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Ch.3 Introduction To Various Information Systems3.1. Business information systems

Information Systems Support for Organization Employees Office automation systems Functional area information systems Business intelligence systems Expert Systems Dashboards

Why are Information Systems Important to Organizations & Society It will reduce the number of middle managers. It will change the manager’s job. It impacts employees at work. It provides quality-of-life improvements.

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Ch.3 Introduction To Various Information Systems3.2. Introduction To Various Information Systems

3.2.1. Transaction Processing SystemA Transaction Processing System or Transaction Processing Monitor is a set of information which processes a data transaction in a database system that monitors transaction programs (a special kind of program). The essence of a transaction program is that it manages data that must be left in a consistent state. E.g. if an electronic payment is made, the amount must be both withdrawn from one account and added to the other; it cannot complete only one of those steps.

Features of TPS:

Rapid response: Fast performance with a rapid response time is critical. Businesses cannot afford to have customers waiting for a TPS to respond, the turnaround time from the input of the transaction to the production for the output must be a few seconds or less.

Reliability: Many organizations rely heavily on their TPS; a breakdown will disrupt operations or even stop the business. For a TPS to be effective its failure rate must be very low. If a TPS does fail, then quick and accurate recovery must be possible. This makes well–designed backup and recovery procedures essential.

Inflexibility: A TPS wants every transaction to be processed in the same way regardless of the user, the customer or the time for day. If a TPS were flexible, there would be too many opportunities for non-standard operations, for example, a commercial airline needs to consistently accept airline reservations from a range of travel agents, accepting different transactions data from different travel agents would be a problem.

Controlled processing: The processing in a TPS must support an organization's operations. For example if an organization allocates roles and responsibilities to particular employees, then the TPS should enforce and maintain this requirement.

3.2.2. Work Flow Systems

A workflow consists of a sequence of connected steps. It is a description of a sequence of operations, declared as work of a person, a group of persons, an organization of staff, or one or more simple or complex mechanisms. Workflow may be seen as any abstraction of real work, segregated in work share, work split or other types of ordering. For control purposes, workflow may be a view on real work under a chosen aspect, thus serving as a virtual representation of actual work. The flow being described often refers to a document that is being transferred from one step to another.

A workflow is a model to represent real work for further assessment, e.g., for describing a reliably repeatable sequence of operations. More abstractly, a workflow is a pattern of activity enabled by a systematic organization of resources, defined roles and mass, energy and information flows, into a work process that can be documented and learned. Workflows are designed to achieve processing intents of some sort, such as physical transformation, service provision, or information processing.SYBBA (SEM IV) Prepared By: Payal Chauhan 2

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Ch.3 Introduction To Various Information SystemsThe term workflow is used in computer programming to capture and develop human-to-machine interaction.

Workflow systems are now also being used more and more to help the biotechnology, pharmaceutical and chemical industries manage the vast quantities of data that pass through many stages of processing and analysis. Data that may be captured in the field with handheld devices needs to be fed into the pipeline so that calculations can be performed and reports generated. Information on individual samples must pass between scientists and support staff with different roles (such as quality control, curation and analysis). A workflow system to co-ordinate the whole process can ensure that data is processed, or passed on to the next stage, in a timely manner. Automatic notification and web-based reporting can ensure that all parties have full access to the status of samples within the system.

The need for regulatory compliance is an increasingly significant driver in the implementation of workflow systems. In many industry sectors there is a requirement to comply with external agencies who examine adherence to operational rules. In addition, legislative changes such as the US’s Sarbanes-Oxley Act (SOX), will soon force many organizations to invest in proving that their processes are sound. These needs for compliance make workflow systems essential.

workflow management system is a computer system that manages and defines a series of tasks within an organization to produce a final outcome or outcomes. Workflow Management Systems allow you to define different workflows for different types of jobs or processes. So, for example, in a manufacturing setting, a design document might be automatically routed from designer to a technical director to the production engineer. At each stage in the workflow, one individual or group is responsible for a specific task. Once the task is complete, the workflow software ensures that the individuals responsible for the next task are notified and receive the data they need to execute their stage of the process. Workflow management systems also automate redundant tasks and ensure uncompleted tasks are followed up. Workflow management systems may control automated processes in addition to replacing paper workorder transfers. If for example the above design documents are now available as Autocad but the workflow requires them as Catia an automated process would implement the conversion prior to notifying the individual responsible for the next task. This is the concept of dependencies. A workflow management system reflects the dependencies required for the completion of each task.

