MIS Report: Decision Support Systems and Executive Support System

This report delves into the realm of Management Information Systems (MIS), providing a comprehensive overview of its core components and applications. It begins by differentiating between structured, semi-structured, and unstructured decisions, highlighting their characteristics and implications for organizational management. The report then explores Decision Support Systems (DSS), examining their role in aiding managerial decision-making, including programmed and non-programmed decisions. Furthermore, it analyzes the decision-making process, outlining its various stages and incorporating the Herbert Simon Model. The report also examines Executive Information Systems (EIS) or Executive Support Systems, detailing their characteristics and factors influencing their effectiveness. Finally, the report discusses Transaction Processing Systems, completing the analysis of key MIS elements. This document, contributed by a student, is available on Desklib, a platform offering AI-based study tools for students.

MANAGEMENT
INFORMATION
SYSTEMS

Table of Contents
1.INTRODUCTION....................................................................................................................................3
2.Differentiating structured,semi-structured and unstructured decisions.....................................................3
3. Decision Support System.........................................................................................................................6
4.Decision Making Process.........................................................................................................................7
5. Executive Information System / Executive Support System..................................................................10
6.Transaction Processing System..............................................................................................................11
Conclusion.................................................................................................................................................13
REFERENCES..........................................................................................................................................14

1.INTRODUCTION
The keeping up of all sorts of financial information with respect to particular organization
in form of a computer based database is regarded as Management Information System. The
operations which are performed by each and every level of an organization are organized and
programmed into the form of daily report (Scherer and Schapke, 2011). Furthermore, the
possibility of formulating special reports is also possible. With such a system, the managers are
able to get a feedback about their own performance. This accounts to be the main purpose
served by MIS. Through its aid the top level management is able to do monitoring of its whole
organization as well. This type of system allows to demonstrate the past, present and future
information with respect to a particular organization. It involves the usage of software helping
towards decision making processes. In addition to this, databases, hardware of
resources ,decision support systems people & project management application, along with
additional computerized procedures for enabling the various departments within an organization
to run efficiently and effectively.All the information and technology based systems are
overlooked by the Management Information Systems. So within the report, various components
associated to the MIS have been briefly discussed making it clearly understandable. The different
types of decision making process along with Data support system have been analyzed. Also the
Executive support system along with Transaction processing systems have been pondered upon.
2.Differentiating structured,semi-structured and unstructured decisions
Structured decisions :-
Within this category all three main procedures of data, process and evaluation are
included. Broadlyroutine based decisions are taken on a regular basis. As contextualized by
Tipton and Nozaki, (2012), whenever the management of an organization have to come across a
problem then, they are able to get a more clear cut & effective solution with the help of
structured decisions. These decisions are very much focused about finding the key solution
towards a problem. In order for taking structured decisions the Management Information System
emerges out to be an effective tool. It has been critically argued that the methodology involved
within determining and finding particular solution towards a problematic situation in case of

structured decisions is very well formulated and further executed. They are generally undertaken
by a firm's management &higher authorities on a daily regular basis. This category of decision is
very well straight forwarded.
Semi-structured decisions :-
According to the statement given by Laudon, Laudon and Brabston, (2011), this category
of decision comes under the influence of somewhere in the middle of structured & unstructured
decisions. While carrying the procedure of making decisions, this category requires the
involvement of some sort of judgements from other people. In addition to this, agreements are
also being made with respect to the final solution towards the problems within an organization.
Unstructured Decisions :-
The decisions coming under this category account to be very occasional along with the
uniqueness in their nature. No such predefined procedure are there for solving of these problems,
which leads to a conclusion that, for every occurring problem, a new analyzation procedure has
to be followed. Considering the higher levels of management, more amount of such decisions
have to be faced by them (Unit 127 - Spatial Decision Support Systems, 2010). These also involve a high
level of complexity within them. So, keeping this in mind, no already tried or true methods are
available in order to handle them. Furthermore, they involve a much high risk factor within them.
Figure 1 : Different types of decisions
(Source: Unit 127 - Spatial Decision Support Systems, 2010)

