Difference between MIS and TPS and DSS | Decision support in business

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The difference between MIS and TPS and DSS is showing below which helps you to make decision support in the business that you operate.

The transaction processing system (TPS)

Supporting day-to-day business operating activities, or transactions is usually the first and most important objective of an information system. A computer-based transaction processing system (TPS) focuses on the operating level of a business and deals mostly with data from internal sources.  

See Details – Transaction Processing System

The management information produced by transaction information systems usually consists of detailed reports of daily transactions (such as a list of items sold or all the accounting that have been recorded in various ledgers and registers) or future transactions (such as lists of items that need to be ordered). 

ATPS usually operates only within one functional area of a business. In other words, accounting and finance, production, marketing and sales, and research and development each have its own transaction processing information system database management systems were designed to solve the problems involves with sharing computer-based files among the different functional areas. Although the reports generated by a TPS are useful to lower-level managers, they are not generally helpful to middle managers, who need more summarized information. Thus, management information systems were developed to take care of middle management’s information needs.

Management Information System (MIS)

Management Information systems (MIS), also called information reporting systems, provide middle management with reports that summarize and categorize information derived from all the company databases. The purpose of the reports is to allow management to spot trends and to get an overview of current business activities, as well as to spot trends and to monitor and control operational-level activities. (Although the term management information systems.) 
The scope of reports and the characteristics of their information vary according to their purpose. As you have seen, the reports can be periodic (such as income statements and balance sheets), on-demand, or event-initiated, and they can summarize information or report on exceptional events or conditions. Examples of reports generate by an MIS are sales region analyses, cost analyses, annual budgeting reports, capital investment analyzes, and production schedules.

Decision Support System (DSS)

The decision support system (DSS), a set of special computer programs, establishes a sophisticated system to provide tools to assist the manager in analyzing information from the two lower management levels and from outside the company. The analyzes are used for unstructured decision-making. DSSs are generally used by top management (although they support all levels of management), combine sophisticated analysis programs with traditional data access and retrieval functions, can be used by people who are not computer specialists, and emphasize flexibility in decision making. They are used to analyze unexpected problems and integrate information flow and decision-making activities. A DSS may use database management systems, query languages financial modeling or spreadsheet programs, statistical analysis programs, report writers, and graphics programs to provide information. Decision support systems do not take the place of management information systems; instead, they are used together.

To reach the DSS level of sophistication in information technology, a firm must have established a transaction processing system and a management information system. But these two types of systems are not designed to handle unpredictable information and decisions well. Decision support systems are designed to handle the unstructured types of decisions – the “what if” types of decisions and analyses of special issues- that traditional management information systems were not designed to support.  

Moreover, decision support systems provide managers with tools to help them better model, analyze, and make decisions about the information they have. Indeed, some people regard decision support systems as a separate type of information system altogether, not just an information system for top management.