MANAGEMENT INFORMATION SYSTEM

MIS VS DSS
NAME: MUSAIB NAEEM
REG #: SP16-BBA-031
Contents
Introduction:................................................................................................................................................. 2
Types of information Systems: .................................................................................................................... 2
Management Information System: ............................................................................................................. 2
Evolution of MIS: ...................................................................................................................................... 4
MIS in Small Business: .............................................................................................................................. 4
DECISION SUPPORT SYSTEM: ....................................................................................................................... 4
Types of Decision Support System: ......................................................................................................... 5
Design and Development of DECISION SUPPORT SYSTEM: .................................................................... 5
For Example: ......................................................................................................................................... 6
Supply chain Modeling: ............................................................................................................................ 6
Price Point Modeling: ............................................................................................................................... 7
Types of decisions: ....................................................................................................................................... 7
CONCLUSION: ............................................................................................................................................... 8
References: ................................................................................................................................................... 9

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Introduction:
Kostesky was the first person to write about the information system Benefits and need in competitive
growing modern industries of the world in 1966. Management Information system provides knowledge
about the position of the organization and the forces that are at work. It provides the right information
needed in decision making process and help the organization control the planning and operation
functions to be done effectively and efficiently. (Leonard, 2008)

Information System: It is combination of hardware and software systems that helps in collection of data
as well as analyzing them and understanding the patterns and evaluating designs and trends that helps
the management in performing their designated tasks efficiently and effectively and take the organization
on the path of growth.

Types of information Systems:

1. ESS (Expert/ Executive Support System)
2. DECISION SUPPORT SYSTEM (Decision Support System)
3. DECISION SUPPORT SYSTEM / MRS (Management Information System/ Management Reporting
System)
4. TPS (Transaction Procession System)

Management Information System:

MIS stands for Management Information system. This system helps in tactical Managers in organization to
analyze the internal data available that was collected by Transaction Processing system (TPS). It
transforms that data into reliable information that can be use by the tactical managers in running the
organization smoothly. It helps in managing the financial and operational data of organization. It helps the
Strategical Managers in understanding the position of the organization well by providing the information
related to the past and current output level of organization and based on that Strategic Managers devise
future plans.

Management Reports are generated for help at this level and transferred over to the DECISION SUPPORT
SYSTEM for further processing.

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Management information system is built upon the already existing Transactional processing system. It
provides the information about the performance of the organization.

The management information system gathers data from all the departments and areas of the
organization that are helping in functioning the organization. Some data is collected automatically with
the help of installed computer based checkout counters while other is collected on demand periodically.
Management information system compares the progress of the organization with the predefined goals of
the organization.

It helps the Managers in structured decision making process.

Let’s suppose entire organization is a system so DECISION SUPPORT SYSTEM provides the Feedback of
that system to the manager. It includes reports. Some are generic reports e.g. sales, orders, schedules
etc. some are periodic e.g. daily, weekly, monthly, etc. and pre specified reports.

Obviously such reports are beneficial for the organization to perform efficiently.

 The main focus of Management Information System is on Information processing.

 It is used by tactical level of managers and sometimes by senior executives of the organization.
 It increases the efficiency of the organization processing activities.
 It is used for production control, sales forecast, financial analysis and Human Resource
Management.
 Management information system is a channel that helps in communication between the
disciplines of the business firm.

 It reports mainly internal operations.

 Basic purpose of DECISION SUPPORT SYSTEM is to control the business activities of the firm.
 It can be as user friendly as firm wants.
 Information is given to specific group of people who then process it through DECISION SUPPORT
SYSTEM and summarize it as necessary.
 Detailed information support is not available in DECISION SUPPORT SYSTEM because of frequent
reporting.
 It is constructed by specialists that are experts in designing such systems.

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Evolution of MIS:
MIS represents the digitalization of traditional data collecting and analyzing techniques such as counting,
tallying, record keeping, accounting techniques such as the oldest one Ledger. Ledger was the way by
which organizations use to record their business activities. Automation started by tabular cards that could
be counted and sorted. Those cards are now remembered as punch cards. Information was punched on
these cards that could be printed out in tallies. Each of those punched record could be said in modern
term as Database record. IBM started this in 1911. Before IBM CTR was there, they used cards to record
weights and scales. Card systems were replaced by magnetic storage media that were in form of disks
and tapes. Computer using these helped in speeding the counting and sorting process.

