DSS vs. MIS by abhiruchi

8/2/2019 DSS vs. MIS by abhiruchi

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Abhiruchi Saraf(Roll no. 01)


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What is Information System (IS)?

What is a system?

Components of IS

Trends in IS Types of IS

What is MIS?

What is DSS?

DSS vs MIS


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Why Do People Need Information?

o Individuals - Entertainment and enlightenment

o Businesses - Decision making, problem solvingand control


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InformationSystems

ManagementChallenges

BusinessApplications

FoundationConcepts

DevelopmentProcesses

InformationTechnologies


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Business Applications

o The major uses of information systems for operations, management, and competitiveadvantage.

Development Processes

o

How business professionals and information specialists plan, develop, and implementinformation systems.

Management Challenges

o The challenge of managing ethically and effectively.

Foundation Conceptso Fundamental behavioral, technical, business and managerial concepts about

components and roles of IS.

Information Technologies

o Major concepts, developments and management issues in IT i.e. hardware, software,network and data management.


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An Information System is anorganized combination ofpeople, hardware, software,communication networks and

the data resources that collects,transforms and disseminatesinformation in a organization.

- James OBrien (1998)


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An organized combination of

o People

o Hardware

o Softwareo Communication networks

o Data resources

This system

o Stores, retrieves, transforms, and disseminates information inan organization


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Is a major functional area of business.

Is an important contributor to operational efficiency,employee productivity and morale, and customer service& satisfaction.

Is a major source of information and support for decisionmaking.

Provides a strategic advantage in developingcompetitive products & services.


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs MIS


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A group of interrelated or interacting elements forminga unified whole,

OR

A group of interrelated components working togethertoward a common goal by accepting inputs andproducing outputs in an organized transformationprocess (dynamic system).

Three basic interacting components:

o Inputo Processing (transformation process)o Output


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A system is made up of a number of partscombined in a particular way to dosomething useful

o Wheels, axles, pedals, gears, chain, seat andhandlebars are combined to form a single wholewe call a bicycle.

o A bike is a system when all the parts areconnected correctly because it allows the rider tomove from one place to another more easily.


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ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

Feedback

Signals

Feedback

Signals

System Boundary


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Inputo Capturing and assembling elements that enter the

system to be processed

Processingo Transformation process that converts input into output

Output

o Transferring transformed elements to their ultimatedestination


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Examples

o Universities Departments Staff

Courses Hostels etc. Environment Logical Arrangements

o

Class Room Whiteboard Chairs, Tables Technologies (projectors) Teachers Students


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs MIS


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Components of an information system


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Input of data resourceso Data entry activities

Processing of data into information

o Calculations, comparisons, sorting, and so on

Output of information productso Messages, reports, forms, graphic images

Storage of data resourceso Data elements and databases

Control of system performanceo Monitoring and evaluating feedback


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs. MIS


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DataProcessing

ManagementReporting DecisionSupport Strategic &End User Support ElectronicCommerce

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

ElectronicDataProcessing- TPS

ManagementInformationSystems

DecisionSupportSystems

- Ad hocReports

End User

Computing SystemExecutive ISExpert SystemsStrategic IS

ElectronicBusiness &Commerce-InternetworkedE-Business &E-Commerce


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs MIS


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Informationsystems

OperationsSupportSystems

TransactionProcessingSystems

Process ControlSystems

EnterpriseCollaboration

Systems

ManagementSupportSystems

ManagementInformation

Systems

DecisionSupport

Systems

ExecutiveInformation

Systems

Support ofBusinessOperations

Support of ManagerialDecision Making

ProcessingBusinessTransaction

Control ofIndustrialProcess

Team andWorkgroupCollaboration

PrespecifiedReporting forManagers

InteractiveDecisionSupport

InformationTailored forExcecutives


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What do they do?

o Efficiently process business transactions

o Control industrial processeso Support communications and collaboration

o Update corporate databases


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Transaction Processing Systemso Record and process business transactionso Example: sales processing, inventory systems, accounting

systems

Process Control Systemso Monitor and control physical processeso Example: using sensors to monitor chemical processes in a

petroleum refinery

Enterprise Collaboration Systemso Enhance team and workgroup communicationo Example: email, video conferencing


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What do they do?

o Provide information and support for effective decision making bymanagers

Management information systems Decision support systems

Executive information systems


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Management Information Systems (MIS)o Reports and displayso Example: daily sales analysis reports

Decision Support Systems (DSS)o Interactive and ad hoc supporto Example: a what-if analysis to determine where to spend

advertising dollars

Executive Information Systems (EIS)o Critical information for executives and managerso Example: easy access to actions of competitors


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs MIS


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Management Information Systems

o Systems that provide people with information relatingto organizational operation, to support their Decision-

Making activitieso Produces information products that support many of

the day-to-day decision-making needs of managersand business professionals

o

Prespecified reports, displays and responseso Support more structured decisions


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Produces many of the products thatsupport day-to-day decision-making

These information products typically take

the following forms:o Periodic scheduled reports

o Exception reports

o Demand reports and responses

o Push reports


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Periodic ScheduledReports

Exception Reports

Demand Reports

and Responses

Push Reports

MajorManagementInformationSystems Reports


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Management reporting alternatives

o

Periodic scheduled reports Prespecified format Provided on a scheduled basis

o Exception reports

Produced only when exceptional conditions occur

Reduces information overload


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Management reporting alternatives (continued)

o Demand reports and responses

Available when demanded.

