Information Technology

For Business
Module No. 2: Subsystems of Information System
 Syllabus
 Module No. 1: Information Technology and Information System
Introduction to IT, Introduction to IS, Difference be IS and IT, Need for
Information System, Information Systems in the Enterprise, Impact of
Information Technology on Business (Business Data Processing, Intra and Inter
Organizational communication using network technology, Business process
and Knowledge process outsourcing), Managers and Activities in IS,
Importance of Information systems in decision making and strategy building,
Information systems and subsystems.
 Module No. 2: Subsystems of Information System
Transaction Processing Systems (TPS), Management Information System (MIS),
Decision Support Systems (DSS), Group Decision Support System (GDSS),
Executive Information System (EIS), Expert System (ES), Features, Process,
advantages and Disadvantages, Role of these systems in Decision making
process.
 Module No. 3: Database Management System
Introduction to Data and Information, Database, Types of Database models,
Introduction to DBMS, Difference between file management systems and DBMS,
Advantages and Disadvantages of DBMS, Data warehousing, Data mining,
Application of DBMS, Introduction to MS Access, Create Database, Create Table,
Adding Data, Forms in MS Access, Reports in MS Access.
 Module No. 4: Microsoft Excel in Business
Introduction to MS Excel, features of MS Excel, Cell reference, Format cells, Data
Validation, Protecting Sheets, Data Analysis in Excel: Sort, Filter, Conditional
Formatting, Preparing Charts, Pivot Table, What if Analysis(Goal Seek, Scenario
manager), Financial
Functions: NPV, PMT, PV,FV, Rate, IRR, DB,SLN,SYD. Logical Functions: IF, AND, OR,
Lookup Functions: V Lookup, H Lookup, Mathematical Functions, and Text
Functions.
 Module No. 5: Recent Trends in IT
Virtualization, Cloud computing, Grid Computing, Internet of Things, Green
Marketing, Artificial Intelligence, Machine Learning.
 What is an Information System?

An information system is a combination of software, hardware, and

telecommunication networks to collect useful data, especially in an
organization. So, the purpose of an information system is to turn raw data into
useful information that can be used for decision making in an organization.
Business firms and other organizations rely on information systems to carry out
and manage their operations, interact with their customers and suppliers, and
compete in the marketplace.
 Typical Components of Information Systems
 1. Hardware: Computer-based information systems use computer
hardware, such as processors,monitors, keyboard and printers.
 2. Software: These are the programs used to organize, process and
analyze data.
 3. Databases: Information systems work with data, organized into tables
and files.
 4. Network: Different elements need to be connected to each other,
especially if many different people in an organization use the same
information system.
 5. Procedures: These describe how specific data are processed and
analyzed in order to get the answers for which the information system is
designed.
 6. People: People is an important and integral part of IS.
 TYPES OF INFORMATION SYSTEM/ SUBSYSTEMS

 TPS – TRANSATION PROCESSING SYSTEM

 MIS – MANAGEMENT INFORMATION SYSTEM

 DSS - DECISION SUPPORT SYSTEM

 GDSS - GROUP DECISION SUPPORT SYSTEM

 EIS - EXECUTIVE INFORMATION SYSTEM

 ES – EXPERT SYSTEM
 TPS – TRANSACTION PROCESSING SYSTEM
 Transaction processing is a way of computing that divides work into
indivisible operations, called transactions. A transaction processing
system (TPS) is a software system, or software/hardware
combination, that supports transaction processing. A transaction
process system (TPS) is an information processing system for business
transactions involving the collection, modification and retrieval of all
transaction data.
 TPS is also known as transaction processing or real-time processing.
 Examples of users at this level of management include cashiers at a
point of sale, bank tellers, nurses in a hospital, customer care staff,
 Examples are sales order entry, hotel reservation systems, payroll,
employee record keeping, and shipping.
The following features are considered important in evaluating
transaction processing systems:
 Performance
 Continuous availability
 Data integrity
 Ease of use
 Modular growth

