What Are Computer-based Information Systems?

While it may seem like the answer is in the name, computer-based information systems are
deeply complex and most people use them every day without truly understanding what
they are or how they function. For the sake of simplicity, something like a card cat alog or
Rolodex could be considered an information system. A computer-based information
system isn't just the same thing but computerized.

It could be said that a computer-based information system could easily encompass every
card catalog and Rolodex that has existed in the world as well as those that haven't been
created yet. They include not only hardware and software, but also the people tasked with
providing these systems with input as well as utilizing the data that is stored and
disseminated by the system.

It includes data collection elements, data storage systems, processing capacities, network
transmission, indexing services, and the procedures by which all of these elements are
integrated under a common electronic architecture. While the vast majority of these
processes are digitized and automated, there are specific mechanisms within any
computer-based system that requires human supervision and intervention to ensure things
continue to run smoothly.

The Endless Possibilities Of Computer-based Information Systems

The applications for computer-based systems of information sharing and distribution of

digital data is limited only by the human imagination. These systems are vital components
in everything from modern power steering systems to computerized voting machines. The
field of computer science is tasked with expanding these practical applications and these
efforts have created economic opportunities that didn't exist as little as 5 years ago.

Introduction to Management Information Systems (MIS)

A management information system (MIS) can be defined as a system that:
Provides information to support managerial functions like planning, organizing, directing,
controlling.
Collects information in a systematic and a routine manner which is in accordance with a well
defined set of rules.
Includes files, hardware, software and operations research models of processing, storing,
retrieving and transmitting information to the users.
A 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 solving 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.

Objectives of Management Information Systems (MIS)

An effective MIS has the following objectives;

Facilitate the decision – making process by furnishing information in the proper time frame. This
helps the decision – maker to select the best course of action.
Provide requisite information at each level of management to carry out their functions.
Help in highlighting the critical factors to the closely monitored for successful functioning of the
organization.
Support decision-making in both structured and unstructured problem environments.
Provide a system of people, computers, procedures, interactive query facilities, documents for
collecting, sorting, retrieving and transmitting information to the users.
Characteristics of Management Information Systems (MIS)
Management Oriented: The system is designed from the top to work downwards. It does not
mean that the system is designed to provide information directly to the top management. Other
levels of management are also provided with relevant information. For example, in the
marketing information system, the activities such as sales order processing, shipment of goods
to customers and billing for the goods are basically operational control activities. A salesman
can also track this information, to know the sales territory, size of order, geography and product
line, provide the system has been designed accordingly. However, if the system is designed
keeping in mind the top management, then data on external competition, market and pricing
can be created to know the market share of the company’s product and to serve as a basis of a
new product or market place introduction.
Management Directed: Because of management orientation of MIS, it is necessary that
management should actively direct the system development efforts. In order to ensure the
effectiveness of system designed, management should continuously make reviews.
Integrated: The world “integration” means that the system has to cover all the functional areas
of an organization so as to produce more meaningful management information, with a view to
achieving the objectives of the organization. It has to consider various sub-system their
objectives, information needs, and recognize the interdependence, that these subsystem have
amongst themselves, so that common areas of information are identified and processed
without repetition and overlapping
Common Data Flows: Because of the integration concept of MIS, common data flow concept
avoids repetition and overlapping in data collection and storage combining similar functions,
and simplifying operations wherever possible.
Heavy Planning Element: A management information system cannot be established overnight. It
takes almost 2 to 4 years to establish it successfully in an organization. Hence, long-term
planning is required for MIS development in order to fulfill the future needs and objectives of
the organization. The designer of an information system should therefore ensure that it will not
become obsolete before it actually gets into operation.
Flexibility and Ease Of Use: While building an MIS system all types of possible means, which may
occur in future, are added to make it flexible. A feature that often goes with flexibility is the
ease of use. The MIS should be able to incorporate all those features that make it readily
accessible to the wide range of users with easy usability.
Decision Support Systems (DSS) help executives make better decisions by using historical and
current data from internal Information Systems and external sources. By combining massive
amounts of data with sophisticated analytical models and tools, and by making the system easy
to use, they provide a much better source of information to use in the decision-making process.

Decision Support Systems (DSS)

Decision Support Systems (DSS) are a class of computerized information systems that support
decision-making activities. DSS are interactive computer-based systems and subsystems
intended to help decision makers use communications technologies, data, documents,
knowledge and/or models to successfully complete decision process tasks.

