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Home » Management » Structure and Classification

Classification of Decision Support Systems

By Dinesh Thakur

DSS have been classified in different ways as the concept matured with time. As. and when the full potential and possibilities for the field emerged, different classification systems also emerged. Some of the well known classification models are given below:

  • According to Donovan and Madnick (1977) DSS can be classified as,
  1. Institutional-when the DSS supports ongoing and recurring decisions
  2. Ad hoc-when the DSS supports a one off-kind of decision.
  • Hackathorn and Keen (1981) classified DSS as,

1. Personal DSS

2. Group DSS

3. Organizational DSS

  • Alter (1980) opined that decision support systems could be classified into seven types based on their generic nature of operations. He described the seven types as,
  1. File drawer systems. This type of DSS primarily provides access to data stores/data related items.
  2. Data analysis systems. This type of DSS supports the manipulation of data through the use of specific or generic computerized settings or tools.
  3. Analysis information systems. This type of DSS provides access to sets of decision oriented databases and simple small models.
  4. Accounting and financial models. This type of DSS can perform ‘what if analysis’ and calculate the outcomes of different decision paths.
  5. Representational models. This type of DSS can also perform ‘what if analysis’ and calculate the outcomes of different decision paths, based on simulated models.
  6. Optimization models. This kind of DSS provides solutions through the use of optimization models which have mathematical solutions.
  7. Suggestion models. This kind of DSS works when the decision to be taken is based on well-structured tasks.
  • Modern classification of DSS are,
  1. Model Driven DSS is a DSS that uses a model (quantitative) based on heuristics, optimization, simulation etc. for deriving solutions to problems. It has access to the models and has flexibility of changing the parameters of the model. Real data or transactional data from databases of TPS is then passed through the model to arrive at the solution. The system is capable of producing different scenarios.
  2. Data Driven DSS is a DSS that gives access to time-series internal data. Data ware houses that have tools that provide facility to manipulate such data are examples of advances systems. Executive Information Systems are examples of data-driven DSS.
  3. Communications-driven DSS is a DSS that uses network and communications technologies to support decision-relevant collaboration and communication. In such systems, communication technologies are the most important component.
  4. Document-driven DSS is a DSS that uses computer storage and processing to provide document retrieval and analysis.
  5. Knowledge-driven DSS is a DSS that collects and stores ‘expertise’ so that it can be used for decision-making when required.

Components of DSS

Even though DSS can be of several types, fundamentally each DSS will have the following components:

  • Interactive User-System Dialog Management Subsystem-DSS requires continuous user interaction. Sometimes the system should prompt the user to give an input at other time the user should be able to control the processing. A typical user system dialog management subsystem will have the following elements:
  1. User Interface – the user interface of a DSS has to be dynamic and GUI based. It has to be an easy to use user interface as most of the people who will be using it are not technical experts but management experts (top management) and hence the interface should be minimalist in design. Also the system should be able to interact with the user in a interactive mode and hence the user interface has to be dynamic.
  2. Request Constructor – since DSS works on an interactive dynamic mode, it needs a request constructor (incorporating aspects of Language Query Interface) which can convert the user’s instructors into model understandable form, the model’s data request to the database and the model’s instructions/requests to the user.
  • Data Management Subsystem – data is the most important component of a DSS. Without the data a DSS cannot function. The data management subsystem manages the data for DSS. Data is accessed in a DSS in many ways like ad hoc basis, structured query basis and heuristic search basis and hence a strong data management subsystems is required to service the varied data requests from a DSS. The subsystem has the following elements:
  1. Database Management System – it is the data store for the DSS. It manages the data and performs all the functions that a typical DBMS package does. In fact, in most DSS a commercial DBMS or RDBMS package is used to perform this task.
  2. The Query Control – this is a tailored element to handle the query requirements of DSS. It may connect the database, directly to the user interface or to the model base or both.
  3. Meta Data – this contains data about the data that is stored in the database. This helps the DSS in understanding the data in the database properly and helps in creating ad hoc queries.
  • Model Management Subsystem – this is the unique feature of a DSS. This makes the system special. However, this also makes the system very specific. There are very few examples of a generalized DSS as generalized models are not available. Those that exist work on half baked solutions. The model management subsystem may use different classes of models like,
  1. Optimization Models
  2. Simulation Models
  3. Heuristic Models
  4. Deterministic Models
  5. Predictive Models