 Performance
Fast performance with a rapid response time is critical. Transaction
processing systems are usually measured by the number of
transactions they can process in a given period of time.
 Continuous availability
The system must be available during the time period when the users
are entering transactions. Many organizations rely heavily on their
TPS; a breakdown will disrupt operations or even stop the business.
 Data integrity
The system must be able to handle hardware or software problems
without corrupting data. Multiple users must be protected from
attempting to change the same piece of data at the same time,
For example: Two operators cannot sell the same seat on an
airplane.
 Ease of use
Often users of transaction processing systems are casual users. The
system should be simple for them to understand, protect them from
data-entry errors as much as possible, and allow them to easily
correct their errors.
 Modular growth
The system should be capable of growth at incremental costs, rather
than requiring a complete replacement. It should be possible to add,
replace, or update hardware and software components without
shutting down the system.
 Types of transaction processing

 Processing in a batch
 Processing in real-time

 Processing in a batch
Transactions may be collected and processed as in batch processing.
Transactions will be collected and later updated as a batch when it's
convenient or economical to process them. Historically, this was the
most common method as the information technology did not exist to
allow real-time processing.
 Processing in real-time
This is the immediate processing of data. It provides instant
confirmation of a transaction. It may involve a large number of users
who are simultaneously performing transactions which change data.
Because of advances in technology (such as the increase in the
speed of data transmission and larger bandwidth), real-time
updating is possible.
 Features of Transaction Processing System (TPS)

 Speed Processing
 Controlled Access
 Real Time Processing
 Batch Processing

 Speed Processing:
The speedy process of transactions is important to the success of any
enterprise, greater than ever, with the changes in technology and
client demand for immediate action. TPS’ are designed to method
transactions just about instantly to confirm that client data is out there
to process what is needed.
 Controlled Access:
Since TPS systems are often such a strong business tool, access should
be restricted to solely those workers that need their use. Limited
access to the system ensures that workers that lack the talents to
regulate it cannot influence the transaction process.
 Real Time Processing:
In several circumstances the first issue is speed, as an example, once
a bank client withdraws an amount of cash from their account it's
very important that the transaction be processed and therefore the
account balance updated as persistently as possible, permitting
each the bank and client to stay track of funds.
 Batch Processing:
Batch process could be a resource-saving group action sort that
stores knowledge for processing at pre-defined times. Batch
processing is helpful for enterprises that require to process massive
amounts of information using restricted resources.
Examples of Batch processing is MasterCard transactions, that the
transactions area unit processed monthly instead of in real time.
MasterCard transactions would solely be processed once per month
so as to provide a statement for the client, thus Batch processing
saves IT resources from having to process every transaction
separately.

Benefits of using a transaction processing system

 Increased transaction speeds
 Improved cost-efficiency
 Improved reliability
 Automated management
 Controlled access
 Historical data
 Increased transaction speeds
The response time of a TPS is important because a business cannot
afford to have their customers waiting for long periods of time before
making a transaction. TPS system are designed to process
transactions virtually instantly.

 Improved cost-efficiency
Using a TPS can help save a business money, improve the cost-
effectiveness of its transactions and store information in a database.
A TPS can potentially conduct and organize thousands of
transactions throughout the day. This can save a company money
by reducing the need to upgrade the system or employ more than
one system to meet demand.
 Improved reliability
One of the key features of transaction processing systems is reliability.
Using a TPS can ensure that you process customer transactions
quickly and accurately. A reliable TPS can also help your
organization save money on potential troubleshooting or coding
costs for malfunctioning systems.

 Automated management
A company's TPS helps automate much of its internal resource and
revenue management. By increasing automation, the TPS can
reduce the time employees spend reviewing transactions.
Automation is an important part of increasing the profitability of a
business because it offers employees more time to focus on
engaging tasks that require critical thinking.
 Controlled access
Since TPS systems can be such a powerful business tool, it must be
able to allow only authorized employees to access it at any time.
Restricted access to the system ensures that employees who have
the authority will only be able to process and control transaction.

