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    Difference Between Management Information System and Decision Support System

    The main difference between management information system and decision support system is that the management information system (MIS) supports structured decision making while the decision support system (DSS) provides support for unstructured or semi-structured decisions.

    Difference Between Management Information System and Decision Support System

    June 28, 2018by Lithmee4 min read

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    The main difference between management information system and decision support system is that the management information system (MIS) supports structured decision making while the decision support system (DSS) provides support for unstructured or semi-structured decisions.

    Management Information System provides information like reports for managers to make required decisions. It helps operational and tactical levels of the organization. It mainly supports structured decision making. In other words, the decisions are well defined and described in detail. Decision Support System is a system that provides information for managers in the decision-making process. It provides support for unstructured or semi-structured decisions. In other words, these decisions cannot be described or defined in detail.

    Key Areas Covered

    1. What is Management Information System (MIS)

    – Definition, Functionality

    2. What is Decision Support System (DSS)

    – Definition, Functionality

    3. Difference Between Management Information System and Decision Support System (MIS vs DSS)

    – Comparison of Key Differences

    Key Terms

    Databases, MIS, DIS

    What is Management Information System

    A Management Information System (MIS) evaluates, analyzes and processes an organization’s data to produce meaningful and useful information. It is a planned system to collect, store and distributed data as information. These information helps to carry out the functionalities of the organization.

    MIS supports a variety of uses. It helps to capture data, process data, store information, retrieval and propagation. The summarized report for the MIS helps the middle-level management to monitor the organization current performance status. Sales Management Systems, Human Resources Management Systems are some examples of Management Information Systems.

    What is Decision Support System

    Decision Support System (DSS) allows senior managers to make non-routine decisions. These systems help to find solutions to the problems that are unique and changes frequently. Decision support systems use mathematical models, statistical techniques such as predictive modelling and probability to find solutions and for better decision making.

    There are various types of DSS. There are data analysis systems such as cash flow analysis and inventory systems. There are also information analysis systems such as market analysis and sales analysis systems. Furthermore, the accounting systems keep track of account details of the business. Those are few Decision Support Systems. Overall, DSS is flexible, interactive, and easy to use. It allows decision making, supports interpersonal communication and helps to automate managerial processes.

    Difference Between Management Information System and Decision Support System

    Definition

    A Management Information System (MIS) is an information system that evaluates, analyzes, and processes an organization’s data to produce meaningful and useful information based on which the management can take right decisions to ensure future growth of the organization. A Decision Support System (DSS) is an information system that supports business or organizational decision-making activities.

    Decision Support Capabilities

    MIS supports structured decision making. On the other hand, DSS supports unstructured or semi-structured decisions. This is the main difference between management information system and decision support system.

    Type of Information

    MIS provides information to support internal operations. DSS provides information to support specific situations.

    Input and Output

    MIS uses a large volume of data as the input and gives out a summarized report. DSS uses a low volume of data and the output is decision analysis.

    Main Focus

    MIS focuses on operational efficiency while DSS focuses on making effective decisions.

    Type of users

    Middle and low-level management use MIS. Senior managers and analysts use DSS.

    Conclusion

    The difference between management information system and decision support system is that management information system supports structured decision making while decision support system provides support for unstructured or semi-structured decisions. In brief, MIS focus on operational efficiency while DSS focuses on making effective decisions.

    Reference:

    1.“Types of Information System: TPS, DSS & Pyramid Diagram.” Meet Guru99 – Free Training Tutorials & Video for IT Courses, Available here.

    2. “Management Information Systems and Decision-Making: An Overview.” Genetics and Crime, Available here.

    3. “MIS Decision Support System.” Www.tutorialspoint.com, Tutorials Point, 8 Jan. 2018, Available here.

    स्रोत : pediaa.com

    MIS

    MIS - Decision Support System, Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information gen

    MIS - Decision Support System

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    Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

    DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

    Programmed and Non-programmed Decisions

    There are two types of decisions - programmed and non-programmed decisions.

    Programmed decisions are basically automated processes, general routine work, where −

    These decisions have been taken several times.

    These decisions follow some guidelines or rules.

    For example, selecting a reorder level for inventories, is a programmed decision.

    Non-programmed decisions occur in unusual and non-addressed situations, so −

    It would be a new decision.

    There will not be any rules to follow.

    These decisions are made based on the available information.

    These decisions are based on the manger's discretion, instinct, perception and judgment.

    For example, investing in a new technology is a non-programmed decision.

    Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly.

    Attributes of a DSS

    Adaptability and flexibility

    High level of Interactivity

    Ease of use

    Efficiency and effectiveness

    Complete control by decision-makers

    Ease of development Extendibility

    Support for modeling and analysis

    Support for data access

    Standalone, integrated, and Web-based

    Characteristics of a DSS

    Support for decision-makers in semi-structured and unstructured problems.

    Support for managers at various managerial levels, ranging from top executive to line managers.

    Support for individuals and groups. Less structured problems often requires the involvement of several individuals from different departments and organization level.

