof
such"failsafe"designsarebombsthatcannotexplodewhenthefusemalfunctions;

automobilewindowsthatshatterintoblunt,connectedchunksratherthanintosharp,
flyingfragments;andalegalsysteminwhichuncertaintyleadstoacquittalratherthan
conviction.Othermeansofreducingthelikelihoodoffailureincludeimprovingthe
designbycollectingmoredata,accommodatingmorevariables,buildingmore
realisticworkingmodels,runningcomputersimulationsofthedesignlonger,
imposingtighterqualitycontrol,andbuildingincontrolstosenseandcorrect
problemsastheydevelop.
Allofthemeansofpreventingorminimizingfailurearelikelytoincreasecost.Butno
matterwhatprecautionsaretakenorresourcesinvested,riskoftechnologicalfailure
canneverbereducedtozero.Analysisofrisk,therefore,involvesestimatinga
probabilityofoccurrenceforeveryundesirableoutcomethatcanbeforeseenand
alsoestimatingameasureoftheharmthatwouldbedoneifitdidoccur.Theexpected
importanceofeachriskisthenestimatedbycombiningitsprobabilityanditsmeasure
ofharm.Therelativeriskofdifferentdesignscanthenbecomparedintermsofthe
combinedprobableharmresultingfromeach.

ISSUESINTECHNOLOGY
TheHumanPresence
Theearth'spopulationhasalreadydoubledthreetimesduringthepastcentury.Even
atthat,thehumanpresence,whichisevidentalmosteverywhereontheearth,hashad
agreaterimpactthansheernumbersalonewouldindicate.Wehavedevelopedthe
capacitytodominatemostplantandanimalspeciesfarmorethananyotherspecies
canandtheabilitytoshapethefutureratherthanmerelyrespondtoit.
Useofthatcapacityhasbothadvantagesanddisadvantages.Ontheonehand,
developmentsintechnologyhavebroughtenormousbenefitstoalmostallpeople.
Mostpeopletodayhaveaccesstogoodsandservicesthatwereonceluxuriesenjoyed
onlybythewealthyintransportation,communication,nutrition,sanitation,health
care,entertainment,andsoon.Ontheotherhand,theverybehaviorthatmadeit
possibleforthehumanspeciestoprospersorapidlyhasputusandtheearth'sother
livingorganismsatnewkindsofrisk.Thegrowthofagriculturaltechnologyhasmade
possibleaverylargepopulationbuthasputenormousstrainonthesoilandwater
systemsthatareneededtocontinuesufficientproduction.Ourantibioticscure
bacterialinfection,butmaycontinuetoworkonlyifweinventnewonesfasterthan
resistantbacterialstrainsemerge.

