Management Information & Decision Support System

JIM Dharmendra Arora

 What Information To Whom For What?
Ad Hoc
Unscheduled
Summarized
Infrequent
Strategic Forward Looking
External
Unstructured Management Wide Scope

Inf
Executives & Directors

or
s
ion

ma
Tactical
ci s

tio
Semi Management
De

n
Structured Business Unit Managers
& Self Directed Teams Prespecified
Scheduled
Operational Detailed
Structured Management Frequent
Operating Managers & Historical
Self Directed Teams Internal
Narrow Focus

JIM Dharmendra Arora

 Examples
Decision Operational Tactical Strategic
Structure Management Management Management
Unstructured Cash management B.P.R. New business
Work group planning
performance analysis Company
reorganization
Semi Credit management Employee Product planning
Structured Production performance appraisal Mergers &
scheduling Capital budgeting acquisitions
Daily work Program budgeting Site Location
assignment
Structured Inventory control Program control

JIM 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

JIM 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 Provide information
the performance of the and decision support
organization techniques to
analyze specific
problems or
opportunities
Information form and Periodic, exception, Interactive inquiries
frequency demand and push reports and responses
and responses
Information format Prespecified, fixed format Ad hoc, flexible and
adaptable format
Information Processing Information produced by Information produced
Methodology extraction & manipulation by analytical
of business data modeling of business
data
JIM Dharmendra Arora
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

JIM 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