This document provides an overview of management information systems and decision support systems. It discusses key topics such as the role of MIS in supporting decision making, sources and outputs of managerial information, characteristics of MIS and DSS, components of a DSS, and group support systems. The document compares programmed versus non-programmed decisions and highlights similarities and differences between MIS and DSS.

1. IT for Management
Raghavendra P Hunasgi © Raghav

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© Raghavendra Hunasgi

3. What is Internet?
3

4. What occurs to your mind
when we say Internet?
(Personal, custom made and truly democratic)

5. Facts and figures about Internet

6. 6

7. The Internet is a global system of
interconnected computer
networks that use the standard
Internet protocol suite (often called
TCP/IP, although not all
applications use TCP) to serve
billions of users worldwide.
It is a network of networks that
consists of millions of private,
public, academic, business, and
government networks, of local to
global scope, that are linked by a
broad array of electronic, wireless
and optical networking
technologies.
The Internet carries an extensive
range of information resources and
services, such as the inter-linked
hypertext documents of the World
Wide Web (WWW) and the
infrastructure to support email.

8. As a B-School Graduate and would-be managers of MNC
organizations specializing in IT you should know the following
facts about Internet in India

22. Now answer these questions:
Does these numbers look attractive to you?
Do you feel we have had great Internet
penetration in India?
Do you think we have reached the saturation or
threshold for internet use in India?

27. What's next in Internet space for India?

28. I was confused between Internet2 or Internet 2.0?
“Internet2: provides the U.S. research and education community with
a network that satisfies their bandwidth-intensive requirements. The
network itself is a dynamic, robust and cost-effective hybrid optical
and packet network. It furnishes a 100 Gbit/s network backbone to
more than 210 U.S. educational institutions, 70 corporations and 45
non-profit and government agencies”.
Internet 2.0 also known as Web 2.0 is a concept that takes the
network as a platform for information sharing, interoperability, user-
centered design and collaboration on the World Wide Web.
A Web 2.0 site allows users to interact and collaborate with each
other in a social media dialogue as creators (prosumers) of user-
generated content in a virtual community, in contrast to websites
where users (consumers) are limited to the passive viewing of content
that was created for them.
Examples of Web 2.0 include social networking sites, blogs, wikis,
video sharing sites, hosted services, web applications, mashups and
folksonomies.

30. Internet is
Changing

31. So are the internet Governing
bodies

32. Internet governance is the development and application by
Governments, the private sector and civil society, in their respective
Internet governance is the development and application by
Governments, the private sector and civil society, in their respective
roles, of shared principles, norms, rules, decision-making procedures,
and programmes that shape the evolution and use of the
Internetroles, of shared principles, norms, rules, decision-making
procedures, and programmes that shape the evolution and use of the
Internet
Internet Assigned Numbers Authority (IANA), and as it expanded to
include management of the global Domain Name System (DNS) root
servers, a small organization grew.

33. Allocation of IP addresses was delegated to four Regional Internet
Registries (RIRs):
• American Registry for Internet Numbers (ARIN) for North America
• Réseaux IP Européens - Network Coordination Centre (RIPE
NCC) for Europe, the Middle East, and Central Asia
• Asia-Pacific Network Information Centre (APNIC) for Asia and the
Pacific region
• Latin American and Caribbean Internet Addresses Registry
(LACNIC) for Latin America and the Caribbean region
• In 2004 a new RIR, AfriNIC, was created to manage allocations for
Africa.
The position of the US Department of Commerce as the controller of
the Internet gradually attracted criticism from those who felt that
control should be more international.

34. A hands-off philosophy by the US Dept. of Commerce helped limit this
criticism, but this was undermined in 2005 when the Bush administration
intervened to help kill the .xxx top level domain proposal.
There were also suggestions that individual governments should have
more control, or that the International Telecommunication Union or the
United Nations should have a function in Internet governance.
One such proposal, resulting from a September 2011 summit between
India, Brazil, and South Africa (IBSA), would seek to move internet
governance into their sphere of dominance.
The Indian government itself has come under fire for its clumsy attempts
to block criticism on the web, like YouTube under the broad rubric of
religious sensitivities.
Worst governance in China.

