1.

Management Information Systems

2. Decision Support Systems
3. Artificial Intelligence and
Expert Systems

Rizal Technological University

Graduate School
INFOTECH202 – Application of Computers
TOPIC SYNTHESIS
Data vs. Information

DATA is a raw, unorganized When data is processed,

facts that need to be processed. It organized, structured or
can be something simple and presented in a given context so as
seemingly random and useless to make it useful, it is called
until it is organized. INFORMATION.
Data vs. Information

DATA

PROCESS

INFORMATION
Management
Information System
 Management Information System (MIS)

Is defined as:
• 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)
• An organized portfolio of formal systems for obtaining, processing, and delivering
information in support of the business operations and management of an
organization. (Zwass, 1992)
 Origin of MIS

The MIS represents the electronic automation of several different kinds of

counting, tallying, record-keeping, and accounting techniques of which the by far
oldest, of course, was the ledger on which the business owner kept track of his or
her business.

Automation emerged in the 1880s in the form of tabulating cards which

could be sorted and counted. These were the punch-cards still remembered by
many: they captured elements of information keyed in on punch-card machines; the
cards were then processed by other machines some of which could print out results
of tallies. Each card was the equivalent of what today would be called a database
record, with different areas on the card treated as fields.
 Origin of MIS

World-famous IBM had its start in 1911; it was then called Computing-
Tabulating-Recording Company. Before IBM there was C-T-R. Punch cards were
used to keep time records and to record weights at scales. The U.S. Census used
such cards to record and to manipulate its data as well. When the first computers
emerged after World War II punch-card systems were used both as their front end
(feeding them data and programs) and as their output (computers cut cards and
other machines printed from these). Card systems did not entirely disappear until the
1970s. They were ultimately replaced by magnetic storage media (tape and disks).
Computers using such storage media speeded up tallying; the computer introduced
calculating functions. MIS developed as the most crucial accounting functions
became computerized.
Origin of MIS

Punch Card Tabulating Machine

 Origin of MIS

Waves of innovation spread the fundamental virtues of coherent

information systems across all corporate functions and to all sizes of businesses in
the 1970s, 80s, and 90s. Within companies major functional areas developed their
own MIS capabilities; often these were not yet connected: engineering,
manufacturing, and inventory systems developed side by side sometimes running on
specialized hardware. Personal computers ("micros," PCs) appeared in the 70s and
spread widely in the 80s. Some of these were used as free-standing "seeds" of MIS
systems serving sales, marketing, and personnel systems, with summarized data
from them transferred to the "mainframe."
 Origin of MIS

In the 1980s networked PCs appeared and developed into powerful

systems in their own right in the 1990s in many companies displacing midsized and
small computers. Equipped with powerful database engines, such networks were in
turn organized for MIS purposes. Simultaneously, in the 90s, the World Wide Web
came of age, morphed into the Internet with a visual interface, connecting all sorts of
systems to one another.

Midway through the first decade of the 21st century the narrowly conceived
idea of the MIS has become somewhat fuzzy. Management information systems, of
course, are still doing their jobs, but their function is now one among many others
that feed information to people in business to help them manage.
 Origin of MIS

Systems manage and transfer money worldwide and communicate

worldwide. Virtually all major administrative functions are supported by automated
system. Many people now file their taxes over the Internet and have their refunds
credited (or money owning deducted) from bank accounts automatically. MIS was
thus the first major system of the Information Age. At present the initials IT are
coming into universal use. "Information Technology" is now the category to
designate any and all software-hardware-communications structures that today work
like a virtual nervous system of society at all levels.
 Origin of MIS

First Era – Mainframe and

minicomputer computing
Second Era – Personal computers
Third Era – Client/server networks
Fourth Era – Enterprise computing
Fifth Era – Cloud computing
Management Information System (MIS)

✓ Right information

✓ To the right person

✓ At the right time

✓ In the right form

✓ At the right cost.

 Management Information System (MIS)

The three components of MIS:

Management, Information and System
• SYSTEM is an orderly grouping of interdependent components linked together
according to a plan to achieve a specific goal. The term system is the most loosely
held term in management literature because of its use in different contexts.
• INFORMATION is data that is processed and is presented in a form which assists
decision-making. It may contain an element of surprise, reduce uncertainty or provoke
a manager to initiate an action.
• MANAGEMENT is the art of getting things done through and with the people in
formally organized groups.
Concept of MIS
Objectives of MIS

Processing of Data
 Objectives of MIS

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.
 Advantage of MIS

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
 Limitations of MIS

▪ 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.
▪ Mostly information provided by the MIS is in quantitative form. Hence, it
ignores the qualitative information like the attitude of an employee.
Requirements of MIS

1. Database
2. Qualified System and Management Staff
3. Top Management Support
4. Active Participation of Operating Management
5. Control and Maintenance of Management
Information System
6. Evaluation of Management Information System
 Types of MIS

Decision support systems (DSSs) are computer program applications used by

middle and higher management to compile information from a wide range of
sources to support problem solving and decision making. A DSS is used mostly
for semi-structured and unstructured decision problems.

