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 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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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 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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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 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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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 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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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 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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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 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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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 Information System (IS)?
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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