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MIS in Descision Making

Information systems are crucial for business managers, enhancing decision-making at various management levels. Key systems include Transaction Processing Systems (TPS) for routine transactions, Management Information Systems (MIS) for summarizing data, Decision Support Systems (DSS) for complex analysis, and Executive Information Systems (EIS) for strategic insights. Other systems like Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Knowledge Management Systems (KMS), and AI/ML systems further support operational and strategic decision-making.

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16 views3 pages

MIS in Descision Making

Information systems are crucial for business managers, enhancing decision-making at various management levels. Key systems include Transaction Processing Systems (TPS) for routine transactions, Management Information Systems (MIS) for summarizing data, Decision Support Systems (DSS) for complex analysis, and Executive Information Systems (EIS) for strategic insights. Other systems like Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Knowledge Management Systems (KMS), and AI/ML systems further support operational and strategic decision-making.

Uploaded by

snoviocom257
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Information systems are essential tools for business managers as they support and

enhance the decision-making process at all levels of management.

1. Transaction Processing Systems (TPS)

 Purpose: Handle day-to-day routine transactions like sales, receipts, cash


deposits, payroll, etc.

 Support: Provide raw data to managers for basic decisions like stock reordering,
employee attendance, and sales tracking.

 Example: A point-of-sale system in retail records every sale and updates inventory.

2. Management Information Systems (MIS)

 Purpose: Convert data from TPS into meaningful, summarized reports.

 Support: Help middle managers with short- to medium-term planning, budgeting,


and performance monitoring.

 Example: A sales MIS might generate monthly reports comparing actual vs.
projected sales.

3. Decision Support Systems (DSS)

 Purpose: Provide analytical models and access to databases to support complex


decision-making.

 Support: Assist with non-routine, semi-structured decisions like “What if” analysis,
risk assessment, or choosing investment options.

 Example: A marketing DSS could analyze customer data to suggest promotional


strategies.

4. Executive Information Systems (EIS) / Executive Support Systems (ESS)

 Purpose: Provide top executives with easy access to internal and external data
relevant to strategic decisions.

 Support: Help in identifying trends, forecasting, and long-term strategic planning.


 Example: A dashboard showing key performance indicators (KPIs), market trends,
and competitor analysis.

5. Enterprise Resource Planning (ERP) Systems

 Purpose: Integrate all departments and functions into a single IT system.

 Support: Provide real-time data sharing across the organization, improving


coordination and informed decision-making.

 Example: SAP or Oracle ERP systems that unify finance, HR, manufacturing, and
supply chain.

6. Customer Relationship Management (CRM) Systems

 Purpose: Manage a company's interactions with current and potential customers.

 Support: Provide insights into customer behavior, sales patterns, and help
managers design customer-centric strategies.

 Example: Salesforce helps track customer interactions and sales leads.

7. Knowledge Management Systems (KMS)

 Purpose: Capture and disseminate the knowledge and experience of the


organization.

 Support: Help managers make decisions based on documented best practices,


case studies, and expert systems.

 Example: An internal knowledge base with FAQs, guides, and expert insights.

8. Artificial Intelligence (AI) and Machine Learning (ML) Systems

 Purpose: Use data-driven algorithms to predict outcomes, optimize processes, and


recommend actions.

 Support: Automate and enhance decision-making with predictive analytics,


sentiment analysis, or chatbots.
 Example: An AI model forecasting demand based on past data, trends, and external
factors.

Summary Table:

System Decision Level Purpose Example

TPS Operational Record routine transactions Cash register

MIS Tactical Provide regular reports Sales summary

DSS Tactical/Strategic Analyze complex problems Pricing model

EIS/ESS Strategic Dashboard & trend analysis CEO KPIs dashboard

ERP All Levels Integrated business view SAP, Oracle ERP

CRM Operational/Strategic Customer insights Salesforce

KMS All Levels Share organizational Internal knowledge


knowledge portal

AI/ML Tactical/Strategic Predictive decisions Demand forecasting

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