INTRODUCTION TO MIS

Management Information System plays a very important role in an

organization. There is hardly a business magazine that dos not
contain article about information system.
MIS can be defined as
A system which collects, processes, stores and distributes
information to help in decision making for managerial functions.
(Planning, staffing, directing, controlling, organizing and budgeting)
It may also be defined as Integrated user/ Machine system for
providing information to support the decision making process.
MIS is a computer based system, which presents both external and
internal information of business.
This system utilizes computer hardware and software, manual
procedure for analysis, planning, control and decision making.
These system do not take decisions but they assist in providing a
necessary information as an input to the decision making process.
MIS should provide information which is consistent, accurate, timely,
economically flexible and relevant.
MIS can be computerized or manual. MIS provides information in
report format on regular basis to assist managers with decision
which occur frequently and can be anticipated.
MANAGEMENT
Management has been defined in a variety of ways, but for our
purpose it compromises the processes or activities that describes
what managers do in the operation of their organization; plan,
organize, initiative and control operations.
INFORMATION
Data must be distinguished from information. Data are facts and
figures that are not currently being used in decision process.
Information consist of data that have been retrived, processed or
otherwise used for informative or inference purposes, arguments, or
as a basis for forecasting or decision making.
SYSTEMS
A system can be described simply as a set of elements joined
together for a common objective. The system concept of mis is
therefore one of the optimizing the output of the organization by
connecting the operating sub-system through the medium of
information exchange
PYRAMIDICAL STRUCTURE OF MIS
I) Lower level:-The bottom layer consists of information
required for transaction processing and inquiry processing.
II) Operational level:- This layer has the information which is
required for day to day performance of activities and their
control.
III) Middle level:- This layer has the information which is useful
for tactical planning and decision making to implement the
policy of top management.
IV) Top level:- This layer has information which is useful for
strategies and policy planning.
CHARACTERISTICS OF MIS
The mis plays a vital role in management, administrations and
operations of an organization as it helps in information generation,
communication, problem identification in the process of decision
making.
The main features of mis are:-
I) Management oriented:- The development of mis starts after
deciding the management needs and keeping in view overall
objective of management.
II) Management directed:- A good mis removes the lack of
knowledge, enriches experience and improves analytical
abilities leading to better business judgement.
III) Integrated system:- MIS binds together database of business
system and through information interchange, integrates the
organization. It also provides adequate development resources
and removes the human and organizational barriers to
progress.
IV) Avoid redundancy:- Since mis is a integrated system, it avoids
unnecessary inconsistency and redundancy in data gathering
and storage.
V) Common data flow:-MIS provides common data flows, which
try to utilize minimum data processing efforts and minimize the
number of output document.
VI) Heavy planning element:- Designing and implementation of
mis require detailed and meticulous planning of activities like
acquisition and utilization of resources.
VII) Common database:- MIS acts as a master that holds the
functional sub-system together. It achieves this aim by allowing
access to different master files of data to several functional
sub-systems.
VIII) Flexibility:- MIS design should be flexible so as to provide
alternate ways of processing data and system should be easy to
operate so that not much of computers skills are required.
IX) Computerization:- MIS can be computerized because of its
nature. This provide speed, accuracy and consistency in
creating and access of files.
X) Relevance:- MIS should deal only with operation and control of
relevant information.
XI) Support to top management:- MIS cannot be effective unless
they receive the full support of top management. For this, top
management should be educated about cost and benefits of
mis.
XII) Periodic evaluation:- The last feature of mis is that the system
should be evaluated at periodic intervals to ensure that mis is
achieving the objective of which this has been installed.
COMPONENTS OF MIS
Management information system refers to the data, equipment and
computers program that are used to develop information for
managerial use. The MIS consists of following components which are
as follows-
I) People:- People is only living component of mis which
operates and controls the other components of mis. They
enter, analyze and diagnose data, so that useful information
is produced and provided to top executives for decision
making.
II) Data process:- Data process uses different procedures, so
that data can be properly analyzed and effective information
is generated. Procedures explain people how to operate the
computer hardware, what program to run, what data to use
and what to do with the results.
III) Data communication:- There are different ways for
communication of data. It may be informed orally or in the
form of written report. Written forms are more appropriate
than oral ones as it is permanent and systematic way of
organizing information.
IV) Information:- Data are facts and figures that are not
currently being used in decision process. Data is process by
applying different procedures to obtain information. It may
be recorded into computer, storage media or manual files
and is retrived whenever required.
V) System planning:- We have achieved a very high degree of
automation and combination sub-system in scientific,
mechanical and factory manufacturing operation. The
system concept of mis is therefore of optimizing the output
of the organization by connecting the operation sub-system,
through the medium of information exchange.
VI) Hardware and Software:- The hardware generally consists of
computer equipments, on the other hand software consists
of programs or instructions given to the computer such as
pay roll processing, invoices etc.
FUNCTIONS OF MIS
A MIS is used to collect data, store and process data and present
information to managers.
I) Collect data:- Data can be obtained from source within
and outside the organization. Internal sources such as
records, reports and external sources such as
publications, customers and consultancy.
II) Store and process data:- After creation of data, a
database must be stored and processed in a form useful
to managers. The data can be loaded into computers for
easy access by user.
III) Present information to users:- After collection of data,
storing and processing of data, the next step is to present
the information to managers for their use.
USES/BENEFITS/ROLE OF MIS
I) MIS ensures that appropriate and relevant data is
collected from various sources, processed and is sent
further to needy destination.
II) It fulfills the needs of individual, group, management.
III) Mis helps in strategic planning, management control,
operational control and transaction processing system.
IV) Mis plays an important role in information generation,
communication, problem identification and decision
making administration.
V) With good mis support marketing, finance, production
and personnel functions increases efficiency.
VI) Mis creates structured database and therefore saves
time.
VII) Mis brings clarity in communication and understanding,
thus helps in bringing degree of professionalism.

