INFORMATION TECHNOLOGY COURSE

ASSIGNMMENT

MEANING AND STRUCTURE

OF MIS&SUBSYSTEM OF
MIS

ADHIGA SUBAH,BBA LLB,5TH SEM,ROLL

NO-1
 TABLE OF CONTENTS

topic page no

INTRODUCTION 3

What is MIS? 4

characteristic and
6
functions

Structure of MIS 10

Subsystem Of MIS 13

conclusion 14
 INTRODUCTION

MIS is a type of information system that assists in giving

management of an organization access to data that is utilized
for decision-making. A management information system (MIS)
is a subset of a company's overall internal controls that
management accountants use to utilize people, documents,
technologies, and procedures to solve business challenges
like pricing a good or service or developing a company-wide
strategy. Because they are used to analyze other information
systems that are used in operational activities inside the
organization, management information systems differ from
normal information systems. .This assignment will throw
insight on MIS,Structure and its subsystems.
Management Information
System
A designed system for gathering, processing, storing, and
disseminating data in the type of information required to carry
out management tasks is known as a "MIS."A marketing
information system, according to Philip Kotler, "consists of
people, equipment, and procedures to collect, sort, analyze,
evaluate, and distribute necessary, timely, and accurate
information to marketing decision makers." MIS and
information system are frequently used interchangeably.
 Systems that are not intended for decision-making are included in
information systems.When used in a limited sense, the term "information
technology management" is occasionally used to describe the field of study
known as MIS. Computer science should not be mistaken with that field of
study. A discipline with a practitioner-focus is IT service management.
Enterprise resource planning (ERP) comprises features that aren't always
focused on decision support, although MIS has some distinctions with ERP
as ERP incorporates elementsthat are not necessarily focused on decision
support.Any organization's functions are greatly impacted by MIS.The
organization gains advantages from the systems in the following ways: a)
Quick access to information; b) Data interpretation; c) Quick decisions; d)
Quick actions; e) Increased productivity and thus rises in the profit; f)
Reduced transaction costs.

Characteristics of MIS
Managers will have a variety of jobs to manage in any firm. The primary
purpose of MIS is to meet the needs of the organization's managers.
• Businesses will have a variety of departments, including marketing,
production, sales, inventory, and maintenance, among others. These
departments all work independently and in conjunction with other
departments. There is a lot of information available.
 MIS aids in determining the best method for data storage. The data is
kept in such a way that extraneous data duplication is prevented.
The establishment of mechanisms to do away with redundant data is
another benefit of MIS.
A system like MIS can be divided up into smaller systems. Such
subsystems can each be programmed. As a result, information and data
are accurate and easy to access.

FUNCTION OF MIS
The major purpose of MIS is to aid managers and executives in making
decisions within the company.
Large amounts of data are gathered from internal sources, including
information on customers, competitors, personnel records, sales data,
financial data, etc.

• A database has been created using the information that has been gathered.
• Various tools and procedures are used to process and analyze the
database's data.
• The managers receive a proper presentation of the analysis' findings to aid
in their decision-making.
 STRUCTURE OF MIS
Operating components, decision support, managerial activity, and
organizational function can all be used to characterize the MIS structure.

1. MIS operational components:

The operational MIS components include:

a)Physical elements: The elements that make up the body.

a system of information are:

(i)Hardware is the term for the actual computer.

instruments and associated equipment carrying out different
features such as additional storage, CPU, input, and output
and Interaction.
(ii) Software, which alludes to the provided instructions
o the hardware to carry out a number of tasks.
(iii)Databases are collections of logically organized data.
connected, centralized records containing numerous data that have
been stored.
(iv) Methods, which comprise the list of instructions
to users, the data preparation team, and the operating
employees, etc.
(v) Using a personal device, which could be a computersystem analysts,
programmers, and operators
(b) Processing functions: The following information system components are
based on processing functions:
Processing transactions is an activity that serves as a source of data (i). The
recording and evaluation of these transactions is one of the information
system's tasks.
(ii) Keeping up with master files entails creating and keeping up with master
files for long-term data storage.
(iii) Creating reports - one of the information system's main responsibilities is
to create and provide reports to the user at various management levels.
(iv) Handling inquiries: Information systems respond to queries at different
levels.
Information systems enable interactive facilities for end users and aid in
system planning, analysis, and decision-making through the processing of
interactive support applications.

