Importance of DSS in Strategic Planning Essay

Decision support system is a type of system that is capable of providing support to any business or even organization most so when it comes to the decision-making process. Moreover, DSSs correctly serves all the planning, management and operation levels of any organization. On the other hand, it allows various individuals to come up with appropriate decisions concerning specific problems that may be rapidly changing and not easily identified at an early stage. According to research, computerized decision support systems are capable of offering a high level of assistance to most strategic planners (Niu, 2009). However, efficient application of these tools usually requires appropriate linking in the level DSS sophistication with all strategic planning requirements (Sui, 2009).

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Computerized decision support system plays an essential role when it comes to strategic planning associated with various parameters. Usually, a decision support application might gather certain types of typical information that mainly include the following; inventories of various types of information assets, comparative sales figures that take place between two different periods and project revenue figures that relies on all the available product sales assumptions (Behl, 2009). Aforementioned, DSS plays an important role as far as strategic planning is concerned, the following are some of the positive contributions that are brought about as a result of DSS when dealing with the strategic plan:

It is used to come up with a faster decision-making process and also the identification of different types of adverse trends leading to better allocation of different types of resources in strategic planning

DSS contains various kinds of information that are presented in the form of graphs and also charts that are summarized to help the entire management team to take a strategic decision.

This parameter has led to developing and analyzing different possible alternative actions of specific solutions thus ensuring that all the activities associated with strategic planning are operated easily without any barrier coming in between. An organization can also use decision support system as part of strategic planning, and this can be done through the through the implementation of various strategies. These organizations will implement DSS systems about their needs where they will use it in the evaluation of specific operations that mainly include:

-A large inventory stock most so the one where decision support system together with different applications can provide appropriate guidance during the establishment of supply chain movements that correctly functions for the organization.

-A sales process preferably where decision support software appears to be a 'crystal ball' that helps senior management team to analyze how different changes will affect the outcome.

Also, organizations can also use DSS for sales optimization purposes and sales projections where it can evaluate the amount of stock that is held at any facility. Through this means, they can make profits through the itemization of certain assets. Also, organizations are known to be capable of using DSS as part of strategic planning in the optimization of industry-specific systems. There are several other users attached to this advanced software option to come up with appropriate future projections of an organization or to determine some of the important events that determine the progress of the organization. Business intelligence is a combination of different strategies and technologies that are utilized by several enterprises to analyze data associated with certain types of business information. Moreover, business intelligence is vital in any business since it leads to a perfect analysis of data that is attached to a particular market. On the other hand, alignment of IT and business strategy are always associated with different advantages when dealing with business (Daidj, 2015). The two parameters can add a positive value through a reduction of various costs that are attached to a particular activity thereby leading to efficient performance and operation of many businesses.

Strategic planning has four different central points and three levels that talk about various issues taking place in the modern world. Some of the three levels of strategic plan include:

Corporate level strategy- this level can provide an appropriate response to all the foundational questions of what an individual intends to achieve

Business unit level strategy-this level puts much focus on how an individual or organization is going to compete

Market level strategy- it mainly focuses on growth, and this will take place through market penetration and development.

Some of the four main points of strategic planning also include the following;

Environmental scanning- this is usually the process of gathering and analyzing information adequately.

Formulation of strategy- it mostly relies on the information captured during environmental scanning.

Strategy implementation- the essential part of implementing any part of a strategy may always involve a clear communication.

Strategy evaluation- every organization should work hard towards continuous improvement. Through the implementation of various checkpoints into the overall plan, all the business leaders can quickly identify what is working and what has failed.

Each of the four main points and three levels of strategic planning can be supported by DSS through conducting an appropriate analysis that is accurate and relevant.

References

Behl, R. (2009). Information technology for management. New Delhi, India: Tata McGraw-Hill.

Daidj, N. (2015). Developing strategic business models and competitive advantage in the digital sector.

Information Resources Management Association. (2017). Decision management: Concepts, methodologies, tools, and applications.

Niu, L., Lu, J., & Zhang, G. (2009). Cognition-driven decision support for business intelligence: Models, techniques, systems and applications. Berlin: Springer Verlag.

Sui, D. Z. (2009). Planning support systems best practice and new methods.