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Unit IX · International business and information technology
9 min readConcept sheetMCQ · system-level match and definitions

IT in management: TPS, MIS, DSS, ESS and managing technological change

Information systems serve each management level: TPS for operations, MIS for middle managers, DSS for semi-structured choices and ESS for top executives. New technology needs managed change.

Parts of an information systemHardware, software, data, procedures and people
Anthony's levels (1965)Strategic planning, management control, operational control
Simon's decision phasesIntelligence, design, choice (implementation added later)
Gorry and Scott Morton (1971)Structured, semi-structured and unstructured decisions; coined 'decision support systems'

Computers in management

  • Computers bring speed, accuracy, large storage, automation of routine work and faster communication to management.
  • Hardware: input devices, processing (CPU), memory and storage, output devices.
  • Software: system software (such as the operating system) and application software (such as ERP and spreadsheets).
  • Data are raw facts; information is processed data that is useful for a decision.
  • Systems are built through the SDLC: planning, analysis, design, implementation and maintenance.

Types of information systems

SystemLevel servedDecisionsExample
TPS (transaction processing)OperationalStructured, routineBilling, payroll, railway reservations, ATM transactions
MIS (management information)Middle managementStructured; periodic summary reportsMonthly regional sales report
DSS (decision support)Middle and seniorSemi-structured; what-if analysisPricing or site-selection model
ESS / EIS (executive support)Top (strategic)Unstructured; drill-down dashboardsCEO dashboard mixing internal and external data
Expert systems and KWSSpecialists and knowledge workersExpert advice from rules; design workLoan-approval rule engine; CAD for engineers
Office automation (OAS)Clerical and all levelsOffice productivityEmail, word processing, scheduling

DSS components and MIS reports

ItemMeaning
DSS databaseStores internal and external data
DSS model baseStatistical, financial and optimisation models
DSS user interfaceLets managers ask what-if questions in dialogue
Scheduled (periodic) reportProduced at regular intervals, such as weekly sales
Exception reportProduced only when results fall outside set limits, such as stock below the reorder level
Demand (ad hoc) reportProduced when a manager asks for it
Drill-down reportShows the detail behind a summary figure

MIS vs DSS

MISFixed, routine reports; structured problems; aims at efficiency; usually built by IS staff.
DSSInteractive and flexible; what-if analysis; semi-structured problems; aims at effectiveness; often built with users.

Lewin's three steps for technological change

Kurt Lewin (1947). Resistance usually comes from fear of job loss, skill obsolescence and habit.

Models for adopting new technology

ModelAuthorKey idea
Diffusion of innovationsEverett Rogers, 1962Adopters: innovators, early adopters, early majority, late majority, laggards
Technology Acceptance Model (TAM)Fred Davis, 1989Perceived usefulness and perceived ease of use drive adoption
Technology S-curveRichard Foster, 1986Performance improves slowly, then fast, then levels off; firms must jump to the next curve
Eight-step change modelJohn Kotter, 1996From creating urgency to anchoring the change in culture
Ways to handle resistanceKotter and Schlesinger, 1979Education, participation, facilitation, negotiation, co-optation, coercion
How NET asks this

NET asks you to match each information system with the level and decision type it serves, to order Simon's decision phases, and to apply Lewin, Rogers or TAM to adopting new technology.

Exam angle

Typical MCQ: “Which system supports semi-structured decisions through what-if analysis?” DSS. Trap: MIS gives routine reports for structured decisions.

Typical MCQ: “Name Lewin's three steps of change.” Unfreezing, changing (moving) and refreezing.

Typical MCQ: “Who classified decisions as structured, semi-structured and unstructured and coined the term DSS?” Gorry and Scott Morton (1971), building on Simon and Anthony.

Remember it

Bottom to top: TPS → MIS → DSS → ESS: 'The Manager Decides Early'.