MANAGEMENT INFORMATION

SYSTEMS

GOLLIS UNIVERISTY LECTURE

R : A.H.F
 COURSE CONTENTS
1: Introduction To Management
Information Systems
2: Information Technology Infrastructure
3: Data Management And Database
Systems
4: Business Intelligence And Analytics
5: Enterprise Systems And Erp
6: E-commerce And E-business
7:decision Support Systems And Artificial
Intelligence
 CHAPTER ONE
Introduction To Management
Information Systems
 INTRODUCTION
A Management Information System (MIS) is a
computerized system that provides managers
with tools to organize, evaluate, and efficiently
manage departments within an organization. It
collects and processes data from various sources,
including transaction processing systems and
other databases, to produce reports and provide
decision-making support for managers at
different levels.
 CHAPTER ONE

OVERVIEW OF MANAGEMENT
INFORMATION SYSTEMS
 Definition of MIS
Definition of Management Information Systems
(MIS) Management Information Systems (MIS)
can be defined as a computer-based system that
provides managers with tools to organize,
evaluate, and efficiently manage departments
within an organization. MIS is designed to
generate reports and provide data that is essential
for making strategic decisions.
It is a combination of :
• System: A system is a set of interconnected components working
together to achieve a specific goal or purpose.
• Information System: An information system is a system that
collects, processes, stores, and disseminates information for a
specific purpose.
• Management: Management involves planning, organizing,
leading, and controlling resources to achieve organizational goals
effectively and efficiently.
Management Information Systems (MIS): Management Information
Systems are systems that provide managers with the tools and
information needed to support decision-making processes within an
organization.
MIS
EVOLUTION OF MANAGEMENT INFORMATION
SYSTEMS

The evolution of Management Information Systems (MIS)

can be traced back to the 1960s and 1970s when businesses
started using computers for data processing tasks.
Over time, MIS evolved to incorporate decision support
systems, executive information systems, and enterprise
resource planning systems.
Today, with advancements in technology such as cloud
computing, big data analytics, and artificial intelligence,
MIS has transformed into more sophisticated systems that
provide real-time data analysis, predictive insights, and
support strategic decision-making for organizations.
 Benefits of Management Information Systems

1. Improved Decision-Making: MIS provides timely and

accurate information to managers, enabling them to make
informed decisions.
2. Efficiency: By automating routine tasks and processes,
MIS improves efficiency within an organization.
3. Competitive Advantage: Organizations that effectively
utilize MIS gain a competitive edge by leveraging data for
strategic purposes.
4. Data Security: MIS helps in securing sensitive information
through access controls and encryption mechanisms.
 THE NEED FOR MIS

The following are some of the justifications for having an MIS system.
 Decision makers need information to make effective decisions.
Management Information Systems (MIS) make this possible.
 MIS systems facilitate communication within and outside the
organization – employees within the organization are able to easily
access the required information for the day to day operations.
Facilitates such as Short Message Service (SMS) & Email make it
possible to communicate with customers and suppliers from
within the MIS system that an organization is using.
 Record keeping – management information systems record all
business transactions of an organization and provide a reference
point for the transactions
 Functions of Management Information Systems

1. Data Processing: MIS processes raw data into meaningful

information through various operations such as sorting,
summarizing, calculating, and comparing.
2. Storage: MIS stores both raw data and processed information in
databases for future reference and analysis.
3. Retrieval: MIS allows users to retrieve specific information from
the system quickly and efficiently.
4. Analysis: MIS provides tools for analyzing data to identify
trends, patterns, and insights that can aid in decision-making.
5. Reporting: MIS generates reports in various formats such as
tables, charts, graphs, and dashboards to present information in a
clear and concise manner.
 SIGNIFICANCE OF MANAGEMENT INFORMATION
SYSTEM
Management Information Systems (MIS) is a discipline that focuses on the use
of technology to help organizations achieve their goals. MIS involves the
design, development, implementation, and management of information
systems that support business processes. These systems provide managers with
the tools they need to make informed decisions and manage resources effectively.
Significance of MIS
1. Decision-Making: One of the primary significance of MIS is its role in
decision-making. MIS provides managers with timely and relevant
information that helps them make informed decisions. By analyzing data
collected by MIS, managers can identify trends, patterns, and potential
issues, allowing them to make strategic decisions that drive the
organization forward.
2. Efficiency and Productivity: MIS helps organizations streamline their
processes and improve efficiency. By automating routine tasks, managing
data effectively, and providing real-time information, MIS enables
3. Competitive Advantage:. MIS provides organizations with a competitive
advantage by enabling them to gather, analyze, and utilize data
effectively. This allows businesses to respond quickly to market changes,
identify new opportunities, and make strategic decisions that give them
an edge over competitors.
4. Strategic Planning: MIS plays a vital role in strategic planning by
providing organizations with insights into their operations, customers, and
market trends. By leveraging the data collected by MIS systems,
organizations can develop long-term strategies, set goals, and monitor
progress towards achieving them. This helps organizations adapt to
changing market conditions and stay agile in a dynamic business
environment.
5. Data Security: With the increasing reliance on digital data, ensuring data
security has become a critical aspect of business operations. MIS helps
organizations protect their sensitive information by implementing
security measures such as access controls, encryption, and regular
backups. This ensures that data remains confidential, integral, and
available when needed.
 Manual Information Systems VS Computerized Information Systems (MIS)

Data is the bloodstream of any business entity.

