Decision Support Systems (DSS) vs. Business Intelligence Systems (BIS)

 

A decision support system (DSS) is a computerized program that is used to support judgments, determinations, and courses of action in an organization or a business. A DSS collects and analyzes large amounts of data and compiles it so that it can be used to make decisions and solve problems. Information typically used by a DSS can include sales figures, projected revenues, or other operations related data (Segal, 2022). Similarly, business intelligence systems (BIS) combines data mining, data visualization, data tools, business analytics, and best practices to assist organizations make more data driven decisions (Tableau, n.d.).

So what is the difference between DSS and BIS? Some experts distinguish BIS as a successor to DSS, and are an element of BIS, to include data mining and data warehousing. BIS is a larger category that includes technologies, services, and applications for collecting, storing, accessing and analyzing data for decision making, where DSS programs are more purpose focused and used to support specific decisions. One example of DSS are health care systems that are used to gain efficiencies by setting computerized appointment reminders, condition specific orders, etc. According to Olavsrud, 2020, there are five different types of DSS that are based on their primary sources of information:

1.     Data driven – Includes executive information systems, file drawer and management reporting systems, and geographic information systems (GIS)

2.     Model driven – Includes financial and accounting models, and optimization and representational models

3.     Knowledge driven – Recommend and suggest actions to managers based on a particular knowledge domain

4.     Document driven – Storage and processing technologies for document analysis and retrieval

5.      Communication and group driven – Communication, collaboration, and coordination to help people working on the same task

Some examples of decision support systems are: GPS route planning, crop planning, clinical planning, and ERP dashboards.

Business intelligence systems help businesses make better business decisions by using data visualizations, data tools and infrastructure, and best practices.  BIS has evolved to include more activities and processes to help improve performance including: data mining, reporting, performance metrics and benchmarking, descriptive analytics, querying, statistical analysis, data visualization, visual analysis, and data preparation. Close to 50% of businesses already use some form of BIS, and this figure expected to continue to grow (Tableau, n.d.).

 

References

Business intelligence: A complete overview. Tableau. (n.d.). Retrieved October 10, 2022, from https://www.tableau.com/learn/articles/business-intelligence

Olavsrud, T. (2020, May 29). Decision support systems: Sifting data for Better Business Decisions. CIO. Retrieved October 10, 2022, from https://www.cio.com/article/193521/decision-support-systems-sifting-data-for-better-business-decisions.html#:~:text=Whereas%20BI%20is%20a%20broad,built%20for%20supporting%20specific%20decisions.

Segal, T. (2022, September 11). Decision support system (DSS): What it is and how businesses use them. Investopedia. Retrieved October 10, 2022, from https://www.investopedia.com/terms/d/decision-support-system.asp