Ouraccesstoanduseofvaststoresoffossilfuelshavemadeusdependentona
nonrenewableresource.Inourpresentnumbers,wewillnotbeabletosustainourway
oflivingontheenergythatcurrenttechnologyprovides,andalternativetechnologies
maybeinadequateormaypresentunacceptablehazards.Ourvastminingand
manufacturingeffortsproduceourgoods,buttheyalsodangerouslypolluteourrivers
andoceans,soil,andatmosphere.Already,byproductsofindustrializationinthe
atmospheremaybedepletingtheozonelayer,whichscreenstheplanet'ssurfacefrom
harmfulultravioletrays,andmaybecreatingabuildupofcarbondioxide,whichtraps
heatandcouldraisetheplanet'saveragetemperaturessignificantly.The
environmentalconsequencesofanuclearwar,amongitsotherdisasters,couldalter
crucialaspectsofalllifeonearth.
Fromthestandpointofotherspecies,thehumanpresencehasreducedtheamountof
theearth'ssurfaceavailabletothembyclearinglargeareasofvegetation;has
interferedwiththeirfoodsources;haschangedtheirhabitatsbychangingthe
temperatureandchemicalcompositionoflargepartsoftheworldenvironment;has
destabilizedtheirecosystemsbyintroducingforeignspecies,deliberatelyor
accidentally;hasreducedthenumberoflivingspecies;andinsomeinstanceshas
actuallyalteredthecharacteristicsofcertainplantsandanimalsbyselectivebreeding
andmorerecentlybygeneticengineering.
Whatthefutureholdsforlifeonearth,barringsomeimmensenaturalcatastrophe,
willbedeterminedlargelybythehumanspecies.Thesameintelligencethatgotus
whereweareimprovingmanyaspectsofhumanexistenceandintroducingnew
risksintotheworldisalsoourmainresourceforsurvival.
TechnologicalandSocialSystemsInteractStrongly
Individualinventivenessisessentialtotechnologicalinnovation.Nonetheless,social
andeconomicforcesstronglyinfluencewhattechnologieswillbeundertaken,paid
attentionto,investedin,andused.Suchdecisionsoccurdirectlyasamatterof
governmentpolicyandindirectlyasaconsequenceofthecircumstancesandvaluesof
asocietyatanyparticulartime.IntheUnitedStates,decisionsaboutwhich
technologicaloptionswillprevailareinfluencedbymanyfactors,suchasconsumer
acceptance,patentlaws,theavailabilityofriskcapital,thefederalbudgetprocess,
localandnationalregulations,mediaattention,economiccompetition,taxincentives,
andscientificdiscoveries.Thebalanceofsuchincentivesandregulationsusually
bearsdifferentlyondifferenttechnologicalsystems,encouragingsomeand
discouragingothers.

Technologyhasstronglyinfluencedthecourseofhistoryandthenatureofhuman
society,anditcontinuestodoso.Thegreatrevolutionsinagriculturaltechnology,for
example,haveprobablyhadmoreinfluenceonhowpeoplelivethanpolitical
revolutions;changesinsanitationandpreventivemedicinehavecontributedtothe
populationexplosion(andtoitscontrol);bowsandarrows,gunpowder,andnuclear
explosiveshaveintheirturnchangedhowwariswaged;andthemicroprocessoris
changinghowpeoplewrite,compute,bank,operatebusinesses,conductresearch,and
communicatewithoneanother.Technologyislargelyresponsibleforsuchlargescale
changesastheincreasedurbanizationofsocietyandthedramaticallygrowing
economicinterdependenceofcommunitiesworldwide.
Historically,somesocialtheoristshavebelievedthattechnologicalchange(suchas
industrializationandmassproduction)causessocialchange,whereasothershave
believedthatsocialchange(suchaspoliticalorreligiouschanges)leadsto
technologicalchange.However,itisclearthatbecauseofthewebofconnections
betweentechnologicalandothersocialsystems,manyinfluencesactinboth
directions.
TheSocialSystemImposesSomeRestrictionsonOpennessinTechnology
Forthemostpart,theprofessionalvaluesofengineeringareverysimilartothoseof
science,includingtheadvantagesseenintheopensharingofknowledge.Becauseof
theeconomicvalueoftechnology,however,thereareoftenconstraintsonthe
opennessofscienceandengineeringthatarerelevanttotechnologicalinnovation.A
largeinvestmentoftimeandmoneyandconsiderablecommercialriskareoften
requiredtodevelopanewtechnologyandbringittomarket.Thatinvestmentmight
wellbejeopardizedifcompetitorshadaccesstothenewtechnologywithoutmakinga
similarinvestment,andhencecompaniesareoftenreluctanttosharetechnological
knowledge.Butnoscientificortechnologicalknowledgeislikelytoremainsecretfor
verylong.Secrecymostoftenprovidesonlyanadvantageintermsoftimeahead
start,notabsolutecontrolofknowledge.Patentlawsencourageopennessbygiving
individualsandcompaniescontrolovertheuseofanynewtechnologytheydevelop;
however,topromotetechnologicalcompetition,suchcontrolisonlyforalimited
periodoftime.
Commercialadvantageisnottheonlymotivationforsecrecyandcontrol.Much
technologicaldevelopmentoccursinsettings,suchasgovernmentagencies,inwhich
commercialconcernsareminimalbutnationalsecurityconcernsmayleadtosecrecy.
Anytechnologythathaspotentialmilitaryapplicationscanarguablybesubjectto
restrictionsimposedbythefederalgovernment,whichmaylimitthesharingof

