MIS Unit 3 Notes

Applications of MIS :

  • Applications in manufacturing sector,
  • Applications in service sector,
  • Introduction to service, sector,
  • Creating a destructive services,
  • MIS applications in service industries
  • Role of MIS in source industries.


  • Concepts and philosophy,
  • Deterministic systems and knowledge based expert  systems.
  • MIS and role of DSS.
  • MIS in Enterprise Management System.

Decision Support System

  • Decision support systems are an application of Herbert Simon Model.
  • DSS is an organized collection of people, procedures, software, databases, and devices used to help make decisions that solve problems
  • Focus of a DSS is on decision-making effectiveness when faced with unstructured or semistructured business problems

Components of Decision Support System

Model base: provides decision makers access to a variety of models and assists them in decision making

1.Financial models
  • Spreadsheets often used
2.Statistical analysis models
3.Graphical models
  •  Charts, Maps
4.Project management models
  • Timeline tracking of resources and tasks

1. Database

2. External database access

3. Access to the Internet and corporate intranet, networks, and other computer systems

4. Dialogue manager: allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases.

components of dss


Types of DSS

Status Inquiry System
  • It does not call for any elaborate computation, analysis, choice etc.
  • If the status is known the decision is automatic.
Data Analysis System
  • DSS based on comparative analysis, use of formula or algorithm.
Information Analysis System
  • In this system, data is analysed & information reports are generated.
Accounting System
  • Desirable to keep track of major aspects of business or function.
Model Based System
  • These systems are simulation models or optimization models for decision making.
  • The product mix decision, the material mix, the job scheduling rules & resources are examples.

DSS: Deterministic Systems

There are number of situation where the management has to make the decision based on the business statistics.

System Input Source System Hardware User
Inquiry Database, Conventional files Query System PC, Servers, Clients Clerk, Assistant
Data Analysis Database & System PCs Mainframe or managers Operations
Information Analysis Processed Data files Analysis Programs Mainframe, Mini Middle Level Manager
Accounting Transactions, Master files Transaction Processing System Mini, Mainframe, Client/Server Middle & Top Mgt.
Model Based Control Inventory DB & External Data Development of OR & Business Models Mainframe, Mini, Client/Server Middle & top Mgt.
  • If the management can design such models duly tested, they can be used by decision makers.
  • All such tools & models acts as a support system for decision making.
  • Number of computer based software tools & packages are available.

Typical DSS



1.Designed to support organizational decision making

2.“What-if” analysis

  • Example of a DSS tool: Microsoft Excel
  • Text and graphs

3.Models for each of the functional areas

  • Accounting, finance, personnel, etc.

Characteristics of Decision Support System

  • DSS is design specifically to facilitate decision process.
  • DSS should able to respond quickly to the changing needs of decision makers.
  • DSS use sophisticated data analysis & modeling tools.
  • DSS has ability to present knowledge.
  • DSS can interact directly with decision maker.
  • DSS offers flexibility, adaptability & quick response.

Introduction to Expert System(ES)

  • ES are knowledge based systems.
  • Replicates the thought processes of Human “Experts”.
  • Follow a structured set of rules .

My computer won’t turn on…  

  Did you press the power button?

      If no, press it and start again.

      If yes, is it plugged in?

          If no, plug it in and try again.

          If yes, is the monitor on? ………………and so on.



An expert system can replace the expert

  1. Identify the whale species


An expert system can support the expert

  1. e Paper machine diagnostic system.

Notice that the
still leave the
human expert some



How is an ES different from a DSS??


  •   Allows decision maker a platform for exploring and evaluating the options


  •   Delivers advice/recommendations based on answers to a set of questions

Business examples of ES??.

Knowledge Based Expert System(KBES)

1.In unstructured situation, two methods of problem solving , generalised or the knowledge based expert system.

2.Generalised problem solving approach considers the generally applicable constraints, examines all possible alternatives.

3.The Knowledge based problem solving approach considers  specific constraints within a domain, examines limited alternatives within knowledge domain.

4.Considers knowledge as a base.

5.To build knowledge based system, then

  • A person with ability to solve the problem with knowledge based reasoning.
  • Expert should be able to articulate the knowledge.

KBES Model



1.KBES has three basic components which are necessary to build a system.

2.Knowledge Base

  • It is database of knowledge consisting of facts, rules formulae, experience.

3.Inference Mechanism

  • It is a tool to interpret the knowledge available.

4.User Control Mechanism

  • It is a tool applied to the inference mechanism to select, interpret.

Comparison of DSS & MIS

comparison of DSS&MIS



Support Info about performance Info and modeling to analyze problems
Report Form Periodic reportsor On Demand Interactive Inquiries
Format Pre-specified
Fixed format
Flexible and Adaptable
Processing Extract and manipulate data Analytical modeling
of data

Information System




1.MIS: Management Information System

2.DSS: Decision Support System

3.EIS: Executive Information System.

Types of Information System

Transaction Processing Systems
  • Systems designed to handle large volumes of routine transactions.
  • Were the first computer-based information systems handling billing, payroll, and supplier payments.
Operations Information Systems
  • Systems that gather, organize, and summarize comprehensive data in a form of value to managers.
  • Can help managers with non-routine decisions such as customer service and productivity.
Decision Support Systems
  • Provides computer-built models that help managers make better non-programmed decisions.
  • New productive capacity, new product development, launch a new promotional campaign, enter a new market or expand internationally
Executive Support System
  • Sophisticated version of a decision support system designed to meet the needs of top managers
Group Decision Support System
  • An executive support system that links top managers so that they can function as a team.


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