While many people think of decision support systems as a specialized part of a business, most
companies have actually integrated this system into their day to day operating activities. For
instance, many companies constantly download and analyze sales data, budget sheets and
forecasts and they update their strategy once they analyze and evaluate the current results.
Decision support systems have a definite structure in businesses, but in reality, the data and
decisions that are based on it are fluid and constantly changing.

Types of Decision Support Systems (DSS)

Data-Driven DSS take the massive amounts of data available through the company’s TPS and
MIS systems and cull from it useful information which executives can use to make more
informed decisions. They don’t have to have a theory or model but can “free-flow” the data.
The first generic type of Decision Support System is a Data-Driven DSS. These systems include
file drawer and management reporting systems, data warehousing and analysis systems,
Executive Information Systems (EIS) and Spatial Decision Support Systems. Business Intelligence
Systems are also examples of Data-Driven DSS. Data-Driven DSS emphasize access to and
manipulation of large databases of structured data and especially a time-series of internal
company data and sometimes external data. Simple file systems accessed by query and retrieval
tools provide the most elementary level of functionality. Data warehouse systems that allow the
manipulation of data by computerized tools tailored to a specific task and setting or by more
general tools and operators provide additional functionality. Data-Driven DSS with Online
Analytical Processing (OLAP) provide the highest level of functionality and decision support that
is linked to analysis of large collections of historical data.
Model-Driven DSS A second category, Model-Driven DSS, includes systems that use accounting
and financial models, representational models, and optimization models. Model-Driven DSS
emphasize access to and manipulation of a model. Simple statistical and analytical tools provide
the most elementary level of functionality. Some OLAP systems that allow complex analysis of
data may be classified as hybrid DSS systems providing modeling, data retrieval and data
summarization functionality. Model-Driven DSS use data and parameters provided by decision-
makers to aid them in analyzing a situation, but they are not usually data intensive. Very large
databases are usually not needed for Model-Driven DSS. Model-Driven DSS were isolated from
the main Information Systems of the organization and were primarily used for the typical “what-
if” analysis. That is, “What if we increase production of our products and decrease the shipment
time?” These systems rely heavily on models to help executives understand the impact of their
decisions on the organization, its suppliers, and its customers.
Knowledge-Driven DSS The terminology for this third generic type of DSS is still evolving.
Currently, the best term seems to be Knowledge-Driven DSS. Adding the modifier “driven” to
the word knowledge maintains a parallelism in the framework and focuses on the dominant
knowledge base component. Knowledge-Driven DSS can suggest or recommend actions to
managers. These DSS are personal computer systems with specialized problem-solving
expertise. The “expertise” consists of knowledge about a particular domain, understanding of
problems within that domain, and “skill” at solving some of these problems. A related concept is
Data Mining. It refers to a class of analytical applications that search for hidden patterns in a
database. Data mining is the process of sifting through large amounts of data to produce data
content relationships.
Document-Driven DSS A new type of DSS, a Document-Driven DSS or Knowledge Management
System, is evolving to help managers retrieve and manage unstructured documents and Web
pages. A Document-Driven DSS integrates a variety of storage and processing technologies to
provide complete document retrieval and analysis. The Web provides access to large document
databases including databases of hypertext documents, images, sounds and video. Examples of
documents that would be accessed by a Document-Based DSS are policies and procedures,
product specifications, catalogs, and corporate historical documents, including minutes of
meetings, corporate records, and important correspondence. A search engine is a powerful
decision aiding tool associated with a Document-Driven DSS.
Communications-Driven and Group DSS Group Decision Support Systems (GDSS) came first, but
now a broader category of Communications-Driven DSS or groupware can be identified. This
fifth generic type of Decision Support System includes communication, collaboration and
decision support technologies that do not fit within those DSS types identified. Therefore, we
need to identify these systems as a specific category of DSS. A Group DSS is a hybrid Decision
Support System that emphasizes both the use of communications and decision models. A Group
Decision Support System is an interactive computer-based system intended to facilitate the
solution of problems by decision-makers working together as a group. Groupware supports
electronic communication, scheduling, document sharing, and other group productivity and
decision support enhancing activities We have a number of technologies and capabilities in this
category in the framework — Group DSS, two-way interactive video, White Boards, Bulletin
Boards, and Email.
Components of Decision Support Systems (DSS)
Traditionally, academics and MIS staffs have discussed building Decision Support Systems in
terms of four major components:

The user interface

The database
The models and analytical tools and
The DSS architecture and network
Decision Support Systems (DSS)
This traditional list of components remains useful because it identifies similarities and
differences between categories or types of DSS. The DSS framework is primarily based on the
different emphases placed on DSS components when systems are actually constructed.