 Historical data
TPS produces information on the historical basis. Because TPS
generate information taking into account transactions already taken
place in the organization.
 Examples of transaction processing systems (TPS)
Some examples of TPS are:-
 Online store
 Buying through credit/debit card
 Bus/railway ticket reservation
 Payroll
 Employee record-keeping

Advantages of transaction processing systems (TPS)

 1.Productivity:
By using TPS, the staff of the company increases their productivity.
Also, customers get more trust and satisfaction in the company.
 2.Fast:
The transactions are carried out in fast time and there is no delay.
The real-time transaction is also a type of TPS in which no delay in
time occurs.
 3.Low cost:
As most of the work is carried out by TPS so less staff is needed to be
hired.
 4.Large data:
TPS can process a large amount of data. There are thousands of
transactions done by the TPS on daily basis.
 5.Use anywhere:
TPS can be used anywhere you want. You can use it in organizations,
stores, banks, schools etc. Also, customers can do transactions online
from anywhere.
 6.Error recovery:
If some data is lost in the transaction, then it can be retrieved by the
TPS. The system also self-solves issues and errors are detected and
removed by the system easily.
 7.Easy to use:
Staff can easily use the TPS software and there is little or no training
required to use the TPS software. It is also user friendly.

Disadvantages of transaction processing systems

 1.Setup cost: (TPS)
The initial setup cost of TPS is high. You have to buy a license for TPS
software. Also, you need to buy computers, cameras and price
detecting devices.
 2.Incompatible:
Sometimes your software and hardware have compatibility
problems. Some hardware has drivers problems.
 3.Overload problem:
Sometimes there occurs a high number of transactions on the TPS so
it slows down the system or it stops working.
 4.High internet:
Users need to have a high internet connection to use the TPS.
 5.Standard format:
TPS lacks a standard format.
 MIS Definition

 Management Information System (MIS) is an integrated man/machine system

for providing information to hold up the operations, management and
decision making functions in an organization.-G.B. Davis
 A formal method of collecting timely information in a presentable form in
order to facilitate effective decision making and implementation, in order to
carry out organizational operations for the purpose of achieving the
organizational goals.-Walter I. Kennevan.
 MIS Meaning
 Management Information System is designed to take relatively raw data
available through a Transaction Processing System and convert them into a
summarized and aggregated form for the manager, usually in a report format.
It reports tending to be used by middle management and operational
supervisors.
 Many different types of report are produced in MIS. Some of the reports are a
summary report, on-demand report, ad-hoc reports and an exception report.
 Example: Sales management systems, Human resource management system.
 DATABASE

MIS

MANAGEMENT

INFORMATION
A Management Information System is
 An integrated user-machine system
 For providing information
 To support the operations, management, analysis, and decision-
making functions
 In an organization

 The system utilizes

 Computer hardware & software
 Manual procedures
 Models for analysis, planning, control, and decision making, and
 A database
The major components of MIS are:

 People Resources: People are required for the operation of all

information system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing
instruction.
 Hardware Resources: Include all physical devices and materials
used in information processing.
 Process: is a step undertaken to achieve a goal.
Objectives of MIS
These MIS objective are discussed below in detail.

 Data Capturing
MIS capture data from various internal and external sources of the
organization. Data capturing may be manual or through computer
terminals.
 Processing of Data
The captured data is processed to convert into the required
information. Processing of data is done by such activities as
calculating, sorting, classifying, and summarizing.
 Storage of Information
MIS stores the processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organization
record, for later use.
 Retrieval of Information
MIS retrieves information from its stores as and when required by
various users.
 Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the
users in the organization. It is periodic or online through a computer
terminal.
Requirements of Management Information System
 Database
 Qualified System and Management Staff
 Top Management Support
 Active Participation of Operating Management
 Control and Maintenance of Management Information System
The following are some of the benefits of a good MIS.

