MIS #3

Syllabus

Management Information & Decision Support Systems

Management Information Systems –
Expert Systems Examples,
Executive Information Systems
Artificial Intelligence Technologies.

1 Paleri/55
What is DSS?
 A DSS is a computer-based information system that

supports business or organizational decision-making

activities.
A DSS is a collection of integrated software applications

and hardware that form the backbone of an organization’s

decision making process and help to make decisions, which
may be rapidly changing and not easily specified in
advance.
Decision support systems (DSS) are interactive
software-based systems intended to help managers in
decision-making by accessing large volumes of
information generated from various related
information systems involved in organizational
business processes, such as office automation system,
transaction processing system, etc
For example, one of the DSS applications is the
management and development of complex anti-
terrorism systems. Other examples include a bank
loan officer verifying the credit of a loan applicant
 Haettenschwiler’s classification according to
Relationship with User

1. Passive DSS : A passive DSS is a system that aids the process of

decision making, but that cannot bring out explicit decision
suggestions or solutions.

2. Active DSS : An active DSS can bring out such explicit decision
suggestions or solutions.

3. Cooperative DSS : A cooperative DSS allows the decision maker to

modify, complete, or refine the decision suggestions provided by
the system, before sending them back to the system for validation.
Types Of DSS
There are a number of decision support systems. These can be
categorized into five types:
1. communication driven DSS
A communication driven DSS supports more than one person
working on a shared task. Many collaborators work together
to come up with a series of decision to set in motion a
solution or strategy. Most communications driven DSSs are
targeted at internal teams, including partners. The most
commons technology used to deploy the DSS is a web or a
client server. In general, groupware, bulletin boards, audio
and video conferencing are the primary technologies for
communication driven decision support.
2.Data driven DSS model puts its
emphasis on collected data that is then manipulated to
fit the decision maker’s needs. This data can be
internal, external and in a variety of formats..
 3.Document driven DSSs
Document-Driven DSS is focused on the retrieval and
management of unstructured documents. Documents can
take many forms, but can be broken down into three
categories Oral, written, and video. Examples of oral
documents are conversations that are transcribed; video
can be news clips, or television commercials; written
documents can be written reports, catalogs, letters from
customers, memos, and even e-mail.
Knowledge driven DSSs
A knowledge-driven DSS. is a computer-based
reasoning system. that provides information,
comprehension and suggestions to users. to support
them in decision-making. It’s an integration of
computerized business intelligence tools and
technologies customized to the needs and requirements
of an organization. So, the focus is on
Model driven DSS
Model-driven DSS include computerized systems that
use accounting and financial models, representational
models, and/or optimization models to assist in
decision-making. ... Model-driven DSS use data and
parameters provided by decision-makers to help in
analyzing a situation.
The following is my list of the characteristics
of a DSS
DSS facilitate and support specific decision-making
activities and/or decision processes.
Support for decision makers in semi structured and
unstructured problems.
Support managers at all levels.
Support individuals and groups.
Support for interdependent or sequential decisions.
Support intelligence, design, choice, and
implementation.
 Support variety of decision processes and styles
DSS Objectives
1. Increase the effectiveness of the managers decision-
making process.

2. Supports the manager in the decision-making

process but does not replace it.

3. Improve the directors effectiveness of decision

making.
DSS Components
1. Inputs : Factors, numbers, and characteristics to analyze.

2. User Knowledge and Expertise : Inputs requiring manual

analysis by the user.

3. Outputs : Transformed data from which DSS "decisions"

are generated.