Structured decisions Unstructured
decision
Semi-structured
decisions
Delegation could be
made.
No delegation could
be made.
Could be partially
delegated
Costings are not high. Quite higher costings
involved.
Costs are higher than
structured ones but
lower than non-
structured ones.
Computerized
systems are used for
taking them.
Cannot use computer
systems since
everything is
unpredictable.
Computer systems
could be utilized for
certain procedures
regarding them.
A clear cut solution
to overall problem is
achieved.
No sort of agreeing to
a particular solution
is there.
Only a particular part
of overall problem
has clear cut
solutions.
Repetitive and are
routine followers.
Not at all repetitive
and hence follow no
sort of routine
procedures.
Only a part follows a
particular routine
procedure.
Example:
Decisionslikethe
amountwhichwill
beearned after two
years if investment of
$100,000 has been
done within the
sector of municipal
Example: The
decisions involved in
determining the
various categories of
new contents for their
creation and selection
of the target market.
Example: Decisions
involved in
determining the stock
which will be earning
the highest stock at
the year's end.

bonds paying at the
4% and annually free
from tax.
3. Decision Support System
With the aid of interactive software based systems, the managers of organizations are
able to carry their decision making procedures. These interactive systems are broadly known as
Decision Support Systems (Melville, 2010). The summaries, exception pattern, trend via models
of analyzation are overall as a whole utilized by DSS. It is not intended to give a particular
decision but rather supports decision-making. From the raw data, document, personal-
knowledge along with business models are being utilized by decision maker for identification
and solution with respect to a particular problem and taking of necessary decision.
Programmed and non-programmed decisions:-
The general routine work along with automated procedures are included within programmed
decisions wherein :
 Such decisions have already been taken for numerous times.
 These have to stick towards a certain set of guideline along with some rules as well.
 For example : To select a reordering level for the inventories.
The unusual and non- addressing situations involve taking up of non- programmed decisions.
 Always a brand new decision.
 No rules & regulations are being considered.
 The information that is available accounts to be the basis of this decision.
 The discretion, perceptions and instincts along with judgmentalopinion possessed within
a manager form a basis for these decisions.
 For example: to invest over new technology comes under the non- programmed decision
category.
However, one thing should be taken in account and that is DSS usually take in consideration
the non-programmed decisions (Dubois, Heymans and Matulevičius, 2010).

Characteristics of DSS:-
 It accounts to be usually very interactive by offering an ample of flexibility and adaption
level.
 The users or customers are allowed to have a control over the input and outputs.
 Negligible assistance is taken from the professionals in operating it.
 The decisions along with the problems whose solution can't be predicted or determined in
advance are provided huge support from the side of DSS system.
Improving the Managerial Decision Making with help of DSS
 The Intelligency Phase : The production of data occurs on a timely basis. The utilization
of quantitative data is enhanced (Bulgurcu, Cavusoglu and Benbasat, 2010). Moreover
ample of data or information is made available to the managers for making decisions.
 The Designing Phase : The amount of alternatives available is in ample quantity and
more accurate as well.
 The Choice Phase : The making of decisions occurs at a faster pace. Moreover, the
choices made are further given a rank accordingly.
4.Decision Making Process
From a given set of available alternative scenarios, selecting a particular set of action is
regarded as the cognitive procedure of decision making (Decision Making Process, 2017). It is
regarded as the complex procedures in the hierarchies present within management.
The process stepwise:-

Figure 2 : Decision Making process
(Source : Decision Making Process, 2017)
I. Identifying the decision's purpose : Analyzation of the overall problem is done here.
II. Gathering of Information : Many stakeholders will usually come into consideration
whenever an organization faces a problem. There is definitely a possibility of existing
factors thereby affecting the problem. So, as a result all sorts of information in
accordance with various factors & stakeholders needs to be gathered. ‘Check Sheet' tool
could be used.
III. Judging the alternatives through principles : The criteria of baseline shall be utilized for
this purpose. While formulation of the criteria, along with corporate culture, goals of
organization should be considered as well.
IV. Analyzing various available choices along with brainstorming : All the ideas have to
noted down fir brainstorming. According to __, Cause-and-effect and Pareto Chart tools
could be used prioritization of causes in accordance with the problem.Thetool of Cause-
and-effectaids in identification of all possible causes. On the other hand, the Pareto Chart

