Monday 27 April 2015
Sunday 26 April 2015
Decision Support System
Decision support
systems (DSS) are
interactive software-based systems intended to help managers in decision-making
by accessing large volumes of information generated from various related
information systems involved in organizational business processes, such as
office automation system, transaction processing system, etc.
DSS
uses the summary information, exceptions, patterns, and trends using the
analytical models. A decision support system helps in decision-making but does
not necessarily give a decision itself. The decision makers compile useful
information from raw data, documents, personal knowledge, and/or business
models to identify and solve problems and make decisions.
Programmed and Non-programmed Decisions
There
are two types of decisions - programmed and non-programmed decisions.
Programmed
decisions are basically automated processes, general routine work, where:
- These
decisions have been taken several times.
- These
decisions follow some guidelines or rules.
For
example, selecting a reorder level for inventories, is a programmed decision.
Non-programmed
decisions occur in unusual and non-addressed situations, so:
- It
would be a new decision.
- There
will not be any rules to follow.
- These
decisions are made based on the available information.
- These
decisions are based on the manger's discretion, instinct, perception and
judgment.
For
example, investing in a new technology is a non-programmed decision.
Decision
support systems generally involve non-programmed decisions. Therefore, there
will be no exact report, content, or format for these systems. Reports are
generated on the fly.
Attributes of a DSS
- Adaptability
and flexibility
- High
level of Interactivity
- Ease
of use
- Efficiency
and effectiveness
- Complete
control by decision-makers
- Ease
of development
- Extendibility
- Support
for modeling and analysis
- Support
for data access
- Standalone,
integrated, and Web-based
Characteristics of a DSS
- Support
for decision-makers in semi-structured and unstructured problems.
- Support
for managers at various managerial levels, ranging from top executive to
line managers.
- Support
for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and
organization level.
- Support
for interdependent or sequential decisions.
- Support
for intelligence, design, choice, and implementation.
- Support
for variety of decision processes and styles.
- DSSs
are adaptive over time.
Benefits of DSS
- Improves
efficiency and speed of decision-making activities.
- Increases
the control, competitiveness and capability of futuristic decision-making
of the organization.
- Facilitates
interpersonal communication.
- Encourages
learning or training.
- Since
it is mostly used in non-programmed decisions, it reveals new approaches
and sets up new evidences for an unusual decision.
- Helps
automate managerial processes.
Components of a DSS
Following
are the components of the Decision Support System:
- Database
Management System (DBMS): To solve a problem the necessary
data may come from internal or external database. In an organization,
internal data are generated by a system such as TPS and MIS. External data
come from a variety of sources such as newspapers, online data services,
databases (financial, marketing, human resources).
- Model
Management System:
It stores and accesses models that managers use to make decisions. Such
models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or
service, etc.
·
Support Tools: Support tools like online help;
pulls down menus, user interfaces, graphical analysis, error correction
mechanism, facilitates the user interactions with the system.
Classification of DSS
There
are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as
follows:
- Text Oriented
DSS: It contains textually
represented information that could have a bearing on decision. It allows
documents to be electronically created, revised and viewed as needed.
- Database
Oriented DSS: Database plays a major role
here; it contains organized and highly structured data.
- Spreadsheet
Oriented DSS: It contains information in
spread sheets that allows create, view, modify procedural knowledge and
also instructs the system to execute self-contained instructions. The most
popular tool is Excel and Lotus 1-2-3.
- Solver Oriented
DSS: It is based on a solver,
which is an algorithm or procedure written for performing certain
calculations and particular program type.
- Rules Oriented
DSS: It follows certain
procedures adopted as rules.
- Rules Oriented
DSS: Procedures are adopted in
rules oriented DSS. Export system is the example.
- Compound DSS: It is built by using two or
more of the five structures explained above.
Types of DSS
Following
are some typical DSSs:
- Status Inquiry
System: It helps in taking
operational, management level, or middle level management decisions, for
example daily schedules of jobs to machines or machines to operators.
