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What Are the Different Types of Decision Analysis Software?

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  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 07 November 2016
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Professionals use decision analysis when they want to design strategies that generate the highest returns, have the lowest degrees of risk, and provide the best chances for long term growth and sustainability. For instance, executives who are interested in expanding into a new market might use decision analysis software to access data regarding current states of market growth, statuses of businesses in similar industries, and occurrences or areas that make an industry most volatile to risk. Some of the most common kinds of decision analysis software are programs that help users to make decisions based on qualitative or quantitative data. Some programs also might allow users to manage risk, make decisions about investment portfolios, perform uncertainty analysis, and find best options when multiple objectives are desirable.

With decision analysis software that uses quantitative techniques, it helps professionals to make decisions based on numbers. Market researchers, for example, can use this kind of software to learn about average pricing of products and services, costs, and amounts spent by consumers each year on certain products and services. Business decision makers can use quantitative decision analysis software to understand the profitability of other companies with similar interests.

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Decision analysis software that uses qualitative methods, on the other hand, helps users to make decisions based on survey answers, public opinion, and other factors that illustrate tastes and trends and which do not include the use of numbers. Professionals who use quantitative decision making processes often work in fields such as marketing and advertising. These professionals seek to understand why people prefer certain products and services so they can make decisions that help them to appeal to target demographics.

Financial professionals commonly use decision analysis software to make the best investment decisions. Some kinds of software help users to perform technical analysis. In these scenarios, professionals use software to make decisions based on how securities and markets behaved in the past. They generate charts and graphs that show how stocks behaved historically under similar economic indicators. When financial professionals use decision analysis software to perform fundamental analysis, on the other hand, they are interested in making decisions based on the actual, real time statuses of securities.

In all cases, people use decision analysis software to make objective decisions. Instead of moving ahead in a business plan or financial strategy based on instincts, desires, and feelings, professionals can use software to make decisions based on hard facts. This kind of software can be used along with the help of advisers and consultants or in the place of third party consultants.

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