4. Decisions : Results generated by the DSS based on user

criteria.
DSS Advantages
 Time savings
 Enhance effectiveness
 Improve interpersonal communication
 Competitive advantage
 Cost reduction
 Increase decision maker satisfaction
 Promote learning
 Improves personal efficiency
DSS Disadvantages
 Monetary cost.
 Information Overload.
 Too much Dependence on DSS:.
 Overemphasis on Decision Making
Management information and decision support systems

MIS is a type of link that assists in the communication between managers

of various disciplines in a business firm or an organisation. On the whole it
plays a very important role in building up communication among the
corporate people.
DSS on the other hand is an improvement of the concept of MIS. It is true
that both of them differ in terms of their focus. DSS focuses more on
leadership.On the other hand MIS focuses more on the information gathered
and the information that has poured from different quarters.
Experts on managerial behavior say that DSS focuses

more on decision making. MIS on the other hand focuses

more on planning the report of various topics concerned with
the organisation that would assist the managers to take vital
decisions pertaining to the functioning of the organization.

One of the exact differences between MIS and DSS is that

MIS focuses on operational efficiency whereas DSS focuses

more on making effective decision or, in other words, guiding
the company to do the right thing.
In the case of DSS the report can be flexible whereas in

the case of MIS the report is usually not flexible.

MIS is characterized by an input of large volume of

data, an output of summary reports and process

characterized by a simple model. On the other hand DSS

is featured by an input of low volume of data, an output of

decision analysis and a process characterized by

interactive model.
Experts would also say that MIS is a primary level of

decision making whereas DSS is the ultimate and the

main part of the decision. This is one of the most

talked about different between the two.

As a matter of fact MIS is all about theory whereas

DSS is all about practice and analysis. An organisation

should employ both the systems effectively.

20 Paleri/55
EXPERT SYSTEM
Expert System
“..An intelligent computer program that uses
knowledge and inference procedures to solve problems
that are difficult enough to require significant human
expertise for their solution..” (Feigenbaum 1982)
“A system that uses human knowledge captured in a

computer to solve problems that ordinarily require

human expertise” - (Turban & Aronson, 2001).

“A computer program designed to model the problem

solving ability of a human expert” (Durkin, 1994).

Components
 Knowledge base

 Knowledge representation

 Inference Engine

 User Interface
Expert systems
Who is involved..?
ADVANTAGES
COSISTENT: it provides consistent answer for repetitive

decisions, processes and tasks

MAINTAINS: it holds and maintain levels of information

CLARIFY: it clarify the logic of decision making

NO HUMAN NEED: it cannot needs human, it works

continuously
MULTIUSER: a multi user expert system can serve more

users at a time
DIS-ADVANTAGES
SENSE: it lacks common sense needed in decision making

CREATIVENESS: it cannot respond creatively like a

human expert would in unusual circumstances

ERRORS: in knowledge base errors may occur and this

leads wrong decisions

ENVIRONMENTS: if knowledge base is changed it cannot

adapt changing environments

MEDICAL FIELD
Executive Information System
An executive information system (EIS), also known

as an executive support system (ESS), is a type of

management information system that facilitates and
supports senior executive information and decision-
making needs. It provides easy access to internal and
external information relevant to organizational goals.
An Executive Information System (EIS) is a kind of
decision support system (DSS) used in organizations to
help executives in decision making. It does so by
providing easy access to important data needed in an
organization to achieve strategic goals. An EIS usually
has graphical displays on a user-friendly interface
Executive information systems can be used for monitoring
company performance in many different types of
organizations as well as for identifying opportunities and
problems.
Early executive information systems were developed on
mainframe computers as computer-based programs to
provide the description, sales performance and/or market
research data for senior executives of a company.
Executives, however, were not all literate or confident
about the computers. Also, EIS data endorsed only
executive-level decisions that did not necessarily support
the entire company or enterprise.
Current EIS data is available on local area networks
(LANs) throughout the company or enterprise,
facilitated by personal computers and workstations.
Employees can access company data to help make
decisions in their workplaces, departments, divisions,
etc. This enables employees to provide relevant
information and ideas above and below the level of
their company.
Executive support systems are intended to be used
directly by senior managers to support unscheduled
strategic management decisions. Often such
information is external, unstructured and even
uncertain. Often, the exact scope and context of such
information are not known in advance.
This information is based on data,
 Business intelligence
 Financial intelligence
 Data with technology support to analyze
 The Role of ESS in the Organization: As technology
advances, ESS are able to link data from various sources
both internal and external to provide the amount and kind
of information executives find useful.
They are commonly integrated with operational systems,

giving managers the facility to drill down to find out

further information on a problem. It usually allows
summary over the entire organization. Thus they described
as an MIS for executive use.
What Exactly is an EIS?
An EIS is a special type of DSS designed to support decision

making at the top level of an organization.