 Increased customer satisfaction

 Improved quantity and quality of information
 Improved quality and quantity management decisions
 Improved responsiveness number of the competitor’s condition
 Improved operational efficiency and flexibility
 Improved quality of internal and external communications
 Improved quality of planning
 Improved quality control and supervision
 Role of MIS
 A management information system (MIS) plays an important role in business
organizations. What is MIS role: There are many roles of MIS and some of the
important MIS role are discussed below:

 1. Decision making
 2. Coordination among the department
 3. Finding out Problems
 4. Comparison of Business Performance
 5. Strategies for an Organization
 Decision making
Management Information System (MIS) plays a significant role in the
decision-making process of any organization. In any organization, a
decision is made on the basis of relevant information which can be
retrieved from the MIS.
 Coordination among the department
Management Information System satisfy multiple need of an
organization across the different functional department.
 Finding out Problems
As we know that MIS provides relevant information about every
aspect of activities. Hence, if any mistake is made by the
management then MIS, information will help in finding out the
solution to that problem.
 Comparison of Business Performance
MIS store all past data and information in its Database. That why the
management information system is very useful to compare business
organization performance.
 Strategies for an Organization
Today each business is running in a competitive market. An MIS
supports the organization to evolve appropriate strategies for the
business to assent in a competitive environment.
 Advantages of Management Information
systems
 1. Improved decision making: The first and foremost advantage of MIS
is that it facilitates managers in effective decision making. It is a
computerized system which supplies all relevant information to
managers in timely manner.

 2. Fast data processing and information retrieval: This is one of crucial

role played by the computerized information system. Businesses are
able to convert raw data into a meaningful piece of information at a
faster rate. It results in providing quality services to customers/clients.
 3. Eliminates data duplication: MIS designs database systems in a
way where duplication of data can be minimized to maximum
possible level. Whenever a data is uploaded in one department, it
automatically become available to other departments also.

 4. Improved data accuracy: Implementation of data validation

and verification checks is quite easier in computerized information
system as compared to manual system. This way it ensures more
accuracy of data stored on company’s database.
 Disadvantages of Management Information
systems
 1. Quite expensive to setup and configure: Major disadvantage in MIS
is that an organization need to incur huge expenses in order to
implement this system. There is a requirement of lots of hardware
devices as well as software for running this information system.
 2. Risk of fraud: It is must to ensure proper controls and checks at
every point of transaction. In case of any lapse, there may be some
risky instances like intruder posting unauthorized transactions like
invoice for products which were never delivered etc.
 3. Heavy reliance on technology: There is a large dependence upon
technology in computerized information system. In case of any failure
to hardware or software, the information cannot be accessed until
the needed software or hardware gets replaced.
 3. Training of Employee
Employees should have the capacity of learning of the information
system with the changing competitive and business environment;
otherwise it will be difficult for the organization to stay in the market.
 4. Maintenance Cost
Sometimes a problem arises due to server crash and website crash.
Sometimes it leads to the loss of information. So, maintenance cost is
needed to tackle the above problem.

 While MIS may solve some critical problems but it is not a solution to
all problems of an organization.
 It cannot meet the special demands of each person.
 MIS if designed in an improper manner does not serve the
management and hence is of little relevance.
 The MIS is not good if the basic data is obsolete and outdated.
 What is a Decision Support System (DSS)?

A decision support system (DSS) is an information system that aids a

business in decision-making activities that require judgment,
determination, and a sequence of actions. The information system assists
the mid- and high-level management of an organization by analyzing
huge volumes of unstructured data and accumulating information that
can help to solve problems and help in decision-making. A DSS is either
human-powered, automated, or a combination of both.
 Purpose of a Decision Support System
 A decision support system produces detailed information reports by
gathering and analyzing data. Hence, a DSS is different from a normal
operations application, whose goal is to collect data and not analyze
it.

 In an organization, a DSS is used by the planning departments – such

as the operations department – which collects data and creates a
report that can be used by managers for decision-making. Mainly, a
DSS is used in sales projection, for inventory and operations-related
data, and to present information to customers in an easy-to-
understand manner.
 Theoretically, a DSS can be employed in various knowledge domains
from an organization to forest management and the medical field.
One of the main applications of a DSS in an organization is real-time
reporting. It can be very helpful for organizations that take part in just-
in-time (JIT) inventory management.