Each class of model is useful to solve a specific class of problems like a routing problem or a scheduling problem or a combinatorial search problem etc. Model and Model Management has several connotations in DSS literature and there have been wide ranging definitions of these terms. The common strain that evolves from these plethora of definitions is that a model is conceived to consist of a solver, a model for solving a problem and data (Ramirez, 1993) where model represents relationships between variables, data represents the values of the variables under consideration and the solver is the tool that enables the computation of the variable values and their relationships. It has been also conceptualized in some literature as a procedure which works on the data to give an output after analysis.

The model management subsystem has the following elements:

  1. The Model Base Management System-A model base or rather a model base management system is software is conceptually like what the DBMS is to data which has the capabilities to manage a model for it to be useful to the decision maker. It is the core of a DSS. It supports generation of models and works with data on one hand and the user supplied instructions on the other.
  2. The Model Command Processor-is the entity that processes the commands coming from the dialog management subsystem.
  3. The Model Executor or Solver- is the heart of the system. It is the process through which the model is solved using some algorithm. It works with the model as generated by the model base with instructions from the user, the request constructor (dialog management subsystem in general) to get the parameters of the model from the user and data from the data management subsystem. It then solves the problem and displays the results and some variations of the best fit solution through the dialog management subsystem. The alternative solutions as provided help the user in decision-making.




Content Management System (CMS)

By Dinesh Thakur

Tremendous amounts of content get created everyday in organization. Most organizations do not have a structured approach to managing such content. However, there is a need for having a scientific approach towards content and its management especially in the digital environment where content gets created and updated much faster. A content management is therefore required in organizations to support the organization and to keep track of the huge volume of content that gets created everyday.

Content management (CM) is the activity that supports the collection, management, and publication of information in any medium. Nowadays content management is usually done on IT platforms and hence it is considered as a separate set of technology that needs to be manag9d for the organization’s benefit. In IT driven companies the content is digital (in the form of alpha numeric text as in documents, multimedia content such as audio and/ or video, or any other type) which helps in its management.

Content management is an important activity that an organization needs to take seriously if it wants to leverage its information base. Content management is a collaborative process and consists of the following:

  1. Content Creator – one who creates the content
  2. Content Editor – one who edits the content and makes it palatable.
  3. Content Publisher – content disseminator.
  4. Content Administrator – manager of content access, version, etc.
  5. Content user – content user.

A very import aspect of content management is version control. Digital content is easily changed and new versions are created of the same content. The content management system must ensure that the content that is available to the users is the current version of the content. Unless the version of the content is managed, the users may not be able to access the updated content. Content management must also be able to manage content distributions and digital rights management. Content management also eliminates duplication.

Drivers of Content Management

The three drivers that propel organizations for content management are:

  1. Collaboration: In today’s working environment, the same content gets created and worked upon by several people simultaneously. This poses a challenge for organizations and the only solution to this is to adopt content management.
  2. Compliance: Several compliance related issues have come up in the recent past that requires the single version of the truth from organizations, when they communicate to internal or external customers. This is again a challenge that can only be met by content management
  3. Consolidation: This is the last driver for content management. Organization need more and more consolidated content that can only be done if content management is practiced.

Content Management System (CMS) is usually a software system with specific processes and procedures that allows us to manage digital content in a collaborative mode.

Types of CMS

  1. Enterprise Content Management used to manage enterprise wide content.
  2. Web content management systems used to manage web content.
  3. Document management systems used for managing documents.
  4. Mobile Content management system used to manage texts and multimedia content for mobile devices.




