Management Information & Decision Support System

Management Information & Decision Support System

JIM

Dharmendra Arora

What Information To Whom For What?

Strategic Management Tactical Management Business Unit Managers & Self Directed Teams

Operational Management

Operating Managers & Self Directed Teams

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n

Structured

Executives & Directors

tio ma or Inf

Semi Structured

De ci s ion s

Unstructured

Ad Hoc Unscheduled Summarized Infrequent Forward Looking External Wide Scope

Prespecified Scheduled Detailed Frequent Historical Internal Narrow Focus

Dharmendra Arora

Examples Decision Structure

Operational Management

Unstructured Cash management

Tactical Management

Strategic Management

B.P.R. New business planning Work group performance analysis Company reorganization

Semi Structured

Credit management Production scheduling Daily work assignment

Employee performance appraisal Capital budgeting Program budgeting

Structured

Inventory control

Program control

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Product planning Mergers & acquisitions Site Location

Dharmendra Arora

Catering The Information Needs To provide information & support all the levels of management, we need several types of information system, viz. Management Information System Decision Support System Executive Information System

These all are basically part of Management Support System JIM

Dharmendra Arora

Management Information System An MIS information provides information required for day-to-day decision making needs of management. Reports, displays and responses produced by such systems provide information that managers have specified in advance as per their requirement. Best suited for Operational & Tactical levels. Eg. DSR, Weekly, Monthly and Quarterly Reports.

JIM

Dharmendra Arora

MIS-Types of Reports Periodic Scheduled Reports Exception Reports Demand Reports & Responses Push Reporting

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Dharmendra Arora

Decision Support System These are computer based information systems that provide interactive information support to managers during the decision making process. Typically DSS use  Analytical Models  Specialized Databases  Decision maker’s own insights & judgments  An interactive computer based modeling process to support decision making process JIM

Dharmendra Arora

Example An MIS for sales manager will produce sales analysis reports, that would contain sales performance figures by product line, salesperson, sales region etc. A DSS would also interactively show a sales manager the effects on sales performance of changes in a variety of factors (such as promotion expense and salesperson compensation). JIM

Dharmendra Arora

MIS v/s DSS MIS

DSS

Decision Support Provided Provide information about the performance of the organization

Provide information and decision support techniques to analyze specific problems or opportunities

Information form and frequency

Periodic, exception, demand and push reports and responses

Interactive inquiries and responses

Information format

Prespecified, fixed format

Ad hoc, flexible and adaptable format

Information Processing Methodology

Information produced by extraction & manipulation of business data

Information produced by analytical modeling of business data Dharmendra Arora

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DSS Facilitates What-if analysis-observing how changes to selected variables affect other variables Sensitivity analysis-observing how repeated changes to a single variable affect other variables Goal seeking analysis-making repeated changes to selected variables until a chosen variable reaches a target value Optimization analysis- finding an optimum value for selected variables, given certain constraints. GIS is a good example of DSS. JIM

Dharmendra Arora

Executive Information Systems EIS features = MIS features + DSS features But the prime goal of EIS is to provide top management with immediate and easy access to information about a firm’s Critical Success Factors (CSFs) i.e. the key factors that are critical to accomplishing an organization’s strategic objectives. Eg. For a departmental store product mix, inventory and promotion efforts are CSFs JIM

Dharmendra Arora

EIS Contains Information in tailored format and tailored contents to executive by using GUI Exception reporting & trend analysis Ability to drill down Real time or most update information

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Dharmendra Arora

NOTE:- All the systems mentioned are computer based system, thus their efficiency highly depends on many factors like software, hardware, database, network etc.

JIM

Dharmendra Arora