 In a JIT( Just In Time) inventory system, the organization requires real-

time data of their inventory levels to place orders “just in time” to
prevent delays in production and cause a negative domino effect.
Therefore, a DSS is more tailored to the individual or organization
making the decision than a traditional system.
 Advantages of a Decision Support System

 A decision support system increases the speed and efficiency of

decision-making activities. It is possible, as a DSS can collect and
analyze real-time data.
 It promotes training within the organization, as specific skills must be
developed to implement and run a DSS within an organization.
 It automates monotonous managerial processes, which means more
of the manager’s time can be spent on decision-making.
 It improves interpersonal communication within the organization.
Just-in-Time
 Features of Decision Support System
 1. Performs Complex, Sophisticated Analysis and Comparisons Using
Advanced Software Packages -
There are several programs (part of DSS) used by various methods that
analyze the raw data.
 2. Provides Report and Presentation Flexibility -
This information gathered with the help of DSS may be displayed on the
computer screen or can be printed according to the need of the
decision makers. Managers get access to different kinds of reports in
formats that fit to their requirement.
 3. Provides Rapid Access to Information -
Continuous and Rapid access of information is offered by DSS.
For example : The meters on the dashboard of a vehicle are used to
keep a watch on how thevehicle is running.
 4. Supports Drill-Down Analysis -
DSS helps the manager in going through details of the project by
drilling down through data.
For example : When reviewing the total project cost, the manager can
easily break it down to estimate the cost for each phase, activity or
task.
 5. Handles Large Amounts of Data from Different Sources -
DSS has the ability to accumulated data from different databases
which are stored on different computer systems or networks. It can
also source data from the internet.
 6. Offers both Textual and Graphical Orientation -
DSS can produce information in a wide variety of text and graphics
such as plain texts, tables, Pie Charts, Trends Lines, line drawings etc.
All of these provide a better understanding of a situation to managers
and help them to communicate the same to others.
 Advantages of Decision Support System
 1. Facilitating Communication -
DSS helps in indicating when a particular action should be adopted in
future or why a particular action was acceptable in the past. The DSS
facilitates interpersonal communication and hence it is used as a tool for
benefit of business

