Information system, an integrated set of components for collecting, storing, and processing

data and for providing information, knowledge, and digital products. Business firms and other
organizations rely on information systems to carry out and manage their operations, interact with
their customers and suppliers, and compete in the marketplace. Information systems are used to run
interorganizational supply chains and electronic markets. For instance, corporations use information
systems to process financial accounts, to manage their human resources, and to reach their potential
customers with online promotions.

Many major companies are built entirely around information systems. These include eBay, a
largely auction marketplace; Amazon, an expanding electronic mall and provider of cloud computing
services; Alibaba, a business-to-business e-marketplace; and Google, a search engine company that
derives most of its revenue from keyword advertising on Internet searches. Governments deploy
information systems to provide services cost-effectively to citizens. Digital goodssuch as electronic
books, video products, and softwareand online services, such as gaming and social networking, are
delivered with information systems. Individuals rely on information systems, generally Internet-based,
for conducting much of their personal lives: for socializing, study, shopping, banking, and
entertainment.

As major new technologies for recording and processing information were invented over the
millennia, new capabilities appeared, and people became empowered. The invention of the printing
press by Johannes Gutenberg in the mid-15th century and the invention of a mechanical calculator by
Blaise Pascal in the 17th century are but two examples. These inventions led to a profound revolution
in the ability to record, process, disseminate, and reach for information and knowledge. This led, in
turn, to even deeper changes in individual lives, business organization, and human governance.

The main components of information systems are computer hardware and software,
telecommunications, databases and data warehouses, human resources, and procedures. The
hardware, software, and telecommunications constitute information technology (IT), which is now
ingrained in the operations and management of organizations.

Decision support system aids the middle level management to enhance their decision making.
The system has its input from the output generated by the operational level of management using the
Management Information system. The input for the Decision Support System is internal information
and they are highly detailed. The middle level management is the one that intends to implement the
strategic level decisions given the available resources. Decision support system is mainly used for the
reporting purposes (McGraw, 2008). Middle level management make semi-structured decisions i.e.
management decisions made using the decision support system is not structured compared to the
operational level . They are used to make 'on the spot' , un-routine improved business decisions.

Decision support system relies on building scenarios in order to make its decisions. It uses a
combination of models, scenarios and information to solve problems also to make its decisions.
Information Processed (Output) from the Decision Support System (DSS) are usually less detailed,
mainly summary, graphs, charts e.t.c. A functional decision Support system will aid an organization in
gaining competitive advantage in its industry as relevant management decisions are made in a little
span of time in a more efficient and effective manner, it will also help in efficient management of
organizational resources.

Computerized decision support systems became practical with the development of

minicomputers, timeshare operating systems and distributed computing. The history of the
implementation of such systems begins in the mid-1960s. In a technology field as diverse as DSS,
chronicling history is neither neat nor linear. Different people perceive the field of Decision Support
Systems from various vantage points and report different accounts of what happened and what was
important (cf., Arnott & Pervan, 2005; Eom & Lee, 1990b; McCosh & Correa-Perez, 2006; Power, 2003;
Power, 2004a; Silver, 1991). As technology evolved new computerized decision support applications
were developed and studied. Researchers used multiple frameworks to help build and understand
these systems. Today one can organize the history of DSS into the five broad DSS categories explained
in Power (2001; 2002; 2004b), including: communications-driven, data-driven, document driven,
knowledge-driven and model-driven decision support systems.

This hypertext document is a starting point in explaining the origins of the various technology
threads that are converging to provide integrated support for managers working alone, in teams and
in organization hierarchies to manage organizations and make more rational decisions. History is both
a guide to future activity in this field and a record of the ideas and actions of those who have helped
advance our thinking and practice. Historical facts can be sorted out and better understood, but more
information gathering is necessary. This web page is a starting point in collecting more first hand
accounts and in building a more complete mosaic of what was occurring in universities, software
companies and in organizations to build and use DSS.

