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DECISION SUPPORT SYSTEM A decision support system is a way to model data and make quality decisions based upon it. Making the right decision in business is usually based on the quality of your data and your ability to sift through and analyze the data to find trends in which you can create solutions and strategies for. DSS or decision support systems are usually computer applications along with a human component that can sift through large amounts of data and pick between the many choices. While many people think of decision support systems as a specialized part of a business, most companies have actually integrated this system into their day to day operating activities. For instance, many companies constantly download and analyze sales data, budget sheets and forecasts and they update their strategy once they analyze and evaluate the current results. Decision support systems have a definite structure in businesses, but in reality, the data and decisions that are based on it are flui...

Importance Of Management Information System Management information system is an integrated set of component or entities that interact to achieve a particulars function, objective or goal. Therefore it is a computer based system that provides information for decisions making on planning, organizing and controlling the operation of the sub-system of the firm and provides a synergistic organization in the process. The component of an information system includes. a hardware which is used for input/output process and storage of data, software used to process data and also to instruct the hand-ware component, data bases which is the location in the system where all the organization data will be automated and procedures which is a set of documents that explain the structure of that management information system. There are various driving factors of management information system for example:- Technological revolutions in all sectors make modern managers to need to have access to large a...

MIS functions to produce routine reports,DSS employ sophisticated data modelling & analysis tools for the purpose of resolving structured problems. MIS is used by a limited group (staff managers & professionals), DSS are used by groups,individuals & managers at various levels. DSS is charachterized by an adaptability which contrasted with the semi-inflexible nature of MIS. DSS data sources are much more varied comprising inventory, accounting & production sources & not just internal business ones & its analytical tools are more sophisticated(simulation,atatistical analysis). Thus, MIS & DSS are differentiated in terms of components, dynamics , analytical tools & general properties.

NEED FOR SYSTEMS ANALYSIS AND DESIGN Systems analysis and design, as performed by systems analysts, seeks to understand what humans need to analyze data input or data flow systematically, process or transform data, store data, and output information in the context of a particular business. Furthermore, systems analysis and design is used to analyze, design, and implement improvements in the support of users and the functioning of businesses that can be accomplished through the use of computerized information systems. Installing a system without proper planning leads to great user dissatisfaction and frequently causes the system to fall into disuse. Systems analysis and design lends structure to the analysis and design of information systems, a costly endeavor that might otherwise have been done in a haphazard way. It can be thought of as a series of processes systematically undertaken to improve a business through the use of computerized information systems. Systems analysi...

Use of Information Management Systems The management of Information is facilitated by the use of Information Technology and Information Sciences. The popular Information Management Systems can be listed as follows: Document management system (DMS) The DMS is focused primarily on the storage and retrieval of self-contained electronic data resources in the document form. Generally, The DMS is designed to help the organizations to manage the creation and flow of documents through the provision of a centralized repository. The workflow of the DMS encapsulates business rules and metadata. Content management system (CMS) The CMS assist in the creation, distribution, publishing, and management of the enterprise information. These systems are generally applicable on the online content which is dynamically managed as a website on the internet or intranet. The CMS system can also be called as ‘web content management’ (WCM). Library management system (LMS) Library management systems facilitate...

CONCEPT OF DBMS A Database Management System ( DBMS ) is a set of computer programs that controls the creation, maintenance, and the use of the database with computer as a platform or of an organization and its end users . It allows organizations to place control of organization-wide database development in the hands of database administrators (DBAs) and other specialists. A DBMS is a system software package that helps the use of integrated collection of data records and files known as databases. It allows different user application programs to easily access the same database. DBMSs may use any of a variety of database models , such as the network model or relational model . In large systems, a DBMS allows users and other software to store and retrieve data in a structured way. Instead of having to write computer programs to extract information, user can ask simple questions in a query language . Thus, many DBMS packages provide Fourth-generation programming language (4GLs) and...