    Support for interdependent or sequential decisions.

    Support for intelligence, design, choice, and implementation.

    Support for variety of decision processes and styles.

    DSSs are adaptive over time.

    Benefits of DSS

    Improves efficiency and speed of decision-making activities.

    Increases the control, competitiveness and capability of futuristic decision-making of the organization.

    Facilitates interpersonal communication.

    Encourages learning or training.

    Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.

    Helps automate managerial processes.

    Components of a DSS

    Following are the components of the Decision Support System −

    Database Management System (DBMS) − To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources).Model Management System − It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organization, forecasting demand of a product or service, etc.Support Tools − Support tools like online help; pulls down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system.

    Classification of DSS

    There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −

    Text Oriented DSS − It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed.Database Oriented DSS − Database plays a major role here; it contains organized and highly structured data.Spreadsheet Oriented DSS − It contains information in spread sheets that allows create, view, modify procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3.Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type.Rules Oriented DSS − It follows certain procedures adopted as rules.Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is the example.Compound DSS − It is built by using two or more of the five structures explained above.

    Types of DSS

    स्रोत : www.tutorialspoint.com

    What is a decision support system (DSS)?

    Learn how a decision support system (DSS) provides organizations with fast, organized and comprehensive information for making well-informed decisions.

    DEFINITION

    decision support system (DSS)

    TechTarget Contributor

    What is a decision support system (DSS)?

    A decision support system (DSS) is a computer program application used to improve a company's decision-making capabilities. It analyzes large amounts of data and presents an organization with the best possible options available.

    Decision support systems bring together data and knowledge from different areas and sources to provide users with information beyond the usual reports and summaries. This is intended to help people make informed decisions.

    Typical information a decision support application might gather and present include the following:

    comparative sales figures between one week and the next;

    projected revenue figures based on new product sales assumptions; and

    the consequences of different decisions.

    A decision support system is an informational application as opposed to an operational application. Informational applications provide users with relevant information based on a variety of data sources to support better-informed decision-making. Operational applications, by contrast, record the details of business transactions, including the data required for the decision-support needs of a business.

    Decision support system components

    A typical DSS consists of three different parts: knowledge database, software and user interface.

    Knowledge base. A knowledge base is an integral part of a decision support system database, containing information from both internal and external sources. It is a library of information related to particular subjects and is the part of a DSS that stores information used by the system's reasoning engine to determine a course of action.

    Learn about knowledge base uses in customer service and call centers.

    Software system. The software system is composed of model management systems. A model is a simulation of a real-world system with the goal of understanding how the system works and how it can be improved. Organizations use models to predict how outcomes will change with different adjustments to the system.

    For example, models can be helpful for understanding systems that are too complicated, too expensive or too dangerous to fully explore in real life. That's the idea behind computer simulations used for scientific research, engineering tests, weather forecasting and many other applications.

    Models can also be used to represent and explore systems that don't yet exist, like a proposed new technology, a planned factory or a business's supply chain. Businesses also use models to predict the outcomes of different changes to a system -- such as policies, risks and regulations -- to help make business decisions.

    User interface. The user interface enables easy system navigation. The primary goal of the decision support system's user interface is to make it easy for the user to manipulate the data that is stored on it. Businesses can use the interface to evaluate the effectiveness of DSS transactions for the end users. DSS interfaces include simple windows, complex menu-driven interfaces and command-line interfaces.

    Intelligent decision support system (IDSS)

    Users can also bake artificial intelligence (AI) into decision support systems. Called intelligent decision support systems (IDSS), the AI mines and processes large amounts of data to get insights and make recommendations for better decision-making. It does this by analyzing multiple sources of data and identifying patterns, trends and associations to emulate human decision-making capabilities.

    Designed to act similar to a human consultant, an IDSS gathers and analyzes data to support decision-makers by identifying and troubleshooting issues, and providing and evaluating possible solutions. The AI component of the DSS emulates human capabilities as closely as possible, while more efficiently processing and analyzing information as a computer system.

    The IDSS may include advanced capabilities such as a knowledge base, machine learning, data mining and a user interface. Examples of IDSS implementations include flexible or smart manufacturing systems, intelligent marketing decision support systems and medical diagnostic systems.

    Different kinds of decision support system can improve a company's decision-making capabilities in a variety of areas.

    Types of decision support systems

    Decision support systems can be broken down into categories, each based on their primary sources of information.

    Data-driven DSS

    A data-driven DSS is a computer program that makes decisions based on data from internal databases or external databases. Typically, a data-driven DSS uses data mining techniques to discern trends and patterns, enabling it to predict future events. Businesses often use data-driven DSSes to help make decisions about inventory, sales and other business processes. Some are used to help make decisions in the public sector, such as predicting the likelihood of future criminal behavior.

    Model-driven DSS

    Built on an underlying decision model, model-driven decision support systems are customized according to a predefined set of user requirements to help analyze different scenarios that meet these requirements. For example, a model-driven DSS may assist with scheduling or developing financial statements.

    स्रोत : www.techtarget.com

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