This document traces decision support applications and research studies related to model and
data-oriented systems, management expert systems, multidimensional data analysis, query and
reporting tools, online analytical processing (OLAP), Business Intelligence, group DSS, conferencing
and groupware, document management, spatial DSS and Executive Information Systems as the
technologies emerge, converge and diverge. All of these technologies have been used to support
decision making. A timeline of major historical milestones relevant to DSS is included in Appendix I.

The study of decision support systems is an applied discipline that uses knowledge and
especially theory from other disciplines. For this reason, many DSS research questions have been
examined because they were of concern to people who were building and using specific DSS. Hence
much of the broad DSS knowledge base provides generalizations and directions for building more
effective DSS (cf., Baskerville & Myers, 2002; Keen, 1980).

The next section describes the origins of the field of decision support systems. Section 3
discusses the decision support systems theory development that occurred in the late 1970s and early
1980s. Section 4 discusses important developments to communications-driven , data-driven,
document driven, knowledge-driven and model-driven DSS (cf., Power, 2002). The final section briefly
discusses how DSS practice, research and technology is continuing to evolve.

Executive Information System (EIS)

An Executive Information System (EIS) is an information system mainly used by top-level management
which provides detailed and relevant information from both internal and external sources. They offer
strong reporting capabilities which helps strategic management identify problems and make
necessary decisions concerning them, it also help to monitor activities of subordinates at all level and
departments

Output from the Executive Information System (EIS) is presented in a easily read and understandable
form using the Graphical User Interfaces(GUIs) (Kaniclides & Kimble, 1994) .
The Executive Information System (EIS) brings together in a single system and view data from different
departments within a company, different relevant sources (both internal and external). Executive
Information System (EIS) gives executive the opportunity to clearly review more information in less
time, it helps identify needed decisions and enable it to be carried out within a short period of time
which in turns improves management performance

Executive Information System (EIS) also Increases upper managements span of control as it Increases
executives ability to monitor activities of the different levels of management. It also helps executives
to obtain improved information faster

Expert System

The Expert System (ES) is an information system used by top-level management to aid their decision
making process. The expert system is built by simulations of how an expert arrives at a decision. The
knowledge bank is built and an interface engine is used to ask a series of questions and based on the
answers given ( on the interface), it provides a solution. It helps management make complex decisions
within a limited period of time without employing an expert, this in turn reduces the cost of business
and increase efficiency and effectiveness in the overall business and decision making process which
will in turn give a company competitive advantage in the industry where it operates.

Example of an expert system on a online retail store that deals in cloth making, the system ask specific
questions about gender, height, body posture, size e.t.c. On answering these questions, the system
brings out a suitable product/dress with will be an exact replica of what would be produced when the
dress is made.

Banks use this system to assess mortgage loans, this system collect information from the customers,
assess their credit based on the information supplied to the system, this is then used to determine the
output based on defined criteria programmed in the system.

The main of this Health Expert system is to collect information using the interface through a network
on the internet, based on the answers to questions entered into the system, the prediction module
makes an expert prediction by going through the patients database to confirm his identify and then
go through the patients disease database to match its prediction with previous ailment the after
identifying the disease, it then loads the diagnosis module to get the medication and treatment to be
used in curing the disease. The output is then gotten through the Interface. The expert system has
done exactly what a medical professional would have identified the disease and prescribe treatment.

Enterprise Resource Planning Systems (ERP)

Enterprise Resource Planning Systems (ERP) is a computer system which integrate all information
systems within a firm or organization in a singular entity. It is a system that comprises of all modules
of operation used by all departments within the organization. Enterprise Resource Planning system
(ERP) automates all the activities of a business enterprise in an integrated manner, information from
a department that is needed by another department will be automatically available to them.

Enterprise Resource Planning system (ERP) makes the flow of information within departments in an
organization or company possible, easy and automated.

