DSS and MIS

UNIT – I

Management Information System:

Basic Concepts

Role of MIS

MIS in Business

MIS Developing Process Models

Simon’s Model in Information System

MIS Security Challenges

Major Trends in Information Technology

INFORMATION

In olden days information was considered to be well but know information as power

or knowledge data and information are the two different things where data is of raw

from and information is the processing of what we gathered.

CHARACTERSTICS OF INFORMATION:-

� Information updates the level of knowledge.

� Information always have a sunrise value.

� Information reduces uncertainty.

� Information helps in taking decisions.

SYSTEM:-

Group of elements organized with a specific purposes is known as subject system. A

system can also be defined as set of elements arranged in order to accomplish an

object.

INFORMATION SYSTEM :-

Groups of elements organized with the purposes of supporting management and

operational decisions is known as information system.

MANAGEMENT INFORMATION SYSTEM (MIS) :-

It is defined as a system of man and machine providing the information to support the

operations, management and decision making functions in the organization. it can also

be defined as computer decision making system.

HISTORICAL BACKGROUND:-

Use of computers in business activities started in 1960’s but the importance was

gained in 1980’s.The computers in olden days had a very limited access where the

user will be defining what to be done ,how much should be done. Later on the

computer system systems started transactions which is popularly known as transaction

processing system.TPS is an organized collection of people, procedures, software’s,

database and used to record business transactions.TPS was done with limited number

of transactions later on the limitations are remove and known as MIS.

MANAGEMENT INFORMATION SYSTEM

The concept of MIS is evolutionary rather than revolutionary the first starting

traditional view presented “the data in the form of forms and reports”. The data here is

very in personal. so it is done and regular intervels.The traditional view for the

modified and differentiated data form information where the data is similar to raw

materials and information is the finished products. However for much of importance is

given to information and its processing the further modifications of MIS.

Where the information is personalize information is personalize information is

retrieved and access based on by necessity decision making is one of the very

effective feature of MIS.

ROLE OF MIS:

The utilization of information in any business plays a very important role. Information

is the process form of the data it says that all the data collected may not be useful and

so MIS plays a very important role. it is considered to be the part of the organization

as heart plays a very important role in the human body by providing pure blood to all

parts of the body in the same way MIS also plays the same role in the organization. it

collects the data and process in to information and parts it to the required unit.MIS is

useful to all levels of management.

ROLE OF MIS

1) Clerical personnel 1)Transaction processing and

answer different questions.

2)Junior or low level personnel 2)Operational data for planning and

scrapping

3)Middle level management

Short term planning, target

setting,contracting..etc

3)Top level personnel role setting,

strategic business

plans,implementatiopns..etc

FEATURES OF MIS/CHARACTERSTICS OF MIS:

∗ MIS handles large volume of data

∗ Data is process into information basing on the needs.

∗ Conformation of necessity starts the transaction process.

∗ Complex processing of the data is done.

∗ Mass storage of information .

∗ Quick search or retrieval of data or information is done.

∗ Communication of information to the user in time.

∗ Fulfilling the changing needs of information.

CHARACTERSTICS OF LEVELS OF MANAGEMENT

CHARACTERSTIC

S

TOP-LEVEL

MANAGEMENT

MIDDLELEVEL

MANAGEMEN

T

LOWER-LEVEL

MANAGEMEN

T

1) Planning

Heavy

Minimum

Minimum

2) Controlling

Minimum

Heavy

Heavy

3) Work time

frame

1-5yrs

0-1yrs

Day to day

4) People involve

Few

Many

Not many

5) Information

Mostly external

Internal and more

accurate

Internal,

historical and

daily accurate.

6) End results Plans,policies,strategie

s

Implementation

of strategies &

performance

Finished

products.

DATA v/s INFORMATION:-

People often use the term data and information interchangeably however it is better to

view data is raw material resources that are process in to finished information.

DIFFERENCE BETWEEN DATA & INFORMATION:

DATA INFORMATION

A. Un organized form

a) Organized form

B. Refers to details, facts about any

given

b) Refers to only those events which

are concerned with NTT.

C. Available in raw form

c) Available in finished form.

D. Not ready accessible

d) Ready accessible

E. Not based information e) Based on data

CLASSIFICATION OF INFORMATION:

Information can be classified in number of ways .

� Action vs Non-action information

� Recurring vs Non-recurring

� Internal vs External

1)Action vs Non-action information:-

The information which induces action is called as action information. The information

which communicates only the status of situation is called as non-action information.

2) Recurring vs Non-recurring:-

The information generated at regular intervals is a recurring information.

Ex:-monthly sales report.

The financial analyses are the report of market research study is a non recurring

information.

3) Internal vs External:-

The information generated through the internal sources of the organization is termed as

internal information. The information generated through government reports the

industrial surveys etc. is termed as external information.

The general usage and applications further divided or classified as

INFORMATION

USSAGE APPLICATION

� Organization information � Planning information

� Database information � Controlling information

� Functional information � Knowledge information

USAGE:-

a)Organizational information:

When the information is used by all the people in the organization is called as

organization information.

b)Database information:

When the information has multiple users it is called as data base information.

c)Functional information:

It is also called as operational information when the organization is use in the operations

of a bus. It is called as functional or operation information.

