A decision support system (DSS) is a computer-based information system that aids individuals and organizations in making informed decisions. It analyzes large amounts of data and presents an organization with the best possible options available. A DSS is an informational application as opposed to an operational application, which records the details of business transactions. The key components of a DSS include:

• Model Management System: Stores models that managers can use in their decision-making. The models are used in decision-making regarding the financial health of the organization and forecasting demand for a good or service.

• User Interface: Includes tools that help the end-user of a DSS to navigate through the system.

• Knowledge Base: Includes information from internal sources (information collected in a transaction process system) and external sources (newspapers and online databases).

DSSs offer interactive interfaces that allow users to manipulate data, explore scenarios, and perform “what-if” analyses, fostering more informed decision-making. Decision support systems allow for more informed decision-making, timely problem-solving, and improved efficiency in dealing with issues or operations, planning, and even management. Decision support systems are used to make actionable decisions, or to project the future of a business or to get a bird’s-eye view of a company’s performance.