Monday, January 7, 2013

Value Of Information Systems


Information and decision support systems are used to help managers make decisions. They can use the support systems to help make decisions in anything from human resource management to financial decisions.  Information and decision support systems contain two major systems, management information systems and decision support systems. Both are used to help managers “do the right thing”.
Management information systems focus on efficiency. All information for the company is stored in a common database. Because of the common database, a company is able to determine how a decision in one area of the company may affect another. 
Decision support systems are a collection of people, procedures and software that are used to make a decision in a specific problem. Decision support systems are able to illustrate a company’s information (negative trends, and allocation of a companies resources) in charts and graphs. 
A company will collect all data that it needs to perform. It will use these inputs and use them to decide what is relevant to the decision that needs to be made. When the relevant data has been extrapolated from the non-relevant data the company will have the outputs, usually in the form of charts and graphs. The charts and graphs help a company make the decision that is best for it. Feedback is important because if the decision didn’t have the effect that was anticipated, then the company wouldn’t be able to fix the problems the decision created.

Due to the use of information and decision support systems, a company can run more efficiently and allocate their resources as needed. Many companies use different systems to make their decisions, all hoping to make their company more efficient and profitable in the long run.

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