Applications:

a)Planning information:

Certain standards ,norms and specifications are use in planning of any activity. hence

such type of information is called as planning information.

b)Controlling information:

reporting the status of any activity through a feedback is called as controlling

information.

c)Knowledge information:

A collection of information through library reports & research studies to build up a

knowledge base as a high information source for decision making is known as

knowledge information.

Components or Elements or Resources of Information system:-

� People

� Data

� Hardware

� Software

� Network

1)People:

People are those who are required for the operations of all information systems in the

organization. these people includes users & information systems specialists.

a)users:

These users are also called as end users or clients. these are the people who uses the

information system or the information that it produces they can be accountants ,sales

persons,engineers,clerks,managers..etc

b)specialist:

These are the people who develop and operate the information system. they include the

analyst’s programmers and computer operators and clerical information system

personnel system analyst design the information system based on the requirements of

the end users and the programs based on the specialization of system analyst.

2)Data:

Data is more than the raw material for the information system. the concept of data

brooded by the managers& the information systems professionals .they realize that data

constitutes a valuable organizational resources to organization. data can be taken from

many forms. it is composed of alphabetic,numeric&other charecterstics.that describe

transactions. The text data consists of sentences & paragraphs used in written

communication image data consists of graphical shapes & figures, audio date consists of

human voice & other sounds which also the important firms of date.

3)Hardware:

The concept of Hardware includes physical devices and used in information

processing specifically it involves not only machines such as computers and calculators

but also all the other media which are tangible on which the data is recorded. Hardware

includes

A)computer system

It consists of CPU,MONITOR,KEY BOARD,MOUSE,varity of inter connected

peripherals of the information system.

B)Computer peripherals

There are the devices which includes KEYBOARDS,ELECTRONIC MOUSE & other

INPUT devices & OUTPUT devices which are used for the information system.

4)Software:

This concept includes all the set of information processing used in information system.

The concept of software includes not only the set of operating instructions called

programs. but also the set of information processing instructions needed by the people

called as procedures.

The following are the some examples of software

a)system software

it includes the operating system which controls and supports the operations of a

computer system.

b)Application software

these are the programs that are directly for a particular use by the end users.

c)Procedures

these are the concept of which are operating the entire information system .procedures

are the operating instructions for the people who are using information system.

5)Network:

The generic category include all of the people.Hardware,Software& Data resources that

directly support the operations & used of common network.

Ex:-common process such as modems internet & work processors common control

software..etc

Types of information system

Operating support system Management support system

1. Transaction processing system 1. Management information system

2. Processing control system 2. Decision support system

3. Office automation system 3. Executive information system

Operating support system:-

1)Transaction processing system(TPS)

TPS is very important and useful for recording and processing data. The processing

transactions are done in two ways.

Batch processing:-batch processing is done over a period of time for a set of

applications.

Online processing:-online processing is done immediately often the other transaction.

2)Processing control system(PCS)

The PCS make use of physical processing where the system takes the help of real time

or online processing system.

3)Office automation system(OAS)

It enhances office communication and increases the productivity. it is used to provide

information and updating to the total organization at the same time.

Management support system:-

When the information system focuses on providing information to managers. for

decision making is called as management support system.

1)Management information system(MIS)

It provides information in the form of forms & reports and this is helpful to analyses the

information whenever needed to the organization.

2)Decision support system(DSS)

This helps us to take decisions directly basing on the information provided by the

system

3)Executive information system(EIS)

EIS combines the features of MIS & DSS .it helps the managers to take day to day

decisions.

Definition of MIS:-

According to Walter ,”MIS is defined as a formal method of collecting information in a

presentable form in order to facilitate effective decision making & implementation to

carry out organizational operations for the purpose of achieving organizational

objectives.

According to Gordon MIS is defined as

� An integrated user machine system

� For providing information

� To support the operations communication mgt and decision making functions.

Objectives of MIS:-

� Fixing responsibilities

� Facilitates decision making

� Avoid duplication of data& work

� Saving of time

� Establish uniform procedures improving services

Components in MIS:-

Data gathering

Data entry

Data transferring

Information utilization Management Information System In Business

Marketing

Information

System

H.R

Information

system

Manufacturing

&

Production

Information

system

Inventory

control

System

Sales

order processing

System

Accounting

Information

system

Financial

Information

system

Pay roles

system

Sales

management

Sales force

management

Advertising

& promotion

Market

research

Sales

forecasting

Marketing

management

Recruitment

Selection

Placement

Performance

appraisal

Compensation&

maintenance

Product design

Product

planning

Plant location

Plant layout

Quality control

EOQ

Reorder

level

Taking orders

Processing orders

Ware houses

Supply operations

Customized

production

Trail balance

P & L a/c

Balance sheet

Income &

expenditure

a/c

Cash

&

securities

management.