35. A hands-off philosophy by the US Dept. of Commerce helped limit this
criticism, but this was undermined in 2005 when the Bush
administration intervened to help kill the .xxx top level domain
proposal.
There were also suggestions that individual governments should have
more control, or that the International Telecommunication Union or the
Decision Support System
United Nations should have a function in Internet governance.
One such proposal, resulting from a September 2011 summit between
India, Brazil, and South Africa (IBSA), would seek to move internet
governance into their sphere of dominance.
The Indian government itself has come under fire for its clumsy
attempts to block criticism on the web, like YouTube under the broad
rubric of religious sensitivities.
Worst governance in China.

36. Decision Making as a
Component of Problem Solving
• Decision-making phase: first part of
problem-solving process
– Intelligence stage: potential problems or
opportunities are identified and defined
– Design stage: alternative solutions to the
problem are developed
– Choice stage: requires selecting a course of
action

37. How Decision Making Relates
to Problem Solving

38. Decision Making as a
Component of Problem Solving
(continued)
• Problem solving: a process that goes
beyond decision making to include the
implementation stage
• Implementation stage: a solution is put
into effect
• Monitoring stage: decision makers
evaluate the implementation

39. Programmed Versus
Nonprogrammed Decisions
• Programmed decisions
– Decision made using a rule, procedure, or
quantitative method
– Easy to computerize using traditional
information systems

40. Programmed Versus
Nonprogrammed Decisions
(continued)
• Nonprogrammed decisions
– Decision that deals with unusual or
exceptional situations
– Not easily quantifiable

41. An Overview of Management
Information Systems:
Perspective
• A management information system (MIS)
provides managers with information that
supports effective decision making and
provides feedback on daily operations
• The use of MISs spans all levels of
management

42. Sources of Managerial
Information

43. Inputs to a Management
Information System
• Internal data sources (TPSs and ERP
systems and related databases; data
warehouses and data marts; specific
functional areas throughout the firm)
• External data sources (Customers,
suppliers, competitors, and stockholders
whose data is not already captured by the
TPS; the Internet; extranets)

44. Outputs of a Management
Information System
• Scheduled report: produced periodically, or on
a schedule
• Key-indicator report: summary of the previous
day’s critical activities
• Demand report: developed to give certain
information at someone’s request
• Exception report: automatically produced when
a situation is unusual or requires management
action
• Drill-down reports: provide increasingly
detailed data about a situation

45. Characteristics of a
Management Information
System
• Fixed format, standard reports
• Hard-copy and soft-copy reports
• Uses internal data
• User-developed reports
• Users must request formal reports from IS
department

46. An Overview Of Decision
Support Systems
• A DSS is an organized collection of
people, procedures, software, databases,
and devices used to support problem-
specific decision making and problem
solving
• The focus of a DSS is on decision-making
effectiveness when faced with
unstructured or semistructured business
problems

47. Characteristics of Decision
Support Systems
• Handle large amounts of data from
different sources
• Provide report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill-down analysis

48. Characteristics of Decision
Support Systems (continued)
• Perform complex, sophisticated analysis
and comparisons using advanced software
packages
• Support optimization, satisficing, and
heuristic approaches
– Simulation
– What-if analysis
– Goal-seeking analysis

49. Comparison of DSSs and MISs

50. Comparison of DSSs and MISs
(continued)

51. Components of a Decision
Support System
• Model base: provides decision makers
access to a variety of models and assists
them in decision making
• Database
• External database access
• Access to the Internet and corporate
intranet, networks, and other computer
systems

52. Conceptual Model of a DSS

53. Group Support Systems
• Group support system (GSS)
– Consists of most elements in a DSS, plus
software to provide effective support in group
decision making
– Also called group support system or
computerized collaborative work system

54. Configuration of a GSS

55. Characteristics of a GSS That
Enhance Decision Making
• Special design
• Ease of use
• Flexibility
• Decision-making support

56. Characteristics of a GSS That
Enhance Decision Making
(continued)
• Anonymous input
• Reduction of negative group behavior
• Parallel communication
• Automated record keeping

57. GSS Alternatives

58. Executive Support Systems
• Executive support system (ESS):
specialized DSS that includes all
hardware, software, data, procedures, and
people used to assist senior-level
executives within the organization

59. Executive Support Systems in
Perspective
• Tailored to individual executives
• Easy to use
• Drill-down capabilities
• Support need for external data