What is organizational structure? Definition and Meaning

By Dinesh Thakur

Organizations are structured in several ways. In some cases the functional roles and specializations form the basis of the segregation of groups into homogenous entities like departments, etc., while in other cases, logical business of the organization becomes the basis for segregation like divisions based on product categories, geographies (particularly related to markets) and also customer types? Organizational activities arranged in the form of a hierarchy can be based on the following types:

  1. Functional structure is work based on specialization within the organization, such as finance, marketing, etc. This is a traditional way of structuring organizations based on specializations. Each group works like a sub-organization with policies and plans formulated at the top of the sub-organization after due inputs from the top management. Information normally flows vertically. Information management is comparatively easier in this kind of structure as roles are structured.
  2. Product or service categories based structure, such as X product division, Y product division, etc. In this type of organization, managers in charge of a product or product category work not only vertically but also coordinate amongst each other and work horizontally.
  3. Geography based structure, such as a structure based on segregation/grouping on geographical areas like North region or X province, Z zone, etc. This type of structure is suitable where markets are segmented in geographical areas.
  4. Customer category based structure, such as grouping people according to high paying customers, low paying customers, etc. This kind of structure is especially suitable for service industries, banks, financial and brokerage companies, etc.
  5. Matrix structure is a mix of different structures suitable for tackling important changes in the environment. Such structures are complex arid information flows in all directions. It is challenging for managers to manage such a structure. Information management in these structures is difficult as the decision-making process within the organization is sometimes non-linear.
  6. Virtual organizations are the organizations which exist only in cyberspace and draw all their resources from cyberspace.

Different information management techniques are required for the various organization structures given above. The role of the information manager is also different in each case. Let us now understand the relation between management and information.

 

What is An Organization?

By Dinesh Thakur

Organizations and management are concepts that are very important for the understanding of MIS. Organization is the crucible in which MIS operates and management is the reason for its existence. Any understanding of MIS is incomplete without a discussion on organization and management. Organization and its structure play an important role in MIS as different levels of employees have different levels of authority.

Organization is not a monolithic entity and is structured in a formal manner. This structure is called the organization structure and management follows the organization structure. The decision-making capability is different at different levels. Information and information systems can deliver valuable information only if the theory of information systems and information management is coupled with the organization and management theory. The roles played by different levels of management also need to be understood to provide an information systems based solutions1. The major tasks of management are planning, controlling, organizing, staffing and leading.

These activities of management are carried out at different levels. Typically, management is divided into three distinct levels. These levels are-strategic level or top management that looks after the strategic interests of the organization, tactical level that looks after the smooth functioning of the organization at the tactical level and the operational level that looks at the operational issues. These levels of management have different degrees of authority and responsibility. It is important to understand the functions of each level so that a proper MIS design could be done to supply each level of management² with the right kind of information.

What Is An Organization?

We are prone to use the term organization rather loosely. In the context of information, management organization means an entity (not necessarily only business entity) with a team of people working towards a common goal or objective. Resources are obviously used to attain the objective. A business organization is a special type of organization where the goal or objective of the organization is the attainment of a business outcome like increased profits, increased shareholder value, increased market share, etc. Moreover, business organizations have a way of attaining these objectives and are arranged in a distinct structure segregated into levels of hierarchy. Decision-makers at each level of hierarchy are called managers and the common way of working and management of a business organization is referred to as business management.

Organization Forms

Organizations have been conceptualized as having different forms3 like that of a machine, an organism, a coercive system and culture. Morgan (1986) has been the pioneer in identifying organizations using metaphors such as machines, brains, organisms, political systems, cultures, psychic prisons, coercive instruments of subjugation and as change and transformation. Each metaphor gives a different form and view to the organization. This is a simplistic way of viewing a complex system of an organization.

Forces at Work

Several forces are always at play within an organization. The goal of the management is to align all the forces to work together for the fulfillment of the broad objective of the organization. (Minztberg 1991) suggested that organizations are subjected to the forces of:

  1. Direction is the strategic pathway set by management.
  2. Innovation is the force to adapt to changes in the environment and come up with new products and services.
  3. Proficiency is the visible skill base and knowledge of the people who make the organization.
  4. Concentration is a force that is to be used to focus the energies of the people of the organization on a particular aspect, like developing core competencies and markets.
  5. Cooperation is the team work with which the objectives are achieved in the organization
  6. Competition is the conflict within the organization. This also propels people to perform better.
  7. Efficiency is the force of continuously looking at processes to reduce costs and translate the resources into a better value for everyone.

