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DSS can theoretically be built in any knowledge domain.

One example is the clinical decision support system for medical diagnosis. There are four stages in the evolution of clinical decision support system (CDSS): the primitive version is standalone and does not support integration; the second generation supports integration with other medical systems; the third is standard-based, and the fourth is service model-based.

DSS is extensively used in business and management. Executive dashboard and other business performance software allow faster decision making, identification of negative trends, and better allocation of business resources. Due to DSS all the information from any organization is represented in the form of charts, graphs i.e. in a summarized way, which helps the management to take strategic decision. For example, one of the DSS applications is the management and development of complex anti-terrorism systems. Other examples include a bank loan officer verifying the credit of a loan applicant or an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs.

A growing area of DSS application, concepts, principles, and techniques is in agricultural production, marketing for sustainable development. For example, the DSSAT4 package, developed through financial support of USAID during the 80s and 90s, has allowed rapid assessment of several agricultural production systems around the world to facilitate decision-making at the farm and policy levels. Precision agriculture seeks to tailor decisions to particular portions of farm fields. There are, however, many constraints to the successful adoption on DSS in agriculture.

DSS are also prevalent in forest management where the long planning horizon and the spatial dimension of planning problems demands specific requirements. All aspects of Forest management, from log transportation, harvest scheduling to sustainability and ecosystem protection have been addressed by modern DSSs. In this context the consideration of single or multiple management objectives related to the provision of goods and services that traded or non-traded and often subject to resource constraints and decision problems. The Community of Practice of Forest Management Decision Support Systems provides a large repository on knowledge about the construction and use of forest Decision Support Systems.

A specific example concerns the Canadian National Railway system, which tests its equipment on a regular basis using a decision support system. A problem faced by any railroad is worn-out or defective rails, which can result in hundreds of derailments per year. Under a DSS, the Canadian National Railway system managed to decrease the incidence of derailments at the same time other companies were experiencing an increase.

DSS have been used for risk assessment to interpret monitoring data from large engineering structures such as dams, towers, cathedrals, or masonry buildings. For instance, Mistral is an expert system to monitor dam safety, developed in the 1990s by Ismes (Italy). It gets data from an automatic monitoring system and performs a diagnosis of the state of the dam. Its first copy, installed in 1992 on the Ridracoli Dam (Italy), is still operational 24/7/365. It has been installed on several dams in Italy and abroad (e.g., Itaipu Dam in Brazil), and on monuments under the name of Kaleidos. Mistral is a registered trade mark of CESI. GIS have been successfully used since the ‘90s in conjunction to DSS, to show on a map real-time risk evaluation based on monitoring data gathered in the area of the Val Pola disaster (Italy).

• DSS tends to be aimed at the less well structured, underspecified problem that upper level managers typically face;
• DSS attempts to combine the use of models or analytic techniques with traditional data access and retrieval functions;
• DSS specifically focuses on features which make them easy to use by non-computer-proficient people in an interactive mode; and
• DSS emphasizes flexibility and adaptability to accommodate changes in the environment and the decision-making approach of the user.

Typically, business planners will build a DSS system according to their needs and use it to evaluate specific operations, including

• A large stock of inventory, where DSS applications can provide guidance on establishing supply chain movement that works for a business.
• A sales process, where DSS software is a “crystal ball” that helps managers theorize how changes will affect results.
• Other specialized processes related to a field or industry.

DSS can help manage inventory

DSS can come in handy by evaluating stock held in a facility, or any other type of business asset that can be moved around or otherwise optimized. This is often one way a business can profit from “itemizing” its assets with DSS.

DSS can aid sales optimization and sales projections

Decision support technology can also be a tool that analyzes sales data and makes predictions, or monitors existing patterns. Whether it’s big picture decision support tools, active or passive solutions, or any other kind of DSS tool, planners often tackle sales numbers using a variety of decision support resources.

Utilize DSS to optimize industry-specific systems

There are other uses for this powerful software option, to make good projections on the future for a business or to get an overall bird’s-eye view of events that determine a company’s progress. This can come in handy in difficult situations where a lot of financial projection may be necessary when determining expenditures and revenues.

A decision support system (DSS) is an information system that supports business or organizational decision-making activities. DSSs serve the management, operations and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance i.e., unstructured and semi-structured decision problems. Decision support systems can be either fully computerized or human-powered, or a combination of both.

