ms-07 mba assignment july dec 2010 Question 5

5. Differentiate between DSS, MIS & EIS with the help of suitable example. Discuss the various phases of System Development life cycle.  

Decision Support Systems

            A decision support system (DSS) is an interactive information system that provides information, models and data manipulation tools to help make decisions in semi structured and unstructured situations where no one knows exactly how the decision should be made. The traditional DSS approach includes interactive problem solving  irect use of models, and user-controllable methods for displaying and analyzing data and in formulating and evaluating alternative decisions. This approach grew out of dissatisfaction with the traditional limitations of TPS and MIS. TPS focused on record keeping and control of repetitive clerical processes. MIS provided reports for management but were often inflexible and unable to produce the information in a form in which managers could use it effectively. In contrast, DSSs were intended to support managers and professionals doing largely analytical work in less structured situation with unclear criteria for success. DSSs are typically designed to solve the structured parts of the problem and help isolate places where judgment and experience are required.

            DSSs may report repetitive or non-repetitive decision-making. They support repetitive decision making by defining procedures and formats, but they still permit the users to decide how and when to use the system’s capabilities. They support non-repetitive decision making by providing data, models and interface methods that can be used however the user wants. The broad spectrum of information systems with the DSS label range from general tools such as spreadsheets, data analysis, and graphics packages to highly customized simulation or optimization models focusing on a specific business situation.

Enterprise Information Systems

            Many firms have tried to take transaction processing to a higher level by creating enterprise information systems that encompass the transaction processing done in the various functional silos. The idea of these efforts is to create unified databases that permit any authorized individual to obtain whatever information would be helpful in making decisions across the organization. In theory at least, having all this information in a unified database should improve decision-making. Enterprise information systems are quite controversial because the effort to create them is enormous. They involve much more than changing the format of databases. Often it is necessary to change business processes to suit the needs of the information system instead of vice versa. Nonetheless, many organizations have found that the integration resulting from this large investment seems to be worthwhile. The last part of this discussion explains why these information systems are usually called enterprise resource planning (ERP) systems even though planning is not their main focus.

Management and Executive Information Systems

            A management information system (MIS) provides information for an organization’s managers. The idea of MIS predates the computer age. For example, as long ago as the middle 1500s, the Fogger family in Augsberg, Germany, had business interests throughout Europe and even into China and Peru. To keep in touch, they set up a worldwide news reporting service through which their agents wrote letters about critical political and economic events in their areas of responsibility. These letters were collected, interpreted, analyzed, and summarized in Augsberg and answered through instructions sent to the family’s agents. This paper-based system encompassing planning, execution, and control helped the family move more rapidly in the mercantile world than their rivals. Instructions went out to the agents; the agents executed their work’ and the agents reported their results.

            Computerized MIS generates information for monitoring performance, maintaining coordination, and providing background information about the organization’s operation. Users include both managers and the employees who receive feedback about performance indicators such as productivity. The concept of MIS emerged partly as a response to the shortcomings of the first computerized TPSs, which often improved transaction processing but provided little information for management. Computerized MISs typically extract and summarize data from TPSs to allow managers to monitor and direct the organization and to provide employees accurate feedback about easily measured aspects of their work. For example, a listing of every sale during a day or week would be extremely difficult to use in monitoring a hardware store’s performance. However, the same data could be summarized in measures of performance, such as total sales for each type of item, for each salesperson, and for each hour of the day. The transaction data remains indispensable, and the MIS focuses it for management. As part of an organization’s formal control mechanisms, an MIS provides some structure for the comparatively unstructured task of management by identifying important measures of performance. The fact that everyone knows how performance is measured helps in making decisions and helps managers motivate workers.

SYSTEMS LIFE CYCLE

            The systems life cycle is the oldest method for building information systems and is still used today for complex medium or large systems projects. This methodology assumes that an information system has a life cycle similar to that of any living organism, with a beginning, middle, and an end. The life cycle for information system has six stages: project definition, systems study, design, programming, installation, and post-implementation. Each stage consists of basic activities that must be performed before the next stage can begin. The life cycle methodology is a very formal approach to building systems. It partitions the systems development process into distinct stages and develops an information system sequentially, stage by stage. The life cycle methodology also has a very formal division of labor between end users and information systems specialists. Technical specialists such as systems analysts and programmers are responsible for much of the systems analysis, design, and implementation work; end users are limited to providing information requirements and reviewing the work of the technical staff. Formal sign-offs or agreements between and users and technical specialists are required as each stage is completed.

Stages of the Systems Life Cycle

            The project definition stage tries to answer the questions, “Why do we need a new system project?” and “What do we want to accomplish?” This stage determines whether the organization has a problem and whether that problem can be solved by building a new information system or by modifying an existing one. If a system project is called for, this stage identifies its general objectives, specifies the scope of the project, and develops a project plan that can be shown to management. The systems study stage analyzes the problems of existing systems (manual or automated) in detail, identifies objectives to be attained by a salutation to these problems, and describes alternative solutions. The systems study stage examines the feasibility of each solution alternative for review by management. This stage tries to answer the questions, “What doe the existing systems do?” “What are their strengths, weakness, trouble spots, and problems?” “What user information requirements must be met by the solution?” “What alternative solution options are feasible?” “What are their costs and benefits?” Answering these questions requires extensive information gathering and research; sifting through documents, reports, and work papers produced by existing systems; observing how these systems work; polling users with questionnaires; and conducting interviews.

            All of the information gathered during the systems study phase will be used to determine information system requirements. Finally, the systems study stage describes in detail the remaining life cycle activities and the tasks for each phase. The design stage produces the logical and physical design specification for the solution. Because the life cycle emphasizes formal specifications and paperwork, many of the design and documentation tools, such as data flow diagrams, structure charts, or system flowcharts are likely to be utilized. The programming stage translates the design specifications produced during the design stage into software program code. Systems analysts work with programmers to prepare specifications for each program in the system. These program specifications  describe what each program will do, the type of programming language to be used, inputs and outputs, processing logic, processing schedules, and control statements such as those for sequencing input data. Programmers write customized program code typically using a conventional third-generation programming language such as COBOL or FORTRAN or a high-productivity fourth-generation language. Since large systems have many programs with hundreds of thousands of lines of program code, entire teams of programmers may be required. The installation stage consists of the final steps to put the new or modified system into operation: testing, training, and conversion. The software is tested to make sure it performs properly from both a technical and a functional business standpoint. Business and technical specialists are trained to use the new system.

           

            A formal conversion plan provides a detailed schedule of all of the activities required to install the new system, and the old system is converted to the new one. The post-implementation stage consists of using and evaluating the system after it is installed and is in production. It also includes updating the system to make improvements. Users and technical specialists will go through a formal post implementation audit that determines how well the new system has met its original objectives and whether any revisions or modifications are required. After the system has been fine-tuned it will need to be maintained while it is in production to correct errors, meet requirements, or improve processing efficiency. Over time, the system may require so much maintenance to remain efficient and meet user objectives that it will come to the end of its useful life span. Once the system’s life cycle comes to an end, a completely new system is called for and the cycle may begin again.