Using IS for decision making – Fundamental to all employees within an organisation.

18 Feb

We have discussed why companies choose IS for decision making and now i shall illustrate who exactly uses it. It isn’t just senior managers in companies who use IS for decision making it is fundamental to all employees within a company. An example of such a company is DELL.

Executive Support Systems (ESS)
Designed to help senior management make strategic decisions
This should gather, analyse, and summarise key internal and external information used in the business
E.g : Michael S. Dell, Chairman of the Board, Chief Executive Officer
requires overall sales for the company, along with sales for each competitor, as well as general economic data.

Management Information Systems (MIS)
Mainly concerned with internal sources of information and middle managers
Usually involves taking data from Transaction Processing Systems (TRP) and summarising them into management reports
For example, a worker might provide a middle manager with current sales figures, and indicate whether they are on track to meet the months quota.
E.g : This proved successfull for Dell as “New corporate highs were achieved for a full fiscal year with revenue of $62.1 billion, earnings per share of $1.88 (GAAP) and $2.13 (Non-GAAP), and revenue from enterprise solutions and services of $18.6 billion”. (http://content.dell.com/us/en/corp/d/secure/2012-02-fyrelease)

Transaction Processing Systems (TPS)
TPS process routine transactions efficiently and accurately
They consist of:
Invoicing Systems
Payroll Systems
Stock Control Systems
They support operational-level employees in an organisation.
E.g : DELL cuurently employs more than 103,300 people worldwide.

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