Evolution

The concept of decision support has evolved mainly from the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the implementation work done in the 1960s. DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s. In the middle and late 1980s, executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS.

According to Sol (1987) the definition and scope of DSS has been migrating over the years: in the 1970s DSS was described as “a computer-based system to aid decision making”; in the late 1970s the DSS movement started focusing on “interactive computer-based systems which help decision-makers utilize data bases and models to solve ill-structured problems”; in the 1980s DSS should provide systems “using suitable and available technology to improve effectiveness of managerial and professional activities”, and towards the end of 1980s DSS faced a new challenge towards the design of intelligent workstations.

In 1987, Texas Instruments completed development of the Gate Assignment Display System (GADS) for United Airlines. This decision support system is credited with significantly reducing travel delays by aiding the management of ground operations at various airports, beginning with O’Hare International Airport in Chicago and Stapleton Airport in Denver Colorado.[5] Beginning in about 1990, data warehousing and on-line analytical processing (OLAP) began broadening the realm of DSS. As the turn of the millennium approached, new Web-based analytical applications were introduced.

The advent of more and better reporting technologies has seen DSS start to emerge as a critical component of management design. Examples of this can be seen in the intense amount of discussion of DSS in the education environment.

DSS also have a weak connection to the user interface paradigm of hypertext. Both the University of Vermont PROMIS system (for medical decision making) and the Carnegie Mellon ZOG/KMS system (for military and business decision making) were decision support systems which also were major breakthroughs in user interface research. Furthermore, although hypertext researchers have generally been concerned with information overload, certain researchers, notably Douglas Engelbart, have been focused on decision makers in particular.

The Decision Support Systems can be divided into following categories:

Model-driven DSS

A model-driven DSS was based on simple quantitative models. It used limited data and emphasized manipulation of financial models. A model-drive DSS was used in production planning, scheduling and management. It provided the most elementary functionality to manufacturing concerns.

Data-driven DSS

Data-driven DSS emphasized the access and manipulation of data tailored to specific tasks using general tools. While it also provided elementary functionality to businesses, it relied heavily on time-series data. It was able to support decision making in a range of situations.

Communication-driven DSS

As the name suggests, communication-driven DSS uses communication and network technologies to facilitate decision making. The major difference between this and the previous classes of DSS was that it supported collaboration and communication. It made use of a variety of tools including computer-based bulletin boards, audio and video conferencing.

Document-driven DSS

A document-driven DSS uses large document databases that stores documents, images, sounds, videos and hypertext docs. It has a primary search engine tool associated for searching the data when required. The information stored can be facts and figures, historical data, minutes of meetings, catalogs, business correspondences, product specifications, etc.

Knowledge-driven DSS

Knowledge-based DSS are human-computer systems that come with a problem-solving expertise. These combine artificial intelligence with human cognitive capacities and can suggest actions to users. The notable point is that these systems have expertise in a particular domain.

Web-based DSS

Web-based DSS is considered most sophisticated decision support system that extends its capabilities by making use of worldwide web and internet. The evolution continues with advancement in internet technology.

Objectives

• Support for decision makers in semi structured and unstructured problems.
• Support managers at all levels.
• Support individuals and groups.
• Support for interdependent or sequential decisions.
• Support intelligence, design, choice, and implementation.
• Support variety of decision processes and styles

A Management Information System (MIS) is a system that gathers comprehensive data, organizes and summarizes it in a form that is of value to functional managers, and provides them with information they need to carry out their work.

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.

MIS is used to transform data into useful information in order to support managerial decision-making with structured decisions or programmed decisions. In simple words, a MIS is a computer-based information system which assists managers in decision-making and control and in planning more effectively.

The typical MIS is made up of four major components data gathering, data entry, data transformation and information utilization. The modern MIS is based on a centralized database of raw data. Data is stored in the database in such a way that parts of it may be selected, altered, used in calculations, and transformed into useful information that can be used in a wide variety of applications.

MIS offers a wide spectrum of services at all levels and for all functional areas of the organization. It provides the top management with information pertaining to the external environment. To the middle management, it provides information useful for operational plans and to the first-level managers; it provides internal information useful for operations control.