                 Forces that Shape an Organization 

Several formal definitions of organization have been popular over the years. A suitable way of formally defining an organization (Clancy 1989) is that it regularly performs three important tasks. It produces products and services, it makes a profit in the process and continues to grow and survive as an organization. An alternative definition (Galbraith 1977), (Gerloff 1985) suggests, that an organization is a set of people with the purpose of achieving some common shared objectives through the division of labor, planning, bonded by systems and structures and information-based logical decision-making throughout times.




Different Types of Systems

By Dinesh Thakur

Different kinds of system may be understood as

Abstract and physical systems

An abstract or conceptual system is an orderly arrangement of interdependent ideas or constructs, which may or may not have any counterpart in the real world.

On the other hand, physical systems are generally concrete operational systems made up of people, materials, machines, energy and other physical things; Physical systems are more than conceptual constructs.

Deterministic and Probabilistic Systems

A deterministic system is one in which the occurrence of all events is known with certainty. A probabilistic system is one in which the occurrence of events cannot be perfectly predicted. Though the behavior of such a system can be described in terms of probability, a certain degree of error is always attached to the prediction of the behavior of the system.

Open and Closed Systems

An open system is one that interacts with its environment and thus exchanges information, material, or energy with the environment, including random and undefined inputs. Open systems are adaptive in nature, as they tend to react with the environment in such a way, so as to favor their continued existence. Such systems are ‘self organizing’, in the sense that they change their organisation in response to changing conditions.

A closed system is one, which does not interact with its environment. Such systems in business world, are rare, but relatively closed systems are common. Thus, the systems that are relatively isolated from the environment but not completely closed, are termed closed system.

User Machine Systems

Most of the physical systems are user-machine (or human –machines) systems It is difficult to think of a system composed only of people who do not utilize equipment of some kind to achieve their goals. In user-machine systems, both, i.e. human as well as machine perform some activities in the accomplishment of a goal (e.g. decision-making). The machine elements (may be computer hardware and software) are relatively closed and deterministic, whereas the human elements of the system are open and probabilistic.

Business Expert Systems

By Dinesh Thakur

A Business Expert System (BES) is a knowledge based information system, which is based on artificial intelligence. A Knowledge Based information system adds a knowledge base that uses its knowledge about a specific, complex application area to act as an expert. 

Also, BES provides decision support to managers in the form of advice from an expert in a specific problem area such as medical, engineering and business. BES is interactive in nature and it is able to answer the questions asked by a user. For answering the questions, an expert system searches its knowledge base for facts and rules and explains its reasoning process and results in the expert advice to the end user. The main components of BES are:

1)      Knowledge base                 

2)      Inference engine                 

3)      User interface


Components of BES

 

Knowledge base contains the facts about the specific expert area and heuristics that describe the reasoning procedures of an expert on the subject.

The inference engine contains the logic of reaching an inference from the stored data and from the knowledge base.

Expert systems may be developed by using either the programming language like LISP, PROLOG or C or by using the expert system packages. Using the expert system packages, one can design an expert system that combines the features of DSS and expert systems. This integration makes the application development process easier and faster for the end users.




Decision Support System

By Dinesh Thakur

 DSS is an information system application that helps in decision-making. DSS is used in planning and analyzing alternatives. DSS differs from most traditional information system in that each DSS is distinct from the other information system and is specifically made for managers.

All though it is used by managers it is part of organization’s MIS. A DSS is prepared for a specific managerial task and special problem and thus its use is limited to that problem. Decision support systems tend to be designed to serve management control level and strategic planning level managers.

The elements of DSS include a database, a model base and a software providing interactive dialogue facility for a manager. The data in the database is a combination of master files, and data from external sources. The second component of DSS is a library of models to manipulate and analyze the data in the desired ways.

The third component is the user interface through this the user can communicate with the DSS. The physical interface generally consists of a terminal attach to the mainframe computer either directly or by telephone. DSS can be differentiated from MIS in terms of its processing capabilities. whereas MIS process data to convert it into information, DSS  processes information.

