The data that supports an organization's decision-making process has to be stored and maintained in the management information system (MIS). The MIS is not just one system but a collection of systems designed to support various organizational functions. This article explores the different types of MIS systems and the level of decision-making each supports. Focus on the Transaction Process Systems diagram and note how the various information systems (pink boxes) inform decisions at different levels in the organization.
Expert Systems
An expert system gives managers advice similar to what they would get from a human consultant. Artificial intelligence enables computers to reason and learn to solve problems in much the same way humans do, using what-if reasoning. Although they are expensive and difficult to create, expert systems are finding their way into more companies as more applications are found. Lower-end expert systems can even run on mobile devices. Top-of-the-line systems help airlines appropriately deploy aircraft and crews, critical to the carriers' efficient operations. The cost of hiring enough people to do these ongoing analytical tasks would be prohibitively expensive. Expert systems have also been used to help explore for oil, schedule employee work shifts, and diagnose illnesses. Some expert systems take the place of human experts, whereas others assist them.
- What are the main types of management information systems, and what does each do?
- Differentiate between the types of management support systems, and give examples of how companies use each.