How do DSS differ from TPS?
by Daniel J. Power
Editor, DSSResources.COM
excerpted from Power, D. (2002, pp. 8-9)
Development of Decision Support Systems (DSS) is one of the rapidly changing
frontiers in the application of computers in organizations. One reason we study
DSS is to understand how they differ from other systems. We have successfully
implemented computer-based Transaction Processing Systems (TPS), but
knowledge of building these operational systems is not adequate to create
effective DSS. So if DSS are to be successfully designed, developed, and
implemented, then both managers and many MIS professionals need a more
sophisticated technical and philosophical understanding of DSS.
Technology is creating new decision support capabilities, but much learning
and discussion needs to occur to successfully exploit the technological
possibilities. DSS differ in many ways from operating systems that process
business transactions. For example, a popular system that has been widely
implemented is called Enterprise Resource Planning (ERP). ERP is not a
Decision Support System even though the term suggests that decision making
and planning will be improved. In general, ERP is an integrated TPS that
facilitates the flow of information between the functional areas of a business.
Recently, DSS have been built that help managers analyze data from ERP
systems. The implementation of ERP systems has made it much easier to create
a enterprise-wide data-driven DSS.
A major difference between TPS and DSS is the general purpose of each
type of system. TPS are designed to expedite and automate transaction
processing, record keeping, and simple business reporting of transactions. DSS
are intended to assist in decision making and decision implementation.
Transaction processing is, however, related to the design of DSS because
transaction databases often provide data for decision-oriented reporting systems
and data warehouses.
Transaction Processing Systems usually provide standard reports on a
periodic basis and support the operations of a company. DSS are used on
demand when they are needed to support decision making. A manager typically
initiates each instance of DSS use, either by using the DSS herself or by asking a staff intermediary to use a DSS. Clerical employees, and some managers, use
TPS to support operations. Line managers and support staff are the primary
users of DSS. TPS record current information and maintain a database of
transaction information. DSS generally use historical internal and external data
for analysis. DSS may focus on quantitative analysis and modeling current and
future scenarios. TPS emphasize data integrity and consistency; and although
both of these qualities are important in every system, the primary emphasis for a
DSS is on flexibility and on conducting analyses and retrieving decision relevant information and knowledge.
One can draw many distinctions between TPS and DSS, but analysts and
managers need to stay focused on the phrase “decision support” in the term
“Decision Support System.” DSS are intended to improve and speed up the
processes by which people make and communicate decisions. Thus, the
emphasis in building a DSS is on increasing individual and organizational
decision-making effectiveness rather than on increasing efficiency in processing
operating data.
Reference
Power, Daniel J., "Decision Support Systems: Concepts and Resources for Managers," Quorum Books (2002). Faculty Book Gallery. 67.
https://scholarworks.uni.edu/facbook/67
Last update: 2020-11-07 09:57
Author: Daniel Power
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