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.
Describe the characteristics of management information systems (MIS) and explain how
MIS differ from TPS and from DSS.
Middle management needs systems to help with monitoring, controlling, decision-making, and
administrative activities.
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.
Describe the characteristics of decision support systems (DSS) and how they benefit
businesses.
Decision-support systems (DSS) support nonroutine decision-making for middle managers.