MANAGEMENT INFORMATION SYSTEM

MODULE- 1
 What Is MIS
?
Management Information Systems (MIS) is the study of
people, technology, organizations, and the relationships
among them. Management Information System, commonly
refered to as MIS is a phrase consisting of three words:
management, information and systems. So Looking at these
three words, it’s easy to define Management Information
Systems as systems that provide information to management
Mis is popularly known as the information system ,the
information and decision system,the computer based
information system
Definition Of MIS
Mis has more than one Definition
1.The mis is defined as a system which provides information support for
decision making in the organization
2.The mis is defined as an integrated system of man and machine for providing
the information to support the operations,the management,and the decision
making function in the organization
3.The mis defined as a system based on the database of the organization evolved
for the purpose of providing information to the people in the organization
4.The mis is defined as a computer based information system
Syllabus
• Need for Information System in Business
• Fundamentals of IS
• System concepts
• Components of IS
• IS resources activities
• Overview of IS
• Operation support systems , Management support systems
• System approach to problem solving
• Global business scenario
• Trends in Technology & application
 INFORMATION SYSTEM

• An information system is a set of inter related

components that collect data, manipulate, analyze data
and disseminate as information and provide feedback
for decision making to meet identified objectives. This
is a combination of software, hardware, personnel and
infrastructure. This component helps in the collection
of data that is stored in the MIS.
• Information system generates information from
data. Data is in the form of raw materials and it
is subjected to some manipulation to generate
useful information.
• Businesses can use information systems for
managerial decision making to reduce costs and
increase revenues by effective managerial
decision making
• This is a combination of software, hardware,
personnel and infrastructure. This component
helps in the collection of data that is stored in the
MIS. The hardware includes computers, scanners,
printers and network devices. The software
elements include the company’s enterprise
software and any other software that is used in the
running of the company’s network. This component
makes it possible for employees to interact with the
system and thus information can be collected
• There are various types of information
systems, for example: transaction
processing systems, decision support systems,
knowledge management systems, learning
management systems, database
management systems, and office information
systems
 Information systems play following 3 vital
roles for a business organization

• Supports the business processes and

operations of an organization.
• Support of decision making by employees and
managers of an organization.
• Support the strategies of an organization for
competitive advantage.
 Data And Information
• Data is a singular unit of knowledge. It has no
intrinsic value on its own. We can’t extract
meaning out of it, without knowing more
about it.
• Information is something that we can link to
data, to be able to attach a meaning to it.
 INFORMATION
Information
*Information is the key resource in decision making.

*It is often confused with data

*Data is raw and not refined information

*Information is processed data

 Characteristics of Information
• Relevant: the information must be pertaining to the problem at
hand.
• Complete: partial information is often worse than no information.
• Accurate: erroneous information might lead to disastrous
decisions.
• Current: decisions should be based on the latest information
available, because what was a fact yesterday might no longer be
one today.
• Economical: in business setting ,the cost of obtaining information
must be considered as one cost element involved in any decision.
 1.1 Need for information system in business

• Operational Excellence:
In order for a business to achieve high levels of profitability,
they need to improve the efficiency of their operations.
Information systems is a tool that is used in order to achieve
high levels of efficiency and productivity in business operations
• New Products, Services and Business Models:
Information systems can be used to create new products and
services and also an entirely new business model. A business
model describes how a company produces, delivers and how they
sell a product or service to create wealth.
• Customer/Supplier Intimacy:
When a business provides a good product or service customers
tend to return and purchase more frequently which raises revenue
and profits. The more a business engages with its suppliers, the
better the supplier can provide vital inputs which can lower costs
• Improved Decision-Making:
Many managers who operation in an information bank may never
have the right information at the right time to make an informed
decision. This can raise costs and lose customers. However,
information systems allow the managers to use real-time data from
the marketplace when making decision.
• Competitive Advantage:
When a firm achieved one or more of these business objectives
(operational excellence, new products, services and business models,
customer/supplier intimacy and improved decision-making), they
may have a competitive advantage. By performing better than
competitors, charging less for superior goods and responding to
customers and suppliers, higher sales and profits can be made.
• Day To Day Survival:
Businesses must invest in information systems and technology
as they are essential to doing business. This necessity is caused
by the industry level changes and firms need to use information
systems and technology in order to provide the capability to
respond to these.
Information systems enables companies to react, respond, cater,
store, retrieve, disseminate and control their new valuable asset
that is information. In the future, a good information system in
a business will no longer be an option, it will become a
compulsory in determining success.
1.2 Fundamentals of information system (MIS)

Data Process Information Decision Action

Productivity
1.2 System Concept (of Information)

Definition of system :
System is a group of interrelated components working together
toward a common goal by accepting input and producing outputs
in an organized transformation process.
System has three basic interacting components or Functions:
1.Input
2.Processing
3.Output
Input :
Involves capturing and assembling elements that enter the
system to be processed. For ex. Raw materials, energy, data, and
human effort must be secured and organized for processing.
Processing
involves transformation processes that convert into Output.
transformation processes that convert into output
Ex: manufacturing process,OR mathematical calculations.
Output
involves transferring elements that have been produced by a
transformation process to their ultimate destination. E.g. finished
products, human services, and management information must be
transmitted to their human users.
Information System Activities
 
