ch3.intro to various is

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VIDYABHARTI TRUST COLLEGE OF BBA & BCA. UMRAKHInformation System

Ch.3Introduction To Various Information Systems3.1. Business information systems

Information Systems Support for Organization Employees

Office automation systems

Functional area information systems

Business intelligence systems

Expert Systems

DashboardsWhy are Information Systems Important to Organizations & Society

It will reduce the number of middle managers.

It will change the managers job.

It impacts employees at work. It provides quality-of-life improvements.

SYBBA (SEM IV) Prepared By: Payal Chauhan 1


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Ch.3Introduction To Various Information Systems3.2. Introduction To Various Information Systems

3.2.1. Transaction Processing SystemA Transaction Processing System or Transaction Processing Monitor is a set information which processes a data transaction in a database system that monitotransaction programs (a special kind of program). The essence of a transaction program

that it manages data that must be left in a consistent state. E.g. if an electronic payment made, the amount must be both withdrawn from one account and added to the other; cannot complete only one of those steps.

Features of TPS:

Rapid response: Fast performance with a rapid response time is critical. Businessecannot afford to have customers waiting for a TPS to respond, the turnaround time frothe input of the transaction to the production for the output must be a few seconds oless.

Reliability: Many organizations rely heavily on their TPS; a breakdown will disru

operations or even stop the business. For a TPS to be effective its failure rate must bvery low. If a TPS does fail, then quick and accurate recovery must be possible. Thmakes welldesigned backup and recovery procedures essential.

Inflexibility: A TPS wants every transaction to be processed in the same way regardlesof the user, the customer or the time for day. If a TPS were flexible, there would be tomany opportunities for non-standard operations, for example, a commercial airline needto consistently accept airline reservations from a range of travel agents, acceptindifferent transactions data from different travel agents would be a problem.

Controlled processing: The processing in a TPS must support an organizationoperations. For example if an organization allocates roles and responsibilities particular employees, then the TPS should enforce and maintain this requirement.

3.2.2. Work Flow Systems

A workflow consists of a sequence of connected steps. It is a depiction of a sequence operations, declared as work of a person, a group of persons,[1] an organization of staff, oone or more simple or complex mechanisms. Workflow may be seen as any abstraction oreal work, segregated in work share, work split or other types of ordering. For contropurposes, workflow may be a view on real work under a chosen aspect,[2] thus serving as virtual representation of actual work. The flow being described often refers to a documethat is being transferred from one step to another.

A workflow is a model to represent real work for further assessment, e.g., for describing reliably repeatable sequence of operations. More abstractly, a workflow is a pattern activity enabled by a systematic organization of resources, defined roles and mass, energand information flows, into a work process that can be documented and learned.[3][4Workflows are designed to achieve processing intents of some sort, such as physictransformation, service provision, or information processing.The term workflow is used in computer programming to capture and develop human-tmachine interaction.

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Ch.3Introduction To Various Information Systems

Commercial organizations have long appreciated the benefits of business procesautomation. From banks managing mortgage applications, to utility companies tracking bpayments, they have learned that much of their day-to-day business can be described by set of well-defined business processes.

They have also understood that if they use technology to automate these processes, thecan eliminate time-consuming and error-prone manual intervention. This allows them tachieve more, in less time, with fewer mistakes. However, the real benefit is greatcompetitive advantage, as costs are reduced and productivity is improved.

Workflow systems are now also being used more and more to help the biotechnologypharmaceutical and chemical industries manage the vast quantities of data that pathrough many stages of processing and analysis. Data that may be captured in the field withandheld devices needs to be fed into the pipeline so that calculations can be performeand reports generated. Information on individual samples must pass between scientists an

support staff with different roles (such as quality control, curtain and analysis). A workflosystem to co-ordinate the whole process can ensure that data is processed, or passed on tthe next stage, in a timely manner. Automatic notification and web-based reporting caensure that all parties have full access to the status of samples within the system.

The need for regulatory compliance is an increasingly significant driver in thimplementation of workflow systems. In many industry sectors there is a requirement tcomply with external agencies who examine adherence to operational rules. In additiolegislative changes such as the USs Sarbanes-Oxley Act (SOX), will soon force manorganizations to invest in proving that their processes are sound. These needs fcompliance make workflow systems essential.

