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Chapter 2 Gaining Competitive Advantage with Decision Support Systems

Information systems have significantly improved the processing of business transactions. Managers and MIS professionals have created important transactionoriented Strategic Information Systems. In some organizations, the search for strategic opportunities remains focused on enhancing business transaction processing (TPS). This focus on operations is too narrow. Although business transactions can involve managerial decision-making, redesigning a transaction processing system creates advantages that are very different than building a Decision Support System. DSS meet a different need and serve a different purpose than TPS. Managers need to recognize that innovative strategic decision support applications can provide substantial opportunities for targeting sales efforts and improving profits. Information technology is creating new DSS capabilities that can and should be used to build innovative, specific Decision Support Systems that yield competitive advantage for an organization.