This Wave of innovation spread across the cross dependent systems of the organizations around the
globe. All the departments of organizations developed their own MI systems that were not yet connected
to each other due to lack of technology available at that time. All systems of all departments were
developed side by side running on specialized hardware devices. After that Personal computers were
introduced in mid 70s that were widely spread after 10 years or so and PCs were started to use at
different terminals of organization like marketing and serving sales etc. Data from all these terminals
were collected and transferred to a Mainframe. Then in Mainframe data was analyzed and processed.
Then in 1990s network PCs were introduced that were developed from scratch for MIS purposes. Besides
that in 90s WWW came into existence that changed the entire viewpoint of Information industry. It
combined all sources of information and brought them under one single umbrella.

MIS in Small Business:

MIS is defined as cross linked chain of information that helps management in functioning the
organization. Earlier MIS was considered as a big term that could be implemented in larger scale
organizations only because of the factors involved in implementation and design of the system including
cost of the systems. MIS used to be costly to implement of the business that’s why it was not used in
smaller business firms that couldn’t bear the cost of the information system. But now in modern world
that cost is reduced very much and now even if there is a single shopkeeper with one PC in the shop and
he is keeping records of his sales and inventories and all that information is shared with his suppliers and
helping him in making his business efficient and effective, he is part of MIS family.

Similarly a small marketing firm with a manager in the office and a few marketers in the market sharing
information of market over the network to their manager forms a MIS system.

Virtually all organizations whether it’s hospital, marketing, consulting, research or service industry have
large network of systems that have relevant database that help them in their fields.

DECISION SUPPORT SYSTEM:

DSS stands for Decision Support System. It is a software-based system that helps the managers in
Decision making procedures by accessing the large amount of data that is captured and organized by the
various organizational processes such as TPS (Transactional Processing system), Office Automation,
DECISION SUPPORT SYSTEM (Management Information System) etc. It uses the external data.

It helps in decision making only, not decide itself. It analyzes the various patterns and information and
predicts outcomes on the basic of that. Manager uses the help of DECISION SUPPORT SYSTEM, personal

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knowledge, documents and other business models to identify and solve the ambiguity faced by the
organization on the larger scale.

High Level and complex structured spreadsheets and databases are generated and used for help.

Types of Decision Support System:

1. Model Based System
2. Data based System.
3. Communication based System.
4. Knowledge Based System.
5. Document Bases System.

MIS DDS
SUPPORT INFO about performance. Info and modeling analyze
problems.
REPORT FORM Periodic or On demand Interactive inquiries.
reports.
FORMAT Pre-specified fixed format. Flexible and adaptable
PROCESSING Extract and manipulate data. Analysis and modeling of that
data.
Design and Development of DECISION SUPPORT SYSTEM:
Development process of decision support system is linked with business plans of the organization. It
requires resources like Capital, Time and Capacity to work on. The output is then given in the fomr of
reports. DECISION SUPPORT SYSTEM can be developed using following two ways:

1. Prototype Method
2. Life Cycle Method

In Prototype Method, generic system is developed first to begin with and after that with passage of time
the system is modified and enhanced as per the requirements of the user of that system.

In Life Cycle approach, system is developed and designed in series of phases that are re iterating. Phases
are:

 Intelligence
 Design
 Choice
 Implementation
 Monitoring

Design Choice of DECISION SUPPORT SYSTEM is based on the nature of the system.

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For Example:
1. Designing DECISION SUPPORT SYSTEM for Attendance Capture:
Main Purpose of this DECISION SUPPORT SYSTEM is to make sure that attendance including
presence and absents is correctly and accurately recorded and reported too for help in
calculation of pay for the days worked, overtime working hours etc.
2. Inventory Management:
Decision Support System helps by evaluating stock held by the organization in warehouse, or any
other type of business asset that can be moved around or otherwise optimized. This is often one
way a business can profit from "itemizing" its assets with DSS.
3. Sales optimization and Sales projections:
Decision support system can also be a tool that analyzes sales data and makes predictions, or
monitors existing patterns and trends. Whether it's big picture decision support tools, active or
passive solutions, or any other kind of DSS tool, planners often tackle sales numbers using a
variety of decision support resources.
4. Optimize Current Industry Systems:
There are other uses for this powerful software option i.e. to make good projections on the
future for a business, or to get an overall "bird's eye view" of events that determine company's
progress. This can come in handy in difficult situations where a lot of financial projection may be
necessary when determining expenditures and revenues.

