MIS Notes

Contents
Introduction to MIS: ................................................................................................................... 4
Few definitions of MIS:............................................................................................................ 4
Objectives of MIS: .................................................................................................................. 5
Need of MIS .......................................................................................................................... 5
Components of MIS ................................................................................................................ 6
MIS Components and Utilization............................................................................................... 7
Pre-requisites of MIS .............................................................................................................. 7
Importance of MIS ..................................................................................................................... 8
Drawbacks of MIS................................................................................................................... 8
Types of Systems ....................................................................................................................... 9
Transactional Processing System (TPS) ...................................................................................... 9
Components of TPS: ............................................................................................................ 9
Office Automation System (OAS) .............................................................................................. 9
Components of OAS: ........................................................................................................... 9
Decision Support System (DSS) ................................................................................................10
Components of DSS:...........................................................................................................10
Executive Support System (ESS)/ Executive Information System (EIS) ............................................10
Components of ESS: ...........................................................................................................10
Knowledge Management System (KMS)....................................................................................10
Components of KMS:..........................................................................................................11
Purpose of KMS:....................................................................................................................11
Artificial Intelligence (AI) ........................................................................................................11
Subsystems..............................................................................................................................12
Functions - Subsystems ..........................................................................................................12
Activities - Subsystems ...........................................................................................................13
Systems – Information Inputs..................................................................................................13
Social and Ethical Issues of the Internet .......................................................................................13
Information System and Society ..............................................................................................14
Value of Information..............................................................................................................15

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 Quality of Information ...........................................................................................................16
Information Security ..............................................................................................................17
Integrated Management Systems: (IMS).......................................................................................17
Differences: .............................................................................................................................19
Difference: MIS vs Data processing ..........................................................................................19
Differences MIS vs DSS...........................................................................................................19
Differences ESS vs DSS ...........................................................................................................20
Structure of MIS based on Management activities .........................................................................20
Decision Support System............................................................................................................23
Sensitivity Analysis ................................................................................................................24
Concept of MIS:........................................................................................................................25
ERP System..............................................................................................................................25
What is ERP? ........................................................................................................................25
Benefits of ERP .....................................................................................................................26
Decision making Systems and Modeling process............................................................................27
Decision Making Process ........................................................................................................27
Structured:...........................................................................................................................27
Unstructured: .......................................................................................................................27
Decision Pyramid...................................................................................................................27
Decision Making Flow Chart ....................................................................................................28
Modelling Process .................................................................................................................28
System Input-Output table.........................................................................................................29
Definitions: ..............................................................................................................................30
MIS: ....................................................................................................................................30
DSS: ....................................................................................................................................30
ESS: .....................................................................................................................................30
OAS: ....................................................................................................................................30
TPS:.....................................................................................................................................31
KMS: ...................................................................................................................................31
IMS: ....................................................................................................................................31
ERP: ....................................................................................................................................31
AI:.......................................................................................................................................31

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Match the Following: (correct answered mapped) .........................................................................31
Set 1:...................................................................................................................................31
Set 2:...................................................................................................................................32

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Introduction to MIS:

Data Information and Knowledge –

Data: Data can be defined as a representation of facts, concepts, or instructions in a formalized manner,
which should be suitable for communication, interpretation, or processing by human or electronic
machine.

Information: Information is organized or classified data, which has some meaningful values for the
receiver. Information is the processed data on which decisions and actions are based.

Knowledge: Knowledge is more complicated than data or information, because it is subjective, often
based on experience, and highly provisional.

Few definitions of MIS:

Management Information System is the system which makes available the right information, to the right
people, at the right place, at the right time, in the right form and at the right cost.

The MIS is an idea which is associated with (wo)man, machine, marketing and methods for collecting
information’s from the internal and external source and processing this information for the purpose of
facilitating the process of decision-making of the business

There are various definitions given by various people across the globe – like David & Olson, Kelly, Henry,
Krober & Watson

Lucey’s definition: a system to convert data from internal and external source into information to
communicate that information in a appropriate form to managers at all levels, in all functions to make
timely and effective decisions for planning, directing and controlling the activities for which they are
responsible.

The information we have is NOT what we want, The information we want is NOT the information we
need, The information we need is NOT available

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Don’t give the manager, what she said she wanted but give her what she “meant” she wanted!!

– Finagle’s Law of Information

Objectives of MIS:
• Capturing data: Obtaining relevant data or operational information that will contribute in
decision making from various internal and external sources of organization
• Processing data: The obtained data is processed into information required for planning,
organizing, coordinating, directing and controlling functions at strategic, tactical and operational
levels
• Information storage: Information needs to be stored for future use
• Information retrieval: the system should be able to retrieve this information from the storage
as and when needed by the users
• Information propagation: Information or the finished product of the MIS should be provided to
its users on need basis through proper authorization and authentication

Need of MIS
• Facilities planning: MIS improves the quality of decision-making by providing relevant
information. It helps managers keep personal contact with the individual projects as it helps in
keeping the record of all the projects and planning
• Minimizes information overload: MIS change the larger amount of data into a precise form and
thereby helps in avoiding confusion when managers are flooded with detailed
• Encourages decentralization: Decentralization of authority is possible only when there is a
system for monitoring operations at lower levels. MIS can be successfully used for measuring
performance and monitoring operations, making required changes in the organizational plans
and procedures by the management
• Brings coordination: MIS helps in coordinating the activities of all decision centers in the
organization by keeping each department aware of the problems and requirements of other
departments
• Makes control easier: MIS improves the ability of the management to assess and improve
organizational performance by serving as a link between managerial planning and control. MIS
increases data processing and storage capabilities and reduces the cost. In other words, MIS
assembles, processes, stores, retrieves, evaluates and disseminates the information

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Components of MIS

• Hardware/ Software/ Network: All Desktop, Servers, and other output device forms hardware
for the MIS. This is then integrated with Software used for MIS and network through which it is
established across the organization.
• People: People become an important part of the MIS system, without which the sole purpose of
having an MIS is lost. People are the data as well the user of MIS. People uses MIS to improve
efficiency and productive of the organization
• Process: set of steps to complete a task - these are agreed upon best practices that guide the
users and all other components on how to work efficiently.
• Data: the set of records collected and collaborated within MIS system. Data are facts obtained
by observation or research and which are recorded. Frequently they are called raw or basic data
and are often records of the day-to-day transactions of the organization

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MIS Components and Utilization

Information: helps in creation of information from various sources of data. Information which can help
an organization achieve correct their course of action, take decisions, strategize their market
movements, improve customer interaction and many other

Evaluation/ Analysis: helps in deriving evaluation and analytical reports based on the data processed.
Helps in emphasizing the process and loop holes, gaps in the business operations, new opportunities

Efficiency: Improves overall efficiency in the organization through streamlining the process. It can help
organization improve their throughput/ output within the constant pressure of cost reduction.
Organizations would adopt to change/ modification/ new processes based on the reports as generated
through MIS

Decision: Helps in taking decisions at various levels. Decision which can prove critical in handling
situations, crisis or any incidents. Decision can be operational, managerial or strategical based on the
level of data insight as provided through MIS

Pre-requisites of MIS
1. Unified system
2. Support/ Facilitate decisions
3. Compatible with the organization’s structure and culture
4. User-involvement and user-orientation
5. Cost