A decision support system (DSS) is an interactive computer system that can be easily accessed and operated by people who are not computer specialists. It helps them to plan and make decisions. In other words, DSS is a computer-based information system that supports the process of managerial decision-making in situations that are not well structured.

Characteristics:

1. Executive Decisions are the Focal Points:

The data for the DSS and associated models are organized around the executive’s decisions rather than around existing databases.

2. Specialize in Easy-to-use Software:

The DSS specializes in easy-to-use software that uses simple English commands rather than technical computer terms

3. Employs Interactive Processing:

The rapid response time of a DSS permits interactive processing.

4. Use and Control Rests with the User:

The use and control of the DSS rests with the user and not the central information management department.

5. Flexible and Adaptable:

The DSS is flexible and adaptable to change in the executive’s style or in the external environment.

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

An MIS is a DSS if, and only if, it is designed with the primary objective of managerial decision support. Thus, a DSS is a specialized MIS designed to support a manager’s skills at all stages of decision-making, namely identifying the problem, choosing the relevant data, selecting the approach to be used in making the decision, and evaluating the alternative courses of action.

Although there are similarities between a MIS and a DSS, there are also certain differences. In comparison to a MIS, a typical DSS provides more advanced analysis and greater access to various models that can be used by managers to examine a situation more thoroughly. Moreover, a DSS tends to be more interactive than a MIS.

It enables managers to communicate directly (often back and forth) with computer programs that control the system and to obtain the results of various analyses almost immediately. Finally, a DSS often relies on information from external sources as well as from the internal sources that are largely the domain of the MIS.

A typical DSS consists of the following elements:

1. An MIS that supports several methodologies for accessing and summarizing data
2. A sophisticated database that allows information to be accessed in various ways
3. A user-friendly interface that allows the user to use simple commands rather than technical computer terms when communicating with the DSS
4. A database built from both external and internal sources so that the manager can relate internal events to external forces.
5. Rapid response time, which makes DSS an easy and rewarding system to use.

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:

• 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:

• 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.

Inventory control systems are technology solutions that integrate all aspects of an organization’s inventory tasks, including shipping, purchasing, receiving, warehouse storage, turnover, tracking, and reordering. While there is some debate about the differences between inventory management and inventory control, the truth is that a good inventory control system does it all by taking a holistic approach to inventory and empowering organizations to utilize lean practices to optimize productivity and efficiency along the supply chain while having the right inventory at the right locations to meet customer expectations.

Inventory control systems, such as inventory control apps, offer a variety of functions that help companies manage various types of inventory. Inventory control systems typically consist of inventory management apps paired with barcode tagging to identify inventory assets, and information about each item is stored in a central database. Barcode labels serve as inventory trackers, allowing users to bring up information about the item on a computer system, such as the item’s price, the number of items in stock, the location of an item within a warehouse, and more.

The best inventory control apps are mobile-compatible, with companion apps that allow users to track and manage inventory while they move throughout a facility or from site to site. There are many inventory tracking apps for smartphones, some of which are mobile-exclusive, while others have desktop applications to allow users to track inventory from any device. There are also many inventory tracking apps designed specifically to meet the needs of warehouse managers. When looking for an inventory management app, look for features that accommodate your company’s needs, such as trigger alerts when inventory levels reach pre-defined thresholds, re-ordering capabilities, and analysis and reporting to support functions such as forecasting.

That being said, there are two different types of inventory control systems available today: perpetual inventory systems and periodic inventory systems. Within those systems, two main types of inventory management systems barcode systems and radio frequency identification (RFID) systems used to support the overall inventory control process:

Main Inventory Control System Types:

• Perpetual Inventory System
• Periodic Inventory System

Types of Inventory Management Systems within Inventory Control Systems:

• Barcode System
• Radio Frequency Identification (RFID) System

Role

Reports on Inventory Costs

Your management information system can tie your inventory costs to sales. In other words, each unit that sells can have a price assigned to it that is based on what you paid for it. This tells you if your purchase prices for inventory are leaving you enough room for profit.

Reports on Inventory Levels

You can monitor your inventory levels with a management information system by asking the database for reports from manufacturing or purchasing, inventory and sales. This will show you how quickly products move through your company. If you discover that products sit in your warehouse for extended periods, you know you need to find ways to move them, either through putting them on sale or advertising them to your customers.