Tessella has helped many clients move towards more efficient and reliable processethrough automation. We have developed numerous workflow solutions, includincustomizations of off-the-shelf packages and the development of custom-built systems. Ware in an excellent position to help your organization realize the benefits of workflosystems.workflow management system is a computer system that manages and defines a series otasks within an organization to produce a final outcome or outcomes. WorkfloManagement Systems allow you to define different workflows for different types of jobs oprocesses. So, for example, in a manufacturing setting, a design document might bautomatically routed from designer to a technical director to the production engineer. A

each stage in the workflow, one individual or group is responsible for a specific task. Oncthe task is complete, the workflow software ensures that the individuals responsible for thnext task are notified and receive the data they need to execute their stage of the procesWorkflow management systems also automate redundant tasks and ensure uncompletetasks are followed up. Workflow management systems may control automated processes addition to replacing paper work order transfers. If for example the above design documenare now available as AutoCAD but the workflow requires them as Catia an automateprocess would implement the conversion prior to notifying the individual responsible for th



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Ch.3Introduction To Various Information Systemsnext task. This is the concept of dependencies. A workflow management system reflects thdependencies required for the completion of each task.

ExamplesThe following examples illustrate the variety of workflows seen in various contexts:

1. In military planning, a "concept of operations" is a workflow that defines particularmission types.2. In machine shops, particularly job shops and flow shops, the flow of a part through the

various processing stations is a work flow.3. Insurance claims processing is an example of an information-intensive, document-driven

workflow.4. Wikipedia editing is an example of a stochastic workflow.5. The Getting Things done system is a model of personal workflow management for

information workers.6. In global software development, the concept of follow-the-sun describes a process of

passing unfinished work across time zones.

7. In Scientific experiments, the overall process (tasks and data flow) can be described as aDirected Acyclic Graph (DAG). This DAG is referred to as a workflow, e.g. Brain Imagingworkflows.[8][9]

Workflow improvement theoriesThe key driver to gain benefit from the understanding of the workflow process in a businecontext is that the throughput of the work stream path is modeled in such a way as tevaluate the efficiency of the flow route through internal silos with a view to increasindiscrete control of uniquely identified business attributes and rules and reducing potentilow efficiency drivers. Evaluation of resources, both physical and human is essential tevaluate hand-off points and potential to create smoother transitions between task

Several workflow improvement theories have been proposed and implemented in thmodern workplace. These include:

1. Six Sigma:Six Sigma is a business management strategy originally developed bMotorola, USA in 1981.Six Sigma seeks to improve the quality of process outputs by identifying and removing thcauses of defects (errors) and minimizing variability in manufacturing and businesprocesses.[2] It uses a set of quality management methods, including statistical methodand creates a special infrastructure of people within the organization ("Black Belts", "GreeBelts", etc.) who are experts in these methods.[2] Each Six Sigma project carried out withan organization follows a defined sequence of steps and has quantified financial targe

(cost reduction or profit increase).[2]

The term six sigma originated from terminology associated with manufacturing, specificalterms associated with statistical modeling of manufacturing processes. The maturity of manufacturing process can be described by a sigma rating indicating its yield, or thpercentage of defect-free products it creates. A six-sigma process is one in whic99.99966% of the products manufactured are statistically expected to be free of defect(3.4 defects per million).

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Ch.3Introduction To Various Information Systems 2. Total Quality Management: Total Quality Management (or TQM) is a managemeconcept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produceduring the manufacturing or service process, increase customer satisfaction, streamlinsupply chain management, aim for modernization of equipment and ensure workers havthe highest level of training. One of the principal aims of TQM is to limit errors to 1 per million units produced. Total Quality Management is often associated with the developmen

deployment, and maintenance of organizational systems that are required for varioubusiness processes.

The main difference between TQM and Six Sigma (a newer concept) is the approach. TQtries to improve quality by ensuring conformance to internal requirements, while Six Sigmfocuses on improving quality by reducing the number of defects and impurities.

3. Business Process Reengineering: The analysis and design of workflows anprocesses within an organization. A business process is a set of logically related tasperformed to achieve a defined business outcome. Re-engineering is the basis for manrecent developments in management. The cross-functional team, for example, has becom

popular because of the desire to re-engineer separate functional tasks into complete crosfunctional processes. Enterprise resource planning, supply chain management, knowledgmanagement systems, groupware and collaborative systems, Human ResourcManagement Systems and customer relationship management.