INFORMATION
We breathe information, eat information, drink information, wake
up with information, sleep with information etc. So information is as
life blood of any organization, without information survival of any
organization is not possible.
Information means processing of data or analyses of data in a
specific context to get required information. It is a basis of decision
making. The decision taken on basis of complete and accurate
information is less risky.
The value of perfect information is calculated by finding out the
difference between the optimal policy with and without perfect
information.

Characteristics of an information
i) Accuracy:- accuracy means that information is free from
mistakes and error and it accurately and clearly reflects the
meaning of data from which it is derived. It conveys the
accurate picture to receiver and is free from biasness.
ii) Timeliness :- information must be delivered at the right time
and the right place to the right person otherwise information
would be of little value to the organization. hence, making
information available to the receiver within time is very
crucial for every organization.
iii) Relevance :- information should be to the point and
meaningful to the decision maker. Relevance of information
for different users will be different.
iv) Correct information format :- information should be given
to the user in such a form that it could be easily understood
by user.
v) Completeness :-information is said to be complete if
decision maker can satisfactory solve the problem at hand
using that information. Incomplete information has no
meaning for user.
vi) Subjectivity :- it is the value and usefulness of the
information.
vii) Accessibility :- information should be readily accessible in
desired format when needed. Technological advancement
has made data accessibility easy.
Types Of Information System
I) TPS(Transaction Processing System) :- Most fundamental
computer system which is concerned with processing of
business is called TPS. The objective of TPS is to improve
routine business activities on which functions of organization
depends. The main work of TPS is to record and process the
data resulting from business transactions. A transaction is an
event or entity which affects the organization. Transaction
processing could also be considered as a set of procedures
for handling transactions and it includes activities like
calculation, classification, storage and retrieval, sorting,
validation, verification, summarization etc. These activities
occur at operational level in nay organization. TPS produces
a variety of information system for internal and external
cause.
II) OAS(Office Automation System) :- OAS collects, processes,
stores and transmits data and information in the form of
electronic office communication. These automatic systems
rely on text processing, telecommunication and offer
information system technologies. Example- word processing,
electronic mail, desktop publishing, telecommunication and
document image processing. It enhances the abilities of
users to communicate with their colleagues within their
work groups and organization and with external contact
such as customers and suppliers.
Advantages-
They provide more time to managers to concentrate on their
basic jobs.
They improve the quality of work in terms of content,
throughness, timeliness and accuracy.
They speed up specific functions and thereby increases the
quantity of clerical output.
They reduce the time spent on input capture and creation.
They co-ordinate and integrate office tasks.
They enable more cost- effective and time- effective
communications.
They increase the productivity of office workers at all levels.
Disadvantages
Cost of automated office hardware is very high.
Oas can disrupt traditional office work roles and environment.
Oas may lead to security problems.

