UNIT II MANAGEMENT INFORMATION SYSTEM & IT INFRASTRUCTURE

What is a Management Information System?

Management information systems (MIS) are an organized method of collecting information from
various sources, compiling it, and presenting it in a readable format. It helps business leaders and
managers make strategic management decisions.
Today’s management information systems rely heavily on technology to compile and present
data. An MIS consists of interconnected hardware, software, personnel, and processes that work
together to collect, store, process, and distribute information relevant to a company's operations
and decision-making.
Types of MIS
Types of MIS Description
Gather data to create reports based on the performance of systems
1 Process Control
and processes.
Management
2 Reporting Generate reports for the company’s operations.
System
Inventory Allow tracking of the current inventory state within a department or
3
Control the company.
Decision Support Gather information from internal and external resources and help
4
Systems team management make efficient business decisions.
Use Artificial Intelligence to simulate the judgment and behaviour of
5 Expert Systems a person or organization with expertise and experience in a specific
field.
Report company data to top management directly in an easy-to-read
6 EIS
format.
Transaction Automate business processes and collect data on a company’s daily
7
Systems transactional activities.
Accounting & Track a company’s assets and investments and processes financial
8
Finance Systems and accounting-related operations.
Sales &
9 Marketing Facilitate tracking of a company’s sales and marketing efficiency.
Systems
Allows control of organizational information circulating within the
company and oversees tasks like recruitment and daily
10 HR Systems
administration, ensuring all employees comply with company
standards.
11 School Help educational institutions manage daily activities like attendance,
 Information MS payroll, and employee schedules.
12 Local Databases Offer information about the residents of a given locality.
Functions of MIS
The primary function of MIS is to report on business operations to support decision-making and
ensure that the organization is managed more efficiently. This will help the company reach its
full potential and thus gain a competitive advantage. Listed below are some of the crucial
functions of MIS.
Provide Easy Access to the Information
MIS allows team’s convenient access to marketing, financial or operational information. MIS
reports strategically storing large amounts of information about the business in a central location
that managers can easily access over a network.
Data Collection
Data from the company’s day-to-day operations are collected and combined with data from
outside sources. This allows a healthy and functional relationship between distributors, points of
sale, and any other supply chain member.
Performance Tracking
As production and sales numbers are recorded and stored in a central database, MIS plays a
crucial role in keeping track of the performance of the employees. This information helps detect
issues early and make the right decisions quickly using the latest information.
Foster Collaboration in the Workplace
In any large company, many situations require the involvement of multiple people or
departments in decision-making.
MIS is an effective communication channel for the teams to collaborate and ensure that the
decision-making group can access all the data required for effective decision-making, even
working from different locations.
Company Projections
These management information systems come with trend analysis features that will allow you to
project how a business will perform in its current configuration and how it will be affected once
you have implemented the changes you are considering.
Even the ones without the trend analysis function will still offer sufficient information to carry
out the analysis accurately using external tools.
Track the Implementation of Decisions
MIS systems help project expectations for a particular decision. If they decide to implement the
changes, it will be necessary to continue monitoring performance to see if the teams are on track
to achieve the desired results.
Improve Company Reporting
One reason large companies prefer management information systems is the effectiveness of the
reporting functions. MIS reports contain easy-to-understand information, allowing management
to make timely decisions.
The system's accessibility to people from different parts of the organization makes it an effective
communication and reporting tool. The results and all the necessary supplementary data can be
shared among colleagues.
It is also possible to create short executive summaries that explain the entire situation for
company executives to review in situations that require their approval.
Features of MIS
MIS have several vital features, including:
 Data integration: MIS integrates data from various departments and functions, giving
decision-makers a comprehensive view of the organization’s data.
 Data storage: MIS stores vast data in databases, making it accessible and retrievable
when needed.
 Data processing: MIS processes data to generate meaningful information. It can perform
calculations, comparisons, and other data transformations to produce reports and insights.
 User-friendly interface: MIS systems typically have user-friendly interfaces that allow
non-technical users to easily access and interact with data.
 Customization: MIS systems can be customized to meet an organization’s needs. Users
can define the type of information they want to access and how it is presented.
 Real-time information: Many MIS systems offer real-time or near-real-time data
updates, ensuring decision-makers can access the most current information to make
timely decisions.
 Report generation: MIS generates various reports, including standard reports, ad-hoc
reports, and exception reports. These reports help managers monitor performance and
make informed decisions.
 Security: Access to sensitive information is restricted, and measures are in place to
protect data from unauthorized access or breaches.
 Accessibility: MIS can be accessed remotely, allowing decision-makers to retrieve
information from various locations.
  Integration with other systems: MIS systems can integrate with other organizational
software and systems, such as ERP (Enterprise Resource Planning) systems, Customer
relationship management (CRM) systems, and Human capital management (HCM)
systems.
 Mobile compatibility: Many modern MIS systems are compatible with mobile devices,
allowing users to access critical information on the go.
 Data analytics: Advanced MIS systems may incorporate data analytics and business
intelligence tools to provide deeper insights and support predictive analytics.
Components of MIS
There are five major components of a Management Information System.
People: People prepare and analyze MIS to achieve organizational goals.
Data: Day-to-day business transactions of an organization.
Hardware: Input and output devices, such as keyboards, mice, monitors, printers, etc., help input
data and display information.
Software and Business Processes: MIS depends on software and business processes such as MS
Office, Banking Software, ERP systems, CRM systems, etc.
Reports: The MIS output provides managers with insights through various reports, such as
routine, on-demand, or exception reports, aiding in decision-making.
Characteristics of MIS
The general characteristics of an MIS are:
 Use a variety of internal data sources.
 Provide reports on the routine operations of an organization.
 Allow users to develop custom reports, such as detailed reports.
 Provide a variety of different reports, both scheduled and on demand.
 Must be accurate and avoid including estimates or probable expenses.
 Provide reports in various formats, including hard copies and electronic copies.
 The information must be relevant for making a strategic decision.
Typically, an MIS is organized according to an organization's functional areas. So, the finance
department will have a financial MIS, the HR department will have a human resources MIS, etc.
Benefits of MIS
 Allows company management access to a single database to manage all transactions and
planning processes.
  It saves time and increases work effectiveness considerably.
 Ensures improved data analysis and decision-making.
 Maintains an accurate record of the system’s inputs and outputs and tracks employee
performance.
 Critically analyze a company’s and its employee’s strengths and weaknesses.
 The CEOs or executives can take greater company financial and operational control.
Limitations of MIS
Even though MIS has many benefits, it also has its limitations, which are discussed below:
 While MIS may solve some acute problems, it is not the only solution to all
organizational problems.
 Involves maintenance and employee training costs.
 It cannot meet everyone's particular demands.
 If misdesigned, MIS does not serve the management and is irrelevant.
 The MIS is only good if the primary data is updated.
 The MIS provides most information in quantitative form. Hence, it ignores qualitative
information, such as an employee's behavior.
FUNCTIONAL INFORMATION SYSTEMS:
Business Information System/Functional Information System in MIS
A functional information system in MIS refers to a system that performs specific functions
within an organizational structure of information technology. A functional information system in
MIS is designed to support specific functions and processes performed within an organization
such as finance, accounting, human resources, marketing, sales, and operations.
A business system or business model typically constitutes a business organization or association
comprising a considerable number of businesses, tradespersons, or professionals in the same or
related fields, which share information, pool resources, or provide other benefits for their
members. Business information systems are also recognized as functional information systems.
Functional Information System in MIS
The functional information system in MIS collects, processes, stores, and shares information
related to its specific functions. It helps organizations simplify complex processes, make correct
decisions and successfully achieve their business objectives.
To operate any business successfully, it is imperative to develop a system. Organisations must
maintain transparency regarding the sourcing of raw materials, the manufacturing process, and
sales strategies. To accomplish all these tasks, manpower is necessary, and managing them
requires having managers.
Additionally, individuals directly accountable for the unit’s profit and loss exist above the
managerial level. From small-scale employees to the managing director, everyone is vested in
the company’s welfare. Therefore, the system must be capable of ensuring success in all aspects
of business operations performed.
The functional information system in MIS is based on various business operations such as
production, marketing, finance, and HR. These operations performed by an organization
are known as functional areas of business. Each functional area requires applications to
complete all information processing related to the function.
A business system can however be broadly described as consisting of the following:
1. Purchasing
2. Research
3. Manufacturing
4. Sales/Marketing Research
5. Billing
6. Shipping
7. Accounting
8. Personnel
9. Payroll
The image above shows the grouping of information systems into various business function
classes. Consequently, the information systems have been analyzed by considering a few prime
examples in which they provide support. This helps in understanding the different types of
functional business systems that may be used in businesses of various sizes.
An information system that facilitates a particular function is comprised of several sub-systems
responsible for providing information to accomplish the tasks associated with that function.
Some of the main functional systems that are being used in most of the firms are as follows:
1. Marketing Information System,
2. Manufacturing Information System,
3. Human Resource Information System,
4. Account Information System, and
5. Financial Information System.
 1. Marketing Information System
A Marketing Information System (MIS) is a computerized system that operates in conjunction
with other functional information systems within the organization. The primary task of the MkIS
is to help management in solving problems that are related to product marketing of the company.
