The main difference between EIS and DSS is that the EIS allows senior managers to take decisions to meet the strategic goals of the organization while the DSS allows senior managers to take non-routine decisions.
Management Information System (MIS) evaluates, analyzes and processes organizational data to produce useful information. It collects stores and distributes data as information, which helps to manage the organization properly. It also allows taking summarized reports. These reports help the management to monitor the organization, understand the current performance status and to take future business decisions. EIS and DSS are two types of MIS.
Key Areas Covered
1. What is EIS
– Definition, Functionality
2. What is DSS
– Definition, Functionality
3. What is the Relationship Between EIS and DSS
– Outline of Association
4. What is the Difference Between EIS and DSS
– Comparison of Key Differences
DSS, EIS, MIS
What is EIS
EIS stands for Executive Information System. It is designed to support the information needs for executive managers. Information is usually external, unstructured and uncertain. Furthermore, this information is intelligence-based. Some examples of intelligent information are databases, patent records, financial reports, market reports, technical reports from consultants, government policies and confidential information about competitors.
EIS provides multiple advantages. It is easier for upper-level executives to use and take decisions. It helps to monitor the company performance and examine the critical success factors. It also allows analyzing trends and determines the competitiveness in the market. Moreover, it improves flexibility, strategic control, improves communication and provides time management. EIS also provides excellent reporting facilities. Furthermore, since EIS is an automated system, it takes less time to find information.
On the other hand, the functionalities available in EIS are limited. It can cause executives to encounter information overload. It can also make the system slow and difficult to store current data. Moreover, if the company is a small scale organization, EIS not suitable as it is costly.
What is DSS
DSS stands for Decision Support System. It is a system that allows senior managers to take non-routine decisions. This kind of system allows solving problems that are unique and frequently change. DSS uses mathematical models and statistical techniques to support decision making. Some common statistical techniques are predictive modeling and probability.
DSS provides multiple advantages. It improves the speed of decision making and improves communication. As it focuses on non-routine decisions, it helps to discover new approaches to take decisions. Furthermore, it helps to automate managerial processes.
There are various types of DSS available. Some of them are as follows.
Data Analysis system – Uses algorithms or formulas to analysis data (E.g. – Cash and inventory analysis)
Information Analysis System – Analyzes the data and generates reports using information (E.g. – Sales and market analysis)
Status Inquiry System – Helps to take operational, management or middle-level decisions (E.g. – Daily status of machines in a manufacturing company)
Accounting System – Keeps accounting and finance information (E.g. – Account payables, receivables, etc.)
Model-Based System – Simulates and optimizes models for decision making and helps to create guidelines to support operation and management
Relationship Between EIS and DSS
- EIS is considered a specialized form of DSS.
Difference Between EIS and DSS
EIS is a type of Management Support System that facilitates and supports senior executive information and decision making needs while DSS is an information system that supports business or organizational decision-making activities. This is the main difference between EIS and DSS.
Moreover, EIS stands for Executive Information System whereas DSS stands for Decision Support System.
Another difference between EIS and DSS is that EIS is used with distributed systems while DSS is used with mainframes, micro, and distributed systems.
Furthermore, EIS allows taking decisions to meet the strategic goals of the organization while DSS allows taking non-routine decisions. This is another difference between EIS and DSS.
EIS and DSS are two types of MIS. The main difference between EIS and DSS is that the EIS allows senior managers to take decisions to meet the strategic goals of the organization while the DSS allows senior managers to take non-routine decisions. Moreover, EIS is considered a specialized type of DSS.
1. “Executive Information System.” Wikipedia, Wikimedia Foundation, 22 Nov. 2018, Available here.
2. “Types of Information System: TPS, DSS & Pyramid Diagram.” Meet Guru99 – Free Training Tutorials & Video for IT Courses, Available here.