helps in prioritizing the cause that too with the highest impact and effective as well. After
the prioritization, all the possible solutions should be generated.
V. Evaluating the alternatives : Under this step, the experience and judgmental principles are
bein utilized and effective skills in them helps in taking powerful and complex decisions
as well.
VI. The best suited alternative is being selected in sixth step.
VII. Furthermore in the step 7, decisions finally undertaken are gradually converted into a
plan or series of planned activities.
VIII. Finally in the eighth step, the outcomes generated because of decision implementation is
further evaluatedto determine its effectiveness for long terms.
Describing the decision making procedure with help of HERBERT SIMON MODEL
Figure 3: Herbert Simon Model of decision making
(Source : MIS AND DECISION MAKING CONCEPTS HERBERT SIMON MODEL OF DECISION MAKING,
2011)
Decision-making accounts to be the process of allowing the decision-maker for arriving at
particular decisions.Its core has been described within the model proposed byHerbert Simon.
This model gradually describes the process of decision-making into following three phases.
I. Intelligence : The collection, processing and examining of raw data is carried out.
Problem which needs attention is able to be identified.
II. Design : Invention, development and analyzation of available alternatives in accordance
with decisions is done (MIS AND DECISION MAKING CONCEPTS HERBERT SIMON MODEL OF

DECISION MAKING, 2011). Their feasibilityof implementing is further tested. The outcomes
of decisions taken are evaluated further.
III. Choice : Keeping in mind the criteria for selecting, one alternative is being selected as a
final decision to be undertaken.
5. Executive Information System / Executive Support System
It is broadly defined as the specialized category of DSS. The different hardware,
software, data, procedures along with people are generally included within this system. The top
management level executives are able to take their decisions in an effective manner through great
support provided from this system (Krutz and Vines, 2010). Data is able to be obtained from a
wide variety of available sources through executive information system. Furthermore, it assists in
in integrating and aggregating this obtained data. After applying all these different steps, the
resulting information is demonstrated further in an understandable format.
EIS accounts to be a computer based system for serving the obtained information to
different top level executives. A very quick and easy access is provided through its help to the
timely information. It also accounts to be user friendly along with enhanced level of graphics.
As stated by Galegher, Kraut and Egido, (2014), the Executive Support System showcases
dependency upon following factors :
1. Internal factors :-
 When necessary information is needed on timely basis.
 When improvement in the communication process is required.
 When accessing the operational data is needed.
 When various status updates are made regarding different activities of business.
 When accessing information regarding the corporate database is required.
 When accuracy in information is needed.
 When identification of various historical trends has to be done.
2. External factors :-
 The enhancement and intensification of competition at a global level.
 The rapid changes occurring within the environment of business.
 Increased level of pro-activeness needed.

 When accessing of external database is needed.
 The increased pressure of rules & regulations by government.
Characteristics of EIS :-
 Informational Characteristics:-
1. Quick responsiveness in providing timely information.
2. Accurate, relevant and validated information is produced.
3. Provides the flexibility of using (Ricci, Rokach and Shapira, 2011).
 User Interface/Orientation Characteristics:-
1. Helping oneself in a sophisticated manner.
2. Graphics user is contained thereby offering a user friendly interface.
3. Utilization could be carried out from different locations .
4. The access procedure towards information is securely reliable and confidential as
well.
5. Customization is very high level.
6. The individual executives are the best suited management style for it.
 Managerial Characteristics:-
1. The overall mission, vision along with strategy are given support.
2. The support which is required for strategic management is given.
3. Situations having high degrees of risk are dealt with its help.
4. The value added procedures of business are linked to it.
5. It also provides necessary support for accessing external data.
6. Highly oriented toward getting outcomes.
6.Transaction Processing System
The system involved within processing of the business related transactions is referred to
as Transaction Processing System(TPS). Within it, the data related to transactions is first
collected and then modified accordingly for its retrieval (Structure, Activity and Functions of
Transaction Processing System, 2015). The performance, consistency along with reliability are
included among the characteristics of TPS which is further known as real time or transaction
processing.