The main components of the system are equipment, people and methods that are used in
collecting, and sorting. analyzing, evaluating and distributing error-free and timely information
to marketing decision-makers. The primary responsibility of the Marketing Information System
(MkIS) is to establish the specific information required by the marketing manager. Once done, it
develops the framework for data collection, and after that, the information is distributed on time
to the end users.

The primary objective of marketing management is to ensure customer satisfaction. This consists
of:
1. Identification of the needs of the customers,
2. Development of the product concept,
3. Product designing.
4. Product positioning in the market, and
5. Appropriate pricing of the product so that it can be sold in the market.
The functions of marketing management are closely related to production and financial
management because marketing management is fully dependent on adequate inventory and
stock, as well as a continuous supply of goods at various locations. Marketing management
controls sales to increase income. Additionally, the marketing department has other
responsibilities, such as ensuring the retention of market share, penetrating new markets, and
assessing the response given by customers in the new market.
Some of the prime duties carried out by marketing management have been given below:
1. Forecasting sales,
2. Evolving marketing strategies.
3. Pricing,
4. Designing products, and
5. Launching products.
Model of Marketing Information System
The image below shows a conceptual model of Marketing Information System:
The Marketing Information System (MkIS) comprises various parts, including:
1) Input sub-systems: The input sub-system consists of the following points –
i) Transaction Processing System (TPS): This subsystem gathers data from external and
internal sources, which is then stored in the database.
ii) Marketing Research Sub-system: This subsystem conducts specialized studies to collect
external and internal data systematically. It is used to gather, analyze, and interpret information
about specific marketing subjects within set timeframes and objectives.
iii) Marketing Intelligence Sub-system: This sub-system provides general information on the
development of the marketing environment within the firm, enabling managers to adapt and
develop marketing plans. It encompasses sources and procedures for information gathering, often
through unplanned data collection.
2) Database: The database stores data from the input sub-systems (TPS, Marketing Research,
and Marketing Intelligence Subsystem) for use by the output sub-systems.
3) Output Sub-systems: The output sub-system consists of the following points –
i) Product Sub-system: Provides information about the firm’s products.
ii) Place Sub-system: Offers information about the firm’s distribution network.
iii) Promotion Sub-system: Provides information on the firm’s personal selling activities and
advertising.
iv) Price Sub-system: Assists managers in price-related decision-making.
v) Integrated Mix Sub-system: Enables managers to develop strategies considering the
integrated effects of various components.
2. Manufacturing Information System
The primary objective of manufacturing information systems is to use computer technology to
enhance the efficiency and processes of the manufacturing system. Additionally, it ensures the
production of higher-quality products and reduces the cost of manufacturing. Manufacturing
systems use information and process it to produce better end products as output, incorporating
information systems technology, data, material management, and equipment as inputs.
The transformation process, which converts raw materials into usable materials or components,
can be considered as the central point around which manufacturing systems are designed. These
systems include value-added processes such as material processing, as well as support systems
like scheduling.
“Manufacturing Information System is a complete set of tools for managing the flow of
manufacturing production data throughout the enterprise. This IS was designed to provide tools
for both IT and Operations Personnel who would deliver services to anyone in the plant.”
Manufacturing plant control addresses various types of manufacturing-related operations,
including different types of operational and tactical functions. The disciplinary areas that
constitute manufacturing include product engineering, facility design, fabrication, scheduling,
and quality control management. Information systems can greatly help in their improvement.
The major functions of Manufacturing Information Systems are tracking, scheduling and
controlling manufacturing processes. They also collect data such as the number of hours the
machine operates per month and the hours per day the machine is idle.
Model of Manufacturing Information System
The image shows a conceptual model of the manufacturing information system.
The components of the manufacturing information system are as follows:
1) Input Sub-systems
The following sub-systems are involved within this system:
i) Transaction Processing System (TPS): The transaction processing system populates the
database with data gathered from both external and internal sources.
ii) Industrial Engineering Sub-system: This sub-system includes the activities generated by
Industrial Engineers (IEs) who conduct studies of manufacturing operations to ensure efficiency.
IE’s set up standards in the production domain against which actual performance is compared.
iii) Manufacturing Intelligence Sub-system: Manufacturing Intelligence (MI) refers to the
software used by corporations to consolidate manufacturing-related data. This data can then be
reported, analyzed, visually summarized, and transmitted between the plant floor and enterprise-
level systems.
Data gathered from various sources can be logically combined and given new context or
structure, allowing users to find the required information without concern for the source. The
main objective is to derive meaningful insights from the vast amount of manufacturing data.
These insights can then be used to gain a competitive advantage in business.
2) Database
The database is responsible for providing data to the output sub-systems. It obtains data from the
three input sub-systems of the manufacturing information system.
3) Outputs Sub-systems
It comprises the following sub-systems:
i) Production Sub-system: Production data can be gathered and processed quickly using
terminals throughout the production floor. The collected data can be utilized in all phases of
production control and also for billing purposes.
ii) Inventory Sub-system: This sub-system manages raw materials inventories. In most cases,
the purchasing department maintains vendor data. However, in certain situations, the
manufacturing department may procure specific raw materials. Regardless of the case, the
manufacturing department must always be aware of the origin of the raw materials, the various
types of new products offered by vendors, and their current prices.
iii) Quality Sub-system: This sub-system is responsible for checking the quality of the product
after it has been manufactured to ensure it meets the required standards.
iv) Cost Sub-system: This sub-system compares costs with other options once they have been
identified.
3. Human Resource Information System (HRIS)
The prime objective of the personnel information system is to provide information about the
individuals working within an organization seamlessly and to forecast the personnel needs for
the future.
Personnel Information Systems (PIS), Human Resource Information Systems (HRIS), or Human
Resource Management Systems provide information to the people working in the personnel
department, enabling them to make decisions easily and carry out tasks effectively.
Finance, accounts, and budgets are the main modules related to the Computer-Based Personnel
Information System (CBPIS). CPIS is a database that contains all the posts and service details of
every employee working in government organizations. Organizations collect, maintain, analyze,
and store information about the people working and their respective jobs with the help of
methods provided by PIS.
Recruiters, career planners, trainers, and other human resource professionals use the information
contained in PIS to manage human resources. Information is required at both the macro and
micro level. HRIS provides solutions for training, recruitment, payroll, benefits, and HR.
Models of Human Resource Information Systems
The HRIS model is shown in the image below:
The different components of the Personnel Information Systems model are as follows:
1) Input Sub-systems: The sub-systems comprising this system are as follows:
i) Transaction Processing System (TPS): This sub-system provides input data to Personnel
Information Systems using a format similar to that used in MkIS.
ii) Human Resources Research Sub-system: This sub-system conducts special studies related
to human resources.
iii) Human Resources Intelligence Sub-system: This sub-system gathers data related to HR
issues.
2) Database: The database supplies data for use in the output sub-systems. In turn, the three
input sub-systems provide data to the database.
3) Output Subsystems: The output sub-system of the HRIS addresses each specific aspect of
HR management, including planning, recruiting, workforce management,
employee compensation, employee benefits, and preparation of HR reports required by the
environment. In this manner, the output systems can be determined, and users engage with the
output subsystem with great interest.
4. Accounting Information Systems
An Accounting Information System (AIS) helps the firm’s accounting operations and involves
high data processing. This system contains four essential tasks:
1. Data gathering,
2. Data manipulation,
3. Data storage and
4. Document preparation.
AIS collects data and helps decision-makers, such as investors, creditors, and managers, to make
informed decisions. It is a record-keeping system that a business maintains for its accounting
processes, including purchases, sales, and other financial transactions.
The Accounting Information System studies the structure and operation of the planning and
control processes, aiming to achieve the following:
1) Providing information to both internal and external stakeholders to ensure accountability and
effective decision-making, in compliance with quality specifications conducive to effective
decision-making conditions.
2) Providing suitable conditions for effective decision making.
3) Ensuring that no assets of the company illegally exit the company.
Model of Accounting Information System
The image below illustrates the Accounting Information System model. The foundation of the
company lies in the input, transformation and output elements of the physical system.
Data is collected from the physical system and the environment. The collected data is then
processed by software, transforming it into information for management, individuals, and other
organizations within the business environment.
5. Financial Information System
A Financial Information System is a CBIS system that provides information regarding various
financial matters of the firm to both internal and external individuals and groups.
Information is typically presented in the form of expert system advice, results of mathematical
simulations, special reports, electronic communications, and periodic reports.
Financial information generated by a financial MIS is used not only by executives but also by
individuals who make daily decisions based on financial matters. The efficiency and accuracy of
transaction reporting can be improved with the help of Financial Management Information
Systems (MIS).
Financial management satisfies the organization’s financial needs. It also ensures compliance
with statutory requirements by submitting various returns and reports to tax authorities and
governments and by declaring financial results.
