Difference Between Management Information System and Decision Support System

Main Difference

The main difference between the management information system and decision support system is that the management information system is supporting the structured decision making, whereas the decision support system (DSS) supports the semi-structured or unstructured decisions.

Management Information System vs. Decision Support System

Management information system MIS and decision support system DSS are the two terms that are used in the field of business management. Both systems are different in a few aspects. MIS and DSS are the processes of decision making before a specific decision is being made.

The management information system is usually supporting the structured decisions, i.e. the decisions that one can easily describe in detail. The decision support system provides support for such types of interactions that are semi-structured or unstructured. An unstructured or semi-structured type of interview is an interview that one cannot describe in detail.

Management Information System is an information providing system to the managers for making the required decisions. This information can be a report or anything else. Decision Support System is a system that provides information to the managers in the process of decision-making.

The management information system is the specific method of the collection, organization and summarizing of informational data to help the decision making processes. The decision support system is an updated and improved form of the management information system. It converts data into useful information, which helps the managers to make a wise and sensible decision.

MIS helps the tactical and operational levels of the organization. In this system, the decisions are well elaborated and described in detail. In the DSS, the decisions cannot be described in detail. The management information system refers to gather and store data. DSS refers to refine and manipulate the data.

The management information system is considered as the primary level of decision making. The decision support system is considered as the main and part of the decision. Management information system gives focus on operational efficiency and is helpful in the routine decision-making process. The decision support system gives focus on the making of effective decisions and is also helpful for managerial judgments.

Comparison Chart

Management Information SystemDecision Support System
An information system in business management which is supporting the structured decision makingAn information system in business management that supports the semi-structured or unstructured decisions
Short Form
MISDSS
Type of Users
Middle and low-level managementSenior managers and analysts
Emphasis
Gives on efficiencyGives on decision making
Depends On
Computer expertManagerial judgment
Focus On
Operational efficiencyMaking effective decisions
Flow of Information
From both upwards and downwardsOnly upwards
Report
Not usually flexibleCan be flexible

What is Management Information System?

A management information system, also is known as MIS, is a well-known term in the field of business management. It is a kind of information system which organizes, analyzes, and processes the data of an organization to input. The management information system gives a summarized report of that data.

A management information system is a planned system for the collection, storage, and distribution of the data as special information. This information helps with the efficient functioning of the organization. On the base of this information, the management can make the right decisions that help in the future growth of an organization.

The purpose of the management information system is to accelerate improved decision-making by providing the latest and accurate data on many organizational assets. These organizational assets include manufacturing, real estate, financials, raw materials, project timelines, inventory, marketing, and personnel, etc.

The management information system is usually supporting the structured decisions, i.e. the decisions that one can easily describe in detail. The management information system is considered as the primary level of decision making that gather and store data. It is an information providing system to the managers for making the required decisions. This information can be a report or anything else.

MIS helps the tactical and operational levels of the organization. In this system, the decisions are well elaborated and described in detail. It gives focuses on operational efficiency and is helpful in the routine decision-making process. The management information system is an essential network of software and hardware. This software and hardware help in processing the data and generating the information that supports the role of a manager to increase the values and profits of a business.

MIS is a type of information system which focuses more on operational efficiency. In MIS, the flow of information is from both upwards and downwards sides.

Examples

  • Sales Management Systems
  • Human Resources Management Systems, etc.

What is a Decision Support System?

Decision Support System is also known or its short term DSS. It is a system that allows managers, usually senior ones, to make unstructured or semi-structured decisions. An unstructured or semi-structured type of interview is an interview that one cannot describe in detail.

Decision support system DSS uses statistical techniques like predictive modeling and probability for the solutions finding and better decision making. It is also considered as an updated and improved version of the concept of a management information system. It converts data into useful information, which helps the managers to make a wise and sensible decision.

DSS is a system that provides information to the managers in the process of decision-making. In this system, the decisions cannot be described in detail. Decision Support System is a cooperative, flexible, and easy to use the system. It allows decision making, supports interpersonal communication and helps to automate managerial processes.

The decision support system gives focus on the making of effective decisions and is also helpful for managerial judgments. In brief, a Decision support system is a flexible computer-based information system or sub-system which helps decision-makers in the use of communication technologies, refining and manipulation of data, and documents for the identification of problems, completion of decision process tasks and finally making a decision.

The decision support system is considered as the main part of the decision. DSS gives focus on leadership. Its common users are the senior managers providing a broad and innovative vision. The experts of management recommend this system for decision making. Some of the main features of DSS are a low volume of data input, the output of decision analysis, the flow of information is upwards, and the reports by DSS are flexible. It is a process that is characterized by an interactive model.

Types of DSS

  • Data analysis systems, i.e., cash flow analysis, inventory systems
  • Information analysis systems, i.e., market analysis, sales analysis systems
  • Accounting systems

Key Differences

  1. The management information system is usually supporting structured decisions, i.e. the decisions that one can easily describe in detail, whereas the decision support system provides support for such types of interactions that are semi-structured or unstructured.
  2. The management information system is considered as the primary level of decision making on the flip side decision support system is considered as the main and part of the decision.
  3. Management information system gives focus on operational efficiency and is helpful in the routine decision-making process conversely decision support system gives focus on the making of effective decisions and is also helpful for managerial judgments.
  4. Management Information System is an information providing system to the managers for making the required decisions. On the other hand, the decision support system is a system that provides information to the managers in the process of decision-making.
  5. The management information system is the specific method of the collection, organization, and summarizing of informational data to help the decision making processes on the contrary decision support system is an updated and improved form of the management information system. It converts data into useful information, which helps the managers to make a wise and sensible decision.
  6. MIS helps the tactical and operational levels of the organization. In this system, the decisions are well elaborated and described in detail inversely in the DSS. The decisions cannot be described in detail.
  7. Management information system refers to gather and store data contrarily decision support system refers to refine and manipulate the data.
  8. Management information system process a large volume of data to input and gives a summarized report while the decision support system process a low volume of data as input and its output is the decision analysis.

Conclusion

Management information system MIS and decision support system DSS are the two terms that are used in the field of business management. Both systems are different in so many aspects, such as their decision making, processing, input, and output of data, the main focus, types of users, types of information, etc.