III) EIS(Executive Information System):- The decision made by
executives are mostly unstructured for which informational
requirements are generally for processed and summarized
data from variety of sources. Initially tip executive
information system relies on non computer source. Top level
executives get information whenever they require from
many sources like letters, memos, periodicals and report
produced manually as well as by computer system. Thus,
with computer based EIS provides top management with
immediate and easy access to selective information, which
reduces the information overload on executives and help to
achieve firms strategic objective.
IV) ES(Expert System):- Expert system aims at formalizing
expertise and makes it available for repetitive types of
business decisions. They use artificial intelligence tools to
generate knowledge out of information. It helps human
experts perform their jobs effectively and is important
where expertise is scarce and is therefore expensive. The
expert system has been developed for the purpose of
expertise from those with the knowledge in a convenient
and easily accessed manner. Expert systems are designed to
replace the function formed by human experts. Expert
system provide information to managers as expert advice.
An expert system supports the intellectual work of
professionals engaged in design, diagnosis or evaluation of
complex situation requiring expert knowledge in a well-
defined area.
Advantages:-
Planning:- ES can make a valuable contribution to
planning. It can use information from earlier project
which can be used to improve subsequent plans.
Decision making:- ES can support decision making by
storing information in its knowledge base from several
experts rather than a single expert.
Monitoring:- ES can be used to monitor the process,
activities of employees and cash management etc.
Diagnosis:- ES can be used in diagnosing different
conditions. Ex- in diagnosing the reasons for
manufacturing equipment, human diseases in medicine
etc.
Training:- when an ES is being used as a regular nature
in the course of work, users learn the way the system
reaches destination.
Timely response:- ES are available on call at all the
time and, can be used to provide immediate support
and to perform task immediately.
Reliability:- they are reliable in the sense that they do
not become tired or bored. They pay attention to all
details and do not overlook any relevant information.
Disadvantages:-
Expert system are not problem solver.
It may take longer time to solve problem than an expertise.
Expert system take long development time and are expensive.

SYSTEM VIEW OF BUSINESS
We should be able to visualize any business organization as a system.
Thus business is a system which is a set of interrelated components
that are working together to achieve organizations objective in a
controlled manner. In the past, managers had to solve the problem,
independently and in isolation. Suppose organization face the
problem of decline in sales and it is traced that problem is due to
poor performance of sales man. But practically there are no. Of
reasons responsible for that such as poor management, poor
understanding, poor quality of product, poor marketing policy etc.
This type of activity could be related to a system. A business must
maintain appropriate relationships with other political, economic
and social systems in the environment. This group includes its
stakeholders such as customers, suppliers, stockholders etc.
Information system can help a business to shape its relationships
with each of these stakeholders. In the same way, MIS is also a
system which consists of group of people, a set of manual and data
processing equipment which aims to provide information to reduce
the uncertainity in decision making.

