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Management Support Systems:

Presented by:-
Nitin Kr. Banka
Management Support
Systems
 The support of management tasks by the
application of technologies
 Sometimes called Decision Support Systems or
Business Intelligence
Learning Objectives

 Understand how management uses computer


technologies.
 Learn basic concepts of decision-making.
 Understands decision support systems.
 Recognize different types of decision support
systems used in the workplace.
 Determine which type of decision support system is
applicable in specific situations.
Factors Affecting Decision-
Making
 New technologies and better information distribution
have resulted in more alternatives for management.
 Complex operations have increased the costs of
errors, causing a chain reaction throughout the
organization.
 Rapidly changing global economies and markets are
producing greater uncertainty and requiring faster
response in order to maintain competitive
advantages.
 Increasing governmental regulation coupled with
political destabilization have caused great
uncertainty.
What do Management Support
Systems Offer?
 Quick computations at a lower cost
 Group collaboration and communication
 Increased productivity
 Ready access to information stored in multiple
databases and data warehouse
 Ability to analyze multiple alternatives and apply risk
management
 Enterprise resource management
 Tools to obtain and maintain competitive advantage
Cognitive Limits

 The human mind has limited processing and storage


capabilities.
 Any single person is therefore limited in their
decision making abilities.
 Collaboration with others allows for a wider range of
possible answers, but will often be faced with
communications problems.
 Computers improve the coordination of these
activities.
 This knowledge sharing is enhanced through the
use of GSS, KMS, and EIS
Management Support Systems
Tools
 Decision support system (DSS)
 Management Science
 Business Analytics
 Data Mining
 Data Warehouse
 Business Intelligence
 Online analytical processing (OLAP)
 Computer-assisted systems engineering (CASE)
 Group support systems (GSS)
 Geography information system (GIS)
 Enterprise information system (EIS)
 Enterprise resource management(ERM)
 Enterprise resource planning(ERP)
 Customer resource management(CRM)
 Supply chain management (SCM)
 Knowledge management system (KMS)
 Expert system(ES)
 Artificial neural networks (ANN)
 Intelligent Agents
 E-commerce DSS
Decision Support
Frameworks Type of Control

Type of Decision: Operational Control Managerial Control Strategic Planning

Structured Accounts Budget analysis, Investments,


(Programmed) receivable, accounts short-term warehouse locations,
payable, order entry forecasting, distribution centers
personnel reports

Semistructured Production Credit evaluation, Mergers and


scheduling, budget preparation, acquisitions, new
inventory control project scheduling, product planning,
rewards systems compensation, QA, HR
policy planning

Unstructured Buying software, Negotiations, R&D planning,


(Unprogrammed) approving loans, recruitment, technology
help desk hardware development, social
purchasing responsibility plans
Technology Support

Type of Control

Operational Managerial Strategic


Control Control Planning

Technology MIS, Management GSS, CRM, EIS,


Support Management Science, DSS, ES, neural
Needed Science ES, EIS, SCM, networks, KMS
CRM, GSS,
SCM
Six Major Types Of Systems
 TPS - Computerized system that perform and
record the daily routine transaction necessary to
conduct the business.
 OS - Computer systems, such as word
processing ,e-mail, scheduling, that are
designed to increase the productivity of data
workers in office.
 KWS - Information system that aid knowledge
workers in the creation and integration of new
knowledge in the organization.
 MIS - Information systems at management level
to serve the function of planning, controlling, and
decision making by providing routine summary
and expectation reports.
 DSS - Information systems at management level
to combine data and sophisticated analysis
model to support non routine decision making.
 ESS - Information systems at strategic level
designed to address non routine decision
making through advanced graphics and
communication
Basic Six MSS
Type of Information Input Processing Information output Users
system

ESS Aggregate data; Graphics; simulation Projections; Senior manager


Internal, external responses to queries

DSS Low-volume data ; analytic Interactive ; Special reports ; Professionals ; staff


models & tools simulation decision analysis managers

MIS Summary transaction data ; Routine reports ; low Summary and Middle manager
High volume data ; level analysis exception reports
simple models

KWS Design specification ; Modeling ; simulation Models; graphics Professionals ;


Knowledge base technical staff

OS Documents ; schedules Document Documents ; Clerical workers


management ; Schedules ;mails
scheduling;
communication
TPS Transaction ; events Sorting; listing ; Detailed reports ; Operation personnel;
merging ;updating lists; summaries supervisors
References
 DSS and IS by Turban, Aronson, Liang , 7th edition,
page no:-34,35,36,37
 MIS by Laudon & Laudon , 7th edition, page no:-40,41,42,43
Thank you

Questions ?
Please