Data-Driven, Document-Driven and Knowledge-Driven DSS need specialized database

components. A Model- Driven DSS may use a simple flat-file database with fewer than 1,000
records, but the model component is very important. Experience and some empirical evidence
indicate that design and implementation issues vary for Data-Driven, Document-Driven, Model-
Driven and Knowledge-Driven DSS.

Multi-participant systems like Group and Inter-Organizational DSS also create complex
implementation issues. For instance, when implementing a Data-Driven DSS a designer should
be especially concerned about the user’s interest in applying the DSS in unanticipated or novel
situations. Despite the significant differences created by the specific task and scope of a DSS, all
Decision Support Systems have similar technical components and share a common purpose,
supporting decision-making.

A Data-Driven DSS database is a collection of current and historical structured data from a
number of sources that have been organized for easy access and analysis. We are expanding the
data component to include unstructured documents in Document-Driven DSS and “knowledge”
in the form of rules or frames in Knowledge-Driven DSS. Supporting management decision-
making means that computerized tools are used to make sense of the structured data or
documents in a database.

Mathematical and analytical models are the major component of a Model-Driven DSS. Each
Model-Driven DSS has a specific set of purposes and hence different models are needed and
used. Choosing appropriate models is a key design issue. Also, the software used for creating
specific models needs to manage needed data and the user interface. In Model-Driven DSS the
values of key variables or parameters are changed, often repeatedly, to reflect potential changes
in supply, production, the economy, sales, the marketplace, costs, and/or other environmental
and internal factors. Information from the models is then analyzed and evaluated by the
decision-maker.

Knowledge-Driven DSS use special models for processing rules or identifying relationships in
data. The DSS architecture and networking design component refers to how hardware is
organized, how software and data are distributed in the system, and how components of the
system are integrated and connected. A major issue today is whether DSS should be available
using a Web browser on a company intranet and also available on the Global Internet.
Networking is the key driver of Communications- Driven DSS.

Advantages of Decision Support Systems (DSS)

Time savings. For all categories of decision support systems, research has demonstrated and
substantiated reduced decision cycle time, increased employee productivity and more timely
information for decision making. The time savings that have been documented from using
computerized decision support are often substantial. Researchers, however, have not always
demonstrated that decision quality remained the same or actually improved.
Enhance effectiveness. A second category of advantage that has been widely discussed and
examined is improved decision making effectiveness and better decisions. Decision quality and
decision making effectiveness are however hard to document and measure. Most researches
have examined soft measures like perceived decision quality rather than objective measures.
Advocates of building data warehouses identify the possibility of more and better analysis that
can improve decision making.
Improve interpersonal communication. DSS can improve communication and collaboration
among decision makers. In appropriate circumstances, communications- driven and group DSS
have had this impact. Model-driven DSS provides a means for sharing facts and assumptions.
Data-driven DSS make “one version of the truth” about company operations available to
managers and hence can encourage fact-based decision making. Improved data accessibility is
often a major motivation for building a data-driven DSS. This advantage has not been
adequately demonstrated for most types of DSS.
Competitive advantage. Vendors frequently cite this advantage for business intelligence
systems, performance management systems, and web-based DSS. Although it is possible to gain
a competitive advantage from computerized decision support, this is not a likely outcome.
Vendors routinely sell the same product to competitors and even help with the installation.
Organizations are most likely to gain this advantage from novel, high risk, enterprise-wide,
inward facing decision support systems. Measuring this is and will continue to be difficult.
Cost reduction. Some researches and especially case studies have documented DSS cost saving
from labor savings in making decisions and from lower infrastructure or technology costs. This is
not always a goal of building DSS.
Increase decision maker satisfaction. The novelty of using computers has and may continue to
confound analysis of this outcome. DSS may reduce frustrations of decision makers, create
perceptions that better information is being used and/or creates perceptions that the individual
is a “better” decision maker. Satisfaction is a complex measure and researchers often measure
satisfaction with the DSS rather than satisfaction with using a DSS in decision making. Some
studies have compared satisfaction with and without computerized decision aids. Those studies
suggest the complexity and “love/hate” tension of using computers for decision support.
Promote learning. Learning can occur as a by-product of initial and ongoing use of a DSS. Two
types of learning seem to occur: learning of new concepts and the development of a better
factual understanding of the business and decision making environment. Some DSS serve as “de
facto” training tools for new employees. This potential advantage has not been adequately
examined.
Increase organizational control. Data-driven DSS often make business transaction data available
for performance monitoring and ad hoc querying. Such systems can enhance management
understanding of business operations and managers perceive that this is useful. What is not
always evident is the financial benefit from increasingly detailed data.
Regulations like Sarbanes-Oxley often dictate reporting requirements and hence heavily
influence the control information that is made available to managers. On a more ominous note,
some DSS provide summary data about decisions made, usage of the systems, and
recommendations of the system. Managers need to be very careful about how decision-related
information is collected and then used for organizational control purposes. If employees feel
threatened or spied upon when using a DSS, the benefits of the DSS can be reduced. More
research is needed on these questions.