ExamplesThe following examples illustrate the variety of workflows seen in various contexts:

1. In military planning, a "concept of operations" is a workflow that defines particular mission types.2. In machine shops, particularly job shops and flow shops, the flow of a part through the various processing stations is a work flow.3. Insurance claims processing is an example of an information-intensive, document-driven workflow.SYBBA (SEM IV) Prepared By: Payal Chauhan 3

VIDYABHARTI TRUST COLLEGE OF BBA & BCA. UMRAKHInformation System

Ch.3 Introduction To Various Information Systems4. Wikipedia editing is an example of a stochastic workflow.5. The Getting Things Done system is a model of personal workflow management for information workers.6. In global software development, the concept of follow-the-sun describes a process of passing unfinished work across time zones.7. In Scientific experiments, the overall process (tasks and data flow) can be described as a Directed Acyclic Graph (DAG). This DAG is referred to as a workflow, e.g. Brain Imaging workflows.[8][9]

Workflow improvement theoriesThe key driver to gain benefit from the understanding of the workflow process in a business context is that the throughput of the workstream path is modelled in such a way as to evaluate the efficiency of the flow route through internal silos with a view to increasing discrete control of uniquely identified business attributes and rules and reducing potential low efficiency drivers. Evaluation of resources, both physical and human is essential to evaluate hand-off points and potential to create smoother transitions between tasks. Several workflow improvement theories have been proposed and implemented in the modern workplace. These include:

1. Six Sigma: Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.[2] It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods.[2] Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).[2]

The term six sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modelling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). 2. Total Quality Management: Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes.[edit] TQM and Six Sigma

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Ch.3 Introduction To Various Information SystemsThe main difference between TQM and Six Sigma (a newer concept) is the approach. TQM tries to improve quality by ensuring conformance to internal requirements, while Six Sigma focuses on improving quality by reducing the number of defects and impurities.[1]

3. Business Process Reengineering: The analysis and design of workflows and processes within an organization. A business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. Enterprise resource planning, supply chain management, knowledge management systems, groupware and collaborative systems, Human Resource Management Systems and customer relationship management.

Business Process Reengineering is also known as Business Process Redesign, Business Transformation, or Business Process Change Management.

4. Lean systems: Lean manufacturing or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Basically, lean is centered on preserving value with less work. Lean manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS)

Lean is the set of "tools" that assist in the identification and steady elimination of waste (muda). As waste is eliminated quality improves while production time and cost are

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Ch.3 Introduction To Various Information Systemsreduced. Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste.[5] These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control.

5. The Helix Methodology / Helix Factor: To improve the way organizations deliver value to their stakeholders by helping them to achieve Strategically Aligned Operational Results.

As a way of bridging the gap between the two, significant effort is being put into defining workflow patterns that can be used to compare different workflow engines across both of these domains

3.2.3. ERP

Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.[1]

An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different

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Ch.3 Introduction To Various Information Systemsvendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity.

Commercial applications

Manufacturing : Engineering, bills of material, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow.

Supply chain management : Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commission calculation.

Financials   : General ledger, cash management, accounts payable, accounts receivable, fixed assets.

Project management : Costing, billing, time and expense, performance units, activity management.

Human resources: Human resources, payroll, training, time and attendance, rostering, benefits

Customer relationship management Sales and marketing, commissions, service, customer contact, call-center support

Data services Various "self-service" interfaces for customers, suppliers and/or employees

Access control Management of user privileges for various processes

Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of them are listed below:

A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and workflows The ability to effortlessly communicate information across various departments\ Improved efficiency, performance and productivity levels Enhanced tracking and forecasting Improved customer service and satisfaction

 

Disadvantages of ERP Systems

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Ch.3 Introduction To Various Information SystemsWhile advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

The scope of customization is limited in several circumstances The present business processes have to be rethought to make them synchronize

with the ERP ERP systems can be extremely expensive to implement There could be lack of continuous technical support ERP systems may be too rigid for specific organizations that are either new or want

to move in a new direction in the near future

Advantages

In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve:[citation needed]

ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable.

Integration among different functional areas to ensure proper communication, productivity and efficiency

Design engineering (how to best make the product) Order tracking, from acceptance through fulfillment The revenue cycle, from invoice through cash receipt Managing inter-dependencies of complex processes bill of materials Tracking the three-way match between purchase orders (what was ordered),

inventory receipts (what arrived), and costing (what the vendor invoiced) The accounting for all of these tasks: tracking the revenue, cost and profit at a

granular level.

ERP Systems centralize the data in one place. Benefits of this include:

Eliminates the problem of synchronizing changes between multiple systems - consolidation of finance, marketing and sales, human resource, and manufacturing applications

Permits control of business processes that cross functional boundaries Provides top-down view of the enterprise (no "islands of information"), real time

information is available to management anywhere, anytime to make proper decisions.

Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure.

Shorten production lead time and delivery time Facilitating business learning, empowering, and building common visions

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Ch.3 Introduction To Various Information SystemsSome security features are included within an ERP system to protect against both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A data-tampering scenario, for example, might involve a disgruntled employee intentionally modifying prices to below-the-break-even point in order to attempt to interfere with the company's profit or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools.[22]

[edit] Disadvantages

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Problems with ERP systems are mainly due to inadequate investment in ongoing training for the involved IT personnel - including those implementing and testing changes - as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and the ways in which it is used.[citation needed]

Disadvantages

Customization of the ERP software is limited. Re-engineering of business processes to fit the "industry standard" prescribed by

the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive. (This has led to a new category of "ERP light"

solutions.) ERPs are often seen as too rigid and too difficult to adapt to the specific workflow

and business process of some companies—this is cited as one of the main causes of their failure.

Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications.

Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level).

The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.

Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.

Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits.

ERP Systems Improve Productivity, Speed and Performance

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Ch.3 Introduction To Various Information SystemsPrior to evolution of the ERP model, each department in an enterprise had their own isolated software application which did not interface with any other system. Such isolated

framework could not synchronize the inter-department processes and hence hampered the productivity, speed and performance of the overall organization. These led to issues such as incompatible exchange standards, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions and many more.

For example: The financials could not coordinate with the procurement team to plan out purchases as per the availability of money.

Hence, deploying a comprehensive ERP system across an organization leads to performance increase, workflow synchronization, standardized information exchange formats, complete overview of the enterprise functioning, global decision optimization, speed enhancement and much more. 

3.3. Management Information Systems(MIS)

A management information system (MIS) is a system or process that provides information needed to manage organizations effectively [1]. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product,service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.[2] 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.

Short for management information system or management information services, and pronounced as separate letters, MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently.

Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).

Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation. SYBBA (SEM IV) Prepared By: Payal Chauhan 10

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Ch.3 Introduction To Various Information Systems

The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.

* Data Processing

Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. SYBBA (SEM IV) Prepared By: Payal Chauhan 11

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Ch.3 Introduction To Various Information Systems

MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific.

The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analysed by decision-makers.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.

Core Competencies

Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.

Quick Reflexes

As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.

Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasury’s MIS handbook, and an example of an organisational MIS division can be found at the Department of Social Services for the state of Connecticut.

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Ch.3 Introduction To Various Information Systems Integrated user machine system Supports operations, management, analysis & decision making functions Utilizes computer hardware, software, manual procedures, models for analyzing,

planning, control & decision making and a database Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

3.3.2. Development Process of MIS

Process of MIS

The MIS implementation process (Table 3) involves a number of sequential steps (Murdick and Ross, 1975):

1. First establish management information needs and formulate broad systems objectives so as to delineate important decision areas (e.g., general management, financial management or human resources management). Within these decision areas there will be factors relevant to the management decision areas, e.g., general management will be concerned about its relationship with the managing board, institute-client relationships and information to be provided to the staff. This will then lead the design team to ask what information units will be needed to monitor the identified factors of concern. Positions or managers needing information for decision making will be identified.

2. Develop a general description of a possible MIS as a coarse design. This design will have to be further refined by more precise specifications. For efficient management of information processing, the MIS should be based on a few databases related to different sub-systems of the organization.

3. Once the information units needed have been determined and a systems design developed, decide how information will be collected. Positions will be allocated responsibility for generating and packaging the information.

4. Develop a network showing information flows.

5. Test the system until it meets the operational requirements, considering the specifications stipulated for performance and the specified organizational constraints.

6. Re-check that all the critical data pertaining to various sub-systems and for the organization as a whole are fully captured. Ensure that information is generated in a timely manner.