engineeringknowledgeoreventheexportationofproductsfromwhichengineering
knowledgecouldbeinferred.Becausetheconnectionsbetweenscienceand
technologyaresocloseinsomefields,secrecyinevitablybeginstorestrictsomeof
thefreeflowofinformationinscienceaswell.Somescientistsandengineersarevery
uncomfortablewithwhattheyperceiveasacompromiseofthescientificideal,and
somerefusetoworkonprojectsthatimposesecrecy.Others,however,viewthe
restrictionsasappropriate.
DecisionsAbouttheUseofTechnologyAreComplex
Mosttechnologicalinnovationsspreadordisappearonthebasisoffreemarketforces
thatis,onthebasisofhowpeopleandcompaniesrespondtosuchinnovations.
Occasionally,however,theuseofsometechnologybecomesanissuesubjecttopublic
debateandpossiblyformalregulation.Onewayinwhichtechnologybecomessuchan
issueiswhenaperson,group,orbusinessproposestotestorintroduceanew
technologyashasbeenthecasewithcontourplowing,vaccination,genetic
engineering,andnuclearpowerplants.Anotherwayiswhenatechnologyalreadyin
widespreaduseiscalledintoquestionas,forexample,whenpeoplearetold(by
individuals,organizations,oragencies)thatitisessentialtostoporreducetheuseofa
particulartechnologyortechnologicalproductthathasbeendiscoveredtohave,or
thatmaypossiblyhave,adverseeffects.Insuchinstances,theproposedsolutionmay
betobantheburialoftoxicwastesincommunitydumps,ortoprohibittheuseof
leadedgasolineandasbestosinsulation.
Rarelyaretechnologyrelatedissuessimpleandonesided.Relevanttechnicalfacts
alone,evenwhenknownandavailable(whichoftentheyarenot),usuallydonotsettle
mattersentirelyinfavorofonesideortheother.Thechancesofreachinggood
personalorcollectivedecisionsabouttechnologydependonhavinginformationthat
neitherenthusiastsnorskepticsarealwaysreadytovolunteer.Thelongterminterests
ofsocietyarebestserved,therefore,byhavingprocessesforensuringthatkey
questionsconcerningproposalstocurtailorintroducetechnologyareraisedandthat
asmuchrelevantknowledgeaspossibleisbroughttobearonthem.Consideringthese
questionsdoesnotensurethatthebestdecisionwillalwaysbemade,butthefailureto
raisekeyquestionswillalmostcertainlyresultinpoordecisions.Thekeyquestions
concerninganyproposednewtechnologyshouldincludethefollowing:
Whatarealternativewaystoaccomplishthesameends?Whatadvantagesand
disadvantagesaretheretothealternatives?Whattradeoffswouldbenecessary
betweenpositiveandnegativesideeffectsofeach?

