Information Technology Reference
In-Depth Information
Management Information Systems
A
management information system (MIS)
is an organized collection of people, procedures,
software, databases, and devices that provides routine information to managers and decision
makers. An MIS focuses on operational efficiency. Marketing, production, finance, and other
functional areas are supported by MISs and linked through a common database. MISs
typically provide standard reports generated with data and information from the TPS (see
Figure 1.12). Producing a report outlining inventory that should be ordered is an example.
management information
system (MIS)
An organized collection of people,
procedures, software, databases,
and devices that provides routine
information to managers and
decision makers.
Marketing
management
information
system
Manufacturing
Figure 1.12
management
information
system
Management Information
System
Functional management
information systems draw data from
the organization's transaction
processing system.
Common
database
Other
management
information
systems
Financial
management
information
system
TPS
MISs were first developed in the 1960s and typically use information systems to produce
managerial reports. In many cases, these early reports were produced periodically—daily,
weekly, monthly, or yearly. Because of their value to managers, MISs have proliferated
throughout the management ranks. For instance, the total payroll summary report produced
initially for an accounting manager might also be useful to a production manager to help
monitor and control labor and job costs.
Decision Support Systems
By the 1980s, dramatic improvements in technology resulted in information systems that
were less expensive but more powerful than earlier systems. People at all levels of organizations
began using personal computers to do a variety of tasks; they were no longer solely dependent
on the IS department for all their information needs. People quickly recognized that com-
puter systems could support additional decision-making activities. A
decision support system
(DSS)
is an organized collection of people, procedures, software, databases, and devices that
support problem-specific decision making. The focus of a DSS is on making effective deci-
sions. Whereas an MIS helps an organization “do things right,” a DSS helps a manager “do
the right thing.”
In addition to assisting in all aspects of problem-specific decision making, a DSS can
support customers by rapidly responding to their phone and e-mail inquiries. A DSS goes
beyond a traditional MIS by providing immediate assistance in solving problems. Many of
these problems are unique and complex, and key information is often difficult to obtain. For
instance, an auto manufacturer might try to determine the best location to build a new
manufacturing facility. Traditional MISs are seldom used to solve these types of problems;
a DSS can help by suggesting alternatives and assisting in final decision making.
Decision support systems are used when the problem is complex and the information
needed to determine appropriate action is difficult to obtain and use. Consequently, a DSS
also involves managerial judgment and perspective. Managers often play an active role in
developing and implementing the DSS. A DSS recognizes that different managerial styles
and decision types require different systems. For example, two production managers in the
same position trying to solve the same problem might require different information and
support. The overall emphasis is to support, rather than replace, managerial decision making.
decision support system (DSS)
An organized collection of people,
procedures, software, databases,
and devices used to support
problem-specific decision making.