Enterprise Resource Planning system (ERP) usually are developed using practice standards for each
departmental Modules. Modules that deals with finance and accounting are developed in accordance
with relevant accounting and financial standard e.g. The principle of double entry, asset liquidation,
Depreciation and Appreciation in value of assets e.t.c. The same goes for the marketing , Customer
relationship management, delivery, sales modules e.t.c.

Enterprise Resource Planning system (ERP) do not only handle information or relationship between
functional departments within the boundaries of a specific company or firm, it also handles
relationship with external stakeholders outside the organization e.g. Agents, Dealers, suppliers,
customers, partner organizations, government, e.t.c. This is usually implemented using an extranet.

Enterprise Resource Planning system (ERP) works in real time, and operates a common database for
all its applications. The interface of a ERP is always standard i.e. it is the same in all modules

An example of an Enterprise system in a retail business will have the Accounting module , Human
resource, Marketing module, sales module, Supply chain management module, Quality control
module and the customer relationship module.

The use of Enterprise Resource Planning Systems (ERP) in an organization will bring about fast flow of
information within an organization's functional departments and between the organization and its
stakeholders. This will speed up decision making process around the organization and will help in
effective and efficient use of company resources which will help in reducing cost, save time and the
overall efficiency of the entire business process which will in turn give Competitive advantage over
competitors.

Management Information System

This is the information system used by lower level management which helps them in making efficiently
and effectively decisions for running and performing the day- to - day activities of an organization or
company in order to achieve management objectives and goals.
Lower level management deals with the operational processes within an organization, this deals with
routine business processes, Data used by the Management Information System are usually Internal
i.e. Internal.

The Processes handled by the management Information System are usually structured, they are
processes that involves no risk in their decisions as they are structured.

Processed Output from the Management Information system are usually well detailed information,
and are passed on to the middle level or tactical level management who handles the decision support
system.

Operation of the Management Information are mainly Data entry

Example of a management information system in a Hospital. The system used to collect patients data,
used to book and schedule doctor's appoints, used to send reminder mails to patients. e.t.c.

Future Trends of DSS

Despite the fact that there is no acceptable definition, DSS is here to stay simply because it
complements the transaction processing aspect of EDP. However, it will take some time before DSS
reaching a mature stage. As it stands, the following future trends of development of DSS are
identifiable:

(1) Group DSS

Group decision making plays a major role in determining corporate affairs (Young, 1983).

How to design and develop group DSSs for supporting group meetings is a complex task because of
the complex combination of people, places, time communication networks, individual preferences,
and other technologies.

A group meeting can be conducted at the same place, or at different places attended by different
groups of people using teleconferencing techniques. On the other hand, a group meeting can be
conducted during a fixed period of time, or it is just an unlimited on-going process. Group DSS is
supposed to support any one of the possible combinations (De-Sanctis and Gallupse, 1985).

(2) Decision support centre

Decision support centre is an emerging concept (Owen and Volpato, 1985). A decision support group,
staffed by information systems professionals who understand the business environment, form the
core of decision support centre, with advanced information technology.

A decision support centre is usually located in close proximity to top management so that instant
decision support can be provided. A decision support group will readily develop or modify DSSs to
support top management in making urgent and importantdecisions.

(3) Strategic DSS

DSS for supporting strategic management is a well recognised area of importance and significance
(King, 1984). It is an area where DSS can make a substantial impact on the top management and the
corporation. The generic SICIS issue tree (King, 1984) sounds trivial, and the SPIRA process for
achieving information-based strategic comparative advantage (King, 1984) resembles Checkland's
(1981) soft system methodology.

Intelligent DSS

Some authors, notably Nolan (1986), suggest the adaptation of artificial intelligence (AI) and expert
systems techniques to DSS. However, most authors under-estimate the difficulties in representing
common-sense knowledge which is an unsolved problem in AI.

King, W.R. (1983), Achieving the Potential of Decision Support

Systems, Journal of Business Strategy, Winter, pp.

84-91.

King, W.R. (1984), Strategic Management: Decision Support

Systems, in manuscript.