New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following is the most critical success

    factor for the implementation of a Decision Support System (DSS) within an organization?
    A The ability to generate reports in real time Correct Answer Incorrect Answer
    B Comprehensive integration with Enterprise Resource Planning (ERP) systems Correct Answer Incorrect Answer
    C The system's flexibility to adapt to dynamic business environments Correct Answer Incorrect Answer
    D Implementation using cloud-based technologies for scalability Correct Answer Incorrect Answer
    E The organization's reliance on historical data for decision-making Correct Answer Incorrect Answer

    Solution

    Flexibility is the cornerstone of a successful DSS implementation in dynamic business environments. A Decision Support System is designed to assist managerial decision-making by analyzing large volumes of data, generating insights, and supporting "what-if" analyses. However, its effectiveness depends significantly on its adaptability to changing market trends, evolving organizational structures, and new business goals. A rigid DSS fails to accommodate these changes, rendering its outputs obsolete or irrelevant. Flexibility ensures that the DSS remains a valuable tool, offering timely and accurate insights regardless of external or internal shifts. For example, a DSS for inventory management that can integrate new supplier data seamlessly would help organizations maintain competitiveness and efficiency. Why Other Options Are Incorrect:

    • A) Real-time reporting is important but secondary to adaptability since not all decisions require real-time data.
    • B) Integration with ERP systems enhances data availability but does not directly impact the DSS's ability to handle dynamic changes.
    • D) Cloud-based technologies improve scalability but do not ensure flexibility in the system's operational logic or usability.
    • E) Historical data reliance may lead to biased or outdated decisions, especially in rapidly evolving industries.

    Practice Next