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Block – 5

Unit - 18

Tactical & Strategic IS – DSS and EIS

Information Systems For Managers

Topics to be covered

18.1 Introduction

18.2 DSS Philosophy

18.3 Information Systems

18.4 Difference between DSS, MIS and EIS

18.5 Components of DSS

18.6 Group DSS

18.7 Software Tool Selection

18.8 Building DSS/EIS in an Organization

18.9 Summary

Introduction

• Data mining techniques is used to obtain useful information about the client, service provider and overall on the organization.
• This gives a path of directives , understanding of self and finding the important processes that strengthens or weakens the organization.
• We can also define it a Time management and suitable in-time decision is the key for betterment of the organization. The present unit explores decision-making process and the support system for mgmt. executives and decision makers.

DSS Philosophy

• A decision basically is a resources allocation process that is irreversible, except that a fresh decision may reverse it or overrule the earlier one.
• We can also define it as a reasoned choice among alternatives. The decision maker, having authority over the resources being allocated, makes a decision.
• Decision maker may adopt strategy, which is a collection of actions. Risk can be defined as the possibility of an undesirable result.

DSS Philosophy (Contd.)

• The quality information is a component that is dependent on the good datasets.
• The good data can be described as data having accuracy, completeness and have authorization, on time availability of up-to-date records when actually needed, summarization, easy access to the relevant information and relevance to the decisions being made.

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DSS Philosophy (Contd.)

Simon provided a general model of any decision making process

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DSS Philosophy (Contd.)

DSS Philosophy (Contd.)

These definitions points that

• Decision support systems are information systems used by managers in making decisions, to support, not to replace, people.

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• Decision support systems are used when the decision is semi-structured or unstructured.

Information Systems

• Many information systems researchers and technologists have had built and investigated Decision Support Systems (DSS) for more than 35 years.
• Powerful mainframe systems made it more practical and cost-effective to develop MIS in

large companies.

• MIS focused on providing managers with structured, periodic reports. Much of the information was from accounting and transaction systems.

Information Systems (Contd.)

• Management Information System (MIS) is “an” integrated, man/machine system for providing information to support the operations, mgmt. & decision-making functions in an organization”.
• Transaction Processing System (TPS) is a system that influences the decision making

on the basis of inventory.

• Interactive Financial Planning System(IFPS) became popular decision support tools that originated from conventional spreadsheet system of finance management.

Information Systems

• Executive Information System (EIS) evolved from single user model-driven.
• An EIS is a data-driven DSS that is intended to provide business intelligence to middle and senior-level managers.
• The Office Information (automation) System (OIS) has to do with the effective and efficient flow of organizational information for carrying out day-to-day work.
• Personal Information System (PIS) helps individual middle and senior executives

• DSS generally provide support for unstructured,

or semi-structured decisions.

• DSS problems are often characterized by

incomplete or uncertain knowledge, or the use

of qualitative data.

• DSS will often include modeling tools in them,

where various alternative scenarios can be

modeled and compared.

• Investment decisions are an examples of those

that might be supported by DSS.

• MIS is more sophisticated reporting systems.

DSS ,MIS AND EIS

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DSS ,MIS AND EIS

• EIS support a range of decision making.
• EIS support the executive level of management, often used to formulate high

level strategic decisions impacting on the

direction of the organization.

• These systems will usually have the ability to extract summary data from internal systems, along with external data that provides intelligence on the environment of the organization.

Difference Between DSS, MIS & EIS

Difference Between DSS, MIS & EIS

Difference Between DSS, MIS & EIS

Components Of DSS

• The basic model of a DSS might be a spreadsheet containing the data. The user may make changes in some of the parameters of spreadsheet and observe the impacts on the outcomes.
• For example, one may create a spreadsheet to support various investment decisions or an individual may create a spreadsheet to model a home loan and see the impact on repayments of changing parameters like interest rates, principal size and the term of the loan.

Components Of DSS

Group DSS

• The group decision support system addresses task assigned to a group is a typical info processing system that usually provides a judicious solution with alternatives.
• The GDSS enable all participants to work simultaneously thereby promoting broader input into the meeting process and reducing dominance of few people, provide equal opportunity for participation, enable larger group meetings that can effectively bring more information,knowledge and skills for a given task.

Group DSS

• Groupthink is a tendency of group members to fall in to similar thought patters and to disapprove the opinions that do not confirm to the patterns.
• In GDSS, the richness of a medium depends on availability of number of communication channels and the feedback that is received by the decision makers
• In face-to-face situation, the communication richness is very high as the feedback and inputs are received through words used, facial expression, body language and tone.

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Group DSS

• It is a term which relates to GDSS but is not identical. It is defined as a computer based system that support groups of people engaged in common goal and provide interface to a shared environment.

Software Tool Selection

• Selecting a software package for organizational DSS is a major strategic decision as it has intense implications for the competitiveness for the organization for many years.
• As procurement of software involves money, involvement of senior managers along with technical managers in decision-making is important and crucial. Technical evaluation involves meeting with vendors.

Software Tool Selection

• The evaluation of the software basically involves four steps, covering creation of evaluation team, need identification, product

evaluation and negotiations with vendors.

• Some points to be remembered in formulation of evaluation team includes

a) Identification of suitable members

b) Role specification for them

c) Anticipation and management of time commitment

d) Leadership selection

e) Creating directions for the team.

Building DSS /EIS In An Organization

• To build a DSS or EIS in an organization, it is important to understand the organizational environment in which it has to be functional.
• The environment here can be explained as the available hardware, operating system on the computers, approach to link or network computers, users, their work and workload, the links between the departments and information or data flow, hierarchies among the different levels of human resources, their interactivity level etc.

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Building DSS /EIS In An Organization

Building DSS /EIS In An Organization

• SDLC approach considers identification of user requirement, analysis of existing system, designing overall system and its designing, development and testing.
• Prototype Approach considers user requirement and either applies prototype system design before system design or evolves prototype design after development and exercising a prototype system.
• End-user Development approach provides an opportunity for development of DSS.

Building DSS /EIS In An Organization

Steps For Building DSS are

• Obtaining and installing the DSS hardware;

Installing the DSS and making it run on

intended hardware;

• Providing user access to the system;
• Creating and updating the database;
• Training the user on the new system;
• Documenting the system for its user and who will responsible for maintaining it in the future;
• Transferring ongoing responsibility for the system from its developers to the operations or maintenance

• The DSS was defined as the system that supports the decision-making as DSS is a information systems, used by managers in making decisions as support, not to replace, people and used when the decision is semi-structured or unstructured. We also understood that DSS incorporate a database of some sort and also models. We also differentiated between DSS, MIS and EIS. We also explored Group DSS and its implications. We explored the tips for procurement of software for DSS and system architecture.

Summary