Financial management helps the organization in achieving its goals using various tools,
including:
1. Ratio analysis,
2. Management accounting,
3. Cost analysis, cash flow projections,
4. Break-even analysis,
5. Capital budgeting,
6. Financial modelling, and so on.
Model of Financial Information System
The image below shows the model of a Financial Information System:
The different components of the financial information system are as follows:
1) Input Sub-systems: This sub-system consists of the following:
i) Transaction Processing System (TPS): This sub-system provides input data to the system in
a format similar to that used by MkIS.
ii) Internal Audit Sub-system: To ensure that the financial data of the firm is processed
correctly, internal auditors carry out an internal audit by analyzing the conceptual system of the
company.
iii) Financial Intelligence Sub-system: This sub-system gathers environmental data related to
financial issues.
2) Database: The database supplies data to be used by the output sub-systems. It receives data
from the input sub-systems (TPS, financial intelligence sub-system, and internal audit sub-
system).
3) Output Sub-systems: The financial information system consists of the following output sub-
systems:
i) Forecasting Sub-system: This sub-system plans how long the firm’s activity will last in the
economic environment.
ii) Fund Management Sub-system: The main aim of the fund management sub-system is to
keep the fund positive and balanced by managing the flow of money.
iii) Control Sub-system: Managers can effectively use various resources with the help of the
control sub-systems.

6. Production/Operations
The production/operations function involves activities that transform inputs into goods and
services. These activities vary across industries and markets, but they generally include inputs
such as raw materials, labor, capital, machines, and facilities. The production/operations function
is crucial for ensuring that these inputs are effectively transformed into finished goods and
services. This function comprises five key decision areas:
1. Process: The methods and technologies used to transform inputs into outputs.
2. Capacity: The volume of output that a production system can handle.
3. Inventory: The management of raw materials, work-in-progress, and finished goods.
4. Workforce: The human resources involved in the production process.
5. Quality: The standards and procedures to ensure that products meet certain specifications
and customer expectations.
Production/Operations Audit Checklist
To assess the strengths and weaknesses in the production/operations function, consider the
following questions:
 Are supplies of raw materials, parts, and subassemblies reliable and reasonably priced?
 Are facilities, equipment, machinery, and offices in good condition?
 Are inventory-control policies and procedures effective?
 Are quality-control policies and procedures effective?
 Are facilities, resources, and markets strategically located?
 Does the firm have technological competencies?

Research and Development (R&D)

Research and Development (R&D) is the fifth major area of internal operations that should be
examined for specific strengths and weaknesses. R&D activities are critical for firms pursuing a
product development strategy. However, while some companies may not engage in R&D, others
depend heavily on successful R&D activities for survival and growth.
R&D Audit Checklist
To assess the strengths and weaknesses in the R&D function, consider the following questions:
 Does the firm have adequate R&D facilities?
 If outside R&D firms are used, are they cost-effective?
 Are the organization’s R&D personnel well-qualified?
 Are R&D resources allocated effectively?
 Are management information and computer systems adequate?
 Is communication between R&D and other organizational units effective?
 Are present products technologically competitive?

Internal Audit: Management Information System (MIS)

Management Information Systems (MIS) are crucial for tying together all business functions and
providing the basis for all managerial decisions. MIS can represent a significant source of
competitive management advantage or disadvantage. Assessing a firm’s internal strengths and
weaknesses in information systems is a critical dimension of performing an internal audit.
MIS Audit Checklist
To assess the strengths and weaknesses in the MIS function, consider the following questions:
 Do all managers in the firm use the information system to make decisions?
 Is there a chief information officer (CIO) or director of information systems position in
the firm?
 Are data in the information system updated regularly?
 Do managers from all functional areas of the firm contribute input to the information
system?
 Are there effective passwords for entry into the firm’s information system?
 Are strategists of the firm familiar with the information systems of rival firms?
 Is the information system user-friendly?
  Do all users of the information system understand the competitive advantages that
information can provide?
 Are computer training workshops provided for users of the information system?
 Is the firm’s information system continually being improved in content and user-
friendliness?

This comprehensive internal audit approach across production/operations, R&D, and MIS
provides valuable insights into a firm's strengths and weaknesses, helping guide strategic
decision-making and improvement efforts.
7. MIS in Inventory:
The MIS Inventory system is a feature rich module designed to help you manage and control (not
just track) your inventory.
Purchase and Stock Management
The MIS Purchase Manager subsystem was designed to organize many of the functions
performed by the department responsible for purchasing and stocking the goods which a
company resells. These functions include review screens for inventory statistics to determine
which items are being sold, item profitability, special stocking conditions, reports assisting in
developing orders and definable product performance ranking functions.
Inventory statistics are compiled and maintained by the system. The statistics are used by the
system in order to advise on ordering (what to order), stocking (what to stock), and notification
of slow- moving or dead stock. Some of the statistics that are kept on each item are:
 Performance/ABC Code
 Turns
 Sales History (units, sales, profit %)
 Product Rankings by Sales, Profit,
 Units, and Cost
 Stock Out Occurrences over last 24 months
 Last Stock Out Date
 Last Stock Days (number of days)
 Lead Days (average, last, best, worst)
 Highest in-stock amount and date
 Highest one-time sale amount and date (single customer dependency)
  Average unit sale per month
 Stock sufficiency/customer service levels (in-stock or backorder situation)
What to Order?
The MIS system uses user defined parameters and statistical data in order to determine what to
order. Some of our customers have static usage and lead time products and they wish to use the
simple ordering techniques associated with Low Point, Reorder Points, and Just-In-Time
Calculations. Many of our customers require a higher degree of sophistication and choose to use
many of the features found in our Purchase Manager module. Some of the controls found in our
Purchase Manager are:
 Order Controls by Purchase Group
 Order Controls by Vendor
 Order Controls by Performance Class
 Order Control by Product Class
The above order controls allow you to set ordering parameters by:
 Lead Time
 Safety Stock
 Review Cycle
 Stocking Days
Individual item ordering controls/overrides are available due to the following conditions:
 Single Customer Dominant Item
 Contract Item
 Low Usage Item
 New Item
 Item Stock Outs have occurred
 Unusual Sales have occurred
 Erratic Lead Times exist
 Seasonal Item
 And more!
Various functions can automatically send results to the MIS Purchase Manager Control Screen.
Your buyer(s) can edit the system-generated figures, optimize the order amounts (based upon
vendor terms and products), send a system-generated RFP, and automatically update the MIS
Purchase Order module.
To Stock, Not to Stock, Dispose
Several reports are available in order to determine and notify you of problem stock.
 Product Usage Spike
 Slow-movers
 Overstocked
 Item Performance
 Hot Movers
 And more!
Intelligent Item Pricing
Pricing should be based on item performance, customer performance and in some instances, the
competition. There are several options within the MIS system that can help establish and
maintain intelligent selling prices and user.
 Columnar Pricing
 Matrix Pricing
 Contract Pricing
 Sale Pricing
 Quantity Break Pricing
 And More!
Vendor Price Changes
Save time! Price changes from your vendor can be uploaded/imported into the MIS system via
Excel and other vendor specific electronic formats. Future price changes can be entered before-
hand or updated quickly using built-in multipliers. Items that you do not stock can be
electronically loaded into the MIS Catalog Item file.
Wire/Reel/Rope/Steel/Spool/Lot Management
Managing products that are sold in “lots” is made easy by the MIS system. Sales, receipts, and
adjustments are tracked and special physical inventory sheets are available for counting. Material
Test Reports, Certifications, “Heat Synch” data, etc. can be attached to each lot using our PDF
and Image functions.
Imaging, Web, & External Documents
Images (JPG/BMP/TIF/GIF, etc.), PDF documents, Word documents, Excel documents, .TXT,
Web sites, and other files can be attached to your products as well as
Lots/Spools/Reels/Hose/Pipe, etc.
What is a Marketing Information System (MIS)?
A Marketing Information System (MIS) is a helpful tool for businesses. It's a way to collect,
organize, and use marketing information. Think of it as a system that gathers data about
sales, customers, and the market. This tool is important because it helps businesses make smart
decisions. It allows them to understand what's happening in the market, what customers are
doing, and what competitors are up to. By having this information, businesses can plan better,
use their resources wisely, and stay ahead of the competition. In simpler terms, it's a way for
companies to know what's going on in the business world and use that knowledge to make better
choices.
Importance of a Marketing Information System
A Marketing Information System (MIS) plays a crucial role in the success of businesses by
providing valuable insights and support across various aspects of marketing. Its importance is
evident in several key areas.
1. Decision Making: One of the key advantages of having an MIS in place is that it aids
decision-making. By offering comprehensive data and insightful analysis, it helps decision-
makers within a company make well-informed choices. This means they can look at the available
options and pick the most suitable ones for the company's benefit.
2. Market Understanding: Understanding the market is pivotal for successful marketing, and an
MIS proves to be quite handy in this regard. It gives a peek into the market dynamics, customer
behaviours, and what the competitors are up to. This understanding is crucial for businesses to
tweak their strategies in line with what's happening in the market, ensuring they stay on track and
meet customer demands effectively.
3. Competitive Edge: Timely and accurate information is like gold in the business world, and an
MIS ensures companies have access to just that. It lets them respond quickly to changes in the
market. By staying abreast of industry trends, customer preferences, and what the competition is
doing, businesses can position themselves well, making them more resilient and responsive to
market needs.