                                               Element of DSS

 

to support the decision making process of a manager. e.g. a salary information system provides information to every employee regarding his basic salary, allowances and deductions. However if any employee wants to make deposits in some schemes for income tax rebates he can make use of DSS. DSS helps the user to decide in which scheme how much he should invest to get maximum benefits.




ESS – What is ESS?

By Dinesh Thakur

Executive Support System (ESS) is an extension of the management information system, which is a special kind of DSS; An ESS is specially developed for the use of chief executive of an organization to support his decision-making.

 It involves various types of decision-making systems but it is more specific and person oriented. It is designed to cater to the information needs of the chief executive.

 

 

Office Automation systems have gained a greater importance in recent years. Justify the statement and identify different types of OAS.

By Dinesh Thakur

Office automation refers to the application of computer and communication technology to office functions. Office automation systems are meant to improve the productivity of managers at various levels of management by providing secretarial assistance and better communication facilities.

Office automation system is the combination of hardware, software and people in information system that process office transactions and support office activities at all levels of the organization. These systems include a wide range of support facilities, which include word processing, electronic filing, electronic mail, message switching, data storage, data and voice communications, etc.

Office activities may be grouped under two classes, namely.

1) Activities performed by clerical personnel (clerks, secretaries, typists, etc) and

2) Activites performed by the executives (manages, engineers or other professionals like economists, researchers etc.)

In the first category, the following is a list of activities

a)      Typing

b)      Mailing

c)      Scheduling of meetings and conferences,

d)      Calendar keeping and

e)      Retrieving documents

 

The following is a list of activities in the second category (managerial category)

a)      Conferencing

b)      Production of information (messages, memos, reports, etc) and

c)      Controlling performance

 

As already discussed, information technology facilitates both types of activities. A wide variety of office automation devices like fax machine, copier, phones etc. are used in officer.

Some of the applications of office automation systems are discussed, in brief.  

 
WORD PROCESSING

 

This refers to the computer –assisted preparation of documents (like letters, reports, memos, etc) from textual data. Data once entered can be manipulated in various ways.

 
ELECTRONIC FILING

 

This facilitates the filling of incoming and outgoing mail/documents on a magnetic media. Information is captured from the documents and is stored for future reference.

 
ELECTRONIC MAIL

 

It involves the transfer of letters and other documents through telecommunication lines, rather than through physical delivery. An electronic mail system requires a telecommunication network and software.




What is DSS? What is the purpose of Decision Support System in MIS

By Dinesh Thakur

Decision Support System refers to a class of systems which support in the process of decision making and does not always give a decision it self. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decisionmaking activities.

A properly designed DSS is an interactive softwarebased 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

DSS is an application of Hebert Simon model, as discussed, the model has three phases :

i) Intelligence

ii) Design

iii) Choice 

The DSS basically helps in the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution. The choice of selection criteria varies from problem to problem.

It is therefore, required to go through these phases again and again till satisfactory solution is found. In the following three phase cycle, you may use inquiry, analysis, and models and accounting system to come to rational solution.

These systems are helpful where the decision maker calls for complex manipulation of data and use of several methods to reach an acceptable solution using different analysis approach. The decision support system helps in making a decision and also in performance analysis. DSS can be built around the rule in case of programmable decision situation. The rules are not fixed or predetermined and requires every time the user to go through the decision making cycle as indicated in Herbert Simon model.

Attributes : 

i) DSS should be adaptable and flexible.

ii) DSS should be interactive and provide ease of use.

iii) Effectiveness balanced with efficiency (benefit must exceed cost).

iv) Complete control by decision-makers.

v) Ease of development by (modification to suit needs and changing environment) end users.

vi) Support modeling and analysis.

vii) Data access.

viii) Standalone, integration and Web-based

DSS Characteristics : 

i) Support for decision makers in semi structured and unstructured problems.

ii) Support managers at all levels.

iii) Support individuals and groups.

iv) Support for interdependent or sequential decisions.

v) Support intelligence, design, choice, and implementation.

vi) Support variety of decision processes and styles

Classification of MIS

By Dinesh Thakur

The discipline of MIS can be categorized in the following 6 classes:

Transaction Processing System

TPS processes transaction and produces reports. It represents the automation of the fundamental, routine processing used to support business operations.  It does not provide any information to the user to his/her decision-making. TPS uses data and produces data as shown in the following diagram.

