Decision support context: a spreadsheet package (e.g., for modeling, “what-if” analysis, and summarization) is best classified as what kind of support tool?

Difficulty: Easy

Correct Answer: decision

Explanation:


Introduction / Context:
Spreadsheets are ubiquitous in business analysis. They provide modeling, sensitivity analysis, data summarization, and scenario planning, functioning as ad hoc decision support. Proper classification clarifies how they complement enterprise systems by empowering analysts and managers to explore alternatives rapidly.


Given Data / Assumptions:

  • Users rely on spreadsheets for calculations, charts, pivot tables, and “what-if” scenarios.
  • We distinguish between operational transaction processing and decision support activities.
  • “Success” is not a standard tool category; “simulation” is a technique that can be implemented within several tools, including spreadsheets.


Concept / Approach:
Decision Support Systems (DSS) enhance managerial decision-making via models and data analysis rather than executing daily transactions (which are operational). Spreadsheets are flexible DSS tools: they enable rapid prototyping of models, quick evaluation of alternatives, and communication of insights through visualizations. While spreadsheets can perform simulations, their core classification is “decision support” due to their role in analysis rather than transaction execution.


Step-by-Step Solution:

Identify core spreadsheet uses: analysis and decision-making aids. Differentiate from operational systems that record transactions (e.g., POS, ERP posting). Note that “simulation” is a capability within the tool, not the category of the tool itself. Select “decision” as the correct classification.


Verification / Alternative check:
DSS literature commonly lists spreadsheets as end-user decision support tools, along with OLAP and data visualization applications.


Why Other Options Are Wrong:

  • Operational: Focuses on routine transactions, not analysis.
  • Success: Not a recognized category.
  • Simulation: A technique that spreadsheets can host, but not the overarching classification.
  • None: Incorrect because “decision” is standard.


Common Pitfalls:
Letting spreadsheet-based decisions bypass governance; not validating models before adoption.


Final Answer:
decision

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion