The Computer Evolution

The first electronic computer, the ENIAC, was developed by the University of
Pennsylvania in conjunction with the US Army-Ordinance Corps. The ENIAC was 8
feet high, 8 feet long, weighted 30 tons, and required about 174,000 watts of power
to run. On the average, it took about 2 days to set up ENIAC to carry out a program.
In the 1960s, large and very costly mainframe computers such as IBM 360 series
were in use by only the largest companies and government organizations. The large
computers were followed by the microcomputers of the 1970s, much smaller in size
and cost and programmed to do specific functions.
Computer technology improvements have also created some new problems for
managers. Diverse computers and communications technologies provide a wide
array of information at any different levels in organizations.
The decentralization first made possible by minicomputers had been taken even
further by the microcomputers or personal computers. Modern computers are much
more user friendly than those of the past.
Three important concepts are related to one another:
electronic data processing (EDP) management information system (MIS) and
decision support system (DSS).

Electronic data processing (EDP) represents the first attempt to control

individuals, subsystems, and the total organization or system through the
use of computer-generated data.
EDP is manipulating data or individual transactions at a central computer
facility housing a large mainframe computer upon which thousands of pieces
of information can be easily stored and manipulated.

MIS is a natural extension of EDP. MIS is the activity of taking the processed
data and turning it into meaningful information or reports that managers can
use.

A decision support system (DSS) is a hands-on approach to decision making,

allows the line manager to participate actively in the manipulation of the
data. DSS is the means to facilitate managerial decision making.

Denise Eriksen (1987) points out that DSS is most applicable to the area of
semistructural decision making.