Capital budgeting

Financial

forecasting

Financial planning

Pay

Statement of pay

pay slips

MIS MODELS

Simple model:-

MIS model explain process of data transformed into information. The simplest way is

taken from systems approach which explains the processing into three steps

� Input

� Process

� output

These 3 steps helps in transforming data into information. here the data is the input

processing done with the help of available hardware, software& people & the output is

the information.

INPUT

DATA

PROCESS

SOFTWARE

PEOPLE

OUTPUT

INFORMATION

Complex model:-

The simple model is further modified and presented as complex model. which again

processes the data into information with the help of softwares,people & mathematical

tools. The software’s & people helps to present the data into periodical reports. where

as mathematical tools also known as problem solvers stimulate the organization. the

outcome of this process is information.

This model is also known as modern model. the process is usually taken to solve the

given problem in a particular environmental condition.

Robert antony

According to Robert antony a data in transformed into information with the help of

levels of management. He defined the levels of management as strategic level,

management level, operational level. These 3 levels are commonly known as top

level,middile level, low level management.

Strategic level:-

They deal with long range planning and the decisions are often taken by higher-level

people. The decisions are concerned with new business plans, new branch opening,

product launching…etc

Management level:-

This level is also known as management control level. this level is considered to be

very important because it connects the top level to lower level.notonly this it recruits

personals, planning for short term,training..etc.

Operational level:-

It is related to short term decisions, day to day issues inventory levels,pricing,output

production ..etc.the decisions beside the level of information to be gathered.thus,it

explains the data and its volume which is to be transformed. the information needed by

the levels of organization are not the same. it actually depends on the characteristics of

the information.

Characteristics Operational level Management level Strategic level

Source Largely internal --------------- External

Scope Nano --------------- Wide

Accuracy High --------------- Lower medium

Frequency of use Very frequently --------------- Infrequent/rarely

Time origin Historical --------------- future

The above table explains the information required by the management

activity/managers. Basing on the information gathered decisions are taken. The

decisions are

� Structured decision:- Structured decisions helps in implementation of plans.

� Un- Structured decision:-Un Structured decisions are often arise from

situations.

Simon’s Model:-

According to Simon’s model, making decision is not a single activity. The decision

making process consists of several activities that take place a different types for 4

different stages explained by Simon are

� Identification

� Design

� Choice

� Implementation

1)Identification

This stage is also be called as intelligent. it consists of identifying the problems

occurring in the organization. Intelligent where,whom,who,with..etc

2)Design

Design explain the different alternatives an individual prefers to provide a solution. This

activity actually requires both intelligent then identifying a problem.

3)Choice

This stage helps in solution from different alternatives available. usually the selection is

done related to the given solutions or problem.

4)Implementation

It is the final stage where the choice is process or solution is given to the identifying

problem which leads to decision making.

According to Simon decision can be taken with the help of stages defines above the

decisions taken are 3 types

� Programmed decision

� Non- Programmed decision

� Semi Programmed decision

1)Programmed decision

The program decisions are used by all the level of organization. These decisions are

well defined preplanned and repetitive in nature.

Ex:- paying salaries,caliculaating inventories..etc

2)Non- Programmed decision

These occurs unexpectedly. They are not of routine type. they required specific attention

by the top level management.

Ex:- purchasing of heavy machinery, launching a new product..etc

3)Semi programmed decisions

These are repetitive and non repetitive in nature. these decisions are only taken with the

help of previous decisions.

Ex:- Budgets

MIS STRUCTURE

The two approaches in MIS structure are

1) MIS based on management activity

2) MIS based on organization activity

MIS based on management activity:-

It is also called as utilization of MIS by the management (refer to antony model).

MIS based on organization activity:-

The structure of the information system can also be described as information used by

the organization. There is no standard classification on the amount of information

needed by the organization. In the other way we can state that activities that are done

take the information. Usually the activities are MARKETING, PRODUCTION,

ADVERTISING, LOGISTICS etc..

The levels of management divide the activities basing on the importance of that activity.

Computer security controls:-

The information received by a manager is to safeguard for future used this information

must not be passed on to any person but it happens that certain problems start

unknowingly which causes threats to the information system. the threats are

1) Disasters

2) Employees & consultants

3) Business partnership

4) Out siders

5) Virus

Disasters

They don’t occur daily. Disasters are different types. such as accidents, fire, flood etc.,

there is a less chance to control these disasters.

Employees & consultants

Dishonest employees or consultants can easily transfer the information. this is done

wontedly or unwontedly in some situations due to pressure.

Business partnership

Any business partnership share information and if in any case their partnership breaks

there is a chance of passing the information to others.

Outsiders

Outsiders such as hackers, try to steal the information with out any knowledge of the

original user. There are two types of problem. techniques by which the outsiders take

the information

a)Script kidders

They try to find out wholes in your computer and carryout the information.

b)Social engineering

These people try to convince or threat the user to give away the password setting that

they work for the society.

Virus

A computer virus is a small program that hides in the actual program or attached to any

e-mail message.