Executive information system (EIS) is a reporting tool that provides quick

access to summarized reports coming from all company levels and departments
such as accounting, human resources and operations.

Marketing information systems are management Information Systems

designed specifically for managing the marketing aspects of the business.
 Types of MIS

Accounting information systems are focused accounting functions.

Human resource management systems are used for personnel aspects.

Office automation systems (OAS) support communication and productivity in

the enterprise by automating workflow and eliminating bottlenecks. OAS may be
implemented at any and all levels of management.

School Information Management Systems (SIMS) cover school administration,

often including teaching and learning materials.
 Types of MIS

Enterprise resource planning (ERP) software facilitates the flow of information

between all business functions inside the boundaries of the organization and
manage the connections to outside stakeholders.

Local databases, can be small, simplified tools for managers and are
considered to be a primal or base level version of a MIS.
Decision Support
Systems
 Decision Support Systems
(DSS)
Is defined as:

• 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. It is either human-powered, automated, or a combination of both.
• It is a computer program application used to improve a company's decision-making
capabilities. It analyzes large amounts of data and presents an organization with the best
possible options available.
• It bring together data and knowledge from different areas and sources to provide users with
information beyond the usual reports and summaries. This is intended to help people make
informed decisions.
 Decision Support Systems
(DSS)
Is defined as:

1. DSS tends to be aimed at the less well structured, underspecified problem that upper
level managers typically face;

2. DSS attempts to combine the use of models or analytic techniques with traditional data
access and retrieval functions;

3. DSS specifically focuses on features which make them easy to use by non-computer-
proficient people in an interactive mode; and

4. DSS emphasizes flexibility and adaptability to accommodate changes in

the environment and the decision making approach of the user.
 Components of DSS

1. Model Management System – It stores models that managers can use in their
decision-making. The models are used in decision-making regarding the financial health
of the organization and forecasting demand for a good or service.

2. User Interface - This includes tools that help the end-user of a DSS to navigate
through the system.

3. Knowledge Base – It includes information from internal sources (information collected

in a transaction process system) and external sources (newspapers and online
databases).
Programmed vs. Non-Programmed

Programmed

1) These decisions have been 1) It would be a new decision.

taken several times.
2) There will not be any rules to
2) These decisions follow some follow.
guidelines or rules.

Non-Programmed
3 ) These decisions are made based
on the available information.

4) These decisions are based on the

manger's discretion, instinct,
perception and judgment.
Types of DSS
Classification of DSS
❑ Text Oriented − It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and
viewed as needed.
❑ Database Oriented − Database plays a major role here; it contains organized
and highly structured data.
❑ Spreadsheet Oriented − It contains information in spread sheets that allows
create, view, modify procedural knowledge and also instructs the system to
execute self-contained instructions. The most popular tool is Excel and Lotus.
❑ Solver Oriented − It is based on a solver, which is an algorithm or procedure
written for performing certain calculations and particular program type.
❑ Rules Oriented − It follows certain procedures adopted as rules. Procedures are
adopted in rules oriented DSS. Export system is the example.
❑ Compound − It is built by using two or more of the five structures explained
above.
 Examples of DSS

GPS routing. GPS route planning is an example of a typical DSS. It compares different routes,
taking into account factors such as distance, driving time and cost. The GPS navigating
system also enables users to choose alternative routes, displaying them on a map and providing
step-by-step instructions.
 Examples of DSS

ERP dashboards. ERP (enterprise resource planning) dashboards can use a decision support
system to visualize changes in production and business processes, monitor current business
performance against set goals and identify areas for improvement. ERP dashboards let business
owners see a snapshot of their company's most important numbers and metrics.
 Examples of DSS

Clinical decision support system. A clinical decision support system (CDSS) is a software
program that uses advanced decision-making algorithms to help physicians make the best
medical decisions. Healthcare professionals often use these to interpret patient records and test
results, and to calculate the best treatment plan. CDSS in healthcare can help providers identify
abnormalities during specific tests, as well as monitor patients after certain procedures to
determine if they are having any adverse reactions.
Artificial Intelligence
and Experts Systems
 Artificial Intelligence
Is defined as…

❑ A wide-ranging branch of computer science concerned with

building smart machines capable of performing tasks
that typically require human intelligence.

❑ The simulation of human intelligence processes by machines,

especially computer systems. Specific applications of AI
include expert systems, natural language processing, speech
recognition and machine vision.

❑ Any system that perceives its environment and takes actions

that maximize its chance of achieving its goals.
 Cognitive Skills of AI

Reasoning processes. This aspect of AI programming focuses on

choosing the right algorithm to reach a desired outcome.

Self-correction processes. This aspect of AI programming is

designed to continually fine-tune algorithms and ensure they
provide the most accurate results possible.

Learning processes. This aspect of AI programming focuses on

acquiring data and creating rules for how to turn the data into
actionable information. The rules, which are called algorithms,
provide computing devices with step-by-step instructions for how
to complete a specific task.
 Types of AI

Reactive Machines - A reactive machine follows the most basic of AI

principles and, as its name implies, is capable of only using its intelligence to
perceive and react to the world in front of it. A reactive machine cannot
store a memory and as a result cannot rely on past experiences to inform
decision making in real-time.

