management information & decision support system

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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.