Basic concepts Data versus Information Data refers to raw, unevaluated facts, figures, symbols, objects, events, etc. Data may be a collection of facts lying in storage, like a telephone directory or census records. Information is data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. Information involves the communication and reception of intelligence or knowledge. It appraises and notifies, surprises and stimulates, reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones, and influences individuals and stimulates them to action. An element of data may constitute information in a specific context; for example, when you want to contact your friend, his or her telephone number is a piece of information; otherwise, it is just one element of data in the telephone directory. Computers have made the processing function much easier. Large quantities of data can be processed quickly ...

A Decision Support System (DSS) is a class of information systems (including but not limited to computerized systems) that support business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. Typical information that a decision support application might gather and present are: an inventory of all of your current information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), comparative sales figures between one week and the next, projected revenue figures based on new product sales assumptions. Development Frameworks DSS systems are not entirely different from other systems and require a structured approach. Such a framework includes people, technology, and the development approach. [ 10 ] ...

Decision making can be regarded as an outcome of mental processes (cognitive process) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions.Thus here an important concept comes of RATIONAL DECISION MAKING Rational Decision Making A rational decision is the one which, effectively and efficiently, ensures the achievement of the goal for which the decision is made. In reality, there is no right or wrong decision but a rational or an irrational decision. The quality of decision making is to be judged on the rationality and not necessarily on the result it produces. The rationality of the decision made is not the same in every situation. It will vary with the organization, the situation and the individual’s view of...

In today's scenario MIS plays a pivotal role in Organizations. Organizations worldwide makes extensive use of MIS.Its desgined by the top management of an organization, is a tool to assembling & accumulating facts & figures of all the important business processes. MIS is a very vast topic , its very difficult to cover the whole in one article. Thus here are some of the major importance / advantages of MIS in organizations: The organization that uses MIS is able to record ,process, route & tabulate all important business transactions. As & when need arises the organization is able to incorporate the needed changes & improvements in the area of concern. MIS facilitates informed DECISION MAKING.It usuallly represents a number of options from which one can choose the best. The top management ANALYSES whether its resources are being utillized optimally. A TWO WAY COMMUNICATION FLOW is greatly enhanced by the MIS. The management freelytells the jobv responsibili...

The decision making systems can be classified in a number of ways. There are two types of systems based on the manager’s knowledge about the environment. A . Closed decision making system : If the manager operates in a known environment then it is a closed decision making system. The conditions of the closed decision making system are: (a) The manager has a known set of decision alternatives and knows their outcomes fully in terms of value, if implemented. (b) The manager has a model, a method or a rule whereby the decision alternatives can be generated, tested, and ranked. (c) The manager can choose one of them, based on some goal or objective. A few examples are: a product mix problem, an examination system to declare pass or fail, or an acceptance of the fixed deposits. B. Open decision making system: If the manager operates in an environment not known to him, then the decision making system is termed as an open decision making system. The conditions of this system are:...

How do we ensure rationality ? It is ensured, if the process of decision making is carried out systematically, whereby all the aspects of the decision making discussed above are taken care of. Herbert Simon said that a decision maker follows the process of decision making disregarding the decision or the type of decision and the motive behind the decision. This process is followed consciously or without knowing it. We can put this process in the Decision Making Mode. Simon (1977) describes the process of decision making as comprising four steps: 1.Intelligence 2.Design 3.Choice 4.Later stage has been added with a view of improving the decision i.e. Review . The intelligence stage: encompasses collection, classification, processing, and presentation of data relating to the organization and its environment. This is necessary to identify situations calling for decision. During the design stage: , the decision maker outlines alternative solutions, each of which involves a set ...

Decision making is a complex situation. To resolve the complexity, the decisions are classified as programmed non-programmed decisions. If a decision can be based on a rule, method or even guidelines, it is called the programmed decision . If the stock level of an item is 200 numbers, then the decision to raise a purchase requisition for 400 numbers is a programmed-decision-making situation. The decision maker here is told to make a decision based on the instructions or on the rule of ordering a quantity of 400 items when its stock level reaches 200.If such rules can be developed wherever possible, then the MIS itself can be designed to make a decision and even execute. The system in such cases plays the role of a decision maker based on a given rule or a method. Since the programmed decision is made through MIS, the effectiveness of the rule can be analyzed and the rule can be revived and modified from time to time for an improvement. The programmed decision making can be delegate...