Everyone in an organization needs information
to make decisions. An information system is an
organized way of recording, storing data, and
retrieving information.
Let us look at manual information systems vs.
computerized information systems.
 1. MANUAL INFORMATION SYSTEM
A manual information system does not use any computerized devices.
The recording, storing and retrieving of data is done manually by
the people, who are responsible for the information system.
The following are the major components of a manual information system
 People –people are the recipients of information system
 Business Procedures –these are measures put in place that define the
rules for processing data, storing it, analyzing it and producing
information.
 Data –these are the recorded day to day transactions
 Filing system – this is an organized way of storing information
 Reports –the reports are generated after manually analyzing the data from the
filing system and compiling it.
Advantages of Manual information system:
Cost effective – it is cheaper compared to a computerized system
because there is no need to purchase expensive equipment such as
servers, workstations, printers, etc.
Disadvantages: of Manual information system
 Time consuming
 Prone to error
 Lack of security
 Duplication of data
 Lack of backups
Diagram illustrates how a typical manual
information system works
2. COMPUTERIZED INFORMATION SYSTEM
Computerized systems were developed to address the challenges of
manual information systems. The major difference between a manual
and computerized information system is a computerized system uses a
combination of software and hardware to record, store, analyze and
retrieve information.
The following are the advantages of computerized information systems
 Fast data processing and information retrieval
 Improved data accuracy
 Improved security
 Reduced data duplication
 Improved backup systems
 Easy access to information
 Disadvantages:
 It is expensive to set up and configure – the organization has to buy
hardware and the required software to run the information system. In
addition to that, business procedures will need to be revised, and the staff
will need to be trained on how to use the computerized information
system.
 Heavy reliance on technology – if something happens to the hardware or
software that makes it stop functioning, then the information cannot be
accessed until the required hardware or software has been replaced.
 Risk of fraud – if proper controls and checks are not in place, an intruder
can post unauthorized transactions such as an invoice for goods that were
never delivered
 COMPONENTS OF INFORMATION SYSTEMS

An information system (IS) is a collection of components that work

together to collect, process, store, and distribute information to support an
organization’s operations, management, and decision-making. The
components of an IS can be categorized into five types: hardware,
software, data, procedures, and people.
1. Hardware: These are the physical components of an IS, such as
computers, servers, storage devices, and peripherals. Hardware
provides the necessary processing power, memory, and storage
capacity for an IS to function.
2. Software: These are the programs and applications that run on the hardware and
provide specific functionality to the IS. Software can be categorized into systems
software (e.g., operating systems, database management systems) and
application software (e.g., word processors, spreadsheets, email clients).
3. Data: These are the facts, figures, and information that the IS
processes and stores. Data can be structured (e.g., numbers, dates,
names) or unstructured (e.g., text, images, videos), and it can be
stored in various forms such as databases, files, and documents.
4. Procedures: These are the rules and processes that govern how the
IS is used and managed. Procedures can include policies,
standards, guidelines, and workflows that ensure the IS is used
effectively and efficiently.
5. People: These are the users and stakeholders who interact with the
IS, such as employees, customers, partners, and suppliers. People
are critical to the success of an IS because they provide the input,
feedback, and context that enable the IS to deliver value to the
organization.
 TYPES OF INFORMATION SYSTEMS

Based on these components, information systems can be classified into

different types based on their scope, purpose, and functionality:
1. Transaction processing systems (TPS): These are IS that support
operational tasks by capturing and processing routine
transactions such as orders, invoices, and payments. TPS
typically involve large volumes of data and require high levels of
accuracy and timeliness.
Examples of transaction processing systems include:
 Payroll systems
 Order processing systems
 Reservation systems
 Systems for payments and fund transfers
2. Management information systems (MIS): These are IS that
provide managers with reports and analytics to support decision-
making at the operational and tactical levels. They extract their
data from databases located in different departments to compile
reports such as sales analysis, inventory level reports, or financial
statements. .
Examples of management information systems include
 Sales management systems
 Inventory control systems
 Budgeting systems
 Human resource management systems
3. Decision support systems (DSS): These are IS that assist
managers in making non-routine decisions by providing access to
relevant data, models, and tools. DSS have analytical and/or
modeling capabilities to analyze existing structured information
and they allow managers to project the potential effects of their
decisions into the future. DSS typically involve advanced analytical
techniques such as optimization, simulation, and forecasting
4. Executive information systems (EIS): These are IS that provide
top-level executives with strategic insights and trends to support
decision-making at the strategic level. EIS typically involve
integrating data from various sources :
Internal sources, such as its own databases or data warehouse,
and External sources, such as data from customers, suppliers, or
other governmental databases. and presenting it in a graphical
format that is easy to comprehend and communicate. An easy to
use digital dashboard with a real-time view of the performance of an
organization is a common feature of an executive information system.
5. Enterprise Resource Planning (ERP) Systems:
Enterprise Resource Planning systems integrate all
departments and functions across an organization
into a single IT system. ERP systems automate
business processes and enable the flow of information
between different parts of the organization.
6. Supply Chain Management Systems (SCM):
Supply Chain Management Systems manage the flow of
goods, services, and information along the supply
chain from suppliers to customers. SCM systems help
organizations optimize their supply chain operations for
efficiency and cost-effectiveness.
 ROLES OF MIS
Management Information System plays a
multifaceted role in organizations by supporting
Decision-making,
 Managing data effectively,
 Processing information,
 Facilitating communication and collaboration,
Supporting Strategic planning,
 Optimizing resource management, and
managing risks.
QUESTIONS ????