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.
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
| System | Level served | Decisions | Example |
|---|---|---|---|
| TPS (transaction processing) | Operational | Structured, routine | Billing, payroll, railway reservations, ATM transactions |
| MIS (management information) | Middle management | Structured; periodic summary reports | Monthly regional sales report |
| DSS (decision support) | Middle and senior | Semi-structured; what-if analysis | Pricing or site-selection model |
| ESS / EIS (executive support) | Top (strategic) | Unstructured; drill-down dashboards | CEO dashboard mixing internal and external data |
| Expert systems and KWS | Specialists and knowledge workers | Expert advice from rules; design work | Loan-approval rule engine; CAD for engineers |
| Office automation (OAS) | Clerical and all levels | Office productivity | Email, word processing, scheduling |
DSS components and MIS reports
| Item | Meaning |
|---|---|
| DSS database | Stores internal and external data |
| DSS model base | Statistical, financial and optimisation models |
| DSS user interface | Lets managers ask what-if questions in dialogue |
| Scheduled (periodic) report | Produced at regular intervals, such as weekly sales |
| Exception report | Produced only when results fall outside set limits, such as stock below the reorder level |
| Demand (ad hoc) report | Produced when a manager asks for it |
| Drill-down report | Shows the detail behind a summary figure |
MIS vs DSS
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
| Model | Author | Key idea |
|---|---|---|
| Diffusion of innovations | Everett Rogers, 1962 | Adopters: innovators, early adopters, early majority, late majority, laggards |
| Technology Acceptance Model (TAM) | Fred Davis, 1989 | Perceived usefulness and perceived ease of use drive adoption |
| Technology S-curve | Richard Foster, 1986 | Performance improves slowly, then fast, then levels off; firms must jump to the next curve |
| Eight-step change model | John Kotter, 1996 | From creating urgency to anchoring the change in culture |
| Ways to handle resistance | Kotter and Schlesinger, 1979 | Education, participation, facilitation, negotiation, co-optation, coercion |
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.
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.
Bottom to top: TPS → MIS → DSS → ESS: 'The Manager Decides Early'.