1. Management Information System (MIS) :
MIS is an application of computer related technology to programs. It provides managers with information and support for effective decision-making and provides the feedback on daily operations. The outputs or reports are usually generated through accumulation of transaction processing data.
It ensures that appropriate data is collected from the valid sources, processed and passed to needy destinations. It satisfies the needs through query systems, analysis systems, modelling systems.
The main characteristics of MIS are :
- It supports data processing functions.
- It uses an integrated database and supports a variety of functional areas.
- It provides operational, tactical and strategic levels of organization.
- It is flexible
- It can adapt to the changing needs of the organization which is a big advantage of MIS.
For Example : Human resource management systems, sales and marketing systems etc.
2. Data Processing System (DPS) :
DPS is the manipulation of data by computers. It represents the automation of routines processing to support operations. Basically, it converts raw data into readable format which can be easily utilized by the people in the organization.
The data processing functions are data collection, manipulation, storage as used to report and analyze business activities. It is oriented primarily to processing transaction data for day-to-day transactions.
There are six stages of data processing :
- Data Collection
- Data Preparation
- Data Input
- Processing
- Data Output
- Data Storage
For Example : Typing sales numbers into an inventory control software program.
Difference between MIS and DPS :
| MIS | DPS |
|---|---|
| It uses an integrated database. | It does not use integrated databases. |
| It provides greater flexibility to the management. | It provides no such flexibility. |
| It integrates the information flow between functional areas. | It tends to support a single functional area. |
| It focus on information needs of all level of management. | It focuses on departmental level support. |
| Output is in the form of graph. | Output is in the form of the table. |
| The model is simple. | Sometimes, the model becomes complex. |
| Focuses on operational functionality. | It focuses on converting data to another form or language. |