Information SystemThe term Information System (IS) refers to a system of people, data records and activities that process the data and information in an organization, and it includes the organization's manual and automated processes. In a narrow sense, the term information system (or computer-based information system) refers to the specific application software that is used to store data records in a computer system and automates some of the information-processing activities of the organization. Computer-based information systems are in the field of information technolgy

There are various types of information systems, for example: Transaction processing systems, Decision support systems Expert system Management information system office information systems

Information Systems have a number of different areas of work: Information systems strategy Information systems management Information systems development Information systems security

Decision Support SystemDecision Support Systems (DSS) are a specific class of computerized information systems that supports business and organizational decisionmaking activities. A properly-designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

Example Arlington software - ERGO is a decision support system that allows you to simplify and quantify complex decisions build, maintain, and grow your organization's knowledge capital standardize your data and evaluation processes Bank Rate monitor : It helps to take decision about the credit card rates , home loan rates etc.

Application One example is the clinical decision suport system for medical diagnosis. Other examples include a bank loan officer verifying the credit of a loan applicant or an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs.

Improves personal efficiency Expedites problem solving(speed up the progress of problems solving in an organization) Facilitates interpersonal communication Promotes learning or training Increases organizational control Generates new evidence in support of a decision Creates a competitive advantage over competition Encourages exploration and discovery on the part of the decision maker Reveals new approaches to thinking about the problem space Helps automate the Managerial processes.

BENEFITS

Management Information System MIS is a system or process that provides the information

necessary to manage an organization effectively. MIS generates are generally considered essential component of prudent and reasonable business decision Management Information System (M.I.S.) is basically concerned with processing data into information.which is then communicated to the various Departments in an organization for appropriate decision-making. DataInformationCommunicationDecisions According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

Advantage 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 keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .

It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .

MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .

Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. Data Processing Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole

Application of MIS

Transaction Processing System A Transaction Processing System or Transaction Processing Monitor is a set of information which processes the data transaction in database system that monitors transaction programs (a special kind of program). The essence of a transaction program is that it manages data that must be left in a consistent state. E.g. if an electronic payment is made, the amount must be either both withdrawn from one account and added to the other, or none at all. an airline seat reservation system is accessed by multiple operators, after an empty seat inquiry, the seat reservation data must be locked until the reservation is made, otherwise another user may get the impression a seat is still free while it is actually being booked at the time. Without proper transaction monitoring, double bookings may occur

Advantage of TPS Rapid response Fast performance with a rapid response time is critical. Businesses cannot afford to have customers waiting for a TPS to respond, the turnaround time from the input of the transaction to the production for the output must be a few seconds or less. Reliability Many organizations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business. For a TPS to be effective its failure rate must be very low. If a TPS does fail, then quick and accurate recovery must be possible. This makes welldesigned backup and recovery procedures essential.

Inflexibility A TPS wants every transaction to be processed in the same way regardless of the user, the customer or the time for day. If a TPS were flexible, there would be too many opportunities for non-standard operations, for example, a commercial airline needs to consistently accept airline reservations from a range of travel agents, accepting different transactions data from different travel agents would be a problem. Controlled processing The processing in a TPS must support an organization's operations. For example if an organization allocates roles and responsibilities to particular employees, then the TPS should enforce and maintain this requirement.

Expert SystemAn expert system is software that attempts to reproduce the performance of one or more human experts, most commonly in a specific problem domain, and is a traditional application and/or subfield of artificial intelligence.

Advantages: Provides consistent answers for repetitive decisions, processes and tasks Holds and maintains significant levels of information Encourages organizations to clarify the logic of their decision-making Never "forgets" to ask a question, as a human might Can work round the clock Can be used by the user more frequently A multi-user expert system can serve more users at a time

Disadvantage Lacks common sense needed in some decision making Cannot make creative responses as human expert would in unusual circumstances Domain experts not always able to explain their logic and reasoning Errors may occur in the knowledge base, and lead to wrong decisions Cannot adapt to changing environments, unless knowledge base is changed

Expert systems are designed and created to facilitate tasks in the fields of accounting, medicine, process control, financial sevices, production, human resources etc. Indeed, the foundation of a successful expert system depends on a series of technical procedures and development that may be designed by certain technicians and related experts. A good example of application of expert systems in banking area is expert system for mortgages. Loan departments are interested in expert systems for mortgages because of the growing cost of labour which makes the handling and acceptance of relatively small loans less profitable. They also see in the application of expert systems a possibility for standardised, efficient handling of mortgage loan, and appreciate that for the acceptance of mortgage there are hard and fast rules which do not always exist with other types of loans.

Application of Expert system

Office Automation Adoption of IT Tools for enhancing productivity and reduction of manual labor It is associated with paperless office Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks and goals. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system The backbone of office automation is a LAN, which allows users to transmit data, mail and even voice across the network. All office functions, including dictation, typing, filing, copying, fax, Telex, microfilm and records management, telephone and telephone switchboard operations, fall into this category.

Advantage Increased Efficiency Employees focus on core business functions (Not simple repetitive tasks) Increased throughput

Difference between DSS and MIS The essential difference between the two is in focus. DSS, as the term indicates, is about leadership and senior management in an organization providing good, reliable judgment as well as vision. MIS, on the other hand, is about focusing on the actual flow of information itself.

InformationIn general, information has been verified to be Accurate and timely, is specific and organized for a purpose, is presented within a context that gives it meaning and relevance, and which Leads to increase in understanding and decrease in uncertainty. The value of information lies solely in its ability to affect a behavior, decision, or outcome.