(c) User output: An information system's output to its users may take any of
the following forms:
(i)Purchase orders, payrolls, sales invoices, etc. are a few instances of
transaction documents or screens
(ii) Prepared reports with standard material.
(iii) Prepared responses to questions.
(iv) User-machine dialog outcomes, which describe how a user can
communicate with a system to find a solution.
(v) Ad hoc reports and inquiry responses, which come along on a regular
basis and gather information for analyses whose structure cannot be
anticipated in advance.
2. Decision support: Making decisions is one of the main responsibilities of
managers in an organization. Information systems serve as a tool for
managers to help them make decisions. MIS is a decision-support
technology that supports both organized and unstructured judgments.
(a) Well-structured choices (Programmable judgments)
These are well-defined, routine decisions that follow pre-established
patterns or rules. It does not imply that the choices are made automatically.
Simply put, programmed decisions can be made within a framework that
specifies the actions to be taken using a formula, decision table, flow chart,
or other tool. The decision model will outline the information required, and
lower level staff members in the organization that lack speciaised
knowledge or skill.
Unstructured decisions (also known as non-programmable decisions) are
irregular in character.
They lack pre-existing decision models or processes, necessitating the
creation of fresh solutions for each distinct issue. Because it is impossible to
forecast in advance what information will be needed, retrieval operations
may be ad hoc in nature. Additionally, because there are no decision-making
guidelines, these choices are highly risky and dependent on human
judgment. Examples of non-programmable decisions include creating the
capital budget, releasing a new product, etc.

3. Management Activity (Needs for Information and Management Levels):

Strategic, tactical, and operational planning are the three activities that
make up the hierarchy of managerial activities that form the basis of MIS.

The establishment of long-term objectives such as goals, policies, general

guidelines, and organizational objectives is one of the duties of the
strategic planning level. At this level, decisions are made in relation to
the selection of company directions, market strategy, product mix, etc.
For decision-making, the strategic level of management (top
management) needs a broad, diverse, future-focused, and mostly
external knowledge set.
The emphasis on managerial control and the efficient and effective
raising and use of resources are key considerations at the tactical
planning level. At these levels, activities such as resource acquisition,
technique development, plant location, new product development,
budget creation and monitoring, etc., take place.
Effective and efficient resource management and the performance of daily
tasks are among the duties of management at the operational, planning, and
control levels of the company. They also pertain to decisions made
immediately or recent choices made about the price, production, or stock
level,among other things. The details needed at this level of restrictions on
management are clear and defined. but in depth,historical, quite
contemporary, precise, common, and primarily at this stage, internal data is
also necessary for proper functioning.

4. Organizational Functions: The structure of MIS can also be defined in terms

of organizational functions and information requirements. These tasks are
not typically categorized, but they typically fall under the headings of buying,
production, marketing, people, finance, and accounting in a manufacturing
firm. Each of these tasks requires particular pieces of information, hence
each one needs its own Management Information System.

SUBSYSTEMS OF MIS
Subsystems can be made up of a number of other subsystems, each of which
contains components, interactions, and goals. Specialized tasks pertaining to
the overarching goals of the complete system are carried out by subsystems.
A system can be made up of subsystems or basic components and exists on
multiple levels.

The Management Information System is divided into the following subsystems:

1. transaction Processing System

2. Management Reporting System
3. Decision Support System
4. Office Information System
Transaction processing System- A trade between two or more business
entities is referred to as a transaction. A company's primary business
activities, including as sales, production, inventory, shipping, receiving,
billing, accounts payable, accounts receivables, payroll, general ledger,
etc., are reflected in overall transaction processing, sometimes referred to
as data processing. Transaction processing is the process of gathering
information on transactions, which are significant events for an
organization.