4. Resource Optimization: Efficient use of resources is a make-or-break aspect for any
business, and an MIS helps in optimizing marketing resources. By providing insights into the
performance of different marketing channels, it assists in using budgets more effectively. This
ensures that resources are channelled toward strategies and campaigns that bring in the best
returns, ultimately boosting overall efficiency.
5. Performance Measurement: Measuring how well marketing strategies are working is an
ongoing process, and an MIS aids in this by providing tools for assessment and analysis.
Companies can gauge the effectiveness of their marketing campaigns, pinpoint areas that need
improvement, and make necessary adjustments. This continuous feedback loop contributes to
refining marketing strategies, leading to better overall performance.
Marketing Information System Components
A Marketing Information System (MIS) comprises various components that work together to
facilitate the collection, processing, storage, and dissemination of information for effective
marketing decision-making. These components are integral to the overall functionality of the
system:
1. Internal Records: Internal records are the foundation of an MIS. These include data
generated and maintained within the organization. Examples include sales records, customer
databases, inventory levels, and financial information. Internal records provide insights into the
organization's performance and customer interactions.
2. Marketing Intelligence: Marketing intelligence involves gathering external information
related to the market environment. This includes monitoring competitor activities, analyzing
industry trends, and staying abreast of changes in the economic and regulatory landscape.
Marketing intelligence helps in understanding the external factors that can impact marketing
strategies.
3. Marketing Research: Marketing research is a systematic process of collecting, analyzing,
and interpreting data to understand market opportunities and challenges. It involves both primary
research (direct data collection) and secondary research (using existing data). Marketing research
helps in gaining insights into consumer behaviour, preferences, and market dynamics.
4. Data Warehousing: Data warehousing involves the centralized storage of large volumes of
data from various sources. It provides a platform for organizing, managing, and retrieving
information efficiently. A well-designed data warehouse facilitates analysis and reporting,
supporting decision-makers in accessing relevant data when needed.
5. Information Output: The final component involves presenting information to decision-
makers in a meaningful format. This can include reports, dashboards, visualizations, and
presentations. The goal is to provide actionable insights derived from the processed data.
Effective information output ensures that decision-makers can easily comprehend and utilize the
information for strategic planning.
Types of Data in a Marketing Information System
In a Marketing Information System (MIS), different types of data play a crucial role in
understanding and making decisions about marketing strategies. These data types can be
classified into four main categories: primary data, secondary data, quantitative data, and
qualitative data.
1. Primary Data: This type of data is collected firsthand, directly from original sources. It
involves gathering information specifically for the purpose at hand. Examples of collecting
primary data include conducting surveys, interviews, or focus groups. It's like going directly to
the source to get the information you need.
2. Secondary Data: In contrast to primary data, secondary data is information that has already
been collected by someone else for a different purpose. This can include reports, articles, and
publicly available data. It's like using existing information that others have gathered to support
your marketing insights.
3. Quantitative Data: Quantitative data involves numbers and measurements. It's about
quantities and can be easily expressed in numerical terms. For marketing, this could be data like
sales figures, website traffic, or the number of products sold. It's all about the hard, numerical
facts.
4. Qualitative Data: Qualitative data, on the other hand, is non-numeric and focuses on
qualities. It helps in understanding the underlying reasons, motivations, and attitudes of
consumers. Examples include customer feedback, reviews, or open-ended survey responses. It
provides a deeper, more nuanced understanding beyond just numbers.

Steps Involved in a Marketing Information System Process

The process of a Marketing Information System (MIS) involves several key steps that
collectively contribute to the system's effectiveness in providing valuable information for
marketing decision-making.
1. Data Collection: The first step involves gathering relevant data from various sources. This
can include internal sources such as sales records, customer databases, and inventory levels, as
well as external sources like market research, competitor analysis, and industry reports. The goal
is to ensure a comprehensive dataset that covers both internal and external aspects of the market.
2. Data Processing: Once the data is collected, it needs to be organized and processed to extract
meaningful insights. This step involves cleaning and structuring the data, performing analyses,
and using statistical methods to identify patterns or trends. Data processing transforms raw data
into actionable information that can guide marketing decisions.
3. Information Storage: Processed information needs to be stored in a secure and accessible
manner. This involves creating a data repository or a data warehouse where information can be
stored centrally. Proper storage ensures that historical data is available for future reference and
analysis, contributing to a more informed decision-making process.
4. Information Retrieval: Retrieval is the process of accessing stored information when needed.
Decision-makers should be able to retrieve relevant data easily and quickly. This step ensures
that up-to-date information is available for analysis and decision-making, supporting both
strategic planning and day-to-day marketing operations.
5. Information Dissemination: The final step involves presenting the information to decision-
makers. This can be done through various means, such as reports, presentations, dashboards, or
visualizations. The goal is to communicate insights in a clear and understandable manner,
facilitating effective decision-making by providing actionable information.
These steps are cyclical, as the information gathered and processed often leads to further data
collection and analysis.
Benefits of using a Marketing Information System
1. Informed Decision Making: An MIS provides timely and relevant information to marketing
decision-makers, enabling them to make informed and data-driven choices. This leads to more
effective planning and execution of marketing strategies.
2. Competitive Advantage: Access to real-time market data, competitor analyses, and industry
trends allows organizations to stay ahead of the competition. The ability to adapt quickly to
changing market conditions provides a competitive edge.
3. Resource Optimization: By having a clear understanding of market demands, consumer
behaviour, and product performance, businesses can optimize their resources. This includes
efficient allocation of budgets, manpower, and other marketing resources.
4. Improved Customer Satisfaction: A well-implemented MIS helps in understanding
customer preferences, behaviours, and feedback. This knowledge allows companies to tailor their
products and services to meet customer expectations, ultimately enhancing customer satisfaction.
5. Strategic Planning: The insights provided by an MIS support long-term strategic planning.
Marketing managers can develop and implement effective marketing strategies based on a
thorough understanding of market dynamics, trends, and potential opportunities.
6. Risk Management: The system assists in identifying potential risks and challenges in the
market. By being aware of these risks, organizations can develop proactive strategies to mitigate
them, reducing the impact of uncertainties on their marketing activities.
7. Cost Efficiency: Efficient use of resources is achieved through targeted marketing efforts.
Instead of employing a trial-and-error approach, organizations can focus on strategies that are
proven effective through data analysis, reducing unnecessary costs.
8. Market Research Efficiency: MIS streamlines the market research process, making it more
efficient and cost-effective. With access to a wealth of data, organizations can avoid duplicating
efforts and leverage existing information for decision-making.
Tips for using a Marketing Information System
1. Clearly Define Objectives: Start by having a clear understanding of what you want to achieve
with your MIS. Outline specific goals and objectives that align with your business needs.
Whether it's improving decision-making or understanding customer behaviour, having well-
defined objectives helps in tailoring the use of your MIS to meet those particular needs.
2. Regularly Update Information: An MIS is only as good as the data it holds. Make it a habit
to update the system regularly with the latest information. This ensures that decision-makers are
working with the most current and relevant data, enhancing the accuracy and reliability of the
insights derived from the system.
3. Provide User Training: Your MIS is a tool, and like any tool, it's most effective when the
users know how to use it properly. Invest in training sessions for your team so they can navigate
the system with ease. This empowers them to make the most out of the MIS, ensuring that
valuable insights are extracted efficiently.
4. Ensure Data Security: Protecting your data is paramount. Implement robust security
measures to safeguard sensitive marketing information. This includes setting up access controls,
encryption, and regular security audits. Ensuring the integrity and confidentiality of your data
maintains the trustworthiness of your MIS.
5. Integrate with Other Systems: Your MIS doesn't operate in isolation. For seamless business
operations, integrate it with other organizational systems. This could include linking it with
your Customer Relationship Management (CRM) system or financial software. Integration
fosters a smooth flow of information across different departments, avoiding silos and promoting
a holistic approach to decision-making.
Examples of Marketing Information Systems
Here are some real-world examples of Marketing Information Systems (MIS) that businesses
commonly use:
1. Google Analytics: This tool provides insights into website traffic, user behaviour, and the
effectiveness of online marketing efforts. It helps businesses understand where their website
visitors come from, what they do on the site, and how different marketing channels contribute to
website performance.
2. Customer Relationship Management (CRM) Software: CRM systems like Salesforce,
HubSpot, or Zoho help businesses manage customer information, interactions, and
communications. They track customer preferences, purchase history, and feedback, providing
valuable data for targeted marketing campaigns.
3. Social Media Analytics Tools: Platforms such as Hootsuite, Buffer, or Sprout Social offer
analytics features that track social media performance. Businesses can measure engagement,
audience demographics, and the effectiveness of their social media marketing efforts.
4. Email Marketing Software: Tools like Mailchimp, Constant Contact, or Sendinblue not only
facilitate email campaigns but also provide analytics on email open rates, click-through rates,
and subscriber behaviour. This information helps refine email marketing strategies.
5. E-commerce Platforms: Platforms like Shopify, WooCommerce, or Magento offer built-in
MIS features. These systems track sales, customer behaviour, and inventory data, helping
businesses optimize their online sales and marketing strategies.