Ad hoc

o Push reports

Information is sent to a networked PC over the corporateintranet.

Not specifically requested by the recipient


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Provide managers with information

Regular, routine operations

Control, organize and plan better


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Inputs: Information from the TPS

Outputs: hard and softcopy reports

o Scheduled reportso On-demand reports

o Key-indicator (business fundamentals)

o Exception reports


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Financial MIS

o Will integrate information from multiple sources

o Functions

Costing

P&L reporting

Auditing

Funds management


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Manufacturing

o Design and Engineering

o Master Production Schedulingo Inventory Control

o Materials Planning

o Manufacturing and Process Control

o Quality Control


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Marketing

o Market research

Web-based market research

o Pricing


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Transportation and Logistics

o Route and schedule optimization

Human Resources

Accounting


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What is a system?

Components of IS


What is MIS?

What is DSS?

DSS vs MIS


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Computer-based information systems thatprovide interactive information support duringthe decision-making process

DSSs use

o Analytical modelso Specialized databaseso The decision makers insights & judgmentso An interactive, computer-based modeling process to

support making semistructured and unstructuredbusiness decisions


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Designed to be ad hoc, quick-responsesystems that are initiated and controlled bythe decision maker

DSS Models and Software

o Rely on model bases as well as databases

o Might include models and analytical techniquesused to express complex relationships


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DSS models and software (continued)

o Can combine model components tocreate integrated models in support ofspecific types of business decisions


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An interactive modeling process

Four types of analytical modeling

o What-if analysis

o Sensitivity analysis

o Goal-seeking analysiso Optimization analysis


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What-If Analysis

o End user makes changes to variables,

or relationships among variables, andobserves the resulting changes in thevalues of other variables


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Sensitivity Analysis

o A special case of what-if analysis

o The value of only one variable is changed

repeatedly, and the resulting changes onother variables are observed

o Typically used when there is uncertaintyabout the assumptions made in estimating

the value of certain key variables


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Goal-Seeking Analysis

o Instead of observing how changes in a

variable affect other variables, goal-seeking sets a target value (a goal) for avariable, then repeatedly changes othervariables until the target value is achieved


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Optimization Analysis

o A more complex extension of goal-seeking

o The goal is to find the optimum value forone or more target variables, given certain

constraints


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What If-Analysis

Sensitivity Analysis

Goal-Seeking Analysis

Optimization Analysis

Important

DecisionSupportSystemsAnalytical Models


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Components of Web-Enabled Marketing DSSLegacy

SoftwareWeb

BrowserOther

Software

User Interface FunctionsHyperlinked Multimedia, 3-D Visualization

Model Management FunctionsAnalytical Modeling, Statistical Analysis

Data Management FunctionsData Extraction, Validation, Sanitation, Integration, and Replication

Data Marts and Other Databases

OperationalData

MarketData

CustomerAccount

Data

SalesData


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Decision support systems in business arechanging. The growth of corporate intranets,extranets, and other web technologies haveincreased the demand for a variety of

personalized, proactive, web-enabled analyticaltechniques to support DSS.

Information systems must support a variety of

management decision-making levels anddecisions. These include the three levels ofmanagement activity: strategic, tactical, andoperational.


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Handles large amounts of data from differentsources

Provides report and presentation flexibility

Offers both textual and graphical orientation


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Supports drill down analysis

Performs complex, sophisticated analysis and

comparisons using advanced software packages

Supports optimization, satisficing, and heuristicapproaches


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Performs different types of analyses

o What-if analysis Makes hypothetical changes to problem and

observes impact on the results

o Simulation Duplicates features of a real system

o Goal-seeking analysis Determines problem data required for a given

result


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Used for unstructured problems

Characteristics

o Data from multiple sources internal and external to organization

o Presentation flexibility

o Simulation and what-if capability

o Support for multiple decision approaches

o Statistical analysis


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What is a system?

Components of IS

Trends in IS

Types of IS

Information, Decisions and Management

What is MIS?

What is DSS? DSS vs MIS


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Decision Support Trends


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ManagementInformationSystems

Decision SupportSystems

Decision

supportprovided

Provide information about

the performance of theorganization

Provide information and

techniques to analyzespecific problems

Informationform andfrequency

Periodic, exception,demand, and push reportsand responses

Interactive inquiries andresponses

Informationformat

Prespecified, fixed format Ad hoc, flexible, andadaptable format

Informationprocessing

methodology

Information produced byextraction and manipulation

of business data

Information produced byanalytical modeling of

business data


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MIS

o Planned reporting

o Standard, scheduled, structured, and routine

o Constrained by the organizational system

DSS

o Decision making

o Unstructured and by request

o Immediate and friendly


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DSS vs. MIS by abhiruchi

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