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Sourabh Guha Assistant Professor (Rgoi - C & M Dept.) Management Information Systems
Sourabh Guha Assistant Professor (Rgoi - C & M Dept.) Management Information Systems
Assistant Professor
(RGOI - C & M DEPT.)
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
Characteristics of System
1. A system can be either probabilistic or deterministic in nature.
2. Systems often have multiple goals.
3. Systems often consists at subsystems.
4. Subsystems send and receive data from each other.
5. Subsystems may be open or closed. Closed systems are stand alone and no connections with other systems. While
open systems interface and interact with other systems.
6. Environment : A system always exists and functions within an environment. The things outside the system
constitute the system environment. It is necessary to define system boundary that separates those things that are
part of the system from those things outside of the system. General model of the system is shown in figure.
COMPONENTS OF SYSTEM
A system has three basic components. These components are – Input, Process/transformation & Output
1. Input: Inputs of a system are data, elements or raw materials that are to be transformed. Different system accepts
different forms of input.
2. Process: System transforms input into output i.e. changing the state of input is known as process. It is also called
as transformation.
3. Output: A system transforms input into output. Output is the final product of the system. A system communicates
with its environment in terms of inputs to and outputs from the system. For example, a manufacturing firm
considered as system transforms raw materials (input) into finished products (outputs).
COMPONENTS OF AN INFORMATION SYSTEM
An information system has following components:
1. Hardware (Machines and Media)
2. Software (Programs and Procedures)
3. Data (Data and Knowledge)
4. Network (Communication Media)
5. People (End user and specialists)
All five components are arranged and interrelated to perform input, process, output, feedback and control that convert data
resources into information. Figure shows interrelation between these components. Hardware includes processor, I/O
devices, operating system and media devices. Software includes programs and procedures. Databases includes data and
knowledge base. Network includes communication media and network devices People includes Operating Personal and
System specialists
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
Hardware Resources: Hardware resources comprises the physical aspect of information system. The term hardware is
generally associated with computers but it also includes peripherals or data media (storage devices).
A modern computer system can be considered as a system with four main- subsystems: inputs, processing, storage and
output.
• Input to a computer is achieved through variety of input devices. Special devices are used depending on type of
data being captured. Computers are now able to capture data from multiple media: Character based data, sound,
images, graphics and movements.
• Processing subsystems is known as the Central Processing Unit (CPU). The Central Processing Unit can be
subdivided into following components Control Unit, Logic unit. Primary storage, Registers.
• Storage subsystem is used to store the processed data. Data is stored in the storage system for short-term or long-
term use. Data for short-term use is stored in primary storage. Data for long-term is used in secondary storage.
• Output from computer is achieved through a variety of output devices. Typical output devices include sound
based output devices, image based and graphics-based output devices.
Computer peripherals are devices other than Computer. Computer peripherals can be any input devices, output device or
storage device, e.g. keyboard, mouse, monitor, printer, magnetic or optical disks.
Software Resources: The term software is generally used to describe computer programs. A program is a sequence of
instructions given to a computer. Programs must be written in some formal language known as programming language.
All software are essentially programs. Three major levels of software are - system software, communication software and
application software. This forms the software architecture at some information system
• System Software: System software refers to that collection of programs which co-ordinate the activities at
hardware and all programs running on the computer system. System software acts as an interface between
application software and hardware. One most important type of system software is the operating system. This is
the piece of software that supervises the running of all other programs on some hardware. The operating system
undertakes tasks such as scheduling the running of programs, controlling input and output to programs also
managing files on secondary storage.
• Communication Software: This is special type of software used to enable intercommunication between different
computing devices in a network.
• Application Software: A software application or application system is normally written using some language or
tool set and designed to perform a particular set at tasks for some organization.
Databases: Databases are most important component of information system. Data is the basic raw material for
information system. Data has to be represented in specific manner (data structuring) for storage and manipulation by
Computer hardware and software also for transmission by communication network. Effective data structuring will benefit
all end users in organization. Various forms of data are alphanumeric data, text data, image data, audio data. Data is one
or more symbols that are used to represent something i.e. data are raw facts while information is interpretation of data in a
meaningful context for Specific end users. Information is a processed data.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
Network Resources: A network is any set of Computer systems joined by some communications technology, networks
can be described in terms of their technology and coverage e.g. LAN, WAN, MAN and ring, star, bus networks
Telecommunications network provide the telecommunication structure used to transmit data from one site to another.
Telecommunications network consists of computers, processors, switches, transmission media and communication
software. Typically used communications networks are Internet, intranet and extranets.