 2. Increasing Organisational Control -

DSS control this information, which is in turn used by the managers in
assessing the productivity of an individual in the quantity and quality of
their decision making ability. Some DSS can evaluate the individual's
decision making skills.
 3. Improving Personal Efficiency -
DSS aids in improving personal efficiency. Although it does not do any
work in actual but it aids in doing any work a bit faster and with
greater efficiency.
For example : Budgets where earlier prepared manually before
spreadsheets software was discovered but DSS helps to make work
faster with less changes of error.
 4. Promoting Learning or Training -
DSS helps people to learn more about computer and software
packages that are present in it. Although, this was never the motive of
DSS but it promotes learning as well.
 5. Improving Problem Solving -
DSS helps a personal or a group of people in solving problem at a
much faster pace with accuracy. When probably applied, it increases
the efficiency of a task. It aids in solving the problem as a whole.
 Disadvantages of Decision Support System
 The cost to develop and implement a DSS is a huge capital
investment, which makes it less accessible to smaller organizations.
 A company can develop a dependence on a DSS, as it is integrated
into daily decision-making processes to improve efficiency and
speed. However, managers tend to rely on the system too much,
which takes away the subjectivity aspect of decision-making.
 A DSS may lead to information overload because an information
system tends to consider all aspects of a problem. It creates a
dilemma for end-users, as they are left with multiple choices.
 Implementation of a DSS can cause fear and backlash from lower-
level employees. Many of them are not comfortable with new
technology and are afraid of losing their jobs to technology.
 The Role of Decision Support System in
Decision Making
1. Common Day-to-Day Decision Support System Examples
 Decision support systems operate at many levels, and there are many
examples in common day-to-day use. For example, GPS route
planning determines the fastest and best route between two points by
analyzing and comparing multiple possible options. Many GPS systems
also include traffic avoidance capabilities that monitor traffic
conditions in real time, allowing motorists to avoid congestion.
 Farmers use crop-planning tools to determine the best time to plant,
fertilize and reap. Medical diagnosis software that allows medical
personnel to diagnose illnesses is another example. Most systems share
a common attribute in that decisions are repetitive and based on
known data. However, they aren't infallible and may make incorrect
or irrational decisions, something many early GPS users discovered.
 2. Decision Support System Use Historical Data
Historical data analysis, used in every facet of business and life, is well-
developed and mature. Although such information is not always
directly actionable, it's an important part of DSS because it reports
past performance and highlights areas that need attention. Some
examples include:
 Descriptive analytics: Metrics such as sales results, inventory turnover
and revenue growth.
 Diagnostic analytics: Diagnostic information that digs a bit deeper
to reveal results and explains reasons for past performance as
measured by descriptive analytics.
 Business intelligence (BI): Although largely based on historical data,
BI solutions allow users to develop and run queries that are used to
guide and support decision-making.
 3. Manual and Hybrid Decision Support System
 Numerous manual techniques exist that support decision-making.
These include activities such as the SWOT analysis where teams
determine their organization's strengths and weaknesses as well as
identifying threats facing the organization and potential
opportunities for further growth. The outcomes of a SWOT analysis
are actionable decisions for moving the organization forward. Other
manual tools include decision matrices, Pareto analysis and cost
benefit analyses.
 Hybrid DSS solutions include the use of spreadsheet analyses that
tap into the capability of Excel to compute, analyze, compare
options and evaluate what-if scenarios.
 4. DSS Software that Helps Predict Future Trends
 While it's essential to understand what happened in the past, and
why it happened, this knowledge is of limited use when trying to
predict the future, except possibly in very stable and predictable
environments. However, this is hardly ever the case. Fortunately,
techniques exist that make it possible to predict, with a degree of
certainty, future trends and changes which will impact a company
or business.
For example, these tools can predict, based on past performance,
external data and market feedback, figures for future product
demand, product obsolescence and returns.
Group Decision Support System (GDSS)
(GDSS) (DSS)
 What is Group Decision Support System
(GDSS):
 GDSS is the abbreviation for Group Decision Support System. It is a
system that supports decision-making and has been designed and
structured in such a way so that the members constituting a group
can interact with each other to arrive at a particular decision. It
provides support for various group decision-making activities such as
file sharing, integration of the individual opinions with that of the
group, communication, modelling of group actions and any other
action which requires interaction of the group members.
 The decision support systems that have been mentioned till now
facilitate a single person to take decisions by providing computerized
support. These decisions fall into the unstructured or semi-structured
category. Most of the decisions that have to be taken in the
organization are generally a group effort rather than taken by a single
person.
 Features of Group Decision Support System
(GDSS):
 1) Ease of Use : It consists of an interactive interface that makes
working with GDSS simple and easy.

 2) Better Decision Making : It provides the conference room setting

and various software tools that facilitate users at different locations to
make decisions as a group resulting in better decisions.

 3) Specific and General Support : The facilitator controls the different

phases of the group decision support system meeting (idea
generation, discussion, voting and vote counting, etc.) what is
displayed on the central screen and the type of ranking and voting
that takes place, etc. In addition, the facilitator also provides general
support to the group and helps them to use the system.
 Continued….

 4) Supports all Phases of the Decision Making : It can support all the
four phases of decision making, viz intelligence, design, choice, and
implementation.
 5) Supports Positive Group Behavior : In a group meeting, as
participants can share their ideas more openly without the fear of
being criticized, they display more positive group behavior towards
the subject matter of the meeting.
 Advantages of Group Decision Support System
(GDSS):
 1) More Information in Less Time :
It is possible to gather huge amount of information in a very short time
period as GDSS facilitates the members of the team to work parallel.

 2) Greater Participation :
The risks associated with conformity pressure and groupthink is greatly
decreased when the members of the group work in a GDSS because
the members are able to express their thoughts freely. This is due to the
anonymity feature extended by GDSS.
 Continued….