Whoarethemainbeneficiaries?Whowillreceivefewornobenefits?Who
willsufferasaresultoftheproposednewtechnology?Howlongwillthe
benefitslast?Willthetechnologyhaveotherapplications?Whomwillthey
benefit?
Whatwilltheproposednewtechnologycosttobuildandoperate?Howdoes
thatcomparetothecostofalternatives?Willpeopleotherthanthebeneficiaries
havetobearthecosts?Whoshouldunderwritethedevelopmentcostsofa
proposednewtechnology?Howwillthecostschangeovertime?Whatwillthe
socialcostsbe?
Whatrisksareassociatedwiththeproposednewtechnology?Whatrisksare
associatedwithnotusingit?Whowillbeingreatestdanger?Whatriskwillthe
technologypresenttootherspeciesoflifeandtotheenvironment?Intheworst
possiblecase,whattroublecoulditcause?Whowouldbeheldresponsible?
Howcouldthetroublebeundoneorlimited?
Whatpeople,materials,tools,knowledge,andknowhowwillbeneededto
build,install,andoperatetheproposednewtechnology?Aretheyavailable?If
not,howwilltheybeobtained,andfromwhere?Whatenergysourceswillbe
neededforconstructionormanufacture,andalsoforoperation?Whatresources
willbeneededtomaintain,update,andrepairthenewtechnology?
Whatwillbedonetodisposesafelyofthenewtechnology'swastematerials?
Asitbecomesobsoleteorwornout,howwillitbereplaced?Andfinally,what
willbecomeofthematerialofwhichitwasmadeandthepeoplewhosejobs
dependedonit?
Individualcitizensmayseldombeinapositiontoaskordemandanswersforthese
questionsonapubliclevel,buttheirknowledgeoftherelevanceandimportanceof
answersincreasestheattentiongiventothequestionsbyprivateenterprise,interest
groups,andpublicofficials.Furthermore,individualsmayaskthesamequestions
withregardtotheirownuseoftechnologyforinstance,theirownuseofefficient
householdappliances,ofsubstancesthatcontributetopollution,offoodsandfabrics.
Thecumulativeeffectofindividualdecisionscanhaveasgreatanimpactonthe
largescaleuseoftechnologyaspressureonpublicdecisionscan.
Notallsuchquestionscanbeansweredreadily.Mosttechnologicaldecisionshaveto
bemadeonthebasisofincompleteinformation,andpoliticalfactorsarelikelyto
haveasmuchinfluenceastechnicalones,andsometimesmore.Butscientists,

mathematicians,andengineershaveaspecialroleinlookingasfaraheadandasfar
afieldasispracticaltoestimatebenefits,sideeffects,andrisks.Theycanalsoassist
bydesigningadequatedetectiondevicesandmonitoringtechniques,andbysettingup
proceduresforthecollectionandstatisticalanalysisofrelevantdata.
What is a Corporate Decision?
A decision that deals with the safety, success, and livelihood of a business can be defined as a
corporate decision. These decisions can range anywhere from financial issues and customer
satisfaction to product popularity and environmental trends. Regardless of the topic, when making
a corporate decision the well-being of a company is usually on the line, and that is why most
successful businesses rely of the data and information provided by Business Intelligence
applications to point them in the most constructive direction for their organizations future. Major
corporations understand that they are in danger of falling behind or even succumbing to their
competition, another distressing possibility is surrendering to the weighty issues caused by a
struggling economy. The organization needs to be able to make decisions that will enable their
company to thrive even in the most unfavorable situations. At times these decisions are used to
decide whether or not the organization can afford to go in a direction that will take some type of
burden off of the consumer as well. Taking burden off of the consumer is an action many large
corporations take during times of hardship. These times can include war issues and even natural
disasters. By assessing the stability and status of its organization a company can then decide if it
would be prudent to donate products and services to those in need. Today this is done much more
often and companies are able to assist victims in a much more substantial way due to being fully
aware of how much they can afford to give.
How does Business Intelligence aid the Corporate Decision-making process?
Business Intelligence systems offer applications and programs that enable an organization to
monitor the current and past activity of their company. In addition to this however they can also
use the Business Intelligence tools to make predictions about the companys future based on a
possible decision. Though some may consider this a complete waste of time and finances, any
thriving company knows the importance of making an informed decision. Business Intelligence
systems contain a variety of tools that allow managers or executives to view real-time information
about the inner workings of their organization. This empowers them by ensuring that they are
completely informed on all aspects of the organization and how each one is performing. Getting
familiar with how productive each area of your organization is allows you to funnel all of that
knowledge into the choices you have when it comes time to make crucial decisions. Basing
decisions on the statistics and predictions made by the Business Intelligence applications
guarantees that the organization is not blindly stumbling forward into the unknown. In addition to
helping users make decisions concerning the future of an organization, the Business Intelligence
tools also provide managers with the information needed to make decisions with little time for
preparation. This is most helpful with some outside event affects the organization without notice. It
allows executives to make the speedy and adequate decisions needed to protect or improve the