SYSTEM APPROACH
The system approach in business was born in decade of 1960s. it is a
systemmatic process of problem solving based on scientific methods
which defines problems and oppurtunity in a system context.
Information describing the problem or oppurtunity is gathered.
Alternative solutions are identified, evaluated so that, best solution
is selected, implemented and then its success is evaluated.
Purpose of system approach is to utilize scientific analysis in complex
organization for-
Developing and managing operating system i.e. money flow,
personnel system.
Designing information system for decision making.
System approach of MIS is optimizing the output of the organization
by connecting to operative sub system through the medium of
information exchange. The basic notation of system approach in MIS
is to provide information on decision making on planning, organizing,
controlling the operations of sub-system of the firm.
The system approach in business for MIS is implemented by
SYNERGY. The concept of synergy tells us that the sum of part is
greater then the whole i.e. the output of total organization can be
enhanced if the components part can be integrated.
Thus, in an organization synergy is simultaneous action of separate
but inter-ralated parts that together produce a total effect greater
than sum of individual parts.
SYSTEM APPROACH IN PLANNING
The Most Basic And Important Function Of Management Is
Plannning. We Know That Plannning Is Needed At All Levels Of
Management And Success Of All Other Management Function
Depend Upon Plannning
Planning means deciding in advance what has to be done, who has to
do it, when it has to be done and how it has to be done. It bridges
the gap between where we are and where we want to go.
This system approach to planning starts with strategic plan as a
framework. The strategig plan is specific but not detailed. The long
term goal provides the constraints for setting intermediate and short
term goals.
Therefore strategic plans ties together the development plan also.
The strategic plannning process consists of two steps-
Developing the strategy
Formulating the steps, timing, cost required to achieve the
strategy.
SYSTEM APPROACH IN ORGANIZING
Organizing is important to managers because it helps in effective
group action. It also helps in maintaining the people to work
together and accomplish objectives i.e. organizing. It involves the
grouping of tasks necessary to accomplish plans and assign activity to
department.
It consists of following componenets-
The formal organization system as describes in chart policies
and procedures.
The informal organization
The individual as a system
The organizational communication system
The power system
The functional system
The managemnet process system
The material logistic system
We know that system approach saya that, output is greater if all part
work with integration. This is same concept of organizing.
Phases of organizing are-
Developing a technical organization based on traditional
methods of departmentalization.
Start with overall companys objectives and develop a hierarchy
of network of system required.
Involve key manager and specialist in order to select group of
people so that plannned activities are done in order to achieve
objective.
SYSTEM APPROACH IN CONTROLLING
Controlling Is Important Because It Is Needed To Achieve The Desired
Results. The Most Common Process Consists Of Three Steps-
Setting standards of performance- it involves what level of
performance we need. Hence, standards are criteria against
which result can be measured. These criteria can be
quantitative or qualitative.
Measuring performance- once standards have been
established it is necessary to measure performance against
standards. The statement of measurement and of any
difference is usually in form of personal observation type of
report in oral or written form.
Deviation control- we know that measuring deviation first
comparison of standards with actual performance is made. If
deviation is found then correction is made by taking some
course of action to achieve the targeted objectives.
Methods and techniques for correcting deviation can be
described in terms of functions of management-

a) PLAN- recycle the management process, review the plan,
modify the goal or change standards.
b) Organize- examine the organization in standard and make
sure duties are well understood.
c) Staffing- improve selection of sub-ordinate, improve
training, reassign duties.
d) Directing- provide better leaderhip, motivate the people,
explain the job better.

DIAGRAMS-




















DATA PROCESSING

Data processing is basically concerned with converting raw data into
well ordered information, which serves the purpose of result
processing. It essentially consist of facts relating to events and
entities. In a business situation, a sale or purchase is sn event. While
person, place, things etc are entities. Data processing consists of data
input, data manipulation and outputting results of data
manipulation. For the purpose of data processing data contained in
source documents are fed into computer. Data manipulations
consists of such operations as classification, sorting, calculations and
summarizations, while output operations contains management of
storage, retrieval, communications and reproduction of the result.