Value of Inventory

The value of your inventory is not what you paid for it. It’s what you could sell it for. A management information system can calculate the sales value of your existing inventory. This counts as an asset for your company, and this figure can be useful when determining what you can offer as collateral for a loan.

Increasing Your Inventory Levels

A management information system can show you an increase in sales because it monitors sales on a daily basis. If you see an upward trend, you can stock up on items that sell faster than other items.

Generally, inventory can be grouped into four primary classifications:

• Raw materials: Raw materials are inventory items used in the manufacturing process to create finished goods. What is considered a raw material to one company may be considered finished goods to another. For example, a company that creates parts or components for machinery or equipment would consider those components finished goods. A manufacturer that purchases those components for use in their manufacturing process would consider the same components raw materials. Raw materials may consist of things like paper or steel, nuts and bolts, chemicals, wheels, and other items.
• Work-in-progress: Work-in-progress (WIP) inventory includes items that are currently being processed. WIP inventory can include raw materials and components that are going through the manufacturing process to produce finished goods as well as finished items that are waiting for final inspection or quality control. After those final steps are complete, these finished items would be considered finished goods.
• Finished goods: Finished goods are comprised of all completed items that are ready for sale to the final customer.
• MRO goods: MRO stands for maintenance, repair, and operating supplies. MRO inventory consists of items necessary to operate, such as equipment and machinery, and the items needed for maintaining equipment and infrastructure. That means MRO inventory can also include items that are sometimes considered raw materials but in this case are essentially spare parts. Nuts and bolts are a good example. When nuts and bolts are on hand to assemble finished products, they’d be classified as raw materials. Extra nuts and bolts a company keep in storage to repair equipment, on the other hand, are classified as MRO. Other examples of MRO inventory include janitorial supplies such as cleaning solutions, mops, and brooms, tools, packaging materials, uniforms and gloves, and office supplies such as paper, pens, calculators, printer ink, and other items.

Types

Perpetual Inventory System

When you use a perpetual inventory system, it continually updates inventory records and accounts for additions and subtractions when inventory items are received, sold from stock, moved from one location to another, picked from inventory, and scrapped. Some organizations prefer perpetual inventory systems because they deliver up-to-date inventory information and better handle minimal physical inventory counts. Perpetual inventory systems also are preferred for inventory tracking because they deliver accurate results on a continual basis when managed properly. This type of inventory control system works best when used in conjunction with warehouse inventory database of inventory quantities and bin locations updated in real time by warehouse workers using barcode scanners. Inventory management apps are perpetual inventory systems.

There are some challenges associated with perpetual inventory systems. First, these systems cannot be maintained manually and require specialized equipment and software that results in a higher cost of implementation, especially for businesses with multiple locations or warehouses. Periodic maintenance and upgrades are necessary for perpetual inventory systems, which also can become costly. Another challenge of using a perpetual inventory system is that recorded inventory may not reflect actual inventory as time goes by because they do not conduct periodic physical inventory counts, a necessary activity even when inventory trackers are used. The result is that errors, stolen items, and improperly scanned items impact the recorded inventory records and cause them not to match actual inventory counts.

Periodic Inventory System

Periodic inventory systems do not track inventory on a daily basis; rather, they allow organizations to know the beginning and ending inventory levels during a certain period of time. These types of inventory control systems track inventory using physical inventory counts. When physical inventory is complete, the balance in the purchases account shifts into the inventory account and is adjusted to match the cost of the ending inventory. Organizations may choose whether to calculate the cost of ending inventory using LIFO or FIFO inventory accounting methods or another method; keep in mind that beginning inventory is the previous period’s ending inventory.

There are a few disadvantages of using a periodic inventory system. First, when physical inventory counts are being completed, normal business activities nearly become suspended. As a result, workers may hurry through their physical counts because of time constraints. Periodic inventory systems typically don’t use inventory trackers, so errors and fraud may be more prevalent because there is no continuous control over inventory. It also becomes more difficult to identify where discrepancies in inventory counts occur when using a periodic inventory control system because so much time passes between counts. The amount of labor that is required for periodic inventory control systems make them better suited to smaller businesses.