Disadvantages of Decision Support Systems (DSS)

Decision Support Systems can create advantages for organizations and can have positive
benefits, however building and using DSS can create negative outcomes in some situations.

Monetary cost. The decision support system requires investing in information system to collect
data from many sources and analyze them to support the decision making. Some analysis for
Decision Support System needs the advance of data analysis, statistics, econometrics and
information system, so it is the high cost to hire the specialists to set up the system.
Overemphasize decision making. Clearly the focus of those of us interested in computerized
decision support is on decisions and decision making. Implementing Decision Support System
may reinforce the rational perspective and overemphasize decision processes and decision
making. It is important to educate managers about the broader context of decision making and
the social, political and emotional factors that impact organizational success. It is especially
important to continue examining when and under what circumstances Decision Support System
should be built and used. We must continue asking if the decision situation is appropriate for
using any type of Decision Support System and if a specific Decision Support System is or
remains appropriate to use for making or informing a specific decision.
Assumption of relevance. According to Wino grad and Flores (1986), “Once a computer system
has been installed it is difficult to avoid the assumption that the things it can deal with are the
most relevant things for the manager’s concern.” The danger is that once DSS become common
in organizations, that managers will use them inappropriately. There is limited evidence that this
occurs. Again training is the only way to avoid this potential problem.
Transfer of power. Building Decision Support Systems, especially knowledge-driven Decision
Support System, may be perceived as transferring decision authority to a software program. This
is more a concern with decision automation systems than with DSS. We advocate building
computerized decision support systems because we want to improve decision making while
keeping a human decision maker in the “decision loop”. In general, we value the “need for
human discretion and innovation” in the decision making process.
Unanticipated effects. Implementing decision support technologies may have unanticipated
consequences. It is conceivable and it has been demonstrated that some DSS reduce the skill
needed to perform a decision task. Some Decision Support System overload decision makers
with information and actually reduce decision making effectiveness.
Obscuring responsibility. The computer does not make a “bad” decision, people do.
Unfortunately some people may deflect personal responsibility to a DSS. Managers need to be
continually reminded that the computerized decision support system is an intermediary
between the people who built the system and the people who use the system. The entire
responsibility associated with making a decision using a DSS resides with people who built and
use the system.
False belief in objectivity. Managers who use Decision Support Systems may or may not be more
objective in their decision making. Computer software can encourage more rational action, but
managers can also use decision support technologies to rationalize their actions. It is an
overstatement to suggest that people using a DSS are more objective and rational than
managers who are not using computerized decision support.
Status reduction. Some managers argue using a Decision Support System will diminish their
status and force them to do clerical work. This perceptual problem can be a disadvantage of
implementing a DSS. Managers and IS staff who advocate building and using computerized
decision support need to deal with any status issues that may arise. This perception may or
should be less common now that computer usage is common and accepted in organizations.
Information overload. Too much information is a major problem for people and many DSS
increase the information load. Although this can be a problem, Decision Support System can
help managers organize and use information. Decision Support System can actually reduce and
manage the information load of a user. Decision Support System developers need to try to
measure the information load created by the system and Decision Support System users need to
monitor their perceptions of how much information they are receiving. The increasing ubiquity
of handheld, wireless computing devices may exacerbate this problem and disadvantage.
In conclusion, before firms will invest in the Decision Support Systems, they must compare the
advantages and disadvantages of the decision support system to get valuable investment.