FLOW CHART
A flow chart is a diagrammatic or pictorial representation of the
algorithm. It indicates solution of a problem. They are constructed by
using special geometrical symbols. Each symbol represents an
activity. The activity could be input/output of data,
computation/processing of data, taking a decision, termination of
solution etc. the symbols are joined by flow lines to obtain a
complete flow chart.
1. TERMINAL SYMBOL:- The terminal symbol is used to indicate
the point at which a flow chart begins and ends. It is accepted
procedure to insert the word START and STOP with the
terminal symbols.
2. INPUT/OUTPUT SYMBOL:- In a program i/p and o/p symbols
identify the logical positioning of input and output operations.
i/o symbol indicates to take input from user and o/p symbol is
used to generate solution to the problem.
3. PROCESSING SYMBOL:- In this, data are automatically
processed. We can define computations and after that data
moves to storage area or output area.
4. DECISION SYMBOL:- It is also called logical symbol to solve
Many business problems, many comparisons of data are made
before selecting the best alternative. The two principal
components of decision symbol are-
A question that defines the logical operation.
The result of the decision (i.e. yes/no)
5. Connector:- A flow chart becomes very long, the flow lines start
crossing many places that causes confusions. In that case, it is
useful to utilize the connector symbol as a substitute for flow
lines. It is indicated by a circle and a letter or digit is placed
within the circle.
6. Flow lines:- flow lines are used to indicate the flow of
operation i.e. exact sequence in which the instructions are to
be executed. The normal flow of flow-chart is from top to
bottom and left to right.
Advantages-
Flow- chart is good aid for communicating the logic of a system.
It helps to identify a relationship that exists among problem
element.
It helps us in effective analysis by breaking down into detailed
part of a study.
Flow chart act as a guide or blue print during the system
analysis program preparation phase.
The flow chart helps in debugging process i.e. it helps in
detecting, locating and removing mistakes.
Disadvantages-
When the program logic is complex the flowchart becomes
complex.
If alterations are required, the flow chart may require re-
drawing completely.
No uniform practice is followed for drawing flow-chart.
Sometimes it becomes difficult to establish the linkage
between various conditions and actions.

CONVERSION OF MANUAL SYSTEM INTO
COMPUTERISED SYSTEM
Today is the world of information technology. In business lots of
complexity and competition are there. In order to reduce this, we are
using information technology in business. So, we are converting
manual system to computerized system. The steps involved in
conversion are:-
1. SYSTEM DESCRIPTION:- Is is usually prepared after preliminary
investigation and definition of the problem. The description is
essentially a statement of major input, output, processing
operation and files needed.
2. INPUT DOCUMENT:- After the system description is completed.
It is necessary to specify how the information will be put into
the form that is acceptable to the computer. Volume of
information, frequency, accuracy and verification requirement
and the handling of the information are considered in the
selection of input format.
3. OUTPUT DOCUMENT:- Outputs are subject to much the same
considerations as input document but the output format
should be treated with additional care because It represents
the objective and purpose of entire operation. It is the output
document with which the management is almost exclusively
concerned and because of its critical nature care should be
taken in its design.
4. FILE DESIGN:- The logic required to control the flow of data
through the system is a part of system design and the flow is in
turn dependent upon the design of data files. In this we
consider the type of equipment, storage capacity, nput and
output media and format.
5. PROGRAM LOGIC AND COMPUTER PROGRAM:- Although
there are numerous means of thinking through and document
programming logic, we will use flow-chart because they are
easy to depict and understand. The program flow-chart is the
program logic of step-by-step representation of how the
computer program will accomplish the job. Its the blue print of
the program.
6. SYSTEM VERIFICATION:- After the program has been written
and run through the compilation process. Its placed memory in
binary form and is ready to process the file on disk and print
the required report. The verifications means to check the work
is done according to the specifications or not. If not, what steps
are to be taken to meet specifications?
7. DOCUMENTATION:- The documentation is a complete written
format of whole activities. It is manual. It helps in
understanding the system easily. When a person is new to the
system and does not know how to use the system but by
reading the documentation he can easily understand and use
the system.
SOFTWARE
Software is a set of computer program instructions that directs the
operation of the hardware called software. A set of instruction for a
specific task Is termed a routine. A complete set of instruction to
execute a related set of task is a program.
Software is a language of computer science or technology which
deals with the codes or coded instructions according to which
computer is to operate the procedures with the help of the
computer and the programs for various routine applications and
utilitues are collectively called software and in order to match the
word hardware.
Computer software is classified into two major types of programs
I. SYSTEM SOFTWARE:- A computer is highly complex machine
and the role of the computer software is to make it run. We
know that system software refers to all the programs which
make the computer work easy and are commonly supplied by
the manufacturers or computer vendor along with the
hardware. It consists of number of specialized programs that
help the computer to co-ordinate and control all activities
relating to computer operations. System software can be
grouped into three major functional categories-
System Management Programs- it manages the
hardware, software and data resources of the computer
system during its extension of the various information
processing jobs of users. Major system management
programs are operating system, database management
system and telecommunication monitors.
System Support Programs:- programs that support the
operations management and the user of a computer
system by providing a variety of system services. Major
support programs are system utilities, performance
monitors and security monitors.
System Development Programs:- Programs that help user
to develop information system programs and procedures
and prepare user programs for computer processing.
Major development programs are language translators,
programming tools and case packages.