People Resources: For proper operation of information system people resources are required. These people may be end
user or information system specialists.
• End-user: End user are people who uses information system. Information system user may be any professional
like engineer, doctor, salesman, accountant or shopkeeper also an individual. End user are also called as clients.
• System Specialists: System specialists are people who develop and operate information systems. Information
system specialists include system analysts programmers and administrators. System analysts,-' specialists must
design the information as per the requirements of end-user. The information products should fulfill the need of
end-users.
OBJECTIVES OF MIS
The goals of an MIS are to implement the organizational structure and dynamics of the enterprise for the purpose of
managing the organization in a better way and capturing the potential of the information system for competitive
advantage. Following are the basic objectives of an MIS:
1. Capturing Data: Capturing contextual data, or operational information that will contribute in decision making
from various internal and external sources of organization.
2. Processing Data: The captured data is processed into information needed for planning, organizing, coordinating,
directing and controlling functionalities at strategic, tactical and operational level. Processing data means:
• making calculations with the data
• sorting data
• classifying data and
• summarizing data
3. Information Storage: Information or processed data need to be stored for future use.
4. Information Retrieval: The system should be able to retrieve this information from the storage as and when
required by various users.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
5. Information Propagation: Information or the finished product of the MIS should be circulated to its users
periodically using the organizational network.
MIS FUNCTIONS
The broad functions of MIS are as given below:
1. To improve decision-making: MIS helps management by providing background information on a variety of issues
and helps to improve the decision-making quality of management. The fast and accurate information supplied by
MIS is leveraged by the managers to take quicker and better decisions thereby improving the decision-making
quality and adding to the bottom line of the company.
2. To improve efficiency: MIS helps managers to conduct their tasks with greater ease and with better efficiency.
This reflects in better productivity for the company.
3. To provide connectivity: MIS provides managers with better connectivity with the rest of the organization.
CHARACTERISTICS OF MIS
1. It should be based on a long-term planning.
2. It should provide a holistic view of the dynamics and the structure of the organization.
3. It should work as a complete and comprehensive system covering all interconnecting sub-systems within the
organization.
4. It should be planned in a top-down way, as the decision makers or the management should actively take part and
provide clear direction at the development stage of the MIS.
5. It should be based on need of strategic, operational and tactical information of managers of an organization.
6. It should also take care of exceptional situations by reporting such situations.
7. It should be able to make forecasts and estimates, and generate advanced information, thus providing a
competitive advantage. Decision makers can take actions on the basis of such predictions.
8. It should create linkage between all sub-systems within the organization, so that the decision makers can take the
right decision based on an integrated view.
9. It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of
data. It should simplify the operations with as much practicability as possible.
10. Although the MIS is an integrated, complete system, it should be made in such a flexible way that it could be
easily split into smaller sub-systems as and when required.
11. A central database is the backbone of a well-built MIS.
12. It should be able to process data acurately and with high speed, using various techniques like operations research,
simulation, heuristics, etc.
13. It should be able to collect, organize, manipulate, and update large amount of raw data of both related and
unrelated nature, coming from various internal and external sources at different periods of time.
14. It should provide real time information on ongoing events without any delay.
15. It should support various output formats and follow latest rules and regulations in practice.
16. It should provide organized and relevant information for all levels of management: strategic, operational, and
tactical.
17. It should aim at extreme flexibility in data storage and retrieval.
18. Management oriented: One important feature of MIS is that MIS is designed top-down. This means that the
system is designed around the need felt by the management at different levels for information. The focus of the
system is to satisfy the information needs of management.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
19. Management directed: Since MIS is 'for the' management it is imperative that it also should have a very strong 'by
the' management initiative. Management is involved in the designing process of MIS and also in its continuous
review and up gradation to develop a good qualitative system. The system is structured as per directions factored
by management. This helps in minimizing the gap between expectations of management form the system and the
actual system.
20. Integrated: MIS is an integrated system. It is integrated with all operational and functional activities of
management. This is an important characteristic and- requirement for a system to qualify as MIS. The reason for
having an integrated system is that information in the managerial context for decision-making may be required
from different areas from within the organization. If MIS remains a collection of isolated systems and each
satisfying a small objective, then the integrated information need of managers will not be fulfiller. In order to
provide a complete picture of the scenario, complete information is needed which only an integrated system can
provide.
21. Common data flows: Through MIS the data being stored into the system, retrieved from the system, disseminated
within the system or processed by the system can be handled in an integrated manner. The integrated approach
towards data management will result in avoiding duplication of data, data redundancy and will help to simplify
operations.
