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Decision support system is information which is computer based which operates as well supports the information system. It is a technical process and understands the system and decision very well.
DSS supports the problems that are either semi structured or non-structured.
Now come on what is Management Information system ?
So Management information system is the system where middle managers work or do the activities. The middle managers serve the management process is known as MIS.MIS provides and helps the managers to control and monitor the business and future performance. It is used to provide reports to managers and serve them in weekly monthly and yearly results. The data which is used comes from Transaction processing system also known as TPS.
It is a system which the middle managers do and control the detailed controlling whatever information’s and transactions happened after consolidating it.
No Management information system can be prepared without consolidating the Transaction processing system.
There are different levels of information systems:
1. TPS
2. OFS
3. MIS
4. DSS
5. KMS
6. ES
1. TPS means Transaction processing system. It includes the data related to the transactions like it carries the data maintain the records and modify and execute the information to the middle manager of the company so they can do the further process.
2. OFS stands for office automation system which includes the software packages of Microsoft like word, excel, power point, access and outlook which is basically useful in the offices for e-mails and interaction via the professional mails.
3. MIS stands for management information system which means the system which the middle managers and the management control. The middle management is the main word which we should remember in the MIS who manages the job and the nature of the responsibilities which have been played by the members.
4. DSS stands for decision support system which helps in taking the right decision at a right time so the organization could get its benefit and decision support system is helpful if the decision maker has taken the decision to manage the company goals.
5. KMS stands for knowledge management system which means to share the information and knowledge as per the experience and it does not use an artificial intelligence like robotics but it is engaged in reality for example: face book share information and record experience knowledge.
6. ES stands for expert systems means it stimulates the entire human being for example: computer games, chess games etc.
Now the difference between MIS and DSS are:
MIS is providing solutions to daily and routine based problems whereas DSS does not.
MIS provides the knowledge and information whereas DSS provides the necessary and required information.
MIS do the things in a right manner but DSS make the right decisions and think of the right decisions so MIS do the things right as per ordered by DSS. The order which given by DSS is managed by MIS and TPS is not MIS.
Components of Decision support system:
1. A database
2. A model base
3. A user interface
A database is software which consists of a tools and software system to analyze and get easy access of data.
A model base is a physical model to establish the relationships. It contains one or more than one models to perform the decision.
A user interface is basically manage the data and gives a feedback and controls the data.
Example of Decision support system helps with making internal decisions:
It helps to find the problem correctly and there is no communication gap. DSS supports the communication level where an organization can think for its success successfully.
If a manager is not getting the targets done in a mentioned deadline then he should be sure about the confusions about the problems and when he will interact with this persons then he will feel about the real problems and which is internal might be assuming that his persons are not comfortable in the field because there is no facilities provided by the company for travelling but the expenses only are provided so he might face problems of vehicles and unsafe also so the manager should think about the problem and should take the desired action as well as think for optimal solution after interacting and co coordinating with his team members. The work thus getting delayed and his persons could not be able to do the work on time and cannot meet the customer needs so company is facing trouble so the decisions in favour of the company as well as its members.
Thus one of the internal problems has been defined from my side as per the requirement of the question.
The other example which we can say is if a company supposes its ABC which is not achieving the good business and good output as per his target and specified goals so the organization will go for analyzing the problem which exists in an organization it can be either external or internal. If it’s external problems then it’s due to the bad word of mouth about the company and if it is internal then an immediate action is required. I suppose there is a problem in computers and internet connection and its speed which are using by its employees for the company purpose and that organization’s work is based on the computer through e-mails through chat and through the computer programs then the company will go into losses because his major work which is important for both his clients as well as suppliers then the work will get delayed so the problems once have been identified by the company then the planning would be done by the management to solve this problem then they will design the scenario and steps after taking the effective decision in support to the company as well as its members and clients so the management could monitor the steps and then finally execute them for future benefits and success.