Advances in computer-based information technology in recent years have led to a wide variety of systems that managers are now using to make and implement decisions. By and large, these systems have been developed from scratch for specific purposes and differ significantly from standard electronic data processing systems. Too often, unfortunately, managers have little say in the development of these decision support sysems; at the same time, non-managers who do develop them have a limited view of how they can be used. In spite of these drawbacks, the author found that a number of the 56 systems he studied are successful. And the difference between success and failure is the extent to which managers can use the system to increase their effectiveness within their organizations. Thus, the author suggests that this is the criterion designers and managers should jointly ascribe to in exploiting the capabilities of today’s technologies.
What can managers realistically expect from computers other than a pile of reports a foot deep dumped on their desks every other week?
Everyone knows, for instance, that computers are great at listing receivables. But what about all the promises and all the speculations over the past few decades about the role of the computer in management? While there have been advances in basic information retrieval, processing, and display technologies, my recent study of 56 computerized decision support systems confirms the common wisdom that very few management functions have actually been automated to date and all indications are that most cannot be.
Instead, my findings show what other researchers have reported: applications are being developed and used to support the manager responsible for making and implementing decisions, rather than toreplace him. In other words, people in a growing number of organizations are using what are often called decision support systems to improve their managerial effectiveness.1
Unfortunately my research also bore out the fact that while more and more practical applications are being developed for the use of decision makers, three sizable stumbling blocks still stand in the way of others who might benefit from them.
First, managers and computer users in many organizations are familiar with only a few of the types of systems now in use. As a result, different types of innovative systems have often been conceived and nurtured by internal or external “entrepreneurs,” not by the system users or their superiors.
Second, and closely related to my first finding, these entrepreneurs tend to concentrate on technical characteristics. Too often, this myopia means that they fail to anticipate the ways in which such systems can be used to increase the effectiveness of individuals in organizations.
Finally, highly innovative systems—the very ones management should find most useful—run a high risk of never being implemented, especially when the impetus for change comes from a source other than the potential user.
Quite simply, my purpose in this article is to discuss, without getting into the technology involved, the high potential of a variety of decision support systems, the challenges and risks they pose to managers and implementers, and a wide range of strategies to meet these challenges and risks.