Data Processing Data

Previously, TPS was known as Management Information System. Prior to computers, data processing was performed manually or with simple machines. The domain of TPS is at the lowest level of the management hierarchy of an organization.

Management Information System (MIS)

MIS is an information system, which processes data and converts it into information.  A management information system uses TPS for its data inputs. The information generated by the information system may be used for control of operations, strategic and long-range planning. Short-range planning, management control, and other managerial problem solving. It encompasses processing in support of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision making support. The functional areas of a business may be marketing, production, human resource, finance and accounting.

Decision Support System (DSS)  

A decision support system (DSS) is an information system application that assists decision-making. DSS tends to be used in planning, analyzing alternatives, and trial and error search for solution. The elements of the decision support system include a database, model base & software. The main application areas of DSS are Production, finance and marketing.

    Element of DSS

DSS can be differentiated from MIS on the basis of processing the information. MIS processes data to convert it into information. DSS processes information to support the decision making process of a manager.

Executive Support System  (ESS)

Executive Support System (ESS) is an extension of the management information system, which is a special kind of DSS; An ESS is specially tailored for the use of chief executive of an organization to support his decision-making. It includes various types of decision-making but it is more specific and person oriented.

Office Automation Systems (OAS)

Office automation refers to the application of computes and communication technology to office functions.  Office automation systems are meant to improve the productivity of managers at various levels of management of providing secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely

i)   Activities performed by clerical personnel (clerks, secretaries, typist, etc.,) and
ii) Activities performed by the executives (managers, engineers or other professionals like economist, researches etc.)

In the first category, the following is a list of activities.

a) Typing
b) Mailing
c) Scheduling of meetings and conferences,
d) Calendar keeping, and
e) Retrieving documents

The following is a list of activities in the second category (managerial category)

a) Conferencing.
b) Production of information (messages, memos, reports, etc.) and controlling performance

Business Expert Systems: These systems are one of the main types of knowledge-based information systems. These systems are based on artificial intelligence, and are advanced information systems. A business expert system is a knowledge based information system that uses its knowledge about a specific, complex application area to act as an expert. The main components of an expert system are:

a. Knowledge Base
b. Interface Engine
c. User Interface

 Knowledge Base

 

Describe the MIS Structure Based on the Physical Components

By Dinesh Thakur

Structure of MIS may be understood by looking at the physical components of the information system in an organization. The physical components of an organizational information system may be hardware, software, database, manual procedures and operating persons. A brief description of these components has been outlined in the following paragraphs: 

Hardware 

Hardware refers to the physical data processing equipment and peripheral devices, For example, CPU, monitor, keyboard, printer, drives, tapes, communication devices, etc.

Software

Software is a broad term given to the instructions or programs that direct the operating of the hardware. Software could be of two types, i.e. system software and application software.

Database

The database consists of all data utilized by application software. Data is stored in files.

Procedures

Formal operating procedures, which are required to operate a system, such as manuals, are also regarded as physical elements.

Operating Personnel

Personnel like Computer Operators, Computer Programmers, System Analysts, System Managers, etc., are the operating people of the information systems.

Input and Output Various physical inputs and outputs from the information system, existing in forms like printout, reports etc.

 

Different Functional Information Systems

By Dinesh Thakur

Functional Information System is based on the various business functions such as Production,  Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of business. Each functional area requires applications to perform all information processing related to the function. The popular functional areas of the business organization are:

• Financial Information System
• Marketing Information System
• Production/Marketing Information System
• Human Resource Information System 

Financial Information System

Financial information system is a sub-system of organizational management information system. This sub-system supports the decision-making process of financial functions at the level of an organization.

Marketing Information System 

This sub-system of management information system provides information about various functions of the marketing system of an organization. Marketing is another functional area of the business organization, which is engaged in marketing (selling) of its products to its customers.

Important functions of the marketing process include the following.