Processing Types:-
 Batch Processing : A series of programs are gradually executed without any interference
manually on a computer. Numerous transactions or batch are gathered and accordingly
processed the same time. However, a time delay is observed in case of getting an
outcome with respect to each transaction.
 Real time Processing : The stimulus itself or the quick conditions causing it, are
guaranteed an appropriate response from real time systems. Every transaction is of
unique nature.
 Time sharing : The computer system is being shared among multiple users. However,
there always exist a certain set of regulations upon each user's type of work allotted.
Transaction Processing System functions :-
Figure 4 : TPS
(Source : Structure, Activity and Functions of Transaction Processing System, 2015)
Input, output, storage and processing are included in some of the functions coming under
transaction processing system (Bélanger and Crossler, 2011).
 Input Function : Upon a source document data is first captured in first step. Within the
system, the input data is then entered. Data validation process is carried out for checking
any sort of existing errors in input data.
 Output Function : In this, reports are being produced for example, detail, summary or
exception reports.
 Storage Function : Databases and files are utilized for storing of data. The data which is
stored can be further accessed, sorted and updated as well.

 Processing Function : The stored data can be further manipulated by either computing or
making decisions (Gorla, Somers and Wong, 2010).
Conclusion
With context to the report, one thing is of uttermost importance and that accounts to be
the managing of transactions occurring in an organization. These finance based transactions are
very much confidential and have to be managed in an effective manner by the top level
executives. So they make full utilization of Managing Information System which effective
manages to handle all sort of decisions related to financial transaction. So it must be carried out
effectively to take decisions which may be either structured, unstructured or even semi-
structured. Furthermore, the Decision Support System should b effectively and efficiently
utilized by top level managers for making their decision making procedures. The top level
executive should take full support provided from EIS to take their decisions in an effective
manner. In the end, to maintain a financial balance, top level managers should
effectivelymanipulate and utilize the transaction processing system.

REFERENCES
BOOKS AND JOURNALS
Bélanger, F. and Crossler, R. E., 2011. Privacy in the digital age: a review of information privacy
research in information systems. MIS quarterly. 35(4). pp.1017-1042.
Bulgurcu, B., Cavusoglu, H. and Benbasat, I., 2010. Information security policy compliance: an
empirical study of rationality-based beliefs and information security awareness. MIS
quarterly. 34(3). pp.523-548.
Dubois, É., Heymans, P., and Matulevičius, R., 2010. A systematic approach to define the
domain of information system security risk management. In Intentional Perspectives on
Information Systems Engineering (pp. 289-306). Springer Berlin Heidelberg.
Galegher, J., Kraut, R. E. and Egido, C., 2014. Intellectual teamwork: Social and technological
foundations of cooperative work. Psychology Press.
Gorla, N., Somers, T. M. and Wong, B., 2010. Organizational impact of system quality,
information quality, and service quality. The Journal of Strategic Information
Systems. 19(3). pp.207-228.
Krutz, R. L. and Vines, R. D., 2010. Cloud security: A comprehensive guide to secure cloud
computing. Wiley Publishing.
Laudon, K. C., Laudon, J. P. and Brabston, M.E., 2011. Management information systems (Vol.
8). Upper Saddle River, NJ: Prentice Hall.
Melville, N.P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly. 34(1). pp.1-21.
Ricci, F., Rokach, L. and Shapira, B., 2011. Introduction to recommender systems handbook (pp.
1-35). springer US.
Scherer, R. J. and Schapke, S. E., 2011. A distributed multi-model-based management
information system for simulation and decision-making on construction
projects. Advanced Engineering Informatics. 25(4). pp.582-599.

Tipton, H. F. and Nozaki, M. K., 2012. Information Security Management Handbook, Volume 6.
Auerbach Publications.
ONLINE
Decision Making Process, 2017. [Online]. Available
through:<https://www.tutorialspoint.com/management_concepts/decision_making_proce
ss.htm?_e_pi_=7%2CPAGE_ID10%2C8458043381>. [ Accessed On : 9 April 2017].
MIS AND DECISION MAKING CONCEPTS HERBERT SIMON MODEL OF DECISION
MAKING, 2011. [Online]. Available through:<http://deepread.blogspot.in/2011/06/mis-
and-decision-making-concepts.html?m=1>. [ Accessed On : 9 April 2017].
Structure, Activity and Functions of Transaction Processing System, 2015. [Online]. Available
through:<https://misnotesformba.wordpress.com/category/functions-of-transaction-
processing-system/>. [ Accessed On : 9 April 2017].
Unit 127 - Spatial Decision Support Systems, 2010. [Online]. Available
through:<http://www.geo.upm.es/postgrado/CarlosLopez/materiales/cursos/
www.ncgia.ucsb.edu/giscc/units/u127/u127.html>. [ Accessed On : 9 April 2017].