II. APPLICATION SOFTWARE:- It refers to the program which
helps the computer to work effectively for specific applications.
Application software,thus,refers to the program of instructions,
tailored to cause the hardware to function in a desired way for
processing an application, unique to the user. Application
software, therefore is also often called user software.
General Purpose Program:- General applications programs are
programs that perform common information processing job for
end users.
Ex:- Word processing, spreadsheet , data base management
programs, integrated packages and graph programs are popular
with micro-computer uses for education, business, scientific
and many other purposes.
Application Specific Program- Thousand of application
software packages are available to support specific application
of end users, major categories of such application specific
program are as follow-
Business application program:- it is related to the business
function or industrys requirements, examples of such business
function and this corresponding application are accounting,
marketing, finance, manufacturing, operation management.
Scientific application program:- Programs that perform
information processing task for natural, physical, social and
behavioural science and for mathematics, engineering and all
areas involved in scientific research, experiment and
development.
Other application programs:- There are so many application
area of computer such as computer application in education,
entertainment, music, art, law enforcement, medicines and so
on.

MODEM
Modem are most common types of communication processor. They
convert the digital signals into analog signals or transmission
terminals at one end of the communication link into analog
frequencies, which can be transmitted over ordinary telephone lines.
A modem at another end of the communication converts the
transmitted data back into digital form at receiving terminal. This
process is known as modulation and demodulation and the word
MODEM is a combined abbreviation of those two words. It comes
in several forms, including small stand-alone unit, plug in circuit
boards and microelectronic modem chip.
Modem is necessary because ordinary telephone lines were primarily
designed to handle continous analog signal. We know that data
transmission from computers are in digital form, devices are
necessary to convert digital signals into appropriate analog
transmission frequencies and vise-versa.

TELECOMMUNICATON
Telecommunication is sending of information in any form (i.e. voice
data, text and images) from one place to another using electronic or
light emitting media.
There are different types of communication network. However, from
one end user point of view there are three basic types-
WIDE AREA NETWORK:- WAN is a very large network, which
are used to transmit or receive information inter-countries,
inter-continents etc. data is transmitted through satellite. It is a
kind of internet. They are connected through public or private
network.
METROPOLITAN AREA NETWORK:- Network that covers a large
city or metropolitan area can also be included in this category.
Such large networks are becoming a necessity for carrying out
the day to day activities of many business and government
organization and their end users. They are used by
manufacturing firms, banks, retailers, distributors,
transportation companies, government agencies and many
other organizations to transmit and receive information across
cities.
LOCAL AREA NETWORK:- It connects information processing
devices within a limited physical area, such as an office
building, manufacturing plant or other workstations. They have
become a major type of telecommunication network, since
micro computers were introduced into offices, departments
and other work groups. LAN uses a variety of
telecommunication media and communication processors to
interconnect computer terminals, personal computer work
station other computer system and other types of computer
peripherals devices.
A telecommunication network consists of five categories of
components-
o Terminals
o Telecommunication Processors
o Telecommunication channels and Media
o Computers
o Telecommunication Control Software
WIRED TELECOMMUNICATION
We know that, telecommunication is sending of information in any
form (i.e. text, voice, data, images etc.) from one place to another
using electronic or light or through physical wired.
The wired telecommunication is a type of communication in which
information is sending or receiving from one place to another
through physical medium. This medium may be coaxial cable, twisted
wires, fiber optics etc.
The disadvantages of wired telecommunication devices is that, it
cant be moved anywhere as mobile phones and for long distances
longer length cable is required.
WIRELESS TELECOMMUNICATION
For the mobile users, twisted pairs, coaxial cable and fibre optics are
of no use. They need to get their bits of data for their laptop,
notebooks, palmtop or wrist watch computer without being
bothered to the terrestrial communication infrastructure, for these
users, wireless communication is the answer.
It appears that future holds only two types of communication fiber
and wireless. All fixed computers, telephones, faxes and so on will be
by fiber and all mobile ones will be using wireless. The advantage is
that, it is converting large distance and also communication is
possible in plane, train, bus and car or even walking.