1. Input: - Optical scanning of bar-code tags on
merchandise.
2. Processing: - Calculating employee pay, taxes and
other payroll deductions.
3. Output: - Producing reports and display about sales
performance.
4. Storage: - Maintaining records on customers,
employees, and products.
5. Control: - Generating audible single to indicate proper
entry of sales data.
1.2 System Concept (of Information)

Every system will have input that is processed to an output towards a goal

Input Process Output

Feedback
Information System depends on the resources of
1.People (End user and IS specialists)
2.Hardware (Machine and Media)
3.Software (Program and procedures)
4.Data (Data and knowledge base)
5.Network (communication media and Network
support) to perform input, processing, output, storage
and control activities that convert data resources into
information products
There are the five basic resources of information
system.
People resources include end users and are specialists
• Specialist: - System analysis, programmer, computer operators.
• End user: - any one else who uses information system.
hardware resources consist of machine and media,
• Machines: Computers, Video monitors, magnetic disk drive,
printers, output scanners.
• Media: Floppy disk, magnetic tape, optical disks, paper forms,
plastic card.
Software resources include both programs and procedures,
• Programs: operating system, spreadsheet programs, word
processing programs, payroll program.
• data Procedures: data entry procedures, error correction
procedures, paycheck distribution procedures
Data resources can include data and knowledge base, Data resources
are transformed by information processing activities into a variety of
information products for end users.
Procedure descriptions, customer records, employee files, inventory
database.
Network resources include communications media and networks.
• Information processing consists of input, processing, output,
storage, and control activities.
• Communications media, communications processors, network
access and control software.
Information Products:-
• Management reports, and Business documents using text and
graphics displays, Audio responses and paper forms.
1.2 System Concept (of Information)

Characteristics of a system:

• Have a specific form and structure

• Reality model
• Has a goal
• Have inputs and processed outputs
• Performance is measured
• Exists in an environment
• Can be static or dynamic
 1.2 System Concept (of Information)

Types of systems (expressed) 8. Human-machine systems

9. Abstract systems
10. Concrete systems
1. Closed systems 11. Adaptive systems
2. Open systems 12. Non-adaptive systems
3. Deterministic systems 13. Simple systems
4. Probabilistic systems 14. Complex systems
5. Random systems 15. Conceptual systems
6. Human systems 16. Empirical systems
7. Machine systems 17. Natural systems
18. Artificial systems
19. Embedded systems
20. Static systems
21. Dynamic systems
1.2 System Concept (of Information)

Open systems

In an open environment, the various components of an

organization will communicate and share information with
each other and possibly with others outside of the
organization. This could include sharing information, ideas,
and even resources. In an open system, an organization will
take inputs from within and from outside the organization,
and its actions will produce outputs that impact the internal
environment and the environment outside of the organization
1.2 System Concept (of Information)

Closed systems

In a closed system, there is very little sharing between

the various components of the organization and
certainly little to no interaction with the environment
outside of the organization. Each component performs
its functions without communicating its activities to the
other components of the organization. Sometimes, the
need for a closed environment exists if the organization
is working on developing a new product, idea, or
concept.
 Components Of MIS
• Information Systems need to have the necessary
components to collect, process, store and retrieve the
information whenever it is needed.
To achieve this, these systems use the following four
components:
1.Information System
2.Database Management System. 
3. Intelligence System.
4. Research System
The components of information system include the following:

1. Hardware
2. Software
3. Data
4. Procedures and processes
5. People
6. Feedback
 1.5 IS resources and activities

Information system resources are those that combine

users, technology and process to complete a specific goal.
They include

1. Database: is a piece of record. In MIS they are secure

2. Hardware and peripheral devices: Parts of computer that one
can touch
3. Software: the operating systems and data software
4. Networks: systems that link computers and communication
channels
5. People: data collectors, operators, maintainers and users
MANAGEMENT INFORMATION SYSTEM
 Gordon. B. Davis defines management information
system as;
“ An integrated user-machine system for
providing information to support the operations,
management analysis and decision making
functions of an organization . The system utilizes
computer hardware and software, manual
procedures , models for analysis, planning,
control, and decision making, and a database.”
Need of MIS
• MIS helps the management at various levels
and it is a means of communication where data
are collected, processed, stored and retrieved
later for making decisions regarding planning,
operations and control of an organization.

• The information are collected from different

functional areas like finance, marketing ,
production , personnel departments.
 WHAT MIS DO….?