Barcode Inventory Systems

Inventory management systems using barcode technology are more accurate and efficient than those using manual processes. When used as part of an overall inventory control system, barcode systems update inventory levels automatically when workers scan them with a barcode scanner or mobile device. The benefits of using barcoding in your inventory management processes are numerous and include:

• Accurate records of all inventory transactions
• Eliminating time-consuming data errors that occur frequently with manual or paper systems
• Eliminating manual data entry mistakes
• Ease and speed of scanning
• Updates on-hand inventory automatically
• Record transaction histories and easily determine minimum levels and reorder quantities
• Streamline documentation and reporting
• Rapid return on investment (ROI)
• Facilitate the movement of inventory within warehouses and between multiple locations and from receiving to picking, packing, and shipping

Radio Frequency Identification (RFID) Inventory Systems

Radio frequency identification (RFID) inventory systems use active and passive technology to manage inventory movements. Active RFID technology uses fixed tag readers throughout the warehouse; RFID tags pass the reader, and the movement is recorded in the inventory management software. For this reason, active systems work best for organizations that require real-time inventory tracking or where inventory security has been an issue. Passive RFID technology, on the other hand, requires the use of handheld readers to monitor inventory movement. When a tag is read, the data is recorded by the inventory management software. RFID technology has a reading range of approximately 40 feet with passive technology and 300 feet with active technology.

RFID inventory management systems have some associated challenges. First, RFID tags are far more expensive than barcode labels; thus, they typically are used for higher value goods. RFID tags also have been known to have interference issues, especially when tags are used in environments with a lot of metal or liquids. It also costs a great deal to transition to RFID equipment, and your suppliers, customers, and transportation companies need to have the required equipment as well. Additionally, RFID tags carry more data than barcode labels, which means your system and servers can become bogged down with too much information.

When choosing an inventory control system for your organization, you first should decide whether a perpetual inventory system or periodic inventory system is best suited to your needs. Then, choose a barcode system or RFID system to use in conjunction with your inventory control system for a complete solution that will enable you to have visibility into your inventory for improved accuracy in scanning, tracking, recording, and reporting inventory movement.

Many organizations use MIS successfully, others do not. Though the hardware and the software are the latest and has appropriate technology, its use is more for the collection and storage of data and its elementary processing. There are some factors which make the MIS a success and some others, which make it a failure. These factors can be summarized as follows:

Factors Contributing to Success

• The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business.
• An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected.
• The MIS is oriented, defined and designed in terms of the user’s requirements and its operational viability is ensured.
• The MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs.
• MIS focuses on the results and goals, and highlights the factors and reasons for non-achievement.
• MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.
• The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management.
• The MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and information and its non-use.
• The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design.
• MIS recognizes that the information needs become obsolete and new needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information.
• The MIS concentrates on developing the information support to manager critical success factors. It concentrates on the mission critical applications serving the needs of the top management.

Factors Contributing to Failures

Many a times MIS is a failure. The common factors which are responsible for this are as follows:

• The MIS is conceived as a data processing and not as an information processing system.
• The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system.
• Underestimating the complexity in the business systems and not recognizing it in the MIS design leads to problems in the successful implementation.
• Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS.
• The MIS is developed without streamlining the transaction processing systems in the organization.
• Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS.
• The MIS does not meet certain critical and key factors of its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system personnel.
• A belief that the computerized MIS can solve all the management problems of planning and control of the business.
• Lack of administrative discipline in following the standardized systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information. 
• The MIS does not give perfect information to all the users in the organization.

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.

Input

Employees working with the fundamental information for your business such as orders received, sales, invoices and payments input the data into desktop computers. Marketing and production often add additional operating information through computers in their departments. The computers each link to routers and central servers via the special cables of an ethernet network. While wireless networks are more convenient because you don’t need cables, many companies prefer wired networks because of their higher level of security. When evaluating a management information system, make sure the input data include the information you need and that they are transmitted securely to the servers.

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.

Hardware

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

Procedures

A central server in your facilities handles processing. It runs the core program that calls up data from the database and performs the necessary calculations. When you want a report on sales and profit totals each year over the last five years, the raw data are in the database but the totals may not be. The server takes your request, finds the individual sales and profit figures, adds them and displays the results. If you now decide a percentage change for each year would be more useful, the server calculates that.

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

Database

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

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.

Output

The server processing your request completes the calculations and outputs the results through the ethernet network to your computer. As a first step, it usually displays the results on your screen. Often you can configure the output report to display the data in tables or graphs and request a format that lets you distribute a paper report or email a digital file. The server processes your request and provides you with the corresponding output file for printing out or emailing.