Business Process Reengineering is also known as Business Process Redesign, BusineTransformation, or Business Process Change Management.

4. Lean systems: Lean manufacturing or lean production, often simply, "Lean," is production practice that considers the expenditure of resources for any goal other than thcreation of value for the end customer to be wasteful, and thus a target for eliminatioWorking from the perspective of the customer who consumes a product or service, "value

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Ch.3Introduction To Various Information Systemsis defined as any action or process that a customer would be willing to pay for. Basicallylean is centered on preserving value with less work. Lean manufacturing is a generprocess management philosophy derived mostly from the Toyota Production System (TPS)

Lean is the set of "tools" that assist in the identification and steady elimination of waste. Awaste is eliminated quality improves while production time and cost are reduced. Lean an

TPS can be seen as a loosely connected set of potentially competing principles whose goal cost reduction by the elimination of waste. These principles include: Pull processing, Perfefirst-time quality, Waste minimization, Continuous improvement, Flexibility, Building anmaintaining a long term relationship with suppliers, Autorotation, Load leveling anProduction flow and Visual control.

5. The Helix Methodology / Helix Factor:To improve the way organizations deliver value to their stakeholders by helping them achieve Strategically Aligned Operational Results.

As a way of bridging the gap between the two, significant effort is being put into defininworkflow patterns that can be used to compare different workflow engines across both these domains



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3.2.3. ERP

Enterprise Resource Planning (ERP) is an integrated computer-based system used manage internal and external resources, including tangible assets, financial resource

materials, and human resources. Its purpose is to facilitate the flow of information betweeall business functions inside the boundaries of the organization and manage the connectionto outside stakeholders. Built on a centralized database and normally utilizing a commocomputing platform, ERP systems consolidate all business operations into a uniform anenterprise-wide system environment.

An ERP system can either reside on a centralized server or be distributed across modulahardware and software units that provide "services" and communicate on a local arenetwork. The distributed design allows a business to assemble modules from differevendors without the need for the placement of multiple copies of complex and expensivcomputer systems in areas which will not use their full capacity.

Commercial applications

Manufacturing : Engineering, bills of material, work orders, scheduling, capacity, workflomanagement, quality control, cost management, manufacturing procesmanufacturing projects, manufacturing flow.

Supply chain management : Order to cash, inventory, order entry, purchasing, produconfiguration, supply chain planning, supplier scheduling, and inspection of goods, claiprocessing, and commission calculation.

Financials: General ledger, cash management, accounts payable, accounts receivablfixed assets.

Project management : Costing, billing, time and expense, performance units, activimanagement.

Human resources:Human resources, payroll, training, time and attendance, rostering, benefits

Customer relationship managementSales and marketing, commissions, service, customer contact, call-center support

Data servicesVarious "self-service" interfaces for customers, suppliers and/or employees

Access controlManagement of user privileges for various processes

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Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of them are listebelow:

A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and workflows The ability to effortlessly communicate information across various departments\ Improved efficiency, performance and productivity levels Enhanced tracking and forecasting Improved customer service and satisfaction

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing a

ERP system, here are some of the most common obstacles experienced:

The scope of customization is limited in several circumstances The present business processes have to be rethought to make them synchronize wi

the ERP ERP systems can be extremely expensive to implement There could be lack of continuous technical support ERP systems may be too rigid for specific organizations that are either new or want t

move in a new direction in the near future

Advantages

In the absence of an ERP system, a large manufacturer may find itself with many softwarapplications that cannot communicate or interface effectively with one another. Tasks thneed to interface with one another may involve:

ERP systems connect the necessary software in order for accurate forecasting to bdone. This allows inventory levels to be kept at maximum efficiency and the companto be more profitable.

Integration among different functional areas to ensure proper communicatioproductivity and efficiency

Design engineering (how to best make the product)

Order tracking, from acceptance through fulfillment The revenue cycle, from invoice through cash receipt Managing inter-dependencies of complex processes bill of materials Tracking the three-way match between purchase orders (what was ordered

inventory receipts (what arrived), and costing (what the vendor invoiced) The accounting for all of these tasks: tracking the revenue, cost and profit at

granular level.