We use our decision making skills to solve problems by selecting one course of action from several possible alternatives. Decision making skills are also a key component of time management skills. Decision making can be hard. Almost any decision involves some conflicts or dissatisfaction. The difficult part is to pick one solution where the positive outcome can outweigh possible losses. Avoiding decisions often seems easier. Yet, making your own decisions and accepting the consequence is the only way to stay in control of your time, your success, and your life. http://www.scribd.com/doc/18046759/Chapter-2-various-concepts-of-MIS TYPES OF DECISIONS The types of decisions are based on the degree of knowledge about the outcomes or the events yet to take place. If the manager has full and precise knowledge of the event or outcome which is to occur, then his problem of the decision making is not a problem. If the manager has full knowledge, then it is a situation of certainty. If he...

Risks Associated With MIS Risk reflects the potential, the likelihood, or the expectation of events that could adversely affect earnings or capital. Management uses MIS to help in the assessment of risk within an institution. Management decisions based upon ineffective, inaccurate, or incomplete MIS may increase risk in a number of areas such as credit quality, liquidity, market/pricing, interest rate, or foreign currency. A flawed MIS causes operational risks and can adversely affect an organization's monitoring of its fiduciary, consumer, fair lending, Bank Secrecy Act, or other compliance-related activities. Since management requires information to assess and monitor performance at all levels of the organization, MIS risk can extend to all levels of the operations. Additionally, poorly programmed or non-secure systems in which data can be manipulated and/or systems requiring ongoing repairs can easily disrupt routine work flow and can lead to incorrect decisions or impaired pla...

Achieving Sound MIS The development of sound MIS is the result of the development and enforcement of a culture of system ownership. An "owner" is a system user who knows current customer and constituent needs and also has budget authority to fund new projects. Building "ownership" promotes pride in institution processes and helps ensure accountability. Although MIS does not necessarily reduce expenses, the development of meaningful systems, and their proper use, will lessen the probability that erroneous decisions will be made because of inaccurate or untimely information. Erroneous decisions invariably misallocate and/or waste resources. This may result in an adverse impact on earnings and/or capital. MIS which meets the five elements of useability is a critical ingredient to an institution's short- and long-range planning efforts. To achieve sound MIS, the organization's planning process should include consideration of MIS needs at both the tactical and s...

(a) Ascertaining the problem: As Peter Drucker points out, .the most common source of mistakes in the management decisions is the emphasis on finding the right answers rather than the right questions.. The main task is to define the right problem in clear terms. The management may define the problem as the .Sales are declining. Actually, the decline of sales is symptomatic; the real problem may be somewhere else. For example the problem may be the poor quality of the product and you may be thanking of improving the quality of advertising. (b) Insufficient knowledge: For perfect rationality, total information leading to complete knowledge is necessary. An important function of a manager is to determine whether the dividing line is reached between insufficient knowledge and the enough information to make a decision. (c) Not enough time to be rational: The decision maker is under pressure to make decisions. If time is limited, he may make a hasty decision which may not satisfy the te...

A rational decision is the one which, effectively and efficiently, ensures the achievement of the goal for which the decision is made. If it is raining, it is rational to look for a cover so that you do not get wet. If you are in business and want to make profit, then you must produce goods and sell them at a price higher than the cost of production. In reality, there is no right or wrong decision but a rational or an irrational decision. The quality of decision making is to be judged on the rationality and not necessarily on the result it produces. The rationality of the decision made is not the same in every situation. It will vary with the organization, the situation and the individual’s view of the business situation. The rationality, therefore, is a multi-dimensional concept. For example, the business decisions in a private organization and a Public Sector Undertaking differ under the head of rationality. The reason for this difference in rationality is the different objectives o...

Decision making can be regarded as an outcome of mental processes (cognitive process) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Human performance in decision making terms has been the subject of active research from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, preferences an individual has and values they seek. From a cognitive perspective, the decision making process must be regarded as a continuous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality and the invariant choice it leads to. Yet, at another level, it might be regarded as a problem solving activity which is terminated when a satisfactory solution is fo...

MIS provides the following advantages . 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision – making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4. It brings Co ordination : MIS facilities integration of specialized activities by keepi...