Digital Management and Business Intelligence: The Role of Decision Support Systems
Chapter from the book:
İnce,
M.
&
Gürsoy,
İ.
(eds.)
2025.
Multidisciplinary and Innovative Approaches to Digital Transformation in Social Sciences.
Synopsis
This study conceptually examines the integrated relationship between business intelligence (BI) and Decision Support Systems (DSS) in organizations within the context of the evolving digital management paradigm. As digitalization accelerates, achieving sustainable competitive advantage increasingly depends not only on internal resources but also on data-driven and analytical decision-making mechanisms, while traditional decision-making approaches have become inadequate in the face of growing data volumes and environmental uncertainty. Therefore, for organizations to achieve strategic growth, it is essential to integrate systems that effectively analyze data into decision-making processes.
Business intelligence systems provide managers with analytical insights at both operational and strategic levels by integrating diverse internal and external data sources, while Decision Support Systems incorporate this information into decision processes, enabling managers to make more accurate, timely, and strategic choices. Online Analytical Processing (OLAP), data warehousing, big data analytics, artificial intelligence, and cloud-based solutions are among the tools that enhance the functionality of decision support systems. Through the integrated analysis of financial reports, customer data, market analyses, and supply chain information, managers are able to make fast and reliable decisions, while organizations gain strategic flexibility by responding more agilely to uncertainty. Beyond monitoring the current situation, this integrated approach contributes to the development of forward-looking strategic scenarios and operational plans.
Different types of decision support systems—including data-driven, model-driven, communication-driven, document-driven, and knowledge-driven systems—provide flexibility and effectiveness in organizational decision-making processes, while the use of accurate and reliable data is of critical importance for strategic decision-making. This integration supports managers in making effective decisions at both operational and strategic levels across various sectors and functional areas such as finance, customer relationship management, and supply chain management, thereby enhancing the effectiveness of digital management and strengthening the predictive capacity of organizational decision processes. Findings based on the literature review indicate that the integration of BI and DSS enables organizations to systematically and holistically transform data into information and decisions; consequently, it improves decision-making effectiveness, enhances organizational agility, and provides sustainable competitive advantage. Therefore, it is recommended that organizations consider this integration as a central element when shaping their digital management strategies and foster a data-driven decision-making culture.