MEASURES

1)Sun guard Mobile security system

2)Data mirroring Copying all the data including temp files

3)Data backup Copying important information only

4)User identification Identification techniques

5)Access control Giving permission to the appointment

persons

6)Auditing Verifying

7)Physical access Locking of components system,laptaps

8)Monitoring Verifying work by persons

9)Hiring & employing evaluator

10)Encryption

Sun guard

Sun guard is a mobile security center. which is actually a mobile van providing security

or backup to the information available in the organization. it works with the help of two

sides.

1)Hot sites 2)cold sites

Some times if there is a certain break up in the information system.these needs

immediate response or presentation of data.in those type of situations hot sites are used

and in some situations it is not possible to provide immediate backup.so,in those

situations cold sites are used.

Data mirroring

It is a technique which provides or creates data into some other system.this is very

popular technique used for disaster management.

Data backup

It is the very old technique where all the important information is saved for further use.

Data backup can be done by using cd’s & dvd’s or other secondary storage devices and

ups ,..etc

User identification

User identification is one of the different task to maintain computing security controls.

the normal techniques used are passwords. passwords are coded secret numbers or

names or both available to the user to access a particular account.

Password generators

Password generators are the small electronic cards which the user’s carry these cards

generate new Passwords. The user have to remember the passwords every time he uses

the cards.

Bio-metric systems

It is a field of study that attempts to identify the people based on biological

characteristics.

Access control

This method enables the user to use the data whenever needed but it cannot be modified.

so thus the information is personalized.

Auditing

Auditing is a technique which takes on periodical checkups. these creates fear in the

user so that he will alert while using information.

Physical access

It provides physical security to the computer system.the user will be controlled

restricted to only a certain area.

Monitoring

It is a similar to physical access but monitoring is done when the user is using the

information system.

Hiring & employee evaluators

A specific person is hired to provide the day to day usage of information.

Encryption

Encryption is the foundation of many aspects of security. it helps in protecting the

message send through internet. The encryption process is similar to communication

process. it includes two types of keys

1)single key 2)dual key

Single key It is easily available where both the sender and receiver will have a software that

handles encryption and decryption of secret key. the single key system was first called

as data encryption standards and later on it is modified as advanced encryption

standards

DES (data encryption standards) holds 54bits and are 1241,92,256

Dual key The essence of dual key system further developed to pan countries secret messages. The

single key system creates a key which is passed on to the receiver. but some times they

are unlocked without the receiver.so,to avoid their limitation dual key was introduced

.this key provides two types of keys

1) Public key 2) Private key

There the message is passed on the receiver with the help of public key. but the

decoding of the message needs private key.

Ethics in computer security system

There are different measures taken to safe guard the information in the organization. the

computer professionals who deal with the information are needed to take the following

ethics.

� Access information or communication when authorized to do so.

� Honor contracts/agreements and responsibilities.

� Access and provide appropriate professional reviews

� Achieve the highest quality in process and professional work.

� Comprehensive and thorough evaluation of computer systems and their impact

which includes analysis of risk.

The ethics thus explains that the professionals are to safe guard the information by the

following ways.

� Unauthorized discloser of information

� Unauthorized modification

� Unauthorized with holding of information

UNITII

Managerial Decision Making: Decision Making Process

Relationship between Decision Making and MIS

Group Decision Making Integrating Managerial Levels and Functional areas by

MIS Components of Information System Organization System Versus MIS.

Managerial Decision Making: Decisions are taken by the organizations from time to time depending on the

information gathered in the organization. the information is gathered basing on the

needs of the manager. this is the reason why the information system designs have

focused their maximum attention on designing the system with the help of managers

who communicate and distribute the information for decision –making.

In this context ,the information needs to differ on the basis of the following factors.

� There are different types of decisions and each decision require different types of

information.

� Management at different levels makes different types of decision.

� Decisions are taken based on the information gathered.

� Decision making is the process which consists of different steps.

The word ‘Decision’ is derived from the Latin word ‘Desedire’ which means cutting-

away or cutting-off. this means every problem or decisions have different alternatives

and best alternative is selected for decision-making.

Human behavioral decision making

Human behavior along with information effects the decision making. the three different

aspects of human behavior involved in decision –making are

1) Cognation

2) Conation

3) Affection

Cognation:-

These decisions are taken with the help of mental activities or mindset in association

with knowledge.

Conation:-

The decisions taken are based on the action of mind implied by words such as willing,

liking etc.,

Affection:-

The decisions are mainly based on emotional feelings with words such as temperament

loving….etc

Features of decision making

Decision making is based on certain factors which actually proves the need and

necessity of alternatives.

Decisions involved final solutions.

Decisions are taken based on the alternatives available.

Existence of alternatives provide freedom of choice to the decision makers.

Decisions involved in different types of feelings.

Decisions are goal directed.

Process of decision making

Simon’s model of decision making is considered to be the best way to take on decisions.

the process includes intelligence,design,choice,and implementation.

