MANAGEMENT INFORMATION

SYSTEM

BY : GANESH GATATE
 TOPICS

• External systems
• Support systems
• Management levels and functional system
• SOP
 EXTERNAL SYSTEMS 

External Systems means all services

which are provided to Company by third
parties and which are dependent on
information technology, including, but not
limited to, any external payroll,
accounting, or tax filing services or any
checking, savings, or other financial
services.
 SUPPORT SYSTEM

Management support systems focus on

managerial uses of infor­mation resources.
These systems provide information to manage
for planning and decision making. The
information provided by these systems is based
on both the internal and external data using
various data analysis tools.
TYPES OF SUPPORT SYSTEM

1.  Decision Support Systems

2. Executive Information (support) Systems 
3.  Expert Systems.
 DECISION SUPPORT SYSTEM

Decision support systems (DSS) are designed to support the deci­sion making
process of managers to improve their effectiveness and thereby efficiency of the
enterprise. They are based on the premise that managerial judgement cannot be
replaced by any computer based solution. However, by offering the support of data
and models, it is possible to improve the decision making process even in the case
of semi-structured and unstructured problems.
BUILDING BLOCKS OF DSS
 TYPES OF DSS

• DATA ORIENTED : The data oriented DSSs have greater input of data
retrieval and data analysis.
• MODEL ORIENTED :  The model oriented DSS has powerful facilities
for simulation of decision scenarios by estimating the outcome of an
action and generating suggestions.
 FEATURES OF DSS

1. DSS does not aim at any specific type of decisions. 

2.  The user friendly interface of DSS makes it different from other types of
information systems.
3. he report generators and graphic facilities in DSS pro­vide better ways of
representing the information generated by use of models in DSS.
4. DSS offers any user complete control over the system.
 BENEFITS FROM DSS

1. Evaluation of a larger number of alternatives as the facilities in DSS reduce the time
and effort in collecting and analysis of data for different alternatives.
2. Modelling and forecasting becomes easy for managers using DSS enabling them to get
more insight into the business processes.
3. Usefulness in intra-group and inter-group communication because it makes it possible
to explain to others, how one has arrived at a particular conclusion. The rationale
assigns respectability to con­clusions and earns the backing of others in the enterprise.
4.  Facilities for quicker analysis of data for unstructured decision making, thereby,
improving the speed of response in unexpected decision making situations.
 APPLICATION OF DSS

• PRODUCTION
• FINANCE
 EXECUTIVE SUPPORT SYSTEM

 ESS are designed to incorporate data about external events, such as new tax laws
or competitors, but they also draw summarized information from internal MIS and
DSS. They filter, compress, and track critical data, displaying the data of greatest
importance to senior managers. For example, the CEO of Leiner Health Products,
the largest manufacturer of private-label vitamins and supplements in the United
States, has an ESS that provides on his desktop a minute-to-minute view of the
firm’s financial performance as measured by working capital, accounts receivable,
accounts payable, cash flow, and inventory.
MODEL OF A TYPICAL ESS
 EXPERT SYSTEM

An expert system is the highest form of management computing office automation

which allows the communication and manipulation of documents. An expert system
is a computer based information system in which knowledge is represented in data,
in which the processing of the knowledge is directed primarily by computer
programs.
 REASONS FOR SUCCESS OF EXPERT
SYSTEM

• Crystal-clear frontiers or the problem to be tackled.

• Analytical methods, which works well for that area.
• Plenty of high-class wisdom.
 CLASSES OF EXPERT SYSTEM

• The consultant
• The expert interface or intelligent front end
• Assistant
•  The idiot servant
 ADVANTAGES OF EXPERT SYSTEM

1. It improves quality by providing consistent advice and by making reduction in the error rate.
2. Expert systems are reliable and they do not overlook relevant information and potential solutions.
3. It leads to cost reduction as the human expertise is costly.
4. Expert system also has educational benefits as it gives training, provides experience & explanation
facilities that can be used as a teaching device.
5. It increases output as an expert system works faster than the human beings. As the expert system
is computer based system, it requires fewer people and hence reduces the cost.
6. Expert system makes complex equipment’s to work.
 LIMITATIONS OF EXPERT SYSTEM

1. It is hard, even for a highly skilled expert to abstract good situational assessment when he is under
time pressure.
2. Expert system performs well with specific types of operational and analytical tasks.
3. The designing and construction of expert system require expert engineers, they are rare and
expensive. This limitation makes an expert system very costly.
4. Expert system excels only in solving specified type of problems in a limited domain of knowledge.
5. The vocabulary that experts use for expressing facts & relations is frequently limited.
6. Another limitation is that most experts have no independent means of checking whether these
conclusions are reasonable or not.
7. The approach of each expert to the assessment of the situation may be different, yet it may be correct.
 MANAGEMENT LEVELS

d
 STANDARD OPERATING PROCEDURE
(SOP)

An SOP is a procedure specific to your operation that describes the activities necessary to complete tasks in accordance
with industry regulations, provincial laws or even just your own standards for running your business.

IMPORTANCE
 Ensures Consistency
 Standard operating procedure As we’ve said, developing SOP
documentation is important because it better enables your organization to
allows organizations to systematize their run like a finely-tuned machine.
processes.

 Enables Proper Onboarding

 Ensures Adherence to Best Practices and Training
With SOP in place, adherence to best practices In clearly defining standard
regarding all organizational processes is not operating procedures within your
merely a suggestion, but a mandate. organization
THANK YOU