Which type of system provides management with the tools necessary to analyze data and make decisions?

The correct answer is the Decision Support System (DSS). A Decision Support System is specifically designed to assist management in making informed decisions by providing analytical tools and data manipulation capabilities. It utilizes data from various sources to support complex decision-making processes, allowing users to conduct what-if analyses, scenario modeling, and sensitivity analyses.

DSSs are often used in situations where data is not only essential but also needs to be interpreted and analyzed in a way that aids strategic planning and problem-solving. By combining data analysis with user-friendly interfaces, a Decision Support System empowers managers to explore options, forecast outcomes, and make choices based on comprehensive data-driven insights.

This contrasts with other systems mentioned, like the Executive Support System, which is more focused on providing top executives with easy access to internal and external information relevant to strategic decisions but doesn’t usually include in-depth analytical tools. Office Automation Systems primarily streamline administrative tasks, enhancing productivity without focusing on decision-making. Transaction Processing Systems manage day-to-day transactions efficiently but lack the analytical capabilities required for strategic decision-making.