Management in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives.. management to consist of seven function Planning Staffing, Leading, motivation control, coordination, organizing

Management

Planning in organisations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. How Should be a plan plan should be a realistic view of the expectations. Depending upon the activities, a plan can be long range, intermediate range or short range. It is the framework within which it must operate

Planning

Purpose of plan Helps management to clarify, focus, and research their business's or project's development and prospects. Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years. Offers a benchmark against which actual performance can be measured and reviewed.

Staffing Staffing : - may refer to: * Employment agency * Human resources

organizing is the act of rearranging elements . Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. Organizing is a broad set of activities, and often considered one of the major functions of management Coordination is the act of coordinating, making different people or things work together for a goal or effect.

Leading It has been described as the process of Social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. A definition more inclusive of followers comes from Alan Keith of Genentech who said "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen Motivation It is the internal condition that activates behavior and gives it direction; energizes and directs goal-oriented behavior. The term is generally used for human motivation

Control Control is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner

Decision making 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 Some of the decision making techniques that we use in everyday life include: listing the advantages and disadvantages of each option flipping a coin, cutting a deck of playing cards, and other random or coincidence methods accepting the first option that seems like it might achieve the desired result prayer, tarot cards, astrology choosing the alternative with the highest probabilityweighted utility for each alternative

GDSS Contains most of the elements of DSS plus software to provide effective support in group decision-making settings An interactive computer-based system that facilitates users finding (partial) solutions to semi-structured problems. A GDSS uses a set of decision makers working together as a group. A GDSS combines communication, computing, and decision support technologies to facilitate formulation and solution of unstructured problems by a group of people. Participants use a common computer or network to enable collaboration.

Advantage More precise communication; Synergy: members are empowered to build on ideas of others; More objective evaluation of ideas; Stimulation of individuals to increase participation; Learning: group members imitate and learn from successful behaviors of others

Characteristics Anonymous input Reduction of negative group behavior Parallel communication Automated record keeping Cost, control, complexity factors Special design Ease of use Flexibility

How GDSS Contributes to Problem Solving Improved communications Improved discussion focus Less wasted time

GDSS Environmental Settings Synchronous exchange Members meet at same time Committee meeting is an example

Asynchronous exchange Members meet at different times E-mail is an example

More balanced participation

Types of decision Unstructured decision : Non-routine decisions requiringjudgment and insights Examples: Approve capital budget; decide corporate objectives

Structured decision : Routine decisions with definite proceduresExamples: Restock inventory; determine special offers to customers

Semi structured decision : Only part of decision has clear-cutanswers provided by accepted procedures Examples: Allocate resources to managers; develop a marketing plan

Three Main Components of GDSS: Hardware (conference facility, audiovisual equipment, etc.) Software tools (Electronic questionnaires, brainstorming tools, voting tools, etc.) People (Participants, trained facilitator, support staff)

Business Value of GDSS :Traditional decision-making meetings support an optimal size of three to five attendees. GDSS allows a greater number of attendees. Can increase the number of ideas generated and the quality of decisions while producing the desired results in fewer meetings Can lead to more participative and democratic decision making

Constructing the DSS :In building a specific DSS , the iterative design process seems to be the most appropriate because of the need for flexibility and the short development cycle needed by the decision and decision makers . Flexibility can be viewed as the ability of the DSS to respond to changes in user decision making processes as well as ability to easily develop the specific DSS . An iterative design process compresses the traditional level of the system life cycle to generate repeated versions of the DSS. It is facilitated in the use of a DSS generator, which reduces development time of the DSS . The key aspect of iterative design are: Focus on a sub problem Focus on a small, but usable DSS Plan for refinement/ modification cycles Evaluate constantly

Users : This is the final component

of a DSS that influence the way a final decision is reached. The users is also known as the managers or decision makers. Knowing who will use the DSS is important in the designing of it. Individuals can use a DSS for personal support or a portion of DSS in organizational or group support. non routine and not structured , the DSS needs to be custom made form the organization. When similar functional problems exist in different organization, a generic DSS can be built with the option of same modification. Such a DSS is called is ready made DSS. Most are custom made .

Custom made versus ready made DSS : When a problem is

Specific DSS: System that actually accomplish the work are calleda specific DSS. A DSS involves an application that allow a specific decision maker or group of them to deal with specific sets of related problems.

DSS GENERATOR: A generator is an integratedpackage of software that provides a set of capabilities to build a specific DSS quickly, in expensively and easily . A DSS generator is an integrated easy to use package with diverse capabilities ranging from modeling report generation, graphical presentation to performing risk analysis.

DSS TOOLS : this is the lower level also called of thefundamental level of DSS technology and consists of software utilities or tools . These elements facilitate the development of a DSS generator Examples include graphics , editors, query system, random number generators and spreadsheet. A specific DSS may be built with directly from tools

Factor to consider when designing a DSSAccording to Mallach , one should consider the following before starting to design a DSS: 1. One should first determine the purpose of the DSS in terms of the decision being made and the outputs it must supply. 2. One should determine any external sources that the DSS will communicate with and find any data flows to and from these sources. 3. Any internal data files needed should be determined . One should determined if the data in these fields are obtained from external data sources and if it is , specify the external sources. 4. The major processes in the DSS should be determined. If one can understand all these considerations, you will understand your DSS as a system. One test of this understanding is being able to draw it as a flow diagram