Collect data

Store &
Process Data

Present
information
to managers
Characteristics of MIS
1. System approach: 1. Common data
2. Management- flows:.
oriented 2. Long-term planning
3. As per 3. Relevant connection
requirements:. of sub-system
4. Future-oriented:. planning:

5. Integrated:. 4. Central database:

Types of MIS

i. Operation Support System

ii. Management Support System

 CLASSIFICATION OF MANAGEMENT
INFORMATION SYSTEMS

MIS

OPERATION SUPPORT MANAGEMENT SUPPORT

SYSTEM SYSTEM

Transaction Process Office Decision Managerial Executive

Process Control Automation Supportive Information Information
System System System System System System
1.7 Operations support systems

Operations support system in business

• monitors and manages information system network

• processes business transactions,
• control industrial process,
• support enterprise communications,
• support enterprise collaborations,
• update corporate database regularly, and
• supports customer service
1.7 Operations support systems (OSS)
An operations support system (OSS) is a software component that
enables a service provider to monitor, control, analyze, and
manage the services on its network. These types of software
applications, along with a business support system (BSS), support
most customer-facing activities, including ordering, billing, and
support The development and implementation of OSS systems
often involve information technology (IT) expertise as well as the
help of integrators that can ensure the software works with
network infrastructure to pass on important information about the
fulfillment and delivery of services.
1.8 Management support systems (MSS)
Management support systems focus on managerial uses of infor­
mation resources. These systems provide information to manage
for planning and decision making. The information provided by
these systems is based on both the internal and external data using
various data analysis tools.
MSS provides information to managers in the form of reports and
displays to managers and many business professionals.
This helps sales managers to browse their networked computers to
access to information on sales, and access their corporate intranet
for daily sales analysis report that evaluate sales made by each
person.
.
1.9 Other classifications of information systems
There are three types of management support systems, namely: Some of
them are:
1.Decision support systems (DSS) give direct computer support to
managers to make decisions. An advertising manager may use a DSS to
perform what-if-analysis on how to spend the advertising money. A
production manage may use a DSS how much product to manufacture.
Based on thee expected sales and future market information
• Expert systems: provides expert advice in diagnostics, decisions for
portfolio management, etc.
• Knowledge management systems: Knowledge management systems
refer to any kind of IT system that stores and retrieves knowledge,
improves collaboration, locates knowledge sources, mines repositories for
hidden knowledge, captures and uses knowledge, or in some other way
enhances the KM process
•https://www.tableau.com/support/knowledgebase
It includes a search feature so users can get answers to specific solutions as
well as top articles and product-specific navigation.
 1.10 Systems approach to problem solving
The systems approach to problem solving uses systems orientation methods to
identify and define problems and opportunities, and develop solutions. It involves
various the following interrelated activities in systems thinking :

1. Identify the problem

2. Define the problem
3. Examine opportunities
4. Select system solution that meets the requirement by system thinking
5. Design and develop the selected system solution
6. Evaluate the alternate solutions
7. Select the best solution
8. Design and implement the solution
9. Evaluate effectiveness of implemented solution
10.Apply corrections through feedback
1.10 Systems approach to problem solving

1. Identify the problem

10 Apply corrections 2 Define the problem

9 Evaluate effectiveness 3 Examine opportunities

System
thinking
8 Design and implement the
4 Select system solutions
solution

5. Design and develop system

7 Select the best solution
solution
6 Evaluate alternate solution
 Trends in Technology & application
The Latest Trend of Information Technologies are: Cloud
Computing, Mobile Application
Internet of Things (IoT), Big data, Cyber security,
Cloud Computing
One of the most talked about concept in information technology is the cloud
computing. Clouding computing is defined as utilization of computing services, i.e.
software as well as hardware as a service over a network. Typically, this network is the
internet.
Cloud computing offers 3 types of broad services mainly Infrastructure as a Service
(IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).
Some of the benefit of cloud computing is as follows:
Cloud computing reduces IT infrastructure cost of the company.
Cloud computing promotes the concept of virtualization, which enables server and
storage device to be utilized across organization.
Cloud computing makes maintenance of software and hardware easier as installation
is not required on each end user’s computer.
Some issues concerning cloud computing are privacy, compliance, security, legal,
abuse, IT governance, etc.
Mobile Application
Another emerging trend within information technology is mobile applications
(software application on Smart phone, tablet, etc.)
Mobile application or mobile app has become a success since its introduction.
They are designed to run on Smartphone, tablets and other mobile devices.
They are available as a download from various mobile operating systems like
Apple, Blackberry, Nokia, etc. Some of the mobile app are available free
where as some involve download cost. The revenue collected is shared
between app distributor and app developer.
Big data
Big data as a concept is ever evolving as the capacity to mine structured, semi
structured and unstructured data increases. In 2014, organizations were making
more informed business decisions and becoming more intelligent as they interact
with their customers. More sophisticated ‘recommendation engines’ anticipating
users’ interests more accurately for services such as Netflix, Amazon and Google.
Further, credit reference agencies have been using big data to inform on lending
decisions by developing the algorithms used to generate credit ratings. Retail,
logistics and budget planning have all seen significant advancement last year due
to greater business intelligence.
Cyber security
IT security is an obvious priority in an environment infested by spam, bugs,
bots, browser holes, exploits, spyware, adware, denial of service (DoS) attacks,
viruses and phishing. IT security breaches are serious business problems that
can often result in significant financial loss and collateral damage.
Organizations need to be proactive in protecSecurity weaknesses have been
marked down to a number of key areas such as mis-configuration issues, third
party providers, lack of network diversity and most worrying of all, lack of
qualified security talent
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