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Ch.3Introduction To Various Information SystemsERP Systems centralize the data in one place. Benefits of this include:

Eliminates the problem of synchronizing changes between multiple systems consolidation of finance, marketing and sales, human resource, and manufacturinapplications

Permits control of business processes that cross functional boundaries Provides top-down view of the enterprise (no "islands of information"), real tim

information is available to management anywhere, anytime to make proper decisions Reduces the risk of loss of sensitive data by consolidating multiple permissions an

security models into a single structure. Shorten production lead time and delivery time Facilitating business learning, empowering, and building common visions

Some security features are included within an ERP system to protect against both outsidecrime, such as industrial espionage, and insider crime, such as embezzlement. A dattampering scenario, for example, might involve a disgruntled employee intentional

modifying prices to below-the-break-even point in order to attempt to interfere with thcompany's profit or other sabotage. ERP systems typically provide functionality fimplementing internal controls to prevent actions of this kind. ERP vendors are also movintoward better integration with other kinds of information security tools.

Disadvantages

Problems with ERP systems are mainly due to inadequate investment in ongoing training fothe involved IT personnel - including those implementing and testing changes - as well aslack of corporate policy protecting the integrity of the data in the ERP systems and the wayin which it is used.

Customization of the ERP software is limited. Re-engineering of business processes to fit the "industry standard" prescribed by th

ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive. (This has led to a new category of "ERP ligh

solutions.) ERPs are often seen as too rigid and too difficult to adapt to the specific workflow an

business process of some companies-this is cited as one of the main causes of thefailure.

Many of the integrated links need high accuracy in other applications to woeffectively. A company can achieve minimum standards, and then over time "dir

data" will reduce the reliability of some applications. Once a system is established, switching costs are very high for any one of th

partners (reducing flexibility and strategic control at the corporate level). The blurring of company boundaries can cause problems in accountability, lines

responsibility, and employee morale. Resistance in sharing sensitive internal information between departments can reduc

the effectiveness of the software.



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Some large organizations may have multiple departments with separate, independenresources, missions, chains-of-command, etc, and consolidation into a singenterprise may yield limited benefits.

ERP Systems Improve Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had their own isolatesoftware application which did not interface with any other system. Such isolated framewocould not synchronize the inter-department processes and hence hampered thproductivity, speed and performance of the overall organization. These led to issues such aincompatible exchange standards, lack of synchronization, incomplete understanding of thenterprise functioning, unproductive decisions and many more.

For example: The financials could not coordinate with the procurement team to plan oupurchases as per the availability of money.

Hence, deploying a comprehensive ERP system across an organization leads to performancincrease, workflow synchronization, standardized information exchange formats, completoverview of the enterprise functioning, global decision optimization, speed enhancemeand mor

3.3. Management Information Systems(MIS)

A management information system (MIS) is a system or process that provideinformation needed to manage organizations effectively [1]. Management informatiosystems are regarded to be a subset of the overall internal controls procedures in business, which cover the application of people, documents, technologies, and procedureused by management accountants to solve business problems such as costing a producservice or a business-wide strategy. Management information systems are distinct froregular information systems in that they are used to analyze other information systemapplied in operational activities in the organization. Academically, the term is commonused to refer to the group of information management methods tied to the automation osupport of human decision making, e.g. Decision Support Systems, Expert systems, an

Executive information systems.

Short for management information system or management information services, anpronounced as separate letters, MIS refers broadly to a computer-based system thprovides managers with the tools for organizing, evaluating and efficiently running thedepartments. In order to provide past, present and prediction information, an MIS cainclude software that helps in decision making, data resources such as databases, th

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Ch.3Introduction To Various Information Systemshardware resources of a system, decision support systems, people management and projemanagement applications, and any computerized processes that enable the department trun efficiently.

Within companies and large organizations, the department responsible for computsystems is sometimes called the MIS department. Other names for MIS include

(Information Services) and IT (Information Technology).

Management Information Systems (MIS) is the term given to the discipline focused on thintegration of computer systems with the aims and objectives on an organization

The development and management of information technology tools assists executives anthe general workforce in performing any tasks related to the processing of information. Mand business systems are especially useful in the collation of business data and thproduction of reports to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large businessthat does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assistmanagement in understanding the effects of their strategies, and help enable effectivedecision-making.

MIS systems can be used to transform data into information useful for decision making.Computers can provide financial statements and performance reports to assist in theplanning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reportsunmanageable volumes of data that would otherwise be broadly useless to decision makerBy studying these reports decision-makers can identify patterns and trends that would havremained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations hypothetical scenarios that

answer a range of what if questions regarding alterations in strategy. For instance, MISsystems can provide predictions about the effect on sales that an alteration in price wouldhave on a product. These Decision Support Systems (DSS) enable more informed decisionmaking within an enterprise than would be possible without MIS systems.