6. Web Analytics Tools: In addition to Google Analytics, tools like Adobe Analytics or
Webtrends offer advanced web analytics capabilities. They track user interactions on websites,
providing insights into user journeys, conversion rates, and the performance of online
campaigns.
7. Competitor Monitoring Tools: Services like SEMrush, Ahrefs, or SimilarWeb help
businesses keep an eye on their competitors. These tools provide data on competitor website
traffic, keywords, and online strategies, aiding in competitive analysis.
Product management information system:
Product management information system is another name for Product Information Management
system or PIM. PIM software stores, organizes, retrieves, and modifies product data. It serves as
a collaborative tool that allows multiple authorized users to access and update the information in
real-time. Its version control system helps establish PIM content as the single source of truth in a
company.
When changes are made to product information, PIM software maintains a record of who made
what changes and when. The access history is a safeguard against unauthorized or incorrect
changes. Knowing that a PIM solution provides access control establishes trust in the
information, reducing reliance on human efforts.
PIM solutions that include digital asset management software allow digital items such as images
and videos to be added to the centralized product information. By placing all product data in one
location, a PIM makes it easier for anyone in the enterprise to access accurate information. When
PIM systems integrate with other solutions, such as a digital asset management solution or digital
experience platform, they provide organizations with a comprehensive view of product data and
related product digital experiences.
What Data is In a PIM?
With a centralized source of curated information, companies can ensure the correct data is being
used. Service departments can look to the stored data for resolving customer concerns. Sales and
Marketing can deliver consistent customer experiences, building trust and brand loyalty.
A PIM system with digital asset management (DAM) capabilities may contain the following
information:
 Product Galleries
 Product Reviews
 Product Ratings
 Installation and Assembly Videos
 User and Owner Guides
 Disclosures/Compliance Information
 Warranty Information
 Product Images
 Product Descriptions
  Product Specifications
 Product Accessories
 Replacement Parts
 Installation and Assembly Videos
Consolidating the data means information is not on someone's hard drive or in a spreadsheet.
Image quality can be maintained, and resources are always up to date.
Who Uses PIM Software?
Everyone in an organization should have access to product information. Onboarding should
incorporate product data into new hire training. Employees interested in learning more about a
product should have access. However, some groups, such as sales, marketing, and service, may
need more than view-only rights.
Sales
Customer-facing sales staff need access to PIMs. When a customer asks for information, sales
personnel can download a product information PDF and forward it to the customer in a matter of
seconds. They can even print it if a customer prefers a hard copy. With PIM access, sales staff
can provide an improved customer experience.
Salespeople have more confidence in the information because it has been reviewed for accuracy.
They are more comfortable using it in sales presentations. They no longer need their "trusted"
sources to verify the data before using it. Their time can be spent on customer interactions rather
than tracking down information.
Marketing
Marketing benefits from product information management tools like PIM because they eliminate
the "reinventing the wheel" cycle. Manufacturers often have siloed data. Engineers working on
one product line may have limited data on a complimentary product. Each department may use
different tools for storing the data. The mish-mash of data makes it difficult for marketing to find
the data they need. Once they find the data, they have to verify its accuracy.
Finding information becomes a time-consuming task. Even with their best efforts, corrections
may be needed. With PIM software, marketing can quickly locate the text and images they need
to create a campaign or design product data sheets. Marketing can create campaigns in minutes
rather than days.
Service
After-purchase interactions are just as critical to a positive customer experience. Making sure
service departments have access to troubleshooting and installation manuals provides a seamless
customer experience. Callers are not placed on hold for hours while the service representative
tries to locate the answer.
Accessible and accurate product information reduces the stress service agents feel when
confronted with a customer problem. When they can quickly locate what they need, they can
meet the customer's expectation for fast resolution. The experience underscores the reliability
buyers feel when dealing with a brand.
15 Use Cases for Enterprise Resource Planning (ERP):
If you’re a business owner or finance leader, you likely already know the “what” of enterprise
resource planning (ERP) software: It’s a unified database and set of applications that brings
together financials, supply chain, human resources, customer service and other data and business
processes. An ERP implementation often delivers a fast return on investment via insights and
efficiency gains that save the company money right away.
1. Inventory Management
Before: A retailer’s operations team relies on physical counts, which it tracks in a spreadsheet,
for current inventory levels. But warehouse workers have no confidence in this information, and
items are regularly out of stock because the company orders more product only when the shelves
are nearly empty. Fulfillment is slow and inefficient because warehouse employees frequently
have trouble finding items.
After: The retailer adds an inventory management module, which displays real-time inventory
levels and updates on stock that’s en route to the warehouse. Every morning, an operations
manager is able to compare available inventory to sales data to determine whether the business
should place any purchase orders (POs). Additionally, the warehouse team fulfills more orders
per day because the inventory management application shows the exact locations of all items.
2. Purchasing
A manufacturer spends too much time looking for suppliers and gathering quotes for the raw
materials it needs to make products. An employee must manually send out quotes, compare
them, select a winner and, finally, put in a PO. Staffers often forget to update the list of approved
vendors and their contact information, further slowing down the process
After investing in a purchasing module, the manufacturer automates requests for quote, stores all
responses in one place and can send out POs with a few clicks, saving a lot of time. The
purchasing (or procurement) module keeps a current list of all suppliers and allows the
manufacturer to track the status of each outstanding PO.
3. Sales and Marketing
A veteran sales team at a midsize distributor has grown increasingly frustrated with the work
required to create quotes and sales orders. The reps struggle to keep track of where prospects are
in the sales pipeline and which customers should be ready to reorder. The business also wants to
reach a larger audience of potential buyers but has no way to manage marketing emails, contacts
and digital ads.
With an ERP application for sales and marketing, reps can turn quotes into sales orders in a
matter of minutes and then send system-generated invoices to customers. The sales and
marketing teams can see where any customer is in the sales cycle to determine the best next
steps. Marketing tools enable the distributor to import lists and target new prospects with emails
and ads across multiple channels, which leads to a 10% bump in annual revenue.
4. Manufacturing
For its first few years, a small manufacturer used paper and spreadsheets to monitor available
raw materials and daily production numbers. But as the business grew, those manual methods
become a major roadblock—it’s lost valuable production time after running out of materials and
has a hard time calculating current manufacturing capacity.
After investing in a manufacturing ERP module, the manufacturer can see planned production
for the next few months and compare that against available and on order supplies. It can track
output against that plan and, if demand increases, scale up by ordering more materials and
bringing in additional employees
5. Financial Management
With a single-minded focus on excellent customer service, a direct-to-consumer (D2C) brand has
a customer relationship management (CRM) and marketing automation platform, but it still
relies on online banking tools and a jumble of spreadsheets to manage its finances. Manually
tracking all purchase orders (accounts payable) and customer orders (accounts receivable) is not
only time-consuming, a lack of insight has put the business in precarious financial spots several
times.
The brand purchases a financial management module that automatically records all AP and AR
transactions and manages the general ledger. Now, the company can better control cash flow and
spending. The module makes the staff accountant’s job easier by generating key financial
documents like balance sheets, cash flow statements and payment receipts. The system even uses
artificial intelligence (AI)—specifically, machine learning—to flag potential errors or fraudulent
orders by comparing transactions to thousands of similar entries.
6. Customer Relationship Management (CRM)
Revenue plateaus for an industrial distributor as it deals with mounting competition. It wants to
both find new customers and identify upsell opportunities with existing clients, but data on these
groups is incomplete and inconsistent.
The distributor invests in a CRM ERP module. When a customer or prospect fills out a form on
its website, that information flows into the CRM, which generates a notification so a sales rep
can follow up promptly. The CRM centralizes purchase histories for all customers, allowing the
business to target them with relevant products, like a new line from a certain brand or
accessories. When customers have questions about or issues with a product, a customer service
agent can resolve the situation more quickly because he can see all previous interactions with the
buyer.
7. Supply Chain Management (SCM)
A fast-growing retailer struggles to keep up with a surging volume of orders—items often ship
late, and it’s drowning in returns. Although the company has an inventory and order management
solutions, it’s become increasingly difficult to keep track of all POs, customer orders and
shipments.
A supply chain management (SCM) module helps the retailer organize purchase orders, monitor
current production and compare that against demand and prioritize orders based on when the
warehouse received them. With the SCM application, when customers return products, an
associate scans each item, records its condition and, if necessary, initiates an exchange. The
business is in a much better position to scale as sales continue to climb.
8. Human Resources Management (HRM)
What started as a small family business has doubled in headcount over the last three years. The
company has a basic system that allows employees to clock in and out, but the owners have
come to dread payroll because it’s so time-consuming. Employee information, some of which is
outdated, is buried in a spreadsheet.
The small business purchases an HRM ERP module. It automatically generates paychecks every
two weeks—the owner just has to review them for accuracy—making payroll much faster and
easier. The solution stores employee records, including contact information, employment forms
and tax documents. It also walks managers and employees through the procedures for annual
performance reviews. The HRM software can even personalize onboarding and training for new
hires to quickly get them up to speed.
9. Project Management
A boutique consulting firm has a basic accounting system, but tracking costs and resources for
individual projects—critical for accurate billing—has become tedious and difficult as the firm
adds more clients. Digging up all this information is no small task, and consultants end up
helping calculate project costs. Bills often go out late, or customers discover errors after
receiving them, which doesn’t inspire confidence or help cash flow.