Limited Memory - Limited memory artificial intelligence has the ability to

store previous data and predictions when gathering information and
weighing potential decisions — essentially looking into the past for clues on
what may come next. Limited memory artificial intelligence is more complex
and presents greater possibilities than reactive machines.
 Types of AI
Theory of Mind - Theory of Mind is just that — theoretical. We have not yet
achieved the technological and scientific capabilities necessary to reach this
next level of artificial intelligence.

The concept is based on the psychological premise of understanding that

other living things have thoughts and emotions that affect the behavior of
one’s self. In terms of AI machines, this would mean that AI could
comprehend how humans, animals and other machines feel and make
decisions through self-reflection and determination, and then will utilize
that information to make decisions of their own. Essentially, machines
would have to be able to grasp and process the concept of “mind,” the
fluctuations of emotions in decision making and a litany of other
psychological concepts in real time, creating a two-way relationship
between people and artificial intelligence.
 Types of AI

Self-awareness - Self-awareness in artificial intelligence relies both on

human researchers understanding the premise of consciousness and then
learning how to replicate that so it can be built into machines.

This kind of artificial intelligence possesses human-level consciousness and

understands its own existence in the world, as well as the presence and
emotional state of others. It would be able to understand what others may
need based on not just what they communicate to them but how they
communicate it.
Types of AI
Components of ES
Participants to the Development of ES

1. Expert: The success of an ES much depends on the knowledge

provided by human experts. These experts are those persons who are
specialized in that specific domain.

2. Knowledge Engineer: Knowledge engineer is the person who

gathers the knowledge from the domain experts and then codifies
that knowledge to the system according to the formalism.

3. End-User: This is a particular person or a group of people who may

not be experts, and working on the expert system needs the solution
or advice for his queries, which are complex.
Why ES?
 Usage of AI
Automation. When paired with AI technologies, automation tools can expand the volume and
types of tasks performed. An example is robotic process automation (RPA), a type of software
that automates repetitive, rules-based data processing tasks traditionally done by humans.
When combined with machine learning and emerging AI tools, RPA can automate bigger
portions of enterprise jobs, enabling RPA's tactical bots to pass along intelligence from AI and
respond to process changes.

Machine learning. This is the science of getting a computer to act without programming. Deep
learning is a subset of machine learning that, in very simple terms, can be thought of as the
automation of predictive analytics. There are three types of machine learning algorithms:
• Supervised learning. Data sets are labeled so that patterns can be detected and used to
label new data sets.
• Unsupervised learning. Data sets aren't labeled and are sorted according to similarities or
differences.
• Reinforcement learning. Data sets aren't labeled but, after performing an action or several
actions, the AI system is given feedback.
 Usage of AI

Machine vision. This technology gives a machine the ability to see. Machine vision captures
and analyzes visual information using a camera, analog-to-digital conversion and digital signal
processing. It is often compared to human eyesight, but machine vision isn't bound by biology
and can be programmed to see through walls, for example. It is used in a range of applications
from signature identification to medical image analysis. Computer vision, which is focused on
machine-based image processing, is often conflated with machine vision.

Natural language processing (NLP). This is the processing of human language by a computer
program. One of the older and best-known examples of NLP is spam detection, which looks at
the subject line and text of an email and decides if it's junk. Current approaches to NLP are
based on machine learning. NLP tasks include text translation, sentiment analysis and speech
recognition.
 Usage of AI

Robotics. This field of engineering focuses on the design and manufacturing of robots. Robots
are often used to perform tasks that are difficult for humans to perform or perform consistently.
For example, robots are used in assembly lines for car production or by NASA to move large
objects in space. Researchers are also using machine learning to build robots that can interact
in social settings.

Self-driving cars. Autonomous vehicles use a combination of computer vision, image

recognition and deep learning to build automated skill at piloting a vehicle while staying in a
given lane and avoiding unexpected obstructions, such as pedestrians.
 References
Lucey, Terence, “Management Information Systems”, Cengage Learning EMEA. (2004) ISBN 978-1-84480-126-8

https://bizfluent.com/facts-5030594-management-information-system-theories.html

"History of IBM-;1910s." IBM. Available from http://www03.ibm.com/ibm/history/history/decade_1910.html. Retrieved

on 15 April 2006.

Sadagopan, Management Information System, 2007, Prentice Hall of India.

McLeod, R. and George P Schell (2008). Management information systems (10th ed.). Pearson Education India

C. W. Frenzel and J. C. Frenzel, 2004. “Management of Information Technology”, 4th edition Thomson course
technology, Cengage Learning.

Laudon, K. C. & Laudon, J. P. Management Information Systems: Managing the Digital Firm. 10th ed. Prentice-Hall
and Pearson Education, 2006.
 References
http://ocw.mit.edu

https://www.techtarget.com/searchcio/definition/decision-support-system

https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence

https://www.tutorialspoint.com/management_information_system/decision_support_system.htm