What functions do DSS TPS and an MIS support in business org

What functions do DSS, TPS and an MIS support in business organizations? How does each one differ from the other?

TPS:- Transaction processing systems.

Transaction processing systems (TPS) are computerized systems that perform and record daily

routine transactions necessary in conducting business; they serve the organization’s operational

level. The principal purpose of systems at this level is to answer routine questions and to track

the flow of transactions through the organization.

At the operational level, tasks, resources, and goals are predefined and highly structured.

Managers need TPS to monitor the status of internal operations and the firm’s relationship

with its external environment.

TPS are major producers of information for other types of systems.

Transaction processing systems are often so central to a business that TPS failure for a few

hours can lead to a firm’s demise and perhaps that of other firms linked to it.

MIS:- management information systems

Middle management needs systems to help with monitoring, controlling, decision-making, and

administrative activities.

MIS provide middle managers with reports on the organization’s current performance. This

information is used to monitor and control the business and predict future performance.

MIS summarize and report the company’s basic operations using data supplied by TPSs.

The basic transaction data from TPS are compressed and usually presented in reports that

are produced on a regular schedule.

MIS serve managers primarily interested in weekly, monthly, and yearly results, although

some MIS enable managers to drill down to see daily or hourly data if required.

MIS generally provide answers to routine questions that have been specified in advance and

have a predefined procedure for answering them.

MIS systems generally are not flexible and have little analytical capability.

Most MIS use simple routines, such as summaries and comparisons, as opposed to

sophisticated mathematical models or statistical techniques.

MIS differs from TPS in that MIS deals with summarized and compressed data from the TPS.

While MIS have an internal orientation, DSS will often use data from external sources, as well as

data from TPS and MIS. DSS supports “what-if” analyses rather than a long-term structured

analysis inherent in MIS systems. MIS are generally not flexible and provide little analytical

capabilities. In contrast, DSS are designed for analytical purposes and are flexible.

DSS:- decision support systems

Decision-support systems (DSS) support nonroutine decision-making for middle managers.

DSS provide sophisticated analytical models and data analysis tools to support

semistructured and unstructured decision-making activities.

DSS use data from TPS, MIS, and external sources, in condensed form, allowing decision

makers to perform “what-if” analysis.

DSS focus on problems that are unique and rapidly changing; procedures for arriving at a

solution may not be fully predefined.

DSS are designed so that users can work with them directly; these systems include

interactive, user-friendly software.