Types of decision making

The common two types of decisions are

1) Frequency of decisions 2)Structuring of decisions

1)Frequency of decisions

Decisions are sometimes taken regularly over a period of time usually these decisions

are repetitive in nature. There are three types of decisions based on frequency.

Strategic

Tactical

Operational

Strategic decisions:-

These are involved in long-term planning. they are taken by the top-level management

and are non-repetitive in nature. Ex:- mergers, acquisition

Tactical decisions:-

They are taken in order to implement strategic decisions. They are done by the middle

level management. Ex:- expansion of organization by purchasing man & machinery

Operational decisions:-

They are taken by lower-level management and are repetitive in nature. These decisions

are related to day to day issues of the organization

Intelligence

Design

Choice

Implementation

2)Structuring of decisions

Decisions are sometimes taken basing on the structure followed for making decisions. It

denotes a parameter that can be prescribed in advance of making a decision. Structuring

decisions are classified into

a)Programmed decisions

b)Non-programmed decisions

a) Programmed decisions

These are also known as structured decisions. They are routine and repetitive in nature.

b) Non-programmed decisions

These decisions are taken for solving a unique or unusual problem. The decisions here

are unstructured and so the outcome is also unstructured and can’t be estimated in

advance. These decisions are also called as unstructured decisions.

Conditions for decision-making

Methods for deciding alternatives

There are several methods which are helpful to decide the alternatives. these are

basically a search process which helps to select the best alternative to satisfy a specific

decision. The methods are

Optimization

Pay-off analysis

Decision tree analysis

Optimization

This technique is used when the decision making system or solutions are closed,

deterministic and recurred to optimize the use of resources under limited conditions.

Ex:- linear programming, dynamic programming, inventory models…etc

Pay-off analysis

When the alternatives and their outcomes are not known then the decisions are made

with the help of pay-off analysis. the pay-off matrix with rows and columns. The rows

indicates the alternatives and the columns indicates the probability of outcome or

occurrence.the intersection of rows & columns show the value of result or solution.

Chance of evolution

Alternatives

Solution

Decision tree analysis

When the sequence of alternatives are available the decisions are taken with the help of

decision tree, decision tree is a multi-stage process. which includes different set of

alternatives at each and every stage. these alternatives provide a set of chance to occur

the decision tree is drawn with the help of squres,circles and straight lines. the sequence

represents a decision point.stright lines are used for connecting the squares and circles.

so decision tree is a process by which sequence of alternatives are analyzed to take a

single decision.

Relationship between MIS and decision making

MIS is a concept where the managers gather the information to complete their activities.

Every data is processed to provide a perfect information. the relationship between MIS

& decision making can be understood by the sources. the two sources which provide

data/information

1) internal environment 2) external environment

These two environments provide information which is taken by MIS and provides

alternatives which is return help in decision making.

1) External environment

Economical

Social

Legal

Technological

2) Internal environment

Marketing

Finance

Production

Operations

Hr etc.,

GROUP DECISION MAKING

Individual is a person in the organization or in the society who represent himself. Group

refers to collection of individual people to perform a single task.

Group decision making process depends on different stages of group formulation each

and every stage involves in certain decision making steps.

INDIVIDUAL VS GROUP DECISION MAKING

Individual is a single person who takes decisions only with its own intelligence, ideas

or knowledge. whereas group is a collection of people coming together to share their

ideas or knowledge.

For decision making it is little difficult to estimate who will take proper decisions or

who will give appropriate solution. so the decision makers selection is done basing on

I. Nature of the problem

II. Time availability

III. Quality of decisions

IV. Environment of decision maker

V. Legal requirements ..etc

It is suggested that the group must not be too large because if many people pool

in different controversies which cannot be justified. in some situations individual

persons in a group become irresponsible for these reasons the size of the group should

be restricted.

DECISION MAKING STYLES

The decision making styles helps to select an individual or group for taking decisions.

these styles are of three types .which are further divided in to five. they are

1) Autocratic style

2) Consultative style

3) Group style

1) Autocratic style

Autocratic style deals with a single individual and if further divided into A1 and A2.

Autocratic 1

In this type the individual alone take decisions based on the facts and information

available with him. here the decision maker does not collect any information from

any sources or individual in the organization.

Autocratic 2

In this style individuals alone take decision but with specific data from a specific

people. here importance is given to the specific people who might be on individual in

the organization or outside the organization.

2) Consultative style

In this style one to one consultancy in the base of decision making where the decision

maker contacts a person together the information.

3) Group style

Group style is totally focused towards a group. It is further classified into G1 and G2.

Group style 1

Decision in this style taken by the information or reports gathered from different

people. these people can be from any area of the organization.

Group style 2

The decisions are taken by conducting a meeting with different members of the group.

TECHNIQUES OF GROUP DECISION MAKING

Group decision making involves different people of the group. Here decisions are

taken basing on every individuals participation which includes different techniques.

The techniques are

1. Brain storming technique

2. Nominal group technique

3. Delphi technique

4. Fish bowling technique

5. Dialectic technique

1) Brain storming technique

In the technique the individual person generates the ideas in a very close environment

and the final decision is taken from those ideas.