* Data Processing

Not only do MIS systems allow for the collation of vast amounts of business data, but they

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Ch.3Introduction To Various Information Systemsalso provide a valuable time saving benefit to the workforce. Where in the past businessinformation had to be manually processed for filing and analysis it can now be enteredquickly and easily onto a computer by a data processor, allowing for faster decision makingand quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysthey can also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series objectives for the subordinate to attempt to achieve within a set time frame. Objectives aset using the SMART ratio: that is, objectives should be Specific, Measurable, AgreeRealistic and Time-Specific.

The aim of these objectives is to provide a set of key performance indicators by which a

enterprise can judge the performance of an employee or project. The success of any MBobjective depends upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Sincall SMART objectives are by definition measurable they can be tracked through thgeneration of management reports to be analysed by decision-makers.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expeorganisations such as the Institute of MIS along with peer reviewed journals such as M

Quarterly continue to find and report new ways to use MIS to achieve business objectives

Core Competencies

Every market leading enterprise will have at least one core competency that is, a functiothey perform better than their competition. By building an exceptional managemeinformation system into the enterprise it is possible to push out ahead of the competitioMIS systems provide the tools necessary to gain a better understanding of the market awell as a better understanding of the enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined productioprocess. With better information on the production process comes the ability to improve thmanagement of the supply chain, including everything from the sourcing of materials to thmanufacturing and distribution of the finished product.

Quick Reflexes



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Ch.3Introduction To Various Information SystemsAs a corollary to improved supply chain management comes an improved ability to react tchanges in the market. Better MIS systems enable an enterprise to react more quickly ttheir environment, enabling them to push out ahead of the competition and produce better service and a larger piece of the pie.

Further information about MIS can be found at the Bentley College Journal of MIS and the U

Treasurys MIS handbook, and an example of an organisational MIS division can be found the Department of Social Services for the state of Connecticut.

3.3.1. Characteristics of MIS Integrated user machine system Supports operations, management, analysis & decision making functions Utilizes computer hardware, software, manual procedures, models for analyzin

planning, control & decision making and a database Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system

End users can develop custom reports Requires formal requests from users

3.3.2. Development Process of MIS

Process of MIS

The MIS implementation process (Table 3) involves a number of sequential steps (Murdicand Ross, 1975):

1. First establish management information needs and formulate broad systems objectives sas to delineate important decision areas (e.g., general management, financial managemeor human resources management). Within these decision areas there will be factorelevant to the management decision areas, e.g., general management will be concerneabout its relationship with the managing board, institute-client relationships and informatioto be provided to the staff. This will then lead the design team to ask what information unitwill be needed to monitor the identified factors of concern. Positions or managers needininformation for decision making will be identified.

2. Develop a general description of a possible MIS as a coarse design. This design will hav

to be further refined by more precise specifications. For efficient management information processing, the MIS should be based on a few databases related to differesub-systems of the organization.

3. Once the information units needed have been determined and a systems desigdeveloped, decide how information will be collected. Positions will be allocated responsibilifor generating and packaging the information.



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Ch.3Introduction To Various Information Systems4. Develop a network showing information flows.

5. Test the system until it meets the operational requirements, considering thspecifications stipulated for performance and the specified organizational constraints.

6. Re-check that all the critical data pertaining to various sub-systems and for th

organization as a whole are fully captured. Ensure that information is generated in a timemanner.

7. Monitor actual implementation of the MIS and its functioning from time to time.

Table 3 Methodology for implementing MIS

1. Understand the organization

2. Analyse the information requirements of the organization

3. Plan overall strategy

4. Review5. Preliminary analysis

6. Feasibility assessment

7. Detailed fact finding

8. Analysis

9. Design

10. Development

11. Cutover

12. Obtain conceptual schema

13. Recruit database administrator

14. Obtain logical schema

15. Create data dictionary

16. Obtain physical schema

17. Create database

18. Modify data dictionary

19. Develop sub-schemas

20. Modify database

21. Amend database

3.3.3. Decision support systems

decision support systems (DSS) is a computer-based information system that supporbusiness or organizational decision-making activities. DSSs serve the managemen

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Ch.3Introduction To Various Information Systemsoperations, and planning levels of an organization and help to make decisions, which mabe rapidly changing and not easily specified in advance.