An EIS may help a CEO to get an accurate picture of overall

operations, and a summary of what competitors are doing.

These systems are generally easy to operate and present

information in ways easy to quickly absorb (graphs, charts,

etc.).
key characterisitics of EIS,
Detailed data – EIS provides absolute data from its
existing database.
Integrate external and internal data – EIS integrates
integrate external and internal data. The external data
collected from various sources.
Presenting information – EIS represents available data in
graphical form which helps to analyze it easily.
Trend analysis – EIS helps executives of the
organizations to data prediction based on trend data.
Easy to use – It is a very simplest system to use
Advantages of EIS
Trend Analysis
Improvement of corporate performance in the marketplace
Development of managerial leadership skills
Improves decision-making
Simple to use by senior executives
Better reporting method
Improved office efficiency
Disadvantage of EIS
Due to technical functions, not to easy to use by
everyone
Executives may encounter overload of information
Difficult to manage database due to the large size of
data
Excessive costs for small business organizations
LEVELS OF MANAGEMENT
Artificial Intelligence (AI)
What Is Artificial Intelligence (AI)?

Artificial intelligence (AI) refers to the simulation of

human intelligence in machines that are programmed to
think like humans and mimic their actions. The term may
also be applied to any machine that exhibits traits
associated with a human mind such as learning and
problem-solving.
Artificial intelligence is based on the
principle that human intelligence can be
defined in a way that a machine can easily
mimic it and execute tasks, from the most
simple to those that are even more complex.
The goals of artificial intelligence include
learning, reasoning, and perception
Applications of Artificial Intelligence
The applications for artificial intelligence are
endless. The technology can be applied to
many different sectors and industries. AI is
being tested and used in the healthcare
industry for dosing drugs and different
treatment in patients, and for surgical
procedures in the operating room
examples of machines with artificial
intelligence include computers that play
chess and self-driving cars. Each of these
machines must weigh the consequences of
any action they take, as each action will
impact the end result. In chess, the end result
is winning the game. For self-driving cars,
the computer system must account for all
external data and compute it to act in a way
that prevents a collision.
Artificial intelligence also has applications in
the financial industry, where it is used to
detect and flag activity in banking and finance
such as unusual debit card usage and large
account deposits—all of which help a bank's
fraud department. Applications for AI are also
being used to help streamline and make
trading easier. This is done by making supply,
demand, and pricing of securities easier to
estimate.
Categorization of Artificial Intelligence
Artificial intelligence can be divided into two
different categories: weak and strong. 
Weak artificial intelligence embodies a system
designed to carry out one particular job. Weak
AI systems include video games such as the
chess example from above and personal
assistants such as Amazon's Alexa and Apple's
Siri. You ask the assistant a question, it
answers it for you.
Strong artificial intelligence systems are systems
that carry on the tasks considered to be human-
like. These tend to be more complex and
complicated systems. They are programmed to
handle situations in which they may be required
to problem solve without having a person
intervene. These kinds of systems can be found
in applications like self-driving cars or in
hospital operating rooms.
Top Technologies used in Artificial Intelligence
1. Natural Language Generation
AI converts the data into a readable form allow the system to interact ideas with
perfect accuracy. It is widely used in customer services to generate reports and pull
market data.
2. Speech Recognition
Siri is the best example of speech recognition which understands and interacts with
the voice response of human language by mobile apps.
3. Virtual Agents
The Chatbot is a suitable example that is programmed to interact with a human.
4. Machine Learning Platform
The main aim is to develop techniques that enable the computer to learn. They are
currently developed for prediction and acts as an audience management tool. It is
most profitable for digital marketing.
5. AI Optimized Hardware
The new graphics and processing unit are designed and developed to perform