The company purchases a project management ERP module that tracks all this information by
project. In addition to showing the status of projects, the module tracks consultants assigned,
hours logged, travel expenses and communications with the client. When a project hits a certain
milestone, the project management application automatically creates a bill and sends it to the
client.
10. Compliance Monitoring
A manufacturer has a two-person accounting team and realizes the business, as it’s currently set
up, will not comply with a new accounting standard that takes effect in six months. The company
soon realizes this will be a big project—far more than its small accounting team can handle—and
hires an outside firm to help. Still, the audit process is touch and go.
The next year, the manufacturer trades in its entry-level accounting solution for a more robust
system with compliance monitoring. Compliance standards change frequently, and the software
will keep the business informed about modifications to local or industry regulations and new
international standards, like IFRS 15. The accounting application links all relevant records to
transactions as well, so preparing for an audit is much less daunting.
11. Asset Management
A technology startup recently completed a major round of funding and can now afford to hire
more employees and move into a bigger office. That means it needs more furniture, as well as
computers, monitors and other equipment for each new employee.
The asset management ERP module helps the startup manage the lifecycle of physical assets,
from purchase order to depreciation to retirement. It keeps records detailing the value of IT
equipment and other office supplies over time for compliance and reporting purposes. For real
estate, it takes care of lease payments, amortization and other reporting to comply with lease
accounting and tax standards.
12. Ecommerce
After hearing for years about the tremendous potential of direct-to-consumer (D2C)
ecommerce, a B2B distributor that has sold exclusively to retailers decides it’s time to diversify.
The company asks a few employees to develop a strategy for the D2C channel and determine
which products it will sell online.
The distributor then adds an ecommerce ERP module to turn its informational site into an online
store that can process transactions. The module has user-friendly tools that allow the marketing
team to list new items, change product content, quickly jump on ecommerce trends and update
the site’s look and feel. By choosing an ecommerce application that’s unified with the ERP,
there’s no need for integrations to third-party solutions, like an order and inventory management
solution or a CRM—all order, customer and payment information automatically flows into the
ERP.
13. Business Intelligence (BI)
A business that sells software uses a leading ERP system to manage accounting, sales and
marketing, customer service, human resources and more. While this data has tremendous value,
the company needs a better way to manipulate and present the information if it hopes to attract a
new funding round.
The software vendor adds a business intelligence module that can turn the data into charts and
graphs to make it digestible for executives and potential investors. The tool can also help
determine the best industries to target with its software or understand the potential market for a
new solution it’s considering developing. The business intelligence application can even use AI
to better predict future financial performance based on internal and external data.
14. Multiplier Effects
When a company integrates a number of modules, it gains automated reporting and IT
optimization benefits greater than the sum of the system’s parts. For example, if CRM and
ecommerce are connected, the ecommerce site could show personalized product
recommendations or even a personalized home page based on the visitor’s purchase or browsing
history. That could increase average order value and conversion rate. Similarly, integrated HRM
and SCM modules could allow a business to track the average number of orders fulfilled per
hour or day by each employee. The employee’s manager could then pull up this data as she
prepares for the performance review to demonstrate that this employee exceeds expectations and
explain to her department head why this person deserves a raise.
Automated Reporting
Many companies realize their warehouses are inefficient or that closing the books takes far too
long, but they can’t pinpoint the cause of those problems. Reporting often sheds light on
underlying issues, like inefficient business processes, so leaders know what to focus on and can
resolve them.
The more ERP modules used, the more data is available and the more robust the insights. Each
module should have reporting capabilities for that aspect of the business, like HR or supply
chain. The reports can be extremely broad (How do expenses in March compare to those in
April?) or narrow (What was the average order value of customers from Texas last week?).
When looking for an ERP solution, make sure reporting is simple and easy to customize.
IT Optimization
Businesses that use disparate systems for different departments and business functions do battle
daily with a lot of manual work, inconsistent and duplicate data and other inefficiencies.
Organizations gain this visibility when they adopt various ERP modules that all plug into a
unified database, thus giving leaders a complete picture of the company’s current state. An
integrated system alleviates pressure on IT team, eliminates data-accuracy issues and helps your
company scale without adding headcount at a commensurate rate.
Entry-level and disconnected systems also limit visibility across the organization—the operations
department has no way to know about an upcoming marketing promotion that will generate a
spike in orders.
Having multiple systems also adds the challenge of keeping users and IT trained on all of the
technologies and raises IT operational costs. In addition, upgrades can become a major hassle: If
one app needs to be upgraded, this can cause a domino effect where the other apps it might be
“connected” to also need to be upgraded.
15. ERP System Benefits
An ERP system enables businesses of all sizes and across all industries to save time and money
while avoiding unnecessary headaches. Automation is a primary source of those time and cost
savings, as it eliminates manual tasks and frees employees to focus on other work. A single
source of information also allows employees to spot potential errors early on and resolve them
before they turn into bigger problems.
Even though there are tasks ERPs cannot automate, the system puts comprehensive information
at decision-makers’ fingertips to facilitate faster and better decisions and improve business
processes. From basic information, like financial documents and customer records, to more
advanced tools that leverage AI to optimize demand planning and production, employees can
find whatever data or reports they need to make better, more informed decisions.
The software also helps ensure compliance with local and national and global regulations, which
is critical to the long-term success of a business.
A cloud ERP sets up companies especially well for the future because it offers all these benefits
along with advantages that on-premises solutions cannot match. For example, with cloud ERP,
the vendor handles all maintenance and upgrades, which are included in the subscription fees the
company pays every year, and the system scales smoothly as the company grows.
7 Components of IT Infrastructure
Modern IT infrastructure components comprise several key components that work together to
support the organization's technology needs. Understanding these components is essential for
designing and implementing a comprehensive IT infrastructure strategy.
1. Hardware. This includes servers, computers, network devices, storage systems, and
peripheral devices. Hardware forms the physical foundation of the IT infrastructure.
2. Software. It encompasses operating systems, applications, databases, virtualization, and
other software programs that enable various functionalities within the
infrastructure. Hyperconverged infrastructure (HCI) is a modern technology many IT
infrastructure leaders have found success with.
3. Networks. Networking components such as routers, switches, firewalls, and cables
connect devices and facilitate data transmission across the infrastructure.
4. Data Centers. These centralized facilities house servers, storage systems, and
networking equipment. Data centers provide a controlled environment with power,
cooling, and security features to ensure optimal performance and data protection.
5. Cloud Services. Cloud computing services, including Infrastructure as a Service (IaaS),
Platform as a Service (PaaS), and Software as a Service (SaaS), offer scalable and
flexible solutions for infrastructure requirements.
6. Security Systems. Infrastructure security measures like firewalls, antivirus software,
intrusion detection systems, and encryption technologies protect against unauthorized
access, data breaches, and cyber threats.
7. IT Service Management (ITSM). ITSM frameworks and tools enable efficient
management of IT services, including incident management, change management,
problem management, and service desk support.
These components work together to provide a reliable, scalable, and secure IT infrastructure that
supports the organization's operations and strategic objectives.
IT infrastructure services are also something to consider. IT infrastructure services refer to the
range of services and solutions that support the planning, deployment, management, and
maintenance of an organization's information technology infrastructure. These services are
designed to ensure the efficient and effective functioning of the infrastructure components and
systems. Here are some common IT infrastructure services:
Network Services. These services focus on designing, implementing, and managing network
infrastructure, including local area networks (LANs), wide area networks (WANs), routers,
switches, firewalls, and network security. Network services ensure reliable connectivity, efficient
data transmission, and secure organizational communication.
Server and Storage Services. These services involve the provisioning, configuring, and
managing servers and storage systems. They include server deployment, virtualization, storage
area network (SAN) management, backup and recovery solutions, and server performance
optimization.
Data Center Services. Data center services encompass the planning, construction, and
management of physical data center facilities. This includes power and cooling management,
rack and cabinet setup, physical security, and monitoring systems to ensure high availability and
reliability of the infrastructure.
Cloud Services. Cloud services provide organizations with on-demand access to computing
resources, storage, and applications over the internet. Infrastructure as a Service (IaaS), Platform
as a Service (PaaS), and Software as a Service (SaaS) are examples of cloud services that allow
organizations to leverage scalable and flexible infrastructure without the need for extensive on-
premises hardware and maintenance.
Security Services. Security services focus on protecting the IT infrastructure from potential
threats and vulnerabilities. They include implementing firewalls, intrusion detection and
prevention systems, antivirus software, data encryption, and security audits. Security services
aim to safeguard data, prevent unauthorized access, and ensure compliance with regulatory
requirements.
Help Desk and Support Services. Help desk and support services assist end-users in resolving
technical issues, troubleshooting hardware and software problems, and providing guidance on IT
infrastructure usage. These services ensure employees have the necessary support and resources
to utilize the infrastructure effectively.
IT Service Management (ITSM). ITSM services encompass the management of IT services
and processes, including incident management, change management, problem management, and
service level management. ITSM frameworks and tools help organizations streamline service
delivery, improve operational efficiency, and align IT services with business objectives.
