INFORMATION AND
DECISION SUPPORT
SYSTEMS
LEARNING OBJECTIVES
● Discuss the importance of implementation and
monitoring in problem solving.
● Explain the uses of MISs and describe their
inputs and outputs.
● Discuss information systems in the functional
areas of business organizations.
● Identify and describe the basic components of
a DSS and fundamental uses of GSS and ESS
Decision Making and Problem
Solving
• Every organization needs effective decision
makers.
• In most cases, strategic planning and the overall
goals of the organization set the course for
decision making, helping employees and
business units achieve their objectives and
goals.
Decision Making as a Component for Problem
Solving
Problem solving
is a critical activity
for any business
organization.
Programmed vs
Nonprogrammed
• Programmed Decisions
decisions:
― Made using a rule, procedure, or quantitative
method
― Easy to computerize using traditional information
systems
• Nonprogrammed decisions:
― Decisions that deal with unusual or exceptional
situations
― Not easily quantifiable
Problem Solving Approach
• Optimization Model – find the best
solution
• Satisficing Model – find a good solution
• Heuristics – rules of thumb
Benefits of Information and Decision Support
Systems
An Overview of Management
Information Systems
• Management information system
(MIS):
― Integrated collection of people,
procedures, databases, and devices
― Can give the organization a
competitive advantage
Characteristics of MIS
• Provide reports with fixed and standard
formats.
• Produce hard-copy and soft-copy reports.
• Use internal data stored in the computer
system.
• Allow users to develop custom reports.
• Require user requests for reports developed by
systems personnel.
Functional Areas of
MIS
• Financial MIS
• Manufacturing MIS
• Marketing MIS
• Human Resource
MIS
• Other MISs
Decision Support System (DSS)
• An organized collection of people,
procedures, software, databases, and
devices used to help make decisions that
solve problems.
Characteristics of DSS
• Provide rapid access to information
• Handle large amounts of data from different sources
• Provide report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill-down analysis
• Perform complex, sophisticated analyses and
comparisons using advanced software packages.
• Support optimization, satisficing, and heuristic
approaches.
A Comparison of DSS and MIS
Components of a DSS
Group Decision Support
System
• Software application that consists of most
of the elements in a DSS, plus software to
provide effective support in group
decision-making settings; also called
group support system or computerized
collaborative work system.
Executive Support System
• Specialized DSS that includes all
hardware, software, data, procedures, and
people used to assist senior-level
executives within the organization.
REFERENCES
● Stair, R. and Reynolds, G. (2016). Fundamentals of Information
Systems, Eight Edition. Course Technology, Cengage Learning
● Stair, R. and Reynolds, G. (2010). Principles of Information
Systems: A Managerial Approach, Ninth Edition. Course
Technology, Cengage Learning
● Laudon, K. and Laudon, J. (2016). Management Information
Systems, 14th ed. Prentice Hall Inc.
● O’Brien, J. and Marakas, George. (2011). Management
Information Systems. McGraw-Hill Irwin
● Haag, S. and Cummings, M. (2010). Management Information
System for Information Age, 8th ed. McGraw-Hill.