Artificial Intelligent oriented tasks.
6. Decision Management
Intelligent machines are designed to frame new rules and logic to AI systems for
setting up, prolonged maintenance and optimum tuning and make you run a
profitable organization.
7. Deep Learning Platform
It is mainly used for classification and pattern recognition for large scale data.
Type 1 – Based on Functionality
1. Reactive Machine
They are the most basic and oldest type of Artificial Intelligence. They
replicate a human’s ability to react to different kinds of stimuli. This type of
AI has no memory power so they lack the capability to use previously gained
information/experience to obtain better results Therefore these kinds of AI
don’t have the ability to train themselves like the ones we come across
nowadays
Example: Deep Blue, IBM’s chess-playing supercomputer, is the perfect
example of these kinds of machine
2. Limited Theory
These type of AI, along with the ability of Reactive Machines, have memory
capabilities so they can use past information/experience to make better future
decisions. Most of the common applications existing around us fall under this
category. These AI applications can be trained by a large volume of training data
which they store in their memory in the form of a reference model.
Example: Limited Memory technology is used in many self-driving cars use.
They store data like GPS location, speed of nearby cars, size /nature of
obstructions among a hundred other kinds of data to drive just like a human does.
3. Theory of Mind
Theory of Mind is the next level of AI, which has very limited to no
presence in our day to day lives. These kind of AI are mostly in the “Work
in Progress” stage and are usually confined to research labs. These kinds of
AI once developed will have a very deep understating of human minds
ranging from their needs, likes, emotions, thought process, etc. Basis their
understanding of Human minds and their whims the AI will be able to alter
its own response.
Example: Researcher Winston in his research showed a prototype of a robot
which can walk down the small corridor with other robots coming from the
opposite direction, the AI can foresee other robots movements and can turn
right, left or any other way so as to avoid a possible collision with the
incoming robots. As per Wilson, this Robot determines its action based on
its “common sense” of how other robots will move.
4. Self-Aware AI
This is the final stage of AI. Its current existence is only hypothetical and can
be found only in Science fiction movies. These kinds of AI can not only
understand and evoke human emotions but can also have emotions of its own.
These kind of AI are decades if not centuries away from materializing. It is this
kind of AI which AI skeptics like Elon Musk are wary of. This is because once
it is self-aware, the AI can get into Self-Preservation mode it might consider
humanity as a potential threat and may directly or indirectly pursue endeavor
to end humanity.
Type 2 – Based on Capabilities
1. Artificial Narrow Intelligence (ANI)
All the existing AI applications which we see around us falls under this category.
ANI includes an AI system that can perform narrowly defined specific tasks just like
humans. However these machines cannot perform tasks for which it was not
programmed before-hand, so they fail at performing unprecedented task. Based on
the classification mentioned above, this system is the combination of all reactive and
limited memory AI. AI algorithms which we use in today’s world for performing
most complex Prediction Modelling falls under this category of AI
2. Artificial General Intelligence (ANI)
AGI has the capability to train, learn, understand and perform functions just like a
normal human does. These systems will have multi-functional capabilities cutting
across different domains. These systems will be more agile and will react and
improvise just like humans while facing unprecedented scenarios. There is no real-
world example of this kind of AI but good amount of progress has been made in
this field.
3. Artificial Super Intelligence (ASI)
Artificial Super Intelligence will be the top-most point of AI development. ASI will be
the most potent form of intelligence to ever exist on this planet. It will be able to
perform all the tasks better than humans because of their inordinately superior data
processing, memory, and decision-making ability. Some of the researchers fear that the
advent of ASI will ultimately result in “Technological Singularity”. It is a hypothetical
situation in which the growth in technology will reach an uncontrollable stage which
will result in an unimaginable change in Human Civilization.