The main function of a transaction processing system is to capture, handle,

verify, and store transactions that happen across different functional
areas of an organization for later retrieval and usage. Cross-functional
information systems called transaction processing systems process data
that comes from business transactions.

The most sophisticated MIS component for management reporting is the

management reporting system. Its main goal is to offer printed reports and
query capabilities to lower and middle management in order to support
the maintenance of operational and management control over the
organization.

Instead of being created by end users, MRSs are typically created by

information system professionals.
Instead of forecasting the future, MRSs are focused on reporting on the
past and the present.
MRSs primarily cover internal business activities.
MRSs typically don't have much analytical power.
MRSs do not immediately assist in making decisions.
MRSs offer Demand or Ad-hoc Reports, Exception Reports, and Scheduled
or Periodic Reports.
 Transaction processing System- A trade between two or more
business entities is referred to as a transaction. A company's
primary business activities, including as sales, production,
inventory, shipping, receiving, billing, accounts payable, accounts
receivables, payroll, general ledger, etc., are reflected in overall
transaction processing, sometimes referred to as data processing.
Transaction processing is the process of gathering information on
transactions, which are significant events for an organization.

The main function of a transaction processing system is to capture,

handle, verify, and store transactions that happen across different
functional areas of an organization for later retrieval and usage.
Cross-functional information systems called transaction processing
systems process data that comes from business transactions.

The most sophisticated MIS component for management reporting

is the management reporting system. Its main goal is to offer
printed reports and query capabilities to lower and middle
management in order to support the maintenance of operational
and management control over the organization.

Instead of being created by end users, MRSs are typically created by

information system professionals.
Instead of forecasting the future, MRSs are focused on reporting on the
past and the present.
MRSs primarily cover internal business activities.
MRSs typically don't have much analytical power.
MRSs do not immediately assist in making decisions.
MRSs offer Demand or Ad-hoc Reports, Exception Reports, and
Scheduled or Periodic Reports.

A class of computerized information systems known as decision

support systems are used to assist in making decisions. Interactive
computer-based systems and components known as DSS are
designed to support decision-makers. A DSS may use an expert
system or artificial intelligence to convey information graphically.
DSS is frequently created with management control level and
strategic planning level managers in mind.
Decision-makers are supported by DSSs in semi- and unstructured
problems.
DSSs place more of an emphasis on particular choices than on regular
information flows.
Information is presented visually by DSS, which may also use artificial
intelligence or expert systems.
DSSs are progressively adaptable.

Office Information System - An information system that employs

networks, hardware, and software to improve staff communication and
workflow is known as an office information system. Office automation is
the use of computer and communication technology for administrative
tasks. By offering secretarial support and enhanced communication
facilities, office automation systems are intended to increase the
productivity of managers at different levels of management. Office
automation systems are an information system's combination of
hardware, software, and human resources that handle office
transactions and support office operations at all organizational levels.
These systems come with a variety of support tools, such as word
processing, electronic filing, email, message switching, data storage,
data and voice communication, etc.

Business Expert System: A knowledge-based information system that

assumes the role of an expert by applying its understanding of a
particular, intricate application area. One of the knowledge-based
information systems is this one. The expert system gives managers
guidance from an expert in a particular problem area as decision
support. Expert systems are used in a variety of fields, including
medicine, engineering, and business.
 CONCLUSION
Through this course assignment i was able to get an insight on
Management information systems,its functions,characteristics,
structure and subsystems.Therefore, MIS are designed to enable
quick access to correct data and support managers in achieving
their objectives. The management information system (MIS) is so
beneficial to a business that it affects how well it
performs,functions, and productivity, of course. Managers must
make decisions in an organization, and Management Information
System (MIS) is a great tool for supporting them by giving
information at various stages of decision-making.