BI Decision Making Tools

state of their company.


What are a few of the most helpful decision making tools?

Though Business Intelligence systems offer many helpful tools, there are a few specifically
designed to aid in the process of making vital decisions. Some of these tools include; Digital
Dashboards, Reporting Software, and Data Mining. This is only to name a few, there are countless
tools provided by the Business Intelligence systems, and they vary from vendor to vendor. Let us
take a look at one such tool known as Digital Dashboards first. Digital Dashboards are also know as

Executive Dashboards, Enterprise Dashboards, and Business Intelligence Dashboards depending


on the system being used. Regardless of what your organization calls this tool its function
essentially remains the same. Digital Dashboards are designed to offer virtually based summaries
of business conditions in metrics and Key Performance Indicators at a glance. This tool allows
users to visually ascertain the health of an organization. Now let us look deeper into the Reporting
Software tool. Reporting software tools generate an accumulative view of data designed specifically
to keep management informed on the present state of business. This software normally is used to
ensure management remains completely informed about the central workings of the organization.
It reports business or company related statistics as well, which is yet another way of guaranteeing
that the executives or managers are fully up-to-date about what is going on within the
organization. Finally we will take a brief look at Data Mining. Data Mining is basically the process of
sorting though very large amounts of unstructured information. After the information has been
sorted the program then picks out any relevant information, or information related to the
organizations current needs and issues. This tool is normally used by Business Intelligence
organizations or Financial Analysts. We will look more closely at these tools as well as others in a
separate article.
How do these tools help managers and executives to make more informed corporate decisions?
With the use of Business intelligence tools or applications the organizations managers and
executives find that they are fully informed about the issues they need to address regarding their
company. Tools such as the Reporting Software and the Digital Dashboard provide vital
information and statistics pertaining to how the organization operates and what areas are not
operating at an optimal level. This enables the users to then make decisions that will directly
benefit that area and bring its status up to an acceptable level. Armed with the details needed
executives and managers can then make decisions that will positively affect the areas of their
organization that need worked on. In addition to providing the information needed to make these
decisions, the Business Intelligence systems also offers predictive tools so that the possible
outcome of such decisions can be seen. This is useful when making decision that will greatly affect
the future of the organization. This can concern any issue from where to allot finances to what
products to add or delete from the organizations inventory. This information also can include
productivity issues; sometimes productivity issues consist of product generation and even the
organizations employee efficiency. Companies that deal with daily or weekly quotas will benefit
from the tools that monitor and collect information involving productivity data. Other tools
concern trends. These trends could be environmental or economical. Monitoring trends can help a
company to focus on what is desirable to the consumer or what is not, and then decide how to
capitalize that desire or the disinterest of a past product or service.. Most organizations rely on
Business Intelligence tools for the applications that are related to the companys financial status.
These types of tools can assess and predict the businesss incoming and outgoing finances. They
allow users to view past financial information and compare it to present financial information in
order to estimate what the organizations future financial status will be. After considering all of the
information we have gone over in this article, it is safe to say that companies that need to make
corporate decisions often will surely benefit from the tools provided by the Business Intelligence
systems of today. These tools will help those organizations to make sound choices where the
health and well-being of their business is concerned.