2) Nominal group technique

In this technique the ideas are explained with the the help of any equipment or

machinery .normally the nominal technique used in a group.

3) Delphi technique

In this technique the respondents will not interact face to face with the decision maker.

4) Fish bowling technique

It is a group technique where the individuals sit in a circle and when any of the

individual wants to present his ideas.he should be coming into centre of the circle.

while generating the ideas to the other members in the circle any individual can raise

questions regarding the problem.

5) Dialectic technique

In this technique both the positive and the negative aspects are discussed to generate

the ideas.

Decision making

style

Autocratic Consultative Group

A1 A2

G1 G2

INTEGRATING FUNCTIONA AREAS WITH MIS

The different activities taken by organizations represent the functional areas. The

integration is done with a help of pyramid where each functional area is divided in to 3

levels. Top level, middle level, lower level. The information here is passed on through

MIS.basing on the information the decisions are taken

Organizational system Vs. MIS

S.NO System Organizational system MIS

1 Conceptual system √ √

2 Empirical system √ √

3 Natural system √

4 Manufactured system √ √

5 Social system √

6 Machine system √ √

7 Permanent & temporary

system

Organization permanent Organization

temporary

8 Open & closed system √ √

9 System & sub-system System Sub-system

10 Stationary & non-

stationary system

Stationary Non-stationary

11 Adoptability & non-

adaptability system

√ √

Conditions for decision- making

The decision maker know the process in which the decisions are to be taken but the

outcome or result cannot be justified by the decision maker. the reason is the decision

maker takes decisions in different conditions. they are

� Conditions of perfect- certainty

� Conditions of complete-uncertainty

� Risk factor

The above conditions are to be checked because the decisions involve selection of

alternatives for the present as well as future.

UNIT –III

System and Design

� Systems Development Initiate

� Different Methodologies

� System Life Cycle Design

� Prototype Approach

� Detailed Study on Life Cycle System

� System Implementation

A system is generally used for explaining the inter relationship of the people in the

organization .the term may also be used for a group of actions ,personnel’s and

procedures used for the processing the data. systems which operate with out computers

is known as automatic systems.

A system provides frame work for describing and understanding the features and

problems of the subject. a system demands logical presentation of certain rules and

regulations ,principles, policies.

Types of systems

There are different types of systems. the basic nature and its working is determined by

the organization. popularly the systems are divided on the basis of need of system

analyst or no involvement of such person.systems are designed basing on the needs of

the organization.here they take care of where the system need updation or proper

checkup when it focuses on extra information.the popular way of classifying systems

are

1. Based on system analysis

2. Based on no requirement of system analysis.

Based on system analysis

Certain systems need extra care through it’s working process.here a special person is

appointed to check on the required activities.the systems are

1. Transaction processing system

2. Functional system

3. Integrative system

4. Enterprise system

� Transaction processing system

The total system works on different types of transactions made in the organization.they

take on the data and process into information .the focus here is mainly on transaction

process.

� Functional system

The functional system takes on the activities related to functions in the organizations.

the main focus is on the operation system of different functional areas.

� Integrative system

The integrative system refers to the whole system it’s activities. the main focus is on

integrating different activities of the organization.

� Enterprise system

The enterprise system is design basing on the activities of each and every functional

area. the focus is on combining the systems with personals and their decision making

activities.

In addition to the above four systems we do have another important system called as

data processing system.

Based on no requirement of system analysis

Some systems come into existence without any formal formation and the process with

out the need of any specific person.these systems are generally existing systems. They

are

1. Open and closed system

2. Structure and non-structured system

3. Adoptive and non-adoptive system

4. Programming and non-programming system

System analyst

A system analyst is a person responsible for the proper functioning of systems and

examining the total flow of data through out the organization.

Role of System analyst

Role of system analyze change with the changing time. in 1970’s &1980’s a person was

appointed as a system analyst do not have any influence on the working of the nature of

the system. the systems at those times are based on self-working nature with the

changing time the role of system analyst increased. now for every system a particular

person is needed who will take care of different activities of the system.

Need of System analyst

The role of system analyst gave a new dimension to the system. the need of system

analyst and analysis is focused on

1. System objective

2. System boundaries.

3. System importance

4. Nature of system

5. Partipation of the user

6. Understanding the resource needs

7. Assessments etc

System development and design:

System development:

Developing a system is a artificial task. A system has to be developed basing on the

needs of the organization system development includes those activities that go into

producing an information system, solution to the original problems are take advantage

of the existing employment opportunities. The organizations stock level determines the

various conditions for the system . the strategy of system development involves the

approach that will be adopted in system development . the system development is done

with the help of three alternative approaches.

1. top bottom approach

2. Bottom top approach

3. Integrative approach

Top bottom approach:

The top bottom approach is a traditional approach where all the decisions are taken by

the top level people and these decisions are followed by the middle and lower

management. The importance is given to the top level where all the activities are

planned and executive. The middle and lower level people, who are called as

performers, execute these decisions.