22. Strategic planning: MIS cannot be designed overnight. It requires very high degree of planning which goes into
creating an effective organization. The reason for this kind of planning is to ensure that the MIS being built not
only satisfies the information need of the managers today but can also serve the organization for the next five to
ten years with modifications. Sometimes when the planning part is done away with, systems tend to perform well
in the present but they tend to become obsolete with time. Planning helps to avoid this problem.
23. Bias towards centralization: MIS is required to give 'one version of the truth', i.e., it must supply the correct
version of the latest information. There is a requirement for the data repository to be centralized. Centralized data
management helps MIS to exercise version control as well as provide an integrated common view of data to the
managers. In a non-centralized system, data will get entered, updated and deleted from the system from different
locations. In such a case it becomes difficult to provide correct information to managers. For example, in a
decentralized System if a person superannuates from an organization and his superannuating is only recorded in
the human resource system but not communicated to the finance department system, then it is quite likely that his
salary may be generated by the finance system for the next month. A centralized system where data in entered,
updated and deleted from only one location does not suffer from such problems. In a centralized system, the
superannuating employee's details are deleted from the master file from which all departments' access data,
thereby eliminating the risk of generating his salary for the next month.
ADVANTAGES OF MIS
It goes without saying that all managerial functions are performed through decision-making; for taking rational decision,
timely and reliable information is essential and is procured through a logical and well structured method of information
collecting, processing and disseminating to decision makers. Such a method in the field of management is widely known
as MIS. In today’s world of ever increasing complexities of business as well as business organization, in order to service
and grow , must have a properly planned, analyzed, designed and maintained MIS so that it provides timely, reliable and
useful information to enable the management to take speedy and rational decisions. MIS has assumed all the more
important role in today’s environment because a manager has to take decisions under two main challenges:
First, because of the liberalization and globalization, in which organizations are required to compete not locally
but globally, a manager has to take quick decisions, otherwise his business will be taken away by his competitors.
This has further enhanced the necessity for such a system.
Second, in this information age wherein information is doubling up every two or three years, a manager has to
process a large voluminous data; failing which he may end up taking a strong decision that may prove to be very
costly to the company.
In such a situation managers must be equipped with some tools or a system, which can assist them in their challenging
role of decision-making. It is because of the above cited reasons, that today MIS is considered to be of permanent
importance, sometimes regarded as the name centre of an organization. Such system assist decision makers in
organizations by providing information at various stages of decision making and thus greatly help the organizations to
achieve their predetermined goals and objectives. On the other hand, the MIS which is not adequately planned for
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
analyzed, designed, implemented or is poorly maintained may provide developed inaccurate, irrelevant or obsolete
information which may prove fatal for the organization. In other words, organizations today just cannot survive and grow
without properly planned, designed, implemented and maintained MIS. It has been well understood that MIS enables even
small organizations to more than offset the economies of scale enjoyed by their bigger competitors and thus helps in
providing a competitive edge over other organizations.
SCOPE OF MIS
The following diagram shows the scope of MIS:
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
MIS helps to achieve business goals of an organization efficiently and effectively. Also it helps to execute all business
operations smoothly.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
The sales function of a business can be viewed as a system. You could then ask: Is poor sales performance (output)
caused by inadequate selling effort (input), out of date sales procedures (processing), incorrect soles information
(feedback], or inadequate sales management (control)? Figure illustrates this concept.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
Criteria may be ranked or weighted, based on their importance in meeting your requirements. For example, you might
rank a criterion concerning operating costs higher than a criterion of ease of use. Finally, each alternative solution must
be evaluated based on how well it meets your evaluation criteria. Figure illustrates a simple example of the evaluation of
two alternative solutions using several criteria.
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
Post-implementation Review:
The final step of the systems approach recognizes that an implemented solution can fail to solve the problem for which
it was developed. The real world has a way of confounding even the well-designed solutions. Therefore, the results of
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
implementing a solution should be monitored and evaluated. This is called a post implementation review process, since
the success of a solution is reviewed after it is implemented. The focus of this step is to determine if the implemented
solution has indeed helped the firm and selected subsystems meet their system objectives. If not, the systems approach
assumes you will cycle back to a previous step and make another attempt to find a workable solution.
Implementation of MIS
The design of a management information system may seem to management to be an expensive project, the cost of
getting the MIS on line satisfactorily may often be comparable to that of its design, and the implementation has been
accomplished when the outputs of the MIS are continuously utilized by decision makers. Once the design has been
completed, there are four basic methods for implementing the MIS. These are:
1. Install the system in a new operation or organization.
2. Cut off the old system and install the new: This produces a time gap during which no system is in operation.
Practically, installation requires one or two days for small companies or small systems.
