Question Tag: Decision Support System

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  • 5 Marks

BMIS – Nov 2021 – L1 – Q3b – Introduction to information technology and information systems

Explain the applications of Transaction Processing Systems and Decision Support Systems in business organizations.

Explain the following applications of information technology in business organizations:
i) Transaction Processing System.
ii) Decision Support System. (5 marks)

Applications of Information Technology in Business Organizations

i) Transaction Processing System (TPS):
A Transaction Processing System refers to any information system that supports the monitoring, collection, storage, and processing of data from an organization’s primary business transactions, each of which generates data. A transaction processing system is used to collect and process daily transactions of an organization. TPS serves as an input for an organization’s customer relationship management, business intelligence, and knowledge management.

ii) Decision Support System (DSS):
A Decision Support System is an information system that aids managers in making decisions based on built-in models. The objective of a Decision Support System is to support managers in their work with reference to all decisions at the management level.

(2.5 marks for each = 5 marks)

  • 5 Marks

BMIS – Nov 2016 – L1 – Q6a – Introduction to information technology and information systems

Differentiate between Decision Support Systems (DSS) and Executive Information Systems (EIS).

How can you help your boss who has no knowledge in information technology to differentiate between Decision Support System (DSS) and Executive Information System (EIS)? (5 marks)

  • Decision Support System (DSS): A DSS is an information system designed to provide managers with alternative solutions to a problem they face. (2 marks)
  • Executive Information System (EIS): An EIS is an interactive system that provides managers or executives with flexible access to information for monitoring the performance of the organization as well as general business conditions. (2 marks)
  • Difference: While Decision Support Systems are specifically used for unstructured decisions, Executive Information Systems may provide information (often in graphical format) that can inform top management on trends within the organization. (1 mark)

Grand total: 5 marks

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