7. Monitor actual implementation of the MIS and its functioning from time to time.SYBBA (SEM IV) Prepared By: Payal Chauhan 13

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Ch.3 Introduction To Various Information SystemsTable 3 Methodology for implementing MIS

1. Understand the organization

2. Analyse the information requirements of the organization

3. Plan overall strategy

4. Review

5. Preliminary analysis

6. Feasibility assessment

7. Detailed fact finding

8. Analysis

9. Design

10. Development

11. Cutover

12. Obtain conceptual schema

13. Recruit database administrator

14. Obtain logical schema

15. Create data dictionary

16. Obtain physical schema

17. Create database

18. Modify data dictionary

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Ch.3 Introduction To Various Information Systems

19. Develop sub-schemas

20. Modify database

21. Amend database

3.3.3. Decision support systems

decision support systems (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.

DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.

Typical information that a decision support application might gather and present are:

inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),

comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.

Decision Support Systems

The concept of a Decision Support System (DSS) emerged in the 1970s following developments in IT which allowed the interactive use of computer technology, see DSS History at dssresources.com.. The DSS concept reflected dissatisfaction with previous inflexible modelling approaches which did not allow management intervention in problem solving. The early definitions of DSS emphaised the role of DSS as flexible systems combining database and model components aimed at less structured decisions. These modelling and database components are under the control of the user through an interface or dialogue system.

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Ch.3 Introduction To Various Information Systems

A decision support system is a way to model data and make quality decisions based upon it. Making the right decision in business is usually based on the quality of your data and your ability to sift through and analyze the data to find trends in which you can create solutions and strategies for. DSS or decision support systems are usually computer applications along with a human component that can sift through large amounts of data and pick between the many choices.

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.

The key to decision support systems is to collect data, analyze and shape the data that is collected and then try to make sound decisions or construct strategies from analysis. Whether computers, databases or people are involved usually doesn't matter, however it is this process of taking raw or unstructured data, containing and collecting it and then using it to help aid decision making.SYBBA (SEM IV) Prepared By: Payal Chauhan 16

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Ch.3 Introduction To Various Information SystemsIt is important to note that although computers and artificial intelligence is at work or in play with data, it is ultimately up to humans to execute these strategies or comprehend the data into a usable hypothesis.

It is important to note that the field of DSS does not have a universally accepted model, meaning that there are many theories vying for supremacy in this broad field. Because of there are many working theories in the topic of DSS, there are many ways to classify DSS.

For instance, one of the DSS models available is with the relationship of the user in mind. This model takes into consideration passive, active and cooperative DSS models.

Decision support systems that just collect data and organize it effectively are usually called passive models, they do not suggest a specific decision, and they only reveal the data. An active decision support system actually processes data and explicitly shows solutions based upon that data. While there are many systems that are able to be active, many organizations would be hard pressed to put all their faith into a computer model without any human intervention.

A cooperative decision support system is when data is collected, analyzed and then is provided to a human component which then can help the system revise or refine it. It means that both a human component and computer component work together to come up with the best solution.

While the above DSS model takes the relationship of the user in mind, another popular DSS model takes into consideration the mode of assistance as the underlying basis of the DSS model. This includes the Model Driven DSS, Communications Driven DSS, Data Driven DSS, Document Driven DSS, and Knowledge Driven DSS.

Model Driven DSS is when decision makers use statistical, simulations or financial models to come up with a solution or strategy. Keep in mind that these decisions are based on models; however they do not have to be overwhelming data intensive.

A Communications Driven DSS models is when many collaborators work together to come up with a series of decisions to set in motion a solution or strategy. This communications driven DSS model can be in an office environment or on the web.

A 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. It is important that usually data is collected and categorized as a time series which is a collection of data that forms a sequence, such as daily sales, operating budgets from one quarter to the next, inventory leels over the previous year, etc.

A Document Driven DSS model uses documents in a variety of data types such a text documents, spreadsheets and database records to come up with decisions a well as further manipulate the information to refine strategies.

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Ch.3 Introduction To Various Information SystemsA Knowledge Driven DSS model uses special rules stored in a computer or used by a human to determine whether a decision should be made. For instance, for many day traders a stop loss limit can be seen as a knowledge driven DSS model. These rules or facts are used in order to make a decision.

You can also look at the scope in which decisions are made as a model of DSS. For instance, an organizational wide decision, department decision or single user decision, can be seen in the scope wide model.

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