MIS, DSS and ERP
MIS, DSS and ERP
MIS, DSS and ERP
ERP?
SUBMITTED BY:
NAVEEN SARMA
AM.AR.P2COM13005
S4. MCOM
INTRODUCTION
Organizations utilize different types of information systems to take their business decisions for
their operations. The hierarchy levels of the organizations in general are operational, knowledge,
management, and strategic. Accordingly, the need of information required at different levels
varies. Major types information systems in organizations include transaction processing
systems, office systems, knowledge work systems, decision-support systems, management
information systems, and executive support systems. Transaction processing systems function at
the operational level of the organization. Knowledge work systems help create and integrate new
knowledge within the organization. Management information systems provide managers with
reports based primarily on data pulled from transaction processing systems, have an internal
orientation, and have limited flexibility. . Decision-support systems function at the management
level and provide analytical models and data analysis tools to provide support for semi structured
and unstructured decision-making activities.
DSS are designed for analytical purposes and are flexible in nature. DSS provide sophisticated
analytical models and data analysis tools to support semi-structured and unstructured decisionmaking activities. DSS use data from TPS, MIS, and external sources, provide more analytical
power than other systems and interactive.
The impact is on decisions in which there is sufficient structure for computer and analytic aids to
be of value but where managers judgment is essential. A DSS is an organized collection of
people, procedures, software databases and devices, used to support problem/specific decision
making and lead to problem solving. The focus of a DSS is on decision making effectiveness
when faced with unstructured or semi structured business problems.
Characteristics of decision support system
The main characteristics of DSS are :
DSS help managers make decisions that are semi-structured, unique, or rapidly changing,
and not easily specified in advance.
DSS are responsive enough to run several times a day in order to correspond to changing
conditions.
DSS make use of both internal information (from TPS and MIS) and also from external
sources, such as current stock prices or product prices of competitors.
DSS offer users flexibility, adaptability, and a quick response.
DSS allow users to initiate and control the input and output.
Functions of a DSS
There are five functions of a DSS facilitating managerial decision making. They are:
1. Model building allows decision makers to identify the most appropriate model for solving
the problem at hand.
2. What is analysis is the process of assessing the impact of changes to model variables, the
value of the variable or the interrelationships among variables.
3. Goal seeking is the process of determining the input values required to achieve a certain
goal.
4. Risk analysis is a function of DSS that allows managers to assess the risks associated with
various alternatives.
5. Graphical analysis helps managers to quickly digest large volume of data and visualize the
impacts of various courses of action.
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single
information system for organization-wide, coordinates and integrate the key business processes.
Information that was previously fragmented in different systems can seamlessly flow throughout
the firm so that it can be shared by business processes in manufacturing, accounting, human
resources, and other areas.
MIS vs DSS
1. MIS focuses on the structured tasks and the routine decisions while DSS Focuses mainly
on the semi / un-structured tasks, which demand the managerial judgment.
2. MIS Identifies the information requirement while DSS develops certain tools for using in
the decision process.
3. Data storage is of great importance for MIS and the main emphasis of DSS is on the data
manipulation.
4. MIS Delivers system depending on the frozen requirements and in DSSCurrent data can
be used in the Decision Support System.
5. In MIS Only the in direct access to the data by the managers is provided and DSS only
Managers enjoy direct access to the data.
ERP vs MIS
ERP vs DSS
ERPs aim is to allow free flow of information between accounting, finance, marketing,
manufacturing etc. While DSS is a computer generated information with the intention of
helping in decision making process.
ERP helps in managing information about customer profile and preferences While DSS
are used to collect data, shape and analyze it, and to make sound decisions or construct
strategies.
ERP also helps in better customer service and satisfaction. While, DSS can be model
driven, communications driven, data driven, document driven, or knowledge driven.
The various types of systems in the organization exchange data with one another. TPS are a
major source of data for other systems, especially MIS and DSS. TPS are operational-level
systems that collect transaction data. Examples of these are payroll or order processing that track
the flow of the daily routine transactions that are necessary to conduct business. TPS provide
data that are required by office systems, KWS, MIS and DSS, although these systems may also
use other data. KWS and office systems not only use data from TPS but also from MIS. DSS not
only use data from TPS but also from KWS, office systems, and MIS. MIS rely heavily on data
from TPS but also use data from KWS and office systems. ESS obtains most of their internal
data from MIS and DSS.
CONCLUSION