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Unit 2: Information Systems in the Enterprise

to promote the free exchange of information among different business units. This is a Notes
desirable goal, but is still very difficult to achieve.

2.2.2 Decision Support System

A broad description of a decision support system is human and computer interaction used in
decision-making. A Decision Support System (DSS) is an interactive computer-based system,
which helps decision-makers utilize data and models to solve unstructured problems. Decision
support systems couple the intellectual resources of individuals with the capabilities of the
computer to improve the quality of decisions. It is a computer-based support system for
management decision-makers who deal with semi-structured and unstructured problems.
A decision support system is an information system whose primary purpose is to provide
knowledge workers with information on which to base informed decisions. The decision support
systems take the data and present it in various formats to aid the individual or group in reaching
a decision. The decision support systems are generally used by the highest level of management
as an aid for the unstructured decisions they have to make. A decision support system provides
facilities for verification of information integrity, and for discovery of discrepancies in received
information. Statistical methods and rule-based systems provide some tools for the analysis and
pre-processing of data used for generation and evaluation of alternative decisions.
A decision support system is a computer-based system consisting of three interacting components:
1. A language system: A mechanism to provide communication between the user and other
components of the DSS,
2. A knowledge system: The repository of problem domain knowledge embodied is DSS
either as data or procedures, and

3. A problem processing system: The link between the other two components, containing one
or more of the general problem-handling capabilities required for decision-making.
So, a decision support system is:

(a) An information system
(b) Which is used by managers
(c) In making decisions
(d) And to support, not to replace people
(e) Used when the decision is semi-structured or unstructured

(f) Incorporate a database of some sort
(g) It also incorporates models

2.2.3 Management Information System

An Management Information System (MIS) is a subset of the overall internal controls of a
business covering the application of people, documents, technologies, and procedures by
management accountants to solve business problems such as costing a product, service or a
business-wide strategy. Management information systems are distinct from regular information
systems in that they are used to analyze other information systems applied in operational
activities in the organization. Academically, the term is commonly used to refer to the group of
information management methods tied to the automation or support of human decision making,
e.g. Decision Support Systems, Expert systems, and Executive information systems.

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