Characteristics of DSS:

The characteristics of DSS are as follows:

A) Analytic: DSS focuses on towards providing help with an analyzing situation rather than providing
the right information in form of various types of reports.

B) Individual Specific: DSS is individual specific. Each decision maker can incorporate his own
perceptions about the problems and analyze its effect.

C) Model-oriented: DSS incorporates various mathematical, statistical and operations research models.

D) Supportive: DSS is only supportive in nature and human decision makers still retain their supremacy.
It does not thrust its outcome on the decision maker.

E) Effective in aiding: DSS is effective in providing assistance to solve semi-structured problems at all
levels. It is used at first line, middle level and top-level management.

Following are the main benefits of DSS:

 A DSS enables the solution of complex problems that ordinarily cannot be solved by other
computerized approaches.
 A DSS enables a thorough quantitative analysis in a very short time. Even frequent changes in a
scenario can be evaluated objectively in a timely manner.
 DSS imparts the ability to try several different strategies under different configurations, quickly
and objectively.
 Data collection and model construction experimentations are executed with active users’
participation; therefore, greatly facilitating communication among managers.
 Routine application of DSS results in reducing or eliminating the cost of wrong decisions. Thus,
decisions are of a high quality and have a greater chance of successful implementation.
The main Components of DSS:

A) Hardware

B) Software

Hardware:

Hardware is the parts of the computer system that can be touched. These are tangible parts. Without
hardware, software is nothing. Hardware is just like human body and software is like the soul in the
body. All input and output devices are hardware parts. For example, Mouse; Keyboard etc. are the parts
of the hardware. There is no fixed hardware configuration for DSS is mainly determined by:

 The size of the database

 The Dems package that is being used
 The type of model that is being used
 Ways in which the reports/presentations are expected

Software:

The software is a set of computer programs that are designed and developed to perform a specific task.
The software acts as an interface between the user and computer. The software can be defined as a set
of instructions written by a program to solve a problem. It can be classified as:

 Database Management Sub-system

 Model Management Sub-system
 Dialogue Management Sub-system

Database Management Sub-System:

Normally there are two sources of data such as internal sources or external source queering these data.
It acts as an information bank. DBMS Software provides various facilities to modify and delete for
database creation, manipulate the data present in the database, query in the database. The architecture
of a database management system includes External Schema. Conceptual Schema, and Internal Schema.

Model Management Sub-System:

A model presents the relationship between various parameters of the system. It gives a mathematical
description of reality. The model builder provides a structured framework for developing models by
helping decision makers. The model builder also contains model dictionary consistencies in the
definitions user of models.

Dialogue Management Sub-system:

This acts as the gateway for the user to communicate with the DSS. It provides menus and icons for user
to communicate effectively with the system. It converts the queries given by the user into forms which
the other subsystems can recognize and execute. It keeps a track of activities that are being performed.
 MIS model for Digital Firm:

Twenty-first-century organizations are E-Enterprises that run their major operations on Internet/WEB
and WAN, spread over large area. The team E-Business enterprise was coined to convey the use of the
Internet and IT in key resource management processes and to transact the business with customers,
suppliers and business partners. ERR, SCM, CRM, PLM and homegrown legacy system are the main
applications in the business. The application of internet and information technology is in key core areas
of business.

These technologies are used for computing, collaboration. Communication, storage information in all
kinds of format. With the advancement of the internet. Web communication network and information
technology business process management crossed the boundaries of the organization and embraced
every aspect of the business making all its operations Digital. That is capturing the data or event
validating. Processing decision making, storing and delivering. The extent of use of these technologies is
so much across the boundaries of the organizations that E-Business enterprise as becoming completely
digitalized all its operations and hence is now called as a “Digital Firm

Fig 4.1: IS Structure of Conventional Design of MIS

Organizational Structure for Digital Firm:
Organizational structure refers to the way that an organization arranges people and jobs so that its work
can be performed, and its goals can be met, when a workgroup is very small and face-to-face
communication is frequent, formal structure may be unnecessary, but in a larger organization decision
must be made about the delegation of various tasks. Consequently, procedures are established that
assign responsibilities for various task. Thus, procedures are established those sign responsibilities for
various functions. It is these decisions that determine the organizational structure in an organization of
any size or complexity, employee’s responsibilities typically are defined by what they do, who they
report t, and for managers who report to them.

Over time these definitions are assigned to positions in the organizations rather than to specific
individuals. The best organizational structure for any organization depends on many factors including:

 The work it does

 The size in terms of employees
 The revenue
 The geographic dispersion of its facilities,
 The range of its business (the degree to which it is diversified across markets).

There are multiple structural variations that organizations can take on, but there are a few basic
principles that apply and a small number of common patterns.

The following sections explain these patterns and provide the historical context from which some of
them arose;

 The first section addresses organizational structure in the twentieth century.

 The second section provides additional stalls of traditional, vertically-arranged organizational
structures. This is followed by descriptions of several alternate organizational structures
including those arranged by product, function, and geographical or product markets.

Organizational Structure
During the twentieth Century

Understanding the historical context from which some of today's organizational structures have
developed helps to explain why some structures are the way they are.

Traditional Organizational Structure

While the previous section explained the emergence of the traditional organizational structure, this
section provides additional detail regarding how this affected the practice of management. The
structure of every organization is unique in some respects, but all organizational structures develop or
are consciously designed to enable the organization to accomplish its work. Typically, the structure of an
organization evolves as the organization grows and changes over time.

Function Organization

Every organization of a given type must perform certain jobs in order do its work. For example, key
functions of a manufacturing company include production, purchasing, marketing, accounting, and
personnel. The functions of a hospital include surgery, psychiatry, nursing, housekeeping, and billing.
Using such functions as the basis for structuring the organization may, in some instances, have the
advantage of efficiency. Grouping jobs that require the same knowledge, skills, and resources allow
them to be done efficiently and promotes the development of greater expertise.

Geographic Organization

Organizations that are spread over a wide area may find advantages in organizing along geographic lines
so that all the activities performed in a region are managed together. In a large organization, simple
physical separation makes centralized coordination more difficult. Also, important characteristics of a
region may make it advantageous to promote a local focus Companies that market products globally
sometimes adopt a geographic structure. In addition, experience gained in a regional division is often
excellent training for management at higher levels.

Product Departmentalization

Large, diversified companies are often organized according to a product. All the activities necessary to
produce and market a product or group of similar products are grouped together. In such an
arrangement, the top manager of the product group typically has considerable autonomy over the
operation. The advantage of this type of structure is that the personnel in the group can focus on the
particular needs of their product line and become experts in its development, production, and
distribution. A disadvantage, at least in terms of larger organizations, is the duplication of resources.
Each product group requires most of the functional areas such as finance, marketing, production, and
other functions. The top leadership of the organization must decide how much redundancy it can afford.
Customer or Product Market

An organization may find it advantageous to organize according to the types of customers it serves. For
example, a distribution company that sells to consumers, government clients, large businesses, and
small businesses may decide to base its primary divisions on these different markets. Its personnel can
then become proficient in meeting the needs of these different customers. In the same way, an
organization that provides services such as accounting, or consulting may group its personnel according
to these types of customers.

References
Title of Book
Author

Publication

Unit:

Page: 3.14,3.15,3.6,4.4,4.5,4.6

Source: Website: Reference for Business

Website: http://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html