This document discusses different types of information systems used for decision making. Transaction processing systems (TPS) track daily business transactions like payroll and inventory for operational decisions. Management information systems (MIS) integrate data from TPS to produce standardized reports for tactical decisions by middle managers. Decision support systems (DSS) enable strategic and semi-structured decision making through analysis, simulation, and optimization models and can involve external data. Executive support systems (ESS) are sophisticated software designed for strategic decision making by top executives about company performance.

1. IS For Decision Making
SUBMITTED BY,
RAHUL KANEKAR

2. IS For Decision Making

4. 11-4
Transaction Processing Systems
Tracks operations
Creates databases
Also called data processing systems (DPS)

5. Transaction Processing System(TPS)
􀂄 Transaction Processing System(TPS)
A computerized system that performs and records daily
routine transactions necessary to the conduct of the
business
􀂄 TPSs are information systems that process data
resulting from the occurrence of business transactions.
􀂄 Example: payroll system; production instructions

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Accounting Activities
TPS
Sales order processing
Accounts receivable
Inventory control
Accounts payable
Payroll
General ledger

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Management Information Systems
MIS
Produces standardized reports
◦ Periodic
◦ Exception
◦ Demand
Uses databases
Integrates data across areas

8. Management information system (MIS)
􀂄 provides information for managing an organization
􀂄 Extract and summarize data from TPSs
􀂄 Allow managers to monitor & direct the organization
􀂄 Provide accurate feedback
􀂄 Provide pre-specified reports on a scheduled basis
􀂄 Top managers make strategic decisions
􀂄 Middle managers make tactical decisions
􀂄 Line managers make operations decisions
􀂄 Knowledge workers create and integrate knowledge
􀂄 Clerical workers use and manipulate information

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Decision Support Systems
DSS
Enables managers to get answers to problems
Group decision support system (GDSS)
◦Supports DSS
◦Addresses large problems
Analyzes data

10. Decision support system (DSS)
an interactive information system that provides information, models,
and data manipulation tools to help make decisions in semi-
structured and unstructured situations
􀂄 Support analytical work
􀂄 Simulation and Optimization
􀂄 Simulation model –calculates the simulated outcome of tentative
decisions and assumptions
􀂄 Optimization model –determine optimal decisions based on
criteria supplied by the user, mathematical search techniques, and
constraints

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DSS Parts
User
◦ Someone who makes decisions
◦ Could be you
System software
◦ Operating system
◦ Easy to use
Data
◦ Internal & external
Decision models

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Decision Models
Strategic models
Tactical models
Operational models

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Executive Support Systems
ESS
Designed for top management
Consists of sophisticated software
Access about a company's performance

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