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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.