3. Cut over by segments: This method is also referred as” phasing in” the new system. Small parts or subsystems
are substituted for the old. In the case of upgrading old systems, this may be a very desirable method.
4. Operate in parallel and cut over: The new system is installed and operated in parallel with the current system
until it has been checked out, then only the current system is cut out. This method is expensive because of
personal and related costs. Its big advantages are that the system is fairly well debugged when it becomes the
essential information system.
Plan the implementation
The three main phases in implementation take place in series. These are
1. The initial installation
2. The test of the system as a whole
3. The evaluation, maintenance and control of the system.
Many implementation activities should be undertaken in parallel to reduce implementation time. Training of personnel
and preparation of software may be in parallel with each other and with other implementation activities. The first step
in the implementation procedure is to plan the implementation. Some analyst includes the planning of the
implementation with the design of the system, the planning and the action to implement the plan should be bound
closely together. Planning is the first step of management, not the last. The MIS design and the urgent need for the
system at the time the design is completed will weigh heavily on the plan for implementation.
Implementation Tasks
The major implementation tasks consist of:
1. Planning the implementation activities
2. Acquiring and laying out facilities and offices
3. Organizing the personnel for implementation
4. Developing procedures for installation and testing
5. Developing the training program for operating personnel.
6. Completing the system’s software
7. Acquiring required hardware
8. Generating files
9. Designing forms
10. Testing the entire system
11. Completing cutover to the new system
12. Documenting the system
13. Evaluating the MIS
14. Providing system maintenance(debugging and improving)
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
block diagrams during the detailed design state. Some modification may be required, as the implementation stage
progresses.
G. Acquiring required hardware
This acquisition is usually the limiting factor in getting am MIS implementation. These tasks should be started during the
design stage. The decision is to be needed, whether to buy or lease the hardware. Capital expenditure analysis is only
one of many factors involved in this decision. Others are prestige, usage etc.
H. Generating files
In the implementation stage, the actual data must be obtained and recorded for the initial testing and operation of the
system. This requires format of the data, storage form and format and remarks to indicate when the data have been
stored. The collection of data used in routine operations is often called the master file. Responsibility for file
maintenance for each file item should also be assigned. The development of files or databases belongs to information
system designers and storage and retrieval experts. The translation of specifications for files into computer programs is a
function of computer specialists.
I. Designing forms
For controlling the marketing, a salesperson has to fill out the forms summarizing the day’s activities. The form ensures
the right information to be supplied for computer storage. Forms are required not just for input and output but also for
transmitting data at intermediate stages.
J. Testing the entire system
As the total system is installed, tests should be performed with the test specifications and procedure. A test during
installation stage consists of component tests, subsystem tests and total system acceptance tests. Components may be
equipment (that can be new or old), new software programs, new data collection methods, work procedures, reporting
formats. Difficulties that occur during component tests may lead t design changes. As more components are installed,
subsystems may be tested. There is a difference between the testing of component and the testing of a system. System
tests require verification of multiple inputs, complex logic systems, and timing aspects of many parts.
K. Completing cutover to the new system
Cutover is a point at which the new component replaces the old component to the new system replaces the old system.
This involves old forms, old files and old equipment being retried. The debugging proves associated with the cutover to
the new system may extend for several months.
L. Documenting the system
Documentation of the MIS means preparation of written descriptions of the scope, purpose, information flow
components, and operating procedures of the system. Documentation is a necessity for troubleshooting, for
replacement of subsystems, for interfacing with other systems, for training new operating personnel and also for
evaluating and upgrading the system.
M. Evaluating the system
After the MIS has been operating smoothly for a short period of time, an evaluation of each step in the design and of the
final system performance should be made. Evaluation should not be delayed beyond the time when the system’s
analysts have completed most of the debugging. The longer the delay, the more difficult it will be for designer to
remember important details. The evaluation should be made by the customer as well as by the designers.
N. Providing system maintenance
Control and maintenance of the system are the responsibilities of the line managers. Control of the systems means the
operation of the system as it was designed to operate. Sometimes, well-intentioned people or operators may make
unauthorized changes to improve the system, changes that are not approved or documented. Maintenance is closely
related to control. Maintenance is that ongoing activity that keeps the MIS at the highest levels of effectiveness and
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Sourabh Guha
Assistant Professor
(RGOI - C & M DEPT.)
efficiency within cost constraints. Maintenance is directed towards reducing errors due to design, reducing errors due to
environmental changes and improving the system’s scope and services.
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