DSSs include knowledge-based systems. A properly designed DSS is an interactive softwarbased system intended to help decision makers compile useful information from combination of raw data, documents, personal knowledge, or business models to identif

and solve problems and make decisions.

Typical information that a decision support application might gather and present are:

inventories of information assets (including legacy and relational data sources, cubedata warehouses, and data marts),

comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.

Decision Support Systems

The concept of a Decision Support System (DSS) emerged in the 1970s followindevelopments in IT which allowed the interactive use of computer technology, see DSHistory at dssresources.com.. The DSS concept reflected dissatisfaction with previouinflexible modelling approaches which did not allow management intervention in problesolving. The early definitions of DSS emphaised the role of DSS as flexible systemcombining database and model components aimed at less structured decisions. Thesmodelling and database components are under the control of the user through an interfacor dialogue system.

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A decision support system is a way to model data and make quality decisions based upon Making the right decision in business is usually based on the quality of your data and youability to sift through and analyze the data to find trends in which you can create solution

and strategies for. DSS or decision support systems are usually computer applicationalong with a human component that can sift through large amounts of data and picbetween the many choices.

While many people think of decision support systems as a specialized part of a businesmost companies have actually integrated this system into their day to day operatinactivities. For instance, many companies constantly download and analyze sales datbudget sheets and forecasts and they update their strategy once they analyze and evaluatthe current results. Decision support systems have a definite structure in businesses, but reality, the data and decisions that are based on it are fluid and constantly changing.

The key to decision support systems is to collect data, analyze and shape the data that collected and then try to make sound decisions or construct strategies from analysiWhether computers, databases or people are involved usually doesn't matter, however it this process of taking raw or unstructured data, containing and collecting it and then using to help aid decision making.

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Ch.3Introduction To Various Information SystemsIt is important to note that although computers and artificial intelligence is at work or in plawith data, it is ultimately up to humans to execute these strategies or comprehend the datinto a usable hypothesis.

It is important to note that the field of DSS does not have a universally accepted modemeaning that there are many theories vying for supremacy in this broad field. Because o

there are many working theories in the topic of DSS, there are many ways to classify DSS.

For instance, one of the DSS models available is with the relationship of the user in minThis model takes into consideration passive, active and cooperative DSS models.

Decision support systems that just collect data and organize it effectively are usually callepassive models, they do not suggest a specific decision, and they only reveal the data. Aactive decision support system actually processes data and explicitly shows solutions baseupon that data. While there are many systems that are able to be active, manorganizations would be hard pressed to put all their faith into a computer model without anhuman intervention.

A cooperative decision support system is when data is collected, analyzed and then provided to a human component which then can help the system revise or refine it. means that both a human component and computer component work together to come uwith the best solution.

While the above DSS model takes the relationship of the user in mind, another popular DSmodel takes into consideration the mode of assistance as the underlying basis of the DSmodel. This includes the Model Driven DSS, Communications Driven DSS, Data Driven DSDocument Driven DSS, and Knowledge Driven DSS.

Model Driven DSS is when decision makers use statistical, simulations or financial models tcome up with a solution or strategy. Keep in mind that these decisions are based on modelhowever they do not have to be overwhelming data intensive.

A Communications Driven DSS models is when many collaborators work together to comup with a series of decisions to set in motion a solution or strategy. This communicationdriven DSS model can be in an office environment or on the web.

A Data Driven DSS model puts its emphasis on collected data that is then manipulated to fthe decision maker's needs. This data can be internal, external and in a variety of formats. is important that usually data is collected and categorized as a time series which is

collection of data that forms a sequence, such as daily sales, operating budgets from onquarter to the next, inventory leels over the previous year, etc.

A Document Driven DSS model uses documents in a variety of data types such a tedocuments, spreadsheets and database records to come up with decisions a well as furthemanipulate the information to refine strategies.



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Ch.3Introduction To Various Information SystemsA Knowledge Driven DSS model uses special rules stored in a computer or used by a humato determine whether a decision should be made. For instance, for many day traders a stoloss limit can be seen as a knowledge driven DSS model. These rules or facts are used order to make a decision.

You can also look at the scope in which decisions are made as a model of DSS. For instanc

an organizational wide decision, department decision or single user decision, can be seen the scope wide model.


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