60. Executive Support Systems in
Perspective (continued)
• Can help when uncertainty is high
• Future-oriented
• Linked to value-added processes

61. Capabilities of Executive
Support Systems
• Support for defining an overall vision
• Support for strategic planning
• Support for strategic organizing and
staffing
• Support for strategic control
• Support for crisis management

62. • The decision-making phase of the
problem-solving process includes three
stages: intelligence, design, and choice
• A management information system (MIS)
provides managers with information that
supports effective decision making and
provides feedback on daily operations
• A financial MIS provides financial
information to all financial managers within
an organization

63. • The manufacturing MIS subsystems and
outputs monitor and control the flow of
materials, products, and services through
the organization
• A marketing MIS supports managerial
activities in product development,
distribution, pricing decisions, and
promotional effectiveness
• A human resource MIS is concerned with
activities related to employees and
potential employees of an organization

64. • A DSS is an organized collection of
people, procedures, software, databases,
and devices used to support decision
making and problem solving
• A group support system (GSS) consists of
most elements in a DSS, plus software to
provide effective support in group decision
making
• An executive support system (ESS) is a
specialized DSS that includes all
hardware, software, data, procedures, and
people used to assist senior-level
executives within the organization

65. Artificial Intelligence

66. What Do You Consider
Intelligence?

67. Intelligence Is…
• Capacity to learn from experience
• Ability to adapt to different contexts
• The use of metacognition to enhance
learning

68. Emotional Intelligence
• Mayer & Salovey (1997)
“The capacity to reason about emotions, and
of emotions to enhance thinking. It includes
the abilities to accurately perceive emotions,
to access and generate emotions so as to
assist thought, to understand emotions and
emotional knowledge, and to reflectively
regulate emotions so as to promote emotional
and intellectual growth”

69. Social Intelligence
• Ability to get along with others
• Knowledge of social matters
• Insight into moods or underlying
personality traits of others

70. Artificial Intelligence
• The computational part of the ability to
achieve goals in the world

71. Nature, Nurture, or Both?
• Is intelligence genetic?
• Is intelligence acquired?
• Is intelligence a combination of both?

72. Information Processing &
Intelligence
• Inspection time
– How long a stimuli has to be viewed before
an accurate judgment can be made
– How quickly a person gives their answer is
irrelevant, participants are encouraged to
take their time

73. Working Memory & Intelligence
• Being able to store and manipulate
information in working memory is related
to level of intelligence

74. Artificial Intelligence
• The Turing test
– Used to refer to a proposal made by Turing
(1950) as a way of dealing with the question
whether machines can think
– Can an observer who has a conversation with
a computer and a human figure out which
conversationalist is the computer?
– Computer passes Turing test if the person
cannot

75. Computer Programs Better than
Humans
• Deep Blue and Chess
– 1,000,000,000,000 positions/sec
– 100 - 200 billion moves considered
– Able to evaluate moves
• Beat world champion in 1997 match

76. Psychotherapy AI
• ELIZA
– Weizenbaum (1966) created this program to engage in a
dialogue imitative of the style favored in Rogerian psychotherapy
– The program can successfully emulate human conversation to a
degree that humans often assumed they were communicating
remotely over teletype with another human
– ELIZA's technique of responding to keyword-matching
demonstrated the plausibility of natural language understanding
by computers
• PARRY
– Colby (1963) created a computer simulation of a paranoid
human
– Psychologists reliably judged PARRY's interactive output as
being paranoid schizophrenic and were unable to distinguish
transcripts of a session with PARRY from that of a session
originating from a human patient

77. Expert Systems
• Telephone network maintenance
• Credit evaluation
• Tax planning
• Detection of insider securities trading
• Mineral exploration
• Irrigation and pest management
• Predicting failure of diesel engines
• Medical diagnosis
• Class selection for students

78. Limitations of Expert Systems
• Can handle only narrow domains
• Do not possess common
sense/intuition
• Have a limited ability to learn

79. Summary
• To date, no computer AI can match all
dimensions of human intelligence
• For algorithmic problems, computers can
perform faster, however humans still write
the programming

80. Questions?
Write to me
pranesh.raghavendra@gmail.com
© Raghav
Photo: http://www.flickr.com/photos/oberazzi/318947873/
© Raghav

81. Thank You