 DECISION SUPPORT SYSTEM is a computer aided information system that helps in performing the
data analysis that will eventually help the manager in making a decision based on well-known facts
and information. In this way decision will be informed decision.
 A typical DECISION SUPPORT SYSTEM consists of three main parts: Data-base, Model-base and UI.
 Database includes all the data that is required for the analysis of decision for the problem.
 Data input, output and storage is done and this all is done by Database Management System (DBMS).
 Then comes the model base. It is a collection of tools and techniques that help the managers in using
raw facts and data and processing them and converting them to meaningful information that is
helpful for making decisions.
 The last is UI (User Interface). It helps in making communication between System and the User easier
and fast. To use the system to its full potential, easy and efficient UI is very important factor of the
System. Now a days GUI is used for this purpose.

Supply chain Modeling:

 What will happen if you reduce the number of inventory?
1. How many items would go out of stock?
2. How much would you save?
3. Is reducing inventory a good thing?

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 Price Point Modeling:
 What would happen if lower or raise the price?
1. Uses information about customer’s income.
2. Uses information about rival’s prices.

Other models like supply and demands model are also used.

 Main focus of Decision Support System is semi structured decision and unstructured decisions
that requires higher managerial skills and concern.
 Managers have full access to data.
 They have knowledge about nature of the decision.
 Main purpose is to bring effectiveness to the organizational structure.
 Decision Support System focuses on leadership who runs the organization with their innovative
approach.
 Modeling is done in DECISION SUPPORT SYSTEM. It helps in predicting the effect of any decision.
 It also helps in reaching optimal decision.

Types of decisions:
Operational Tactical Strategic
Unstructured Cash Management Re-engineering a New e-business
process initiatives,
company re-
organization
Structured Payroll
Semi-structured Production Capital budgeting, Mergers, site
scheduling employee location
performance
evaluation.

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CONCLUSION:
 Role of Information and systems in Decision making activities cannot be ignored.
 Efficient and effective decision making requires accurate and relevant information timely.
Management Information system provides that information that facilitates the decision making
process simpler and easier and help the organizations in Planning controlling the operational
functions to run smoothly.
 MANAGEMENT INFORMATION SYSTEM also helps the managers in researching wide list of options
available and then helps in prioritizing the optimal one. That’s why it’s widely seen Managers using
MANAGEMENT INFORMATION SYSTEM tools for making tough business choices.
 MANAGEMENT INFORMATION SYSTEM has history of providing feasible business solutions.
 From above writing we now know that MANAGEMENT INFORMATION SYSTEM focuses on
information while decision support system focuses on decision making.
 MANAGEMENT INFORMATION SYSTEM works in online mode. It uses the pre collected data and work
on it and analyzes that and provide the managers viable options while DECISION SUPPORT SYSTEM
works in real time mode. It handles the situations as it occurs.
 Data volume is medium in MANAGEMENT INFORMATION SYSTEM but is in masses in DECISION
SUPPORT SYSTEM.
 MANAGEMENT INFORMATION SYSTEM uses Low support of graphics in Output presentation while
DECISION SUPPORT SYSTEM uses very high level of graphic for output representation.
 MANAGEMENT INFORMATION SYSTEM focuses of fully structured and routine tasks while DECISION
SUPPORT SYSTEM works on structured, semi structured as well.

Besides all differences mentioned above both MANAGEMENT INFORMATION SYSTEM and DECISION
SUPPORT SYSTEM are core factor of any Information System that helps in satisfying the requirements
of all levels of Management hierarchy.

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References:
http://www.cs.siena.edu/~ebreimer/courses/csis-114-s08/lectures/DECISION SUPPORT SYSTEM%20vs.%20DECISION
SUPPORT SYSTEM.ppt

http://www.management4all.org/2015/09/difference-between-Decision Support System-Decision Support System-

eis.html?m=1

https://www.mbaofficial.com/mba-courses/information-technology/differentiate-between-management-information-
system-and-the-decision-support-system/

https://www.tutor2u.net/business/reference/ict-types-of-information
https://www.mindmeister.com/37310006/5-types-of-information-systems
http://ecomputernotes.com/Decision Support System/structure-and-classification/explain-
Decision Support System-classification
https://Decision Support Systemsystem.blogspot.com/2010/01/advantages-of-decision-support-
system.html?m=1
http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html
https://www.researchgate.net/publication/277358986_Decision_Making_Based_On_Manageme
nt_Information_System_and_Decision_Support_System