Management information system (MIS) refers to the processing of information through computers and other intelligent devices to manage and support managerial decisions within an organization.

MIS: Management Information System can be defined as “a system providing management with accurate and timely information necessary to facilitate the decision-making process and enable the organizations planning, control, and operational functions to be carried out effectively”.

Subsystems of MIS

Systems may consist of numerous sub-systems, each of which has elements, interactions, and objectives. Subsystems perform specialized tasks related to the overall objectives of the total system.

A system exists on more than one level and can be composed of subsystems or element parts.

Following are the subsystems of Management Information System:

• Transaction Processing System
• Management Reporting System
• Decision Support System
• Office Information System
• Business Expert System

Transaction processing systems

A firm’s transaction processing systems (TPS) comprise the routine, day-to-day accounting operations that have been an important part of most firms’ computer processing since the early 1950s. These “paperwork processing” operations many of which provide linkages among the customer, organization, warehouse, and factory in accounts receivable, accounts payable, inventory control, and many other operations. Activities comprising the transaction processing function, and the relationship of these activities to each other.

• A TPS records internal and external transactions for a company.
• A TPS performs routine and repetitive tasks. It is mostly used by lower-level managers to make operational decisions.
• Transactions can be recorded in batch mode or online. In batch mode files are updated periodically; and in online mode, each transaction is recorded as it occurs.
• TPS is a six-step process: Data entry, Data capture, Data validation, Processing and re-validation, Storage, Output generation, and Query support.

Management reporting systems

 A management reporting system (MRS) may generate the preplanned printed reports that began to evolve in the 1960s terns for decision-making purposes. As mentioned earlier, reports produced    These through an MRS are commonly by-products of the extensive and detailed rest databases assembled by transaction processing systems. Typically, the facts contained in these reports consist of routine summary and exception information about organizational operations. Another term that has been used the quite commonly for this type of system is information reporting system (IRS).

• MRSs are usually developed by information system professionals, rather than by end users.
• MRSs are oriented towards reporting on the past and the present, rather than projecting the future.
• MRSs largely report on internal company operations.
• MRSs generally have limited analytical capabilities.
• MRSs do not directly support the decision-making process
• MRSs provide Scheduled or Periodic Reports, Exception Reports, and Demand or Ad-hoc Report.

Decision Support system

(DSS) provides a set of easy-to-use modeling, retrieving, and reporting capabilities so that people can generate the information they feel will be useful for them when making decisions. For instance, a DSS might allow a manager to sit at an interactive terminal and browse through data, analyze them, and create specially tailored reports.

Rather than consisting of a semi-frozen set of data or information outputs, as the TPS and MRS do, the DSS provides tools for enhancing user decision making. Further development of the DSS, coupled with the trend toward networking personal computers, have resulted in group decision support systems (GDSS) that support the activities and decision making of entire work teams.

• DSSs support for decision-makers in semi-structured and unstructured problems.
• DSSs are more focused on specific decision rather than routine flows of information.
• DSS present information graphically and may include an expert system or artificial intelligence.
• DSSs are adaptive over time.

Office information System

An office information system, or OIS (pronounced oh-eye-ess), is an information system that uses hardware, software and networks to enhance work flow and facilitate communications among employees.  Win an office information system, also described as office automation; employees perform tasks electronically using computers and other electronic devices, instead of manually.  With an office information system, for example, a registration department might post the class schedule on the Internet and e-mail students when the schedule is updated.  In a manual system, the registration department would photocopy the schedule and mail it to each student’s house.

An office information system supports a range of business office activities such as creating and distributing graphics and/or documents, sending messages, scheduling, and accounting.  All levels of users from executive management to no management employees utilize and benefit from the features of an OIS.

The software an office information system uses to support these activities include word processing, spreadsheets, databases, presentation graphics, e-mail, Web browsers, Web page authoring, personal information management, and groupware.  Office information systems use communications technology such as voice mail, facsimile (fax), videoconferencing, and electronic data interchange (EDI) for the electronic exchange of text, graphics, audio, and video.  An office information system also uses a variety of hardware, including computers equipped with modems, video cameras, speakers, and microphones; scanners; and fax machines.

Business Expert System

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:

• Knowledge base
• Inference engine
• User interface