- Data Analysis
System: It needs comparative
analysis and makes use of formula or an algorithm, for example cash flow
analysis, inventory analysis etc.
- Information
Analysis System: In this system data is
analyzed and the information report is generated. For example, sales
analysis, accounts receivable systems, market analysis etc.
- Accounting
System: It keeps track of
accounting and finance related information, for example, final account,
accounts receivables, accounts payables, etc. that keep track of the major
aspects of the business.
- Model Based
System: Simulation models or
optimization models used for decision-making are used infrequently and
creates general guidelines for operation or management.
Customer Relationship Management
CRM
is an enterprise application module that manages a company's interactions with
current and future customers by organizing and coordinating, sales and
marketing, and providing better customer services along with technical support.
Customer
Relationship Management is a comprehensive strategy and process of acquiring,
retaining, and partnering with selective customers to create superior value for
the company and the customer. It involves the integration of marketing, sales,
customer service, and the supply-chain functions of the organization to achieve
greater efficiencies and effectiveness in delivering customer value.
Why CRM?
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![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
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![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
Scope of CRM
Advantages of CRM
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
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![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
Disadvantages of CRM
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
![*](file:///C:\Users\User\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif)
Monday 20 April 2015
Wednesday 15 April 2015
Role of the management information system
ROLE OF THE MANAGEMENT INFORMATION SYSTEM
The role of the MIS in an organization
can be compared to the role of heart in the body. The information is the blood
and MIS is the heart. In the body the heart plays the role of supplying pure
blood to all the elements of the body including the brain. The heart works
faster and supplies more blood when needed. It regulates and controls the
incoming impure blood, processes it and sends it to the destination in the
quantity needed. It fulfills the needs of blood supply to human body in normal
course and also in crisis. The MIS plays exactly the same role in the
organization. The system ensures that an appropriate data is collected from the
various sources, processed, and sent further to all the needy destinations. The
system is expected to fulfill the information needs of an individual, a group
of individuals, the management functionaries: the managers and the top
management. The MIS satisfies the diverse needs through a variety of systems
such as Query Systems, Analysis Systems, Modeling Systems and Decision Support
Systems the MIS helps in Strategic Planning, Management Control, Operational
Control and Transaction Processing.
The MIS helps the clerical personnel in the
transaction processing and answers their queries on the data pertaining to the
transaction, the status of a particular record and references on a variety of
documents. The MIS helps the junior management personnel by providing the operational
data for planning, scheduling and control, and helps them further in decision
making at the operations level to correct an out of control situation.
The MIS helps the middle management in
short them planning, target setting and controlling the business functions. It
is supported by the use of the management tools of planning and control. The
MIS helps the top management in goal setting, strategic planning and evolving
the business plans and their implementation. The MIS plays the role of
information generation, communication, problem identification and helps in the
process of decision making. The MIS, therefore, plays a vita role in the
management, administration and operations of an organization.
Tuesday 14 April 2015
Monday 13 April 2015
An introduction into Management Information System
What is Management Information System (MIS)?
Management information system, or MIS, broadly refers to a
computer-based system that provides managers with the tools to organize,
evaluate and efficiently manage departments within an organization. In order to
provide past, present and prediction information, a management information
system can include software that helps in decision making, data resources such
as databases, the hardware resources of a system, decision support systems,
people management and project management applications, and any computerized
processes that enable the department to run efficiently.
Management information system can thus be analyzed as follows:
Management
Management covers
the planning, control, and administration of the operations of a concern. The
top management handles planning; the middle management concentrates on
controlling; and the lower management is concerned with actual administration.
Information
Information, in MIS,
means the processed data that helps the management in planning, controlling and
operations. Data means all the facts arising out of the operations of the
concern. Data is processed i.e. recorded, summarized, compared and finally
presented to the management in the form of MIS report.
System
Data is processed
into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.
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