Information Technology Reference
In-Depth Information
systems include financial, manufacturing, marketing, human
resources, and other specialized systems. Each system is
composed of inputs, processing subsystems, and outputs.
The primary sources of input to functional MISs include the
corporate strategic plan, data from the ERP system and TPS,
information from supply chain and business transactions, and
external sources including the Internet and extranets. The
primary output of these functional MISs are summary reports
that assist in managerial decision making.
A financial management information system provides
financial information to all financial managers within an
organization, including the chief financial officer (CFO).
Subsystems are profit/loss and cost systems, auditing, and
use and management of funds.
A manufacturing MIS accepts inputs from the strategic
plan, the ERP system and TPS, and external sources, such as
supply chain and business transactions. The systems involved
support the business processes associated with the receiving
and inspecting of raw material and supplies; inventory track-
ing of raw materials, work in process, and finished goods;
labor and personnel management; management of assembly
lines, equipment, and machinery; inspection and mainte-
nance; and order processing. The subsystems involved are
design and engineering, master production scheduling and
inventory control, process control, and quality control and
testing.
A marketing MIS supports managerial activities in the
areas of product development, distribution, pricing
decisions, promotional effectiveness, and sales forecasting.
Subsystems include marketing research, product develop-
ment, promotion and advertising, and product pricing.
A human resource MIS is concerned with activities related
to employees of the organization. Subsystems include human
resource planning, personnel selection and recruiting, train-
ing and skills inventories, scheduling and job placement,
wage and salary administration, and outplacement.
An accounting MIS performs a number of important activ-
ities, providing aggregate information on accounts payable,
accounts receivable, payroll, and many other applications.
The organization's ERP system or TPS captures accounting
data, which is also used by most other functional information
systems. Geographic information systems provide regional
data in graphical form.
heuristic approaches; and perform what-if, simulation, and
goal-seeking analysis.
DSSs provide support assistance through all phases of
the problem-solving process. Different decision frequencies
also require DSS support. An ad hoc DSS addresses unique,
infrequent decision situations; an institutional DSS handles
routine decisions. Highly structured problems, semistruc-
tured problems, and unstructured problems can be sup-
ported by a DSS. A DSS can also support different managerial
levels, including strategic, tactical, and operational man-
agers. A common database is often the link that ties together
a company's TPS, MIS, and DSS.
The components of a DSS are the database, model base,
user interface or dialogue manager, and a link to external
databases, the Internet, the corporate intranet, extranets,
networks, and other systems. The database can use data
warehouses and data marts. A data-driven DSS primarily per-
forms qualitative analysis based on the company's databases.
Data-driven DSSs tap into vast stores of information con-
tained in the corporate database, retrieving information on
inventory, sales, personnel, production, finance, accounting,
and other areas. Data mining is often used in a data-driven
DSS. The model base contains the models used by the deci-
sion maker, such as financial, statistical, graphical, and
project-management models. A model-driven DSS primarily
performs mathematical or quantitative analysis. Model man-
agement software (MMS) is often used to coordinate the use
of models in a DSS. The user interface provides a dialogue
management facility to assist in communications between the
system and the user. Access to other computer-based sys-
tems permits the DSS to tie into other powerful systems,
including the TPS or function-specific subsystems.
Principle
Specialized support systems, such as group support
systems (GSSs) and executive support systems
(ESSs), use the overall approach of a DSS in situations
such as group and executive decision making.
A group support system (GSS), also called a computerized
collaborative work system, consists of most of the elements
in a DSS, plus software to provide effective support in group
decision-making settings. GSSs are typically easy to learn and
use and can offer specific or general decision-making sup-
port. GSS software, also called groupware, is specially
designed to help generate lists of decision alternatives and
perform data analysis. These packages let people work on
joint documents and files over a network. Newer Web 2.0
technologies are being used to a greater extent in delivering
group decision-making support. Text messages and the
Internet are also commonly used in a GSS.
The frequency of GSS use and the location of the decision
makers will influence the GSS alternative chosen. The deci-
sion room alternative supports users in a single location who
meet infrequently. Local area networks can be used when
group members are located in the same geographic area and
Principle
Decision support systems (DSSs) are used when the
problems are unstructured.
A decision support system (DSS) is an organized collection
of people, procedures, software, databases, and devices
working to support managerial decision making. DSS
characteristics include the ability to handle large amounts of
data; obtain and process data from different sources; provide
report and presentation flexibility; support drill-down analy-
sis; perform complex statistical analysis; offer textual and
graphical orientations; support optimization, satisficing, and
