How do decision support systems help managers compare possible choices?

Created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

information system A woman taking a driver's license test on a computer, an example of a government using an information system to provide services to citizens.

Decision support systems assist managers in comparing choices primarily through model-driven applications. In these systems, managers interact with preprogrammed models to test various "what-if" scenarios.1

For example, a manager can input different variables—such as product pricing, production costs, and promotional expenses—into a marketing model. The system then calculates the projected outcomes for each scenario, allowing the manager to compare the predicted results and select the most profitable course of action.1

Beyond model-driven approaches, data-driven systems—often categorized as business intelligence—help managers compare options by analyzing large historical datasets. Through data mining and predictive analytics, these systems identify patterns, trends, and correlations that inform decision-making. Additionally, some systems facilitate group collaboration or use geographic information systems to visualize data, providing further clarity when evaluating complex choices.1