These are just a few examples of the various IT infrastructure services available to organizations.
The specific services required will depend on the organization's size, industry, technological
needs, and strategic goals.
Emerging Technologies in Business:
Technologies framed with innovative ideas allow you to anticipate change and handle
uncertainty without compromising business growth.
Modern technologies inevitably impact one another. For example, a mobile internet depends on
utility or on-demand computing and enhances IoT development. Hence, innovation in one of the
areas will instigate digital transformation in the rest.
Companies undergoing a digital transformation must leverage the emerging trends in
Information Technology to fasten the process.
1. Artificial Intelligence and Machine Learning
Today, you can find AI and ML in every field, from finance and healthcare to manufacturing and
retail. The robust AI and ML pair aims to improve, automate, and process time-sensitive data
with minimal human interference requirements.
You can accelerate business processes, make informed decisions with an accurate perception of
the purchasing behavior, gear the customer experience, and enable chatbots for communication.
AI and ML allow you to extract value from piles of data, deliver business insights, automate
tasks, ensure safety operations, and enhance system capabilities.
2. Advanced Analytics
Advanced or predictive analytics generate a predictive model for specific applications, like
marketing. It combines Artificial Intelligence and statistical techniques to anticipate outcomes.
You can evaluate historical data, identify patterns, and observe trends to determine potential
future events before they happen.
It can aid in optimizing processes and performance, reducing risk, increasing asset utilization,
and procuring more revenue opportunities, among other features. You can use the model to
analyze dynamic market conditions and make strategic decisions, thus improving overall
performance.
3. Datafication
Small and large firms across all sectors depend on data. It is safe to say that data underpins
modern life; hence, it is vital to secure it. Smartphones, AI devices, industrial machines, etc., use
data to communicate with humans and enhance lifestyles. Today you can transmute some aspects
of your life into devices and software via data.
Datafication means converting human chores into data-driven technology. It transforms labor-
intensive and manual procedures into digital devices powered by data. You can use real-time
information to change social behavior into quantified data and improve customer experience.
4. Robotic Process Automation
Robotic Process Automation (RPA) has been slowly gaining ground over the past decade. It
utilizes various applications and software to automate manual tasks. You can lower expenses by
automating data collection, analysis, and customer service.
In addition to reducing costs, you can focus on critical tasks by using bots to handle repetitive
operations. It leads to an efficient workflow and better performance. Almost 95% of firms using
Robotic Process Automation (RPA) admit that it improved productivity.
5. Augmented and Virtual Reality
The virtual reality gaming industry and Augmented Reality revealed that humans are open to the
idea of escaping the real world. Virtual Reality (VR) and Augmented Reality (AR) are
modifying how you use screens and unlock the door to engaging and interactive experiences.
Unsurprisingly, the VR and AR market may accumulate revenue worth $31.12 billion with
28.8% user penetration this year.
VR and AR technologies create and augment a captivating virtual environment and real-world
scene. Virtual Reality places you inside a computer-generated landscape using a headset.
Meanwhile, Augmented Reality plucks digital elements and puts them in your surroundings via a
smartphone or visor. While Virtual Reality predominantly transforms the gaming universe,
Augmented Reality is used more widely in training and education, marketing and advertising,
retail, tourism, and entertainment.
6. IT Outsourcing
IT outsourcing is undergoing rapid and expansive growth, and this trend is projected to continue
well into the foreseeable future. Recently, outsourcing in India has emerged as the most viable
choice. Today, businesses are shifting their attention to enhancing their operations in centers
located in India to increase profitability.
Reports indicate that nearly 64% of US businesses outsource at least one IT service, each with
their unique objectives in mind.
According to a report from Markets and Markets, the motivation behind outsourcing IT services
includes cost reduction, heightened efficiency, and access to specialized skills. Approximately
32.2% of companies outsource to trim their overall costs, while 20% seek access to innovation.
Another 15.4% outsource to enhance the quality of their operations.
It's not surprising, as studies suggest that companies can achieve savings between 70 to 90
percent in their overall labor costs by outsourcing their development operations.
7. Low-Code Technology
Low code is a visual approach that presents a quicker and easier software development
process. Approximately 84% of organizations have implemented it to alleviate the stress of the
IT team. Low code reduces hand-coding and features interactive tools to streamline app creation.
By minimizing hand-coding and utilizing interactive tools, low-code platforms streamline app
creation, allowing you to quickly build customer service tools and other applications.

With built-in templates and drag-and-drop functionality, low-code significantly accelerates time-
to-market and enhances customer satisfaction through intuitive navigation controls.
8. Natural Language Processing
Financial marketing is the number one Natural Language Processing (NLP) user. The technology
obtains data from repositories, shares valuable insights into market sentiment, and informs about
tender delays and closings.
NLP empowers computers to comprehend text and words the same way humans can. It assists in
machine processes and equips devices to perform mundane tasks themselves. A few examples of
NLP include spell check, ticket classification, and summarization.
Large Language Models, like ChatGPTs or Google's PaLM, have taken the world of artificial
intelligence by storm. If you are also at square one and planning to learn how to build large
language models, this is the right time for you!
9. CyberSecurity
The advent of computers and the internet formulated a new digital cyber sphere. A cyberattack
occurs every 39 seconds. The increase in attacks and threats only underscores the need for a
viable solution. Moreover, the old saying, “prevention is better than cure," fits well in the cyber
world, where businesses lose $188,400 on cybercrime recovery.
Cybersecurity is a must-have for all internet users. You would not want to leave your computer
and virtual data open for hackers, yes? Firewalls, antivirus software, and other software gain
momentum as developers equip the earlier versions with cutting-edge features.
10. Cloud Migration
Are you looking to improve your agility to develop better workload management? Cloud
computing or migration is the key! Around 80% of enterprises leverage multiple public or
private cloud services. It enables efficient compliance processes, business operations, and data
analysis.
Cloud computing blends software, business models, platforms, and infrastructure. Thus, you can
maximize seamless adaptability, increase time to value, and meet the current demands of your
industry.
11. Blockchain
It is understandable, seeing how banking and financial institutions were the first to explore its
potential and benefits. However, blockchain is not all about digital currency!
It is a distributed ledger technology that records and tracks transactions and assets in the
corporate. Gartner forecasts blockchain technology will generate over $3.1 trillion in business
value by this decade. The decentralized model can manage credit risk and ensures immutable,
safe, and private customer profiling. It promotes transparency and accountability in online
transactions and asset ownership.
Say you are a part of the manufacturing sector. You can use blockchain technology to engineer a
supply chain management system. The supply chain management platform will track goods,
offer better visibility to business users, and record the processes.
12. Internet of Things
The IoT is a network of objects containing software, sensors, or other technical components. It
minimizes human intervention and facilitates connection and data exchange between these
devices or objects. The vast potential of IoT promises to add value to daily operations. Hence,
companies planning to invest about $15 trillion in IoT by 2025 are no longer a shocker.
IoT allows you to achieve extensive functionality by furnishing a broader network. Artificial
Intelligence, Machine Learning, information security, and data analytics back the technology.
You can employ the technology to create software frameworks, craft applications, and release
the final product.
13. Offshore Software Development Services
The increasing demand for enterprises to stay competitive in the fast-changing digital
environment drives growth in offshore software development.
The remarkable expansion in the IT sector is primarily attributed to the indispensable role played
by outsourced software development in fulfilling this growing demand. The significant cost
associated with software development has led businesses to increasingly offshore their software
development projects.
Furthermore, various trends, including AI-powered development, cloud computing, decentralized
and remote team environments, and software development security, are set to be pivotal in
offshore software development.
These trends are anticipated to contribute significantly to the market's expansion, offering
scalability and flexibility. The Global Offshore Software Development Market report
comprehensively assesses the market landscape, and offshore development services are expected
to go a long way.
14. Edge Computing
Edge computing is probably one of the least acknowledged but the latest IT trend. Gartner
predicts that 75% of companies will use Edge to create and process enterprise-generated data by
2025. Edge computing comprises a computation near the data generators at the network edge.
The paradigm processes data closer to where you generated it.
It results in faster processing and excellent action-led output in real-time. You can process data
from remote locations using a device or a local server. Further, it reduces latency and stores data
in a centralized location when processing it in data centers.
15. Genomics
Modern technologies influence every aspect of businesses today. Of course, healthcare and
medicine are no exception. Digital tools, like X-rays, have been around for a while and allow
you to diagnose defects in bones and joints. But can you leverage technology to analyze your
DNA and beat off diseases? Absolutely!
Genomics technology studies your DNA and genes' makeup and maps them. It also simplifies
the diagnosis process and allows doctors and skilled professionals to detect possible health issues
before they become critical. It involves technical analysis, design, and diagnostics, besides
theoretical research.
Information System and Security:
INTRODUCTION:
An information system (IS) is a collection of hardware, software, data, and people that work
together to collect, process, store, and disseminate information. An IS can be used for a variety
of purposes, such as supporting business operations, decision making, and communication.
Information security refers to the protection of information and information systems from
unauthorized access, use, disclosure, disruption, modification, or destruction. It aims to protect
the confidentiality, integrity, and availability of information and information systems.
