DATA WAREHOUSE AND DECISION SUPPORT SYSTEM. Management Essay

DATA WAREHOUSE AND DECISION SUPPORT SYSTEM
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Globally, most organizations heavily rely on information technology in operational and decision-making activities. Hart D. & Gregor S (2010) argue that it is nearly impossible to miss the major role that the systems are playing in making work easier by automating services and processes. According to Bahner (1999), information systems are technological devices that are used in communication, processing and automating processes within an organization. On the other hand, people are the users, system developers and the controllers who are responsible for ensuring the system works efficiently
In the modern business world, organizations have faced stiff competition due to growth and development of the economic sector. This marks a big problem for organizations, thereby making them to actively react by making strong strategic decisions to remain relevant in the industry. As a result, there is a need to manage and store data for future use. Most of the organizations all over the world, work toward achieving the strategic goal of making a profit by gaining a competitive advantage and venturing into a global business (Kyriazoglou, 2012). In order to overcome this pressure, making critical strategic and technical decisions, storage and continuous use of the data are highly recommended as it is a basis for future outcome. Therefore, this paper seeks to explore on theories related to the data warehouse (DW) and decision support system (DSS) and their wholesome development and functionality in decision making as well as incorporating them in current systems to find the area of improvement.
Since the invention of the new technology data warehousing has been used in many sectors of the economy, such as production, banking, marketing, health, legal and education sectors simply because of arising demand on the support when making decisions. A data warehouse is an electronic storage, that is, a database of collected data from various related sources in an organization, which helps to make managerial decisions. According to art D. & Gregor S, (2010), the data warehouse includes subjects such as customers, employees, financial management and products. Then data integrated into a warehouse is cohesively set into useful information from other information systems. This data is accurate to some date and time variability, and it is not prone to change once it enters in storage. However, a data warehouse is the basis for data analysis and reporting in a business intelligence system
In a wide business world, a data warehouse can integrate its consumer’s information into its database from the point of sale, customers’ mailing list and feedback to forecast on production regarding amount quality type of product and at what time are the products required. More so, employee information collected from the human resource department is used to prepare end month payroll. It is, therefore, easier for a company analyzing the available data it has to make holistic decisions that could lead to its profitability, (Kyriazoglou, 2012) Operational sources, provide the warehouse with raw information, for example, cash registers, office computers, stock ledger, then, the d...