Bottom top approach:

The decisions are made based on the necessities of the lower level management . they

feel that system is very near to the day to day life

Integrative approach:

This is the combination of both the previous approaches .it is helpful in eliminating the

limitations of the other two approaches. In this system ,the management initiates the

structure in integrative manner . the total work here is divided basing on the activities

which is to be done . the top level management takes decisions and pass it on to the

middle level. The middle level management executes the decisions by informing it to

the lower level management. the lower level people ,who are the actual performers will

provide a feedback to the top level management through the middle level.

System design

The design of a system is based on the opportunities of the organization. it deals a clear

picture the approaches of the organization .it gives a clear picture of how the system is

to be working the design is developed with the help of tools which makes the designing

process easy. the designs are

1. Waterfall design

2. Spiral design

Waterfall design

Waterfall design is named after the real waterfall.here,in this design there is no upward

direction. this model fits into every system. particularly when a system do not adopt any

changes, it minor changes has to be implemented. it is to be made by only at that

particular step. the waterfall model applies well to the basic rule.

Spiral design

some organizations taken decisions very frequently. those the activities are repeated one

after the other. the spiral system fits when we are developing a very large system. the

spiral model is put into action with the mission and goals of the organization. later on it

goes to the continuous process. each such process is known as version. the version

changes from the step to the other step. it makes on additional concepts whenever need

arises and ends when the given particular task is completed.

System development life cycle

Tools and techniques of system development life cycle

Case

FSD (formal system development)

Prototyping

RAD

End user

Case tools (computer aided software engineering)

It is used for rectifying the errors and faults in software in the system development life

cycle Upper case Lower case

FSD (formal system development)

Formal in a proper order identification of information –investigation information

followed by analysis and development.

Prototyping

A tool where starts with system development life cycle repeatedly done up to the end

user’s satisfaction.

Rad(rapid application development)

Fastly designing an application by using with high speed

• Management

• User

• Tools

• methodologies

End user

Developed by the end user. User will update the system

Man made life cycle

Feasibility study

System analyst

System design

System development

Testing

Implementation

Maintenance

Nature made life cycle

Introduction

Growth

Maturity

Saturation

Decline

System implementation

After designing and developing the system it will be installed in the organization.

where the access of information is needed.

UNIT –IV

Decision Support System

� Definitions of DSS

� Architecture of DSS

� Scope of DSS

� Characteristic and Capabilities of DSS

� Components of DSS

� Modules in DSS

� Classification of DSS

� DSS Tools

� DSS Generators

� Steps in Designing a DSS.

Decision Support System

Dss reports to decision support system. this is different from MIS because true

humans are given first priority.Dss makes a manager to think from all the aspects so as

to take the decisions whenever and where ever required.Dss is an integrative computer

based system which helps the decision maker utilize the data and models to solve the

problems. it is a process where managers at different levels take on decisions with the

information available in any type of structure.

Difference between MIS & DSS structure

MIS DSS

Works on routine and structured

organization

Works on structured, semi structured

,unstructured organizations

Computers are basic important part of

MIS

Humans are important in DSS

MIS needs computer experts DSS needs managers with own decision

capability

MIS offers indirect access for managers DSS offers direct access for managers.

Architecture of DSS

The architecture of a DSS shows how does process to prepare a DSS program.

Information is collected from internal & external sources and also the elements of

DSS.

End users / DSS user also treated as a part of structure the end user represents for

information and the output is provided basing on the request. the output is represented

in number of ways.

i.e., forms, reports, spread sheets etc.

All these programs are also supported by information from MIS to DSS model.

Characteristics

1. Ability to support solution for any type of complex problems utilize in any type

of structure

2. Supports all the levels of managers

3. Supports all the levels of management

4. Ability to work in any environment

5. Supports individuals as well as groups

6. Supports variety of techniques are decision making process

7. MIS is a product and DSS is a process

8. Allows decision making to interact with different types of environment

9. Access data and manipulate it

10. Provide online solutions

Capabilities of DSS

1. DSS can update or manipulate the data or information

2. DSS creates special reports in desired formats

3. DSS can perform any type of calculations and execute the data

4. DSS can construct simple models that describe a problem or situation

visualized by the user. it performs activities in trials in contains optimization

techniques to find out the best method.

Components of DSS

� Data management sub-system

� Model management sub-system

� Knowledge management sub-system

� User interface sub-system

1. Data management sub-system

The data management subsystem is composed of the following elements. it explains

how data is gathered, stored, retrieved and manipulated.

1. DSS data base (or) data base

2. Data base management system(DBMS)

3. Data directory

4. Query system

DSS data base (or) data base

The data base supports the DBMS.it gathers information from different sources. a data

base is collection of inter related data, organized to meet the needs and structure of the

organization. the data in the data base is collected through internal, external and

personal sources.

DBMS

Data base is created and accessed, updated, retrieved by DBMS. an effective data base

and it’s management can support many managerial activities and general navigation

among records create and maintain reports,. etc

Data directory

It is a catalogue of all the data available in the data base. this is similar to the contents

of any book. it contains information of the data and its functions which provides and

easy access to the required data.