Office Automation System

Office automation refers to the varied computer machinery and software used to digitally
create, collect, store, manipulate, and relay office information needed for accomplishing basic
tasks and goals. Raw data storage, electronic transfer, and the management of electronic
business information comprise the basic activities of an office automation system. Office
Automation helps in optimize or automate existing office procedures. Such systems can increase
the productivity of managerial end users and other professional and staff personnel by
significantly reducing the time and effort needed to produce, access and receive business
communications.

The backbone of office automation is a LAN, which allows users to transmit data, mail and even
voice across the network. All office functions, including dictation, typing, filing, copying, fax,
telex, microfilm and records management, telephone and telephone switchboard operations,
fall into this category. Office automation was a popular term in the 1970s and 1980s as the
desktop computer exploded onto the scene. One critical variable affecting the success in office
automation is user acceptance. No matter how technologically superior the equipment is, there
may be failure if users reject it.
An overview of office automation systems are given below:

Office publishing systems are word processing and desktop publishing systems.
Image processing systems are image processing, optical scanning and storage, document
management and interactive video systems.
Electronic communication systems are electronic meeting, tele-conferencing and
telecommunicating systems.
Office support systems are electronic calendar, ticket file, notebook, directory system, work
scheduling and task management systems. The above are described in brief:

Office Publishing Systems

Word processing – It is the use of computer systems to automate the transformation of ideas
into a readable form of communication. It involves manipulating text data to produce
information products in the form of documents (letters, memos, forms and reports).
Desktop publishing – Organization’s can use and develop publishing systems to produce their
own printed materials. They can design and print their own newsletters, manuals, brochures
and books with several types of styles and graphics and colors on each page.
Voice store and forward systems – It is also known as voice mail or structured verbal-response
exchanges. It has the capability of storing verbal data and/or communicating it to another
location. It is one of the latest systems and found useful to corporate houses and the society at
large.

Electronic Meeting systems – If electronic meeting systems are used, people may not
appreciate spending money on travel to attend meetings away from their normal work location.
It involves the use of video and audio communications to allow conferences and meetings to be
held with participants who may be scattered across a room, a building or a country.
Teleconferencing – Participants at remote sites key in their presentation and responses
whenever convenient for their online terminals or workstations which are connected to a
central conference computer. Since all participants don’t have to do this at the same time, this
form of EMS is called computer’s conferencing. Sessions are held in real time with major
participants at remote site who take part with voice input of questions and responses.
Telecommuting – It is the use of telecommunications by workers to replace commuting enabling
them to work from their homes. It is also used to describe the use of telecommunication to
carry on work activities from temporary locations other than offices and homes. Some people
consider telecommuting as the creation of virtual offices.

Multimedia – Another evolving set of technologies for systematically managing graphics,

drawings and photographs in addition to text and data are multimedia data management
systems . Some of these are called hypermedia systems.
Image Processing Systems
Image processing systems, also known as electronic image management system, allow users to
electronically capture, store, process and retrieve images of documents. Image database
management systems are becoming more versatile. The LAN-based image processing systems
are also being common, which include several servers each dedicated to a specific function.

Document Management Systems

These systems are sophisticated image processing systems. These often interface with other
office systems such as word processing, desktop publishing, electronic mail, voice mail etc.

These systems allow digitized ‘voice notes’ to be attached to specific document images and may
have other special features as well as the ability to store multi-color documents and color
photographs.

Attributes and Advantages of Office Automation Systems

It is observed that, there is rapid growth in the use of Office Automation systems from the past
few years. This growth can be attributed to the following reasons.

Value of information and information explosion

Increase in office cost and need to improve office productivity
Availability of equipment and skills
Large number of organization’s are being benefitted by office automation due to the following
advantages related to the human resource information system.

Better utilization of human resources

Improved quality of work
Efficient decision
Better service for customers
Increased organizational effectiveness
Office Automation Functions
Different offices perform the same basic functions and operations irrespective of the type and
size of the office. There can be creation of original documents and providing inputs to the
automation system from documents received outside. There is extraction of data for further
presentation as required, storing and retrieving it for subsequent reference. Additional
comments, notes and references can be helpful for decision making and duplicating the
documents for distribution. For transferring documents and communications to different
individuals, the office automation makes extensive use of data communications and networking
facilities. Another function of office automation is presentation of data either on screen for
visual inspection or in the form of printouts or in any other form required by the users.