DECISION SUPPORT SYSTEM
The DSS is a interactive computer based system, which decision
makers to utilize data and models to solve unstructured problems.
The DSS is designes to facilitate the solutions of problem of
structured than that of MIS and TPS which are less structured. The
nature of decision taken by DSS is of non-routine and less structured.
The DSS is a collection of data and data processing tools used to
creatively manipulate data to answers unknown and often
unexpected questions.
DSS aims at supporting the decision maker by providing the
information with the aid of quantitative techniques.
COMPONENTS OF DSS-
HARDWARE RESOURCES- Executives work stations, are
connected by telecommunication network, to other computers
and devices in the organization, provided the primary hardware
resources for a DSS.
SOFTWARE RESOURCES- DSS software packages are called DSS
generators. They contain modules for database, model and
dialogue management. A database management module
provides for creation, interrogation and maintainance of DSS.
DATA RESOURCES- A DSS database contains data and
information extracted from the databases of organization,
external databases and a managers personnel databases.
MODEL RESOURCES- The model base includes a library of
mathematical models and analytical techniques stored in a
variety of program modules and files.
PEOPLE RESOURCES- DSS can be used by managers or their
staff specialist to explore decision alternatives. However the
development of large or complex decision support system and
DSS software packages is typically assigned to information
system specialists.
APPLICATIONS OF DSS
DSS are used for a variety of applications in both business and
government. When DSS are developed to solve large and complex
problem that are continually faced by an organization they are called
institutional DSS.
An AIRLINE DSS- An analytical information management system
is a decision support system used in airlines industry, it was
developed by AMERICAN AIRLINES bit is used by other airlines,
aircraft manufacturers and airlines financial analysis
consultants and associations. It supports a variety of airlines
decisions by studying factors such as aircraft utilization, seating
capacity and utilization traffic and profitability result.
A MARKETING DSS- BRAND AID is used for marketing planning,
especially in the packaged good industries. It helps brand
managers to make pricing, sales efforts, promotion, advertising
and budgeting decisions for products, product lines and brand
of products
GOVERNMENT DSS- GADS (GEODATA ANALYSIS AND DISPLAY
SYSTEM) was developed by IBM. It constructs and display maps
and other graphics display that supports decisions affecting the
geographic distribution people and other resources.
A BANKING DSS- MAPP (Managerial Analysis for profit
Planning) is a DSS developed by CITI-BANK. It was designed to
support decisions involved in the financial planning, budgeting
costing and pricing of bank products.
CHARACTERISTICS OF DSS-
Ability to support the solution of complex
problems.
Fast response to unexpected situations.
DSS is particularly designed for an individual or
group of decision makers.
A DSS is best conceptualized as a process instead
of product.
Cost saving
Improving managerial effectiveness.
Improve the effectiveness of decisions.
Flexible and adaptable to change in the external
environment.