Differentiate between Management Information System and the Decision Support System

(Last Updated On: May 28, 2017)

The main purpose of the MIS (Management Information System) is to help the managers in making efficient and productive decision at strategic, tactical and operational level. It provides managers the helpful information that is gathered from different sources and departments in a single poo data base and in readable format.

What is Management Information System (MIS)?

Features of Management Information System;     

i. Understandable:

The information in MIS is already in the summarized form but it should be easily understandable to the receivers of information.

ii. Relevant:

Information should be relevant to the receiver who is going to use the information in his decision making.

iii. Complete:

The information provided to the manager should be complete in all regards.

iv. Available:

Information should be readily access to the manager for the decision making

v. Reliable:

The information should be trustworthy, accurate and can verify all the facts.

Using the table format below, list three types of MIS; for each type, list three examples of which business area it can be used

Type of MIS

Example of Business Area

Sales management system Production Department, Marketing Department, Senior Management
Inventory control system Inventory Department, Production Department, Management
Budgeting system Finance, Inventory, Production, Marketing

Using the table format below, list four types of reports that can be generated by a MIS and explain each report in approximately 15 words.

Type of Report

Explanation of Report

Manpower Report How many employees are currently working in the company? To facilitate the all employees currently working in the organization.
Production report How many units can be produced by the company? This report will give the information about the status of raw material required for the preparation of new units.
Sales Report How many units company will sale to earn the required profit? To meet the company target profit.
Monthly Financial Report What is difference between the budgeted financial statement and the actual financial statement?

 Describe the purpose of a Decision Support System (DSS)?

A DSS is an interactive computer base system which a manager can use without the assistance of a computer specialist. This helps the managers to make some intelligent decisions. There are three fundamental components in this system.

  1. Database management system
  2. Model based management system
  3. Dialog generation and management system


 List five features of a DSS

The following is my list of the characteristics of a DSS.


DSS facilitate or help the manager in their decision making or processes.


DSS are computer based systems which are designed for interactive use by the managers for decision  making.


DSS can be used at any level in the organization to make the decision; this system cannot replace the  decision makers in the company.

Repeated Use:

DSS systems are now currently used on daily basis, some managers are using on ad hoc basis for  decision making support.

Decision Impact:

DSS system usage improves the accuracy, quality, timeliness and effectiveness of the managers


Four types of DSS; explain each type.

Type of DSS


Group Decision Support Systems (GDSS) In this system a group of managers make decision about the company future planning, for example to meet a big order from the customer. In this they find out how effectively they can perform to achieve their targets.
Logistics systems In this company manage their goods or components in an effective way to reduce the cost.
Financial Planning systems Through this company compare the budgeted financial reports and the actual financial report and take the steps to improve if they are lagging to achieve their target.
Spreadsheet Models? Through this they make different reports in a summarized way to understand the organization position according to current scenario.


 Differences between MIS and DSS



DSS help analysts and decision maker within an organization for a specific condition or problem MIS provide routine information on ongoing basis in different standardized formats.
These systems are used by managers. MIS can provide reports on demand basis.
These systems are used in both unstructured and semi structured situations. MIS solve standardized problems using some specified criteria and then this information can be used as a base to DSS.
DSS involves repetitive decision. MIS used for routine functions for example production, human resource management, financial analysis etc.
DSS is mostly used where managerial judgment is required. MIS can be used at different levels for example operational, tactical and strategic management due to wide information can be presented in it.

Five examples of technologies that are specifically used in knowledge and information management. For each example, explain how it can be used in knowledge and information management. Word count is approximately 30 words per explanation.


Use in knowledge and information management

Computers Computers are mostly used in the companies to store the information about different departments. When this information is needed you can find it out very easily.
Emails Emails are also good source of information through which you can send information to any manager and when you need the information you can get it from your mail box.
Microsoft Office Microsoft office is very helpful in the information presentation for example spread sheets are used to present the information in most understandable way.
Internet If someone want to know any information about anything internet is the best source for this. You can find any type of information on this.
Client Management System There are different database software’s are also present in the markets which store the information and when you need it present in a very good way. You can find different types of reports according to your demand.

Each statistical analysis and quantitative methods listed below provide an example on how it can aid decision-making in an organization. Word count is approximately 25 words per item.


How it can be used in business decision making

Regulation analyses Through this analysis a company can find out the changes in the regulations of a country so they can decide that which product or service will be good in the future if regulation changed.
Trend analyses Through trend analysis the innovation in the products will be carried out, companies or brands wants to know what is demanded by the customers in the future. So they start research and development for those products.
Surveying Surveying is getting the feedback from the customers, through this companies will came to know that where they are lagging or have to improve to get more market share.
Probability assessment What will the probability of the getting favorable or worse condition in the market? Probability is the chances of getting worse or good condition in the market regarding the product.
Correlation calculations If one thing goes down then the other thing will go down or up is called correlated with each other. For example if inflation goes up then sales will go down.
Sensitivity analyses Sensitivity analysis is if one thing goes bad then how much there will be change in the company sale or any other thing.
Dynamic programming Dynamic Programming helps the company to solve the big and complex problems in to small problems and then solve them easily.
Linear programming Linear programming is the process of taking various linear inequalities relating to some situation, and finding the “best” value obtainable under those conditions. A typical example would be taking the limitations of materials and labor, and then determining the “best” production levels for maximal profits under those conditions.
Break even analyses The situation where the profit and loss is 0, after this point company will make profit.
Queuing theory Queuing theory is the mathematical study of waiting lines, or queues.[1] In queuing theory, a model is constructed so that queue lengths and waiting time can be predicted
Simulation modeling In this different conditions set and find out what will be the result if these things happen in future.
Transportation Methodology Transportation methodology is how to calculate the cost for the transport used to deliver the units or products to the shops or to the customers.



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