Innovation is now a priority in most firms around the world just as quality was two decades
ago. The challenge then was how to transform a quality program and results into a quality
image. Today the need is to gain image credit for developing an innovative organization and
a flow of innovative products. Having a reputation for creativity not only interjects energy
and respect, but adds new product credibility to support a firms culture and strategy.

Business Week recently ran a story on the 25 most innovative companies (e.g. Apple,
Google, 3M, Toyota, Microsoft, G.E., Procter & Gamble, Nokia, Starbucks, IBM, and Samsung)
as determined by a survey of over 1,000 executives. Among the ideas these firms used to
foster innovation was freeing time to experiment, patent sharing, having an innovator-inchief, and developing innovation metrics. While interesting, the story made the unfortunate
implication that a reputation for innovativeness was due to the current strategies, processes,
culture, and product flow of the firm and, further, that such a reputation would result in
financial success.
The reality, in my view, is far different.
Perceived innovativeness is driven by many factors, some reaching far into the past. One
factor is undoubtedly the heritage of imagination. For over 50 years, 3M has been known for
its philosophy of empowering innovators. Apple, the No. 1 firm in the survey, is still drawing
on Steve Jobs legacy of the first Apple nearly 30 years ago. IBM gets credit for establishing
the computer industry some five decades ago. G.E.s reputation may be influenced more by
the legacy of the founder, Thomas Edison, than the Jeff Immelt revolution.
A related factor is that these firms have put resources and skills into brand building.
Samsung, No. 12 on the list, has benefited from a design focus, speedy product cycles, and
rigorous innovation metrics. However, the brand strength and innovation image would never
have happened without the decision in the late 1990s to sponsor some prestigious sports
events including the Olympics, and to alter the distribution channel. Without brand building,
their success in flat screen TVs and mobile phones would not have resulted in the innovative
image these companies now enjoy.
A third factor is the ability to brand innovations that allow the image of newness to have
long legs. 3M hit a home run with Post-Its over 20 years ago, a pervasive symbol of
ingenuity. Brands like the Mac, introduced in 1984, the PowerBook (1991), and the iMac
(1998) all provided a lingering design crown for Apple years before iPod and iTunes.
Microsoft has a host of strong brands including MSN and Office that capture its leading-edge
thinking in those areas. P&G has opened new categories with Mr. Clean Autodry, Mr. Clean
Magic Eraser, and Tide Coldwater. Toyota has gotten a big bump with the Prius, a brand that
was introduced in the U.S. some six years ago, even though Honda was first to market with a
hybrid. Without supporting brands, an innovation too often sinks into the clutter of the
marketplace.
There is enormous inertia in brand equity; it is hard to create or even influence a creative
reputation in a few years. Consider that Sony during the last decade has missed the major
category innovations such as flat screen TVs, mobile phones, PDAs, and the iPod. While
falling in the Business Week study to the 13th spot from 5th, the fact that their innovative
image is still so high is simply remarkable.

The article further suggested that firms perceived to be innovative are more financially
successful, a theory supported by charts comparing the growth and margins of innovative
firms vs. others. However, the reverse causal flow might be more plausible. University of
Washington professor Bob Jacobson and I showed that Fortunes most admired companies
reflect stock market success (rather than the reverse) and the same phenomenon is likely
happening to perceived innovation.
Financial success leads to perceived innovativeness in two ways. First, it creates a brand
halo effect that helps foster an innovative image. Second, it can signal category leadership.
So Google, Toyota (with respect to hybrid cars), Microsoft, Nokia, and Starbucks, by
becoming representative of categories that have changed the way people live, get a
category bump on innovation.
Most firms aspire to have an innovative image. However, it is not enough to foster and
enable innovation in the organization or even to launch novel products and services on a
regular basis. Building an innovative reputation requires an understanding that an image is
an accumulation of everything associated with a brand over a long time period. That image
needs to be nurtured and guided by a brand visionand marketing enginesupported by
creative, effective brand-building activities.

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