DIFFERENCE BETWEEN DSS, MIS & EIS

With the exposure to all the above information systems, let us find out the differences between DSS and MIS. Table-1 enlists some basic differences between Decision Support System, Management Information Systems and Executive Information System. As the name implies, the later two are the systems that provide information that may or may not be used for making a decision whereas the support information provided for deciding on the policy, planning or implementation is the basic component of DSS.

Let us find out the characteristics of the three systems :

DSS (DECISION SUPPORT SYSTEM) :

- DSS generally provide support for unstructured, or semi-structured decisions (decisions that cannot be described in detail).

- DSS problems are often characterized by incomplete or uncertain knowledge, or the use of qualitative data.

- DSS will often include modelling tools in them, where various alternative scenarios can be modeled and compared.

- Investment decisions are an examples of those that might be supported by DSS

MIS (MANAGEMENT INFORMATION SYSTEMS) :

-    MIS is generally more sophisticated reporting systems built on existing transaction processing systems

-    Often used to support structured decision making (decisions that can be described in detail before the decision is made)

-    Typically will also support tactical level management, but sometimes are used at other levels

-   Examples of structured decisions supported by MIS might include deciding on stock levels or the pricing of products.

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COMPUTER BASED INFORMATION SYSTEMS

An Information system is a set of people, procedures, and resources that collects, transforms, and disseminates information in an organization. Today’s end users rely on many types of Information Systems (IS). Some are simple manual information systems, where people use tools such as pencils and paper, or machines such as calculators and typewriters. Others are computer-based information systems. Computer-based information systems mean the use hardware, software, telecommunications, and other forms of Information Technology (IT) to transform data resources into a variety of information products. Four kinds of organizational changes are enabled by Information systems. These are automation, rationalization, re-engineering, and paradigm shift. When an organization does not use its internal resources to build and operate information system it takes help of other organizations to provide these services. This is called outsourcing. There are advantages and disadvantages of using outsourcing. Quality programs differ greatly from company to company. Some are merely generalized “sales” campaigns intended to sensitize employees to the need to strive for more quality in their daily work. At the opposite extreme, quality programs can result in fundamental changes in the way a company does its business. Companies also follow different routes in achieving quality. Whatever route a company selects, the more it tries to achieve with its quality programs, the more information systems can contribute the success of those programs.

A computer based information system uses the resources of people (end users and IS specialists), hardware (machines and media), and software (programs and procedures), to perform input, processing, output, storage, and control activities that convert data resources into information products as shown in Figure-1.

Figure-1: The Components of an Information System

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INFORMATION TECHNOLOGY AND INFORMATION SYSTEM

INFORMATION TECHNOLOGY (IT)

Information is the finished product for which data is the raw material. The dictionary defines information as processed data, which is used to trigger certain actions or gain understanding of what the data implies. 

Information has also been defined as data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. Information involves the communication and reception of intelligence or knowledge. It apprises and notifies; surprises and stimulates, reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones, and influences individuals and stimulates them to action. The information must be received by the recipient within the required time frame and the information must be free from errors. 

The technology plays an important role in delivering timely and error free information to its recipients. Technology includes hardware, software, databases, and communication system. Hardware is a set of devices such as processor, monitors, keyboard, and printer that accept data, process them, and display them. Software is a set of programs that enable the hardware to process data. Database is also an integral part of IT system, which is a collection of related files, tables, relation etc. that stores data and the association among them. Network connects computing resources of an organization and facilitates sharing of hardware and software. The organization processes and people are integral part of an IT System. 

Information Technology means the collection, storage, processing, dissemination, and use of Information. It is not confined to hardware and software but acknowledges the importance of man and the goals he sets for his technology, the values employed in making these choices, the assessment criteria used to decide whether he is controlling the technology and is being enriched by it. 

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