Query system

DSS often put some a variety of questions because of it’s manipulation facility. this

questions are answered by query language. this works on a special language called as

structured query language(SQL).it accepts the questions from any component and

determines the request followed by the answer.

2. Model management sub-system

This is a software package which includes designing financial,statistical,management

models.that provides the system with easy processing. the elements of model

management sub-system are

1. Model base

2. Model base management system

3. Model language

4. Model directory

5. Model execution & integration

Model base

A model base contains routine and special models that provide analysis of activities

done in DSS.this is supported by data base of DBMS.

Model base management system

It is a capable of inter relating models with appropriate linkage through a database.

Model language

It is a process by which models can be prepared. this can be done with the help of

natural language or programming language. natural language such as English or other

languages are need to design a model. this is easily accessible or corrected if any

errors occurs. programming language such as C,C++,java,..etc are need for designing

the model. this programming language through written in natural language is

debugged by the programs.

Model directory

It is a catalogue of all the models & other software’s in the model base .it contains the

information of models,contents,definations..etc

Model execution & integration

Model execution is a process of controlling the actually running of the model. model

integration involves combining the operations of several models whenever needed.

3. Knowledge management sub-system

The knowledge box is created by the individual who is designing a problem, analyzing

a problem, designing a model etc., The reason why knowledge management sub

system is introduced in as DSS works on structured ,semi-structured & unstructured

problems and their solutions are complex and need expertise. the solution to such

problems can be clearly defined only by expert having individual intelligence.

4. User interface sub-system

The DSS specializes in different activities one of them is including the user ,in

decision making activities. the user communicates & commands the DSS through this

sub-system. the term user interface covers all the aspects of communication between a

user & DSS.it not only includes the hard ware and software but also deals with factors

which enable easy access, easy to use, human interaction,etc.the user interface sub-

system is managed by a software known as user interface management system.this

system is composed of several programs that provide capabilities listed in DSS for this

reason,the user interface management sub system is also known as dialogue

generation management system.

Classification of DSS

Alter’s output

classification

Data oriented Data & model oriented Model oriented

-File drawer system

-Data analysis Analysis information

system

Accounting model Representation

Optimization, Suggestion

Alter’s output classification :

Alter in 1980’s classified DSS basing on the degree of action of a system’s output or

his classification is based on the executed by which the system output is included in

decision making. In other words, the output classification is based on the output

received from the system after processing to take decisions. The classification is

discussed in five categories; where the first two categories discuss the data and model

system, the third category discuss the data and model system, the remaining four

categories are focused on models.

File drawer system

It access the data items and helps in keeping the manager updated by the information.

it uses the on-line system to update the information. this system is used by every level

of management.

Data analysis system

It helps in manipulating the data by means of operations attached to the tasks,

activities related to general analysis operation.

Analysis information system

The system is the combination of both the data and model systems. this system access

the database with the help of small models. they are specialized staff and functional

managers to check data and models.

Accounting model

Accounting model is a model oriented that calculate the consequences of action on the

basis of accounting definition. They project on inputs, outputs, budgets, incomes &

expenditure.

Representational model

This model is calculated on the consequences of actions based on non-definitional

characteristics. this is done with the help of trained staff. it main usage in analyze the

long term budgets.

Optimization model

The model provides guidelines for action by generating optional solution from a series

of actions .these models are used to decisions that are described mathematically.

Suggestion model

This model is used for giving suggestions which would be helpful for giving

decisions. The main objective is to analyze the future.

In addition to alter’s output classification, we also have

H & w classification

Intelligence DSS

Individual,group & organizational DSS

Custom made & ready made DSS

Institutional & DSS

DSS elements

I. DSS tools

II. DSS generators

III. Specific DSS

i.DSS tools

There are the programs or codes which are foundations used to create DSS generators

and in turn specific DSS.DSS has variety of tools used for supporting data base

models, query systems.. etc the DSS tool are classified into four types. they are

a. Data base software

b. Model base software

c. Data analysis software

d. Display software

Data base software

DSS requires data base software to use the database and take decisions and these

software’s are used in mainframe and miniframe computers.the most popular data base

tool is MS-Access and SQL.

Model base software

Model base software helps a manager to design models which incorporate business

rules and assumptions made for application of rules.

Data analysis software

This is also known as statistical software it is used to analyze a variety of data and

derived meaningful information for decision making.

Display software

Display software supports DSS through graphics display. it provides easy

interpretation of the information.

Integrated DSS tool

All the DSS tools available are used to solve user’s needs. But these can solve only a

part of users needs. So, Microsoft had designed a software which would solve all the

needs of the user. The name given to the integrated DSS tool is MS-Excel. MS-Excel

is a data base which contains data model base, data analysis software which works on

statistical program and display software.

ii.DSS generators

A DSS generator is a package of software used to build a specific DSS application. it

displays the required information like a map showing the location of equipment and

inventories inside the organization.

iii.Specific DSS

A specific DSS application is constructed with DSS generators supported by special

DSS tools. this specific DSS is used for decision making.