 Information systems are vulnerable to a variety of security threats, such as hackers,
viruses, and natural disasters. As such, it is important for organizations to implement
appropriate security measures to protect their information systems.
 There are several different security measures that organizations can implement to protect
their information systems, such as:
 Firewalls: Firewalls are used to restrict access to an organization’s network and to
protect against unauthorized access.
 Intrusion detection systems: These systems are used to detect and alert organizations to
potential security breaches.
 Encryption: Encryption is used to protect sensitive information by converting it into
unreadable code.
 Access controls: Access controls are used to restrict access to information and
information systems to authorized individuals only.
 Security policies: Organizations can implement security policies to ensure that their
employees understand their security responsibilities and adhere to them.
 Security Auditing: Regularly monitoring the system for possible malicious activities and
vulnerabilities.
  By implementing these security measures, organizations can protect their information
systems from unauthorized access and use, and ensure that their sensitive information is
kept confidential and secure.
The Information System is an integrated set of the component for collecting, storing, processing
and communicating information. Business firm and other organization on the information system
to manage their operation in the marketplace supply service and augment personals lives.
Types of information system: Information systems are categorized based on their scope,
purpose, and functionality. Here are the main types of information systems:
Transaction Processing Systems (TPS): TPSs are used to process and record transactions, such
as sales, purchases, and payments. They are designed to handle high volumes of transactions and
are critical for the daily operations of businesses.
Management Information Systems (MIS): MISs are used to provide managers with the
information they need to make decisions. They typically provide reports and analysis on the
performance of the organization, including financial, operational, and marketing data.
Decision Support Systems (DSS): DSSs are used to support decision-making by providing
information and analysis to users. They use models and analytical tools to analyze data and
provide recommendations based on that analysis.
Executive Support Systems (ESS): ESSs are used to support the strategic decision-making of
senior executives. They provide high-level summaries of data and analysis, typically in the form
of dashboards and other visualizations.
Enterprise Resource Planning (ERP) Systems: ERPs are used to manage and integrate all the
business processes and data of an organization. They typically include modules for finance, HR,
inventory management, and other areas of the business.
Customer Relationship Management (CRM) Systems: CRMs are used to manage customer
interactions and relationships. They provide a 360-degree view of the customer, including their
purchase history, preferences, and feedback.
Supply Chain Management (SCM) Systems: SCMs are used to manage the flow of goods and
services from suppliers to customers. They include modules for inventory management, logistics,
and procurement.
Knowledge Management Systems (KMS): KMSs are used to capture, store, and share knowledge and
expertise within an organization. They include tools for collaboration, content management, and search.
Geographic Information Systems (GIS): GISs are used to manage and analyze spatial data. They are
used in fields such as urban planning, environmental management, and natural resource management.
Expert Systems (ES): ESs are used to provide expert-level advice and decision-making in specific
domains. They are typically based on rule-based or knowledge-based systems.
Security Challenge: The number of smart phone devices capable of offering internet technology and
experience rivaling desktop computer standards is growing at a fast pace. Security and privacy concern
for mobile devices rival or go beyond similar concern for a laptop computer as mobile device are even
more mobile by nature and are less likely to be managed by an organization.

Ensure Security: In order to ensure security, it is necessary to provide at least the following
services, which are given below.
1. Authorization:
It is act of determining whether an (authenticate) entity has the right to execute action.
2. Audit:
An auditing service providing a history of action that can be used to determine what (if
anything) went wrong and what caused it to go wrong.
3. Physical authentication: Some firm of authentication such as an object (a key or a smart
card) or a personal characteristic like a fingerprint, retinal pattern, hand geometry.
4. Data Confidentiality: It protects against disclosure of any data while in transit and is
provided by encryption of data.

ADVANTAGES OR DISADVANTAGES:
Advantages of implementing information system and security include:
 Protection of sensitive information: By implementing security measures, organizations
can protect their sensitive information from unauthorized access, use, disclosure,
disruption, modification, or destruction.
 Compliance: Implementing information security can help organizations meet compliance
requirements, such as HIPAA, PCI-DSS, and SOX.
 Risk management: By implementing security measures, organizations can better manage
the risks associated with their information systems.
 Business continuity: By protecting information systems from natural disasters, power
outages and other disruptions, organizations can ensure that their business operations can
continue uninterrupted.
 Cost savings: Implementing security measures can help organizations avoid costly data
breaches and other security incidents.
Disadvantages of implementing information system and security include:
 Cost: Implementing security measures can be costly, as it may require additional
resources, such as security experts, to manage the process.
  Time-consuming: Implementing security measures can be time-consuming, especially for
organizations that have not previously used this framework.
 Complexity: Implementing security measures can be complex, especially for
organizations that have a lot of data and systems to protect.
 Inflexibility: Security measures can be inflexible, making it difficult for organizations to
respond quickly to changing security needs.
 Limited Adaptability: Security measures are predefined, which is not adaptable to new
technologies, it may require updating or revising to accommodate new technology.
What Is Information Systems And its Importance in organizations?
An information system is a group of data sets that ensures that business operates smoothly,
embracing change, and helping companies achieve their goal. The dictionary defines an
information system as a computer system or set of components for collecting, creating, storing,
processing and distributing information. The information system is incomplete without the
support of information technology (IT) systems.
An information system is not primarily associated with technology or IT system. Instead, it is
related to how technology is used to fulfil the needs of- individuals, groups or organizations. In
the digital era that we are in, the importance of information systems is increasing because it
standardizes the process of passing, collecting, storing, and accessing information or data for
individuals or businesses.
Six Types of Information Systems and Their Application
Although many information systems offer various benefits, typically, businesses use these five
applications in their company. Whichever information system you plan to implement in your
business, here are the benefits it will offer:
It will induce innovation in business activities through its research and development.
It will enable automation, reducing steps undertaken to complete a task.
It helps keep the hardware, software, data storage, and networking system safe and up to date.
Now that you know the changes information systems can bring about in an organization, let’s
look at the application that yields the power to change the business process- types of information
systems.
What Are The Types of Information Systems?
1. Knowledge Work System
There are different knowledge management systems that an organization implements to ensure a
continuous flow of new and updated knowledge into the company and its processes. A
knowledge work system (KWS) is one of the knowledge management systems that ease the
integration of new information or knowledge into the business process.
Furthermore, KWS also offers support and resources to various knowledge creation techniques,
artificial intelligence applications, and group collaboration systems for knowledge sharing,
among others. It also uses graphics, visuals, etc., to disseminate new information. Below are
some of the applications that work on the core fundamentals of KWS.
Designers often use computer-aided design systems (CAD) to automate their design process.
Financial workstations are used to analyze huge amounts of financial data with the help of new
technologies.
Virtual reality systems are found in the scientific, education, and business fields for using
graphics and different systems to present data.
2. Management Information System
The management information system provides aid to managers by automating different processes
that were initially done manually. Business activities like business performance tracking and
analysis, making business decisions, making a business plan, and defining workflow. It also
provides feedback to the managers by analyzing the roles and responsibilities.
A management information system is considered a significant application that helps managers
immensely. Here are some of the advantages of the information system:
 It enhances the efficiency and productivity of the company
 It provides a clear picture of the organization’s performance
 It adds value to the existing products, introduces innovation and improves product
development
 It assists in communication and planning for business processes
 It helps the organization provide a competitive advantage
3. Decision Support System
A decision support system is an information system that analyses business data and other
information related to the enterprise to offer automation in decision-making or problem-solving.
A manager uses it in times of adversities arising during the operation of the business. Generally,
the decision support system is used to collect information regarding revenue, sales figures or
inventory. It is used across different industries, and the decision support system is a popular
information system.
4. Office Automation System
An office automation system is an information system that automates different administrative
processes like documenting, recording data, and office transactions, among others. The office
automation system is divided into managerial and clerical activities. Here are some of the
business activities that are done under this type of information system:
 Email
 Voice mail
 Word processing
5. Transaction Processing System
The transaction processing system automates the transaction collection, modification, and
retrieval process. The peculiar characteristic of this type of information system is that it increases
the performance, reliability, and consistency of business transactions. It helps businesses perform
daily operations smoothly without hassle.
Once you are well-versed in different types of information systems, understanding their
application becomes easy. Therefore, in the last part of the article, we will look into applying
information systems.
6. Executive Support System
An Executive Support System or ESS helps top-level executives to plan and control workflow
and make business decisions. It is very similar to Management Information System or MIS.
Here are some of the unique characteristics of ESS:
 It provides great telecommunication, better computing capabilities, and effective display
options to executives.
 It enables them to access information through static reports, graphs, and textual
information on demand.
 It helps monitor performances, track competitors’ strategies, and forecast future trends,
among others.
 How to Apply Information Systems in Business?
Here are some of the business activities that require the intervention of an information system.
1. Enterprise resource planning (ERP)
Applying information systems to enterprise resource planning helps automate business
administration and planning functions.
2. Supply chain management (SCM)
Information systems provide a common forum to connect with different parties in supply chain
management. Moreover, it makes communication between parties easy and resourceful.
3. Customer relationship management (CRM)
Many information systems, such as CRM, help in realizing customer requirements. Furthermore,
other information applications help companies interact with their audience easily and hassle-free.