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Management Information & Decision Support System
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What Information To Whom For What?
StrategicManagement
TacticalManagement
OperationalManagement
Executives & Directors
Business Unit Managers& Self Directed Teams
Operating Managers &Self Directed Teams
Decisions
Information
Structured
SemiStructured
Unstructured
Ad HocUnscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope
Prespecified
ScheduledDetailed
Frequent
Historical
Internal
Narrow Focus
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Examples
Decision
Structure
Operational
Management
Tactical
Management
Strategic
Management
Unstructured Cash management B.P.R.
Work group
performance analysis
New businessplanning
Companyreorganization
SemiStructured
Credit management
Productionscheduling
Daily workassignment
Employeeperformance appraisal
Capital budgeting
Program budgeting
Product planning
Mergers &acquisitions
Site Location
Structured Inventory control Program control
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Catering The Information Needs
To provide information & support all the levelsof management, we need several types ofinformation system, viz.
Management Information System
Decision Support System
Executive Information System
These all are basically part ofManagement
Support System
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Management Information System
An MIS information provides informationrequired for day-to-day decision making needsof management.
Reports, displays and responses produced bysuch systems provide information thatmanagers have specified in advance as pertheir requirement.
Best suited for Operational & Tactical levels.
Eg. DSR, Weekly, Monthly and QuarterlyReports.
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MIS-Types of Reports
Periodic Scheduled Reports
Exception Reports
Demand Reports & ResponsesPush Reporting
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Decision Support System
These are computer based informationsystems that provide interactive informationsupport to managers during the decisionmaking process.
Typically DSS use
Analytical Models
Specialized Databases
Decision makers own insights & judgmentsAn interactive computer based modeling process
to support decision making process
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Example
An MIS for sales manager will producesales analysis reports, that wouldcontain sales performance figures by
product line, salesperson, sales regionetc.
A DSS would also interactively show asales manager the effects on sales
performance of changes in a variety offactors (such as promotion expense andsalesperson compensation).
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MIS v/s DSS
MIS DSS
Decision Support Provided Provide information aboutthe performance of theorganization
Provide informationand decision supporttechniques toanalyze specific
problems oropportunities
Information form andfrequency
Periodic, exception,demand and push reportsand responses
Interactive inquiriesand responses
Information format Prespecified, fixed format Ad hoc, flexible andadaptable format
Information ProcessingMethodology
Information produced byextraction & manipulationof business data
Information producedby analyticalmodeling of businessdata
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DSS Facilitates
What-if analysis-observing how changes toselected variables affect other variables
Sensitivity analysis-observing how repeatedchanges to a single variable affect other
variablesGoal seeking analysis-making repeatedchanges to selected variables until a chosenvariable reaches a target value
Optimization analysis- finding an optimumvalue for selected variables, given certainconstraints.
GIS is a good example of DSS.
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Executive Information Systems
EIS features = MIS features + DSSfeatures
But the prime goal of EIS is to provide top
management with immediate and easyaccess to information about a firms CriticalSuccess Factors (CSFs) i.e. the key factorsthat are critical to accomplishing an
organizations strategic objectives.Eg. For a departmental store product mix,inventory and promotion efforts are CSFs
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EIS Contains
Information in tailored format andtailored contents to executive by usingGUI
Exception reporting & trend analysisAbility to drill down
Real time or most update information
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NOTE:- All the systems mentioned arecomputer based system, thus theirefficiency highly depends on many
factors like software, hardware,database, network etc.