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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