• The marketing identification function
• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System

Manufacturing or production information system provides information on production /operation activities of an organization and thus facilitates the decision-making process of production managers of an organization. The main decisions to be taken in manufacturing system are:

• Product Design

Human Resources Information System   

This functional information system supports the functions of human resource management of an organization. The human resource management function, in its narrow sense, it also known as personnel management .The function involves:

• Manpower planning.
• Staffing
• Training and development
• Performance evaluation, and
• Separation activities

Discuss the major types of Information System

By Dinesh Thakur

Formal Information System: It is based on organizational chart represented by the organization.

Informal Information System: it is an employee based system designedto meet personal and vocational needs and to help in the solution of workrelatedproblems. It also funnels information upward through indirectchannels. It works within the framework of the business and its stated policies.

Computer Based Information System (CBIS): This category of information system depends mainly on the computer for handling business applications. System analyst develops different types of information systems to meet variety of business needs. There is a class of system collectively known as computer based information system. They can be classified as

• Transaction Processing System (TPS)
• Management Information System(MIS)
• Decision Support System (DSS)
• Office Automation System (OAS) 

Transaction Processing System (TPS) : The most fundamental computer based system in an organization pertains to the processing of business transactions. A transaction processing system can be defined as a system that captures, classifies, stores, maintains, updates and retrieves transaction data for record keeping and input to the other types of CBIS.

Transaction Processing System is aimed at improving the routine business activities. A transaction is any event or activity that affects the whole organization. Placing order, billing customers, hiring of employees and depositing cheques are some of the common transactions.

Types of transactions that occur vary from organization to organization but this is true that all organizations process transaction as a major part of their daily business activities. Transaction Processing System provides speed and accuracy and can be programmed to follow routines without any variance.

Management Information System (MIS) : Data processing by computers has been extremely effective because of several reasons. The main reason is that huge amount of data relating to accounts and other transactions can be processed very quickly. MIS are more concerned with levels of management with information essential to the running of smooth business. This Information must be as relevant, timely, accurate, complete and concise as is economically feasible.

Decision Support System (DSS) : It is an information system that offers the kind of information that may not be predictable. Business professionals may need such information only once. These systems do not produce regularly scheduled management reports. Instead, they are designed to respond to wide range of requests. It is true that all the decisions in an organization are not of a recurring nature. Decision support systems assist managers, who make decisions that are not highly structured, often called unstructured or semi structured decision. The decision support systems support, but do not replace, judgments of managers.

Office Automation System (OAS) : Office Automation Systems are among the newest and most rapidly expanding computer based information systems. They are being developed with the hope and expectation that they will increase the efficiency and productivity of office workers, typists, secretaries, administrative assistants, staff professionals, managers and others.

Different Types of System in MIS

By Dinesh Thakur

The word system is derived from the Greek word “system” which means a organized relationship among the following unit or component. “A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific goal”. 

The word component may refer to physical parts (engine, wheels of cars), management steps (planning, organizing, controlling) or a sub subsystem in a multi level structure. It is to be noted that a system is not a randomly arranged set. It is arranged with some logic governed by rules, regulation, principles and policies.

In MIS we are usually concerned with man-made system involving input, process and output, as represented in figure. A system may have multiple inputs and multiple outputs.

All systems operate in an environment. The environment may influence the system in its design and performance. When a system is designed to achieve certain objective, it automatically sets the boundaries for itself. The understanding of boundaries of the system is essential to bring clarity in explaining the system components and their arrangement.

system components and their arrangement

                                                         A typical system

Characteristics of System :

 

Following characteristics are present in all systems :

a) Organization

b) Interaction

c) Interdependence

d) Integration

e) Central Objective

 

Organization : Organization implies structure and order. It is the arrangement of components that helps to achieve objectives. Hierarchical relationship starting with the president on top and leading down ward to the blue collar worker represent the organization structure

Interaction : Interaction refers to the procedure in which each component interact with other components of the system. In an organization, for example purchasing must interact with product, advertising with sales and payroll with personnel.

Interdependence : Independence is concerned with how a system is tied together; it is more than sharing a physical part or location. It means that parts of the system part or location with in the system, even through each part performance. A unique function successful integration will typically produce a better request as whole rather than if each component works independently.

Central Objective : Objective may be real or stated. Objective is determined by higher management and user must be aware about the central objective well in advance.




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