 3) More Structured :
In a GDSS environment the discussions are much more concentrated
and focused. Irrelevant degradations are greatly reduced.
 4) Automated Documentation :
Comments are preserved forever and the system provides the result
without any delay. Excellent graphics makes viewing more attractive.
 Disadvantages of Group Decision Support
System.
 1) Cost : A significant amount of cost may be associated with putting
up the infrastructure consisting of the room, network connectivity and
the software.
 2) Security : There are chances that information gets leaked to the
peers by a low level employee.
 3) Technical Failure :The system must be properly implemented to
reduce the risk associated with loss of connectivity and power loss. It is
highly dependent on LAN/WAN infrastructure and bandwidth.
 4) Less Participation : If the members get frustrated they might
participate less.
 5) Training Expense :There is variation in the learning curve of the user
in various situations.
 Continued….

 6) Keyboarding Skills : If the members get frustrated they might

participate less.
 7) Perception of Messages : Miss interpretations may occur in case the
members communicate less verbally.
 Components of Group Decision Support
System (GDSS) :
 A group decision support system (GDSS) is composed of 3 main
components, namely hardware, software tools, and people.

 1) Hardware :
It includes electronic hardware like the computer, equipment used for
networking, electronic display boards and audiovisual equipment. It also
includes the conference facility, including the physical set up – the
room, the tables, and the chairs – laid out in such a manner that they
can support group discussion and teamwork.
 2) Software Tools :
It includes various tools and techniques, such as electronic
questionnaires, electronic brainstorming tools, idea organizers, tools for
setting priority, policy formation tool, etc. The use of these software
tools in a group meeting helps the group decision-makers to plan,
organize ideas, gather information, establish priorities, take decisions
and document the meeting proceedings. As a result, meetings
become more productive.
 3) People :
It compromises the members participating in the meeting, a trained
facilitator who helps with the proceedings of the meeting, and an
expert staff to support the hardware and software. The GDSS
components together provide a favorable environment for carrying
out group meetings.
Executive Information System (EIS)
 Executive Information System

 Executive Information System: EIS is an information system based on

computer which generally serves the information needs of the top
level management of an organization. Check Complete details for EIS
System like – What is Executive Information System?, Components of
Executive Information System, Advantages of Executive Information
System, Application of Executive Information System etc. Now scroll
down below n check more details for “Executive Information System”
 What is Executive Information System?

 Users can extract much needed information without the hardship to

learn complex query language or any difficult formulae. It enables the
users to get information on time without any delay. It enables users to
have access to management reports.
 EIS system is very fast. It is capable of accessing both internal as well
as external data. EIS basically provides various online options with
which the report analysis can be done in detail. EIS provides its users
with drill down facility and reporting tools. EIS can also be used to
make decision just like Decision Support System. EIS helps
management to monitor performance of the organization and thus
helps organization to achieve its goals and objectives in the long run.
With the introduction of Artificial Intelligence, EIS has lost its
importance to a little extent.
 HOW AN EIS SHOULD BE?

 EIS should be very easy to understand so that the users do not get
confused while using it. A user friendly EIS can help management to
save time and collect information rather easily.
 EIS should be such that it helps in achieving organizational objective.
EIS data should clearly reflect objectives of the organization in various
core fields of the organization.
 EIS should be such that it encourages staff & management to work
towards growth of the organization.
 EIS must be such that it meets the changing needs of the
organization.
 EIS should help to reduce the workload of the top management and
staff.
 Confidential Information should not become part of the EIS.
 COMPONENTS OF EIS

 USER INTERFACE: User Interface allows the users to communicate with

the EIS. User interface must be easy to use and understand. Users
should not be required to understand the complex query languages
and other mathematical or statistical formulas.
 HARDWARE: Hardware refers to devices by which users give input,
data processing and the output is received. Users may give input via
keyboard and mouse and CPU may be used for processing and
output may be received on monitor or from printer.
 SOFTWARE: Software is required for various calculations, providing
graphical view to the management, storing data in the form of
Information, etc. Software allows user to get information in the form it
is actually required.
 Continued…
 TELECOMMUNICATION: In today’s world the most important thing is
communication. Users may require transferring information from one
point to another point. The information might be a little confidential in
nature. The secrecy of the information should be well maintained.
 APPLICATIONS OF EIS

 MANUFACTURING: It determines whether a process is running

correctly or not. It helps in ensuring proper quality control of finished
goods. It measures the actual process time and compares with the
standard time required for the process. It provides management with
daily production report, daily consumption report, safety stock report,
economic order quantity, etc.
 FINANCIAL: Every organization needs to ensure financial activities are
running sound. EIS may help to analyze whether payment has been
realized from creditors within stipulated period of time. It can help
management in managing various other sources of finance.
 ACCOUNTING: It helps in proper accounting and disbursement of
accounting functions.
 ADVANTAGES OF EIS
 EIS is easy for use and saves time of the top level management of the
organization.
 EIS provide access to timely information in a rapid manner.
 EIS provides extensive online analysis tools.
 EIS can easily be given a DSS support.
 DISADVANTAGES OF EIS
 System dependent
 Information overload for some managers
 High implementation costs
 System may become slow, large, and hard to manage
 Need good internal processes for data management
 May lead to less reliable and less secure data
 Experts System
 An expert system is an advanced computer application that is
implemented for the purpose of providing solutions to complex
problems, or to clarify uncertainties through the use of non-algorithmic
programs where normally human expertise will be needed. Expert
systems are most common in complex problem domain and are
considered as widely used alternatives in searching for solutions that
requires the existence of specific human expertise.
 The expert system is also able to justify its provided solutions based on
the knowledge and data from past users. Normally expert systems are
used in making business marketing strategic decisions, analyzing the
performance of real time systems, configuring computers and perform
many other functions which normally would require the existence of
human expertise.
 The Advantages of Using Expert System
 Expert system has been reliably used in the business world to gain
tactical advantages and forecast the market’s condition. In this
globalization era where every decision made in the business world is
critical for success, the assistance provided from an expert system is
undoubtedly essential and highly reliable for an organization to
succeed. Examples given below will be the advantages for the
implementation of an expert system in business:

 1. Providing consistent solutions – It can provide consistent answers for

repetitive decisions, processes and tasks. As long as the rule base in
the system remains the same, regardless of how many times similar
problems are being tested, the final conclusions drawn will remain the
same.
 2. Provides reasonable explanations – It has the ability to clarify the
reasons why the conclusion was drawn and be why it is considered
as the most logical choice among other alternatives. If there are
any doubts in concluding a certain problem, it will prompt some
questions for users to answer in order to process the logical
conclusion.
 3. Overcome human limitations – It does not have human limitations
and can work around the clock continuously. Users will be able to
frequently use it in seeking solutions. The knowledge of experts is an
invaluable asset for the company. It can store the knowledge and
use it as long as the organization needs.
 4. Easy to adapt to new conditions – Unlike humans who often have
troubles in adapting in new environments, an expert system has
high adaptability and can meet new requirements in a short period
of time. It also can capture new knowledge from an expert and use
it as inference rules to solve new problems.
 The Disadvantages of Using Expert System
 Although the expert system does provide many significant
advantages, it does have its drawbacks as well. Examples given
below will be the disadvantages for the implementation of an expert
system in business:
 1. Lacks common sense – It lacks common sense needed in some
decision making since all the decisions made are based on the
inference rules set in the system. It also cannot make creative and
innovative responses as human experts would in unusual
circumstances.
 2. High implementation and maintenance cost – The implementation
of an expert system in business will be a financial burden for smaller
organizations since it has high development cost as well as the
subsequent recurring costs to upgrade the system to adapt in new
environment.
 3. Difficulty in creating inference rules – Domain experts will not be
able to always explain their logic and reasoning needed for the
knowledge engineering process. Hence, the task of codifying out
the knowledge is highly complex and may require high
 4. May provide wrong solutions – It is not error-free. There may be
errors occurred in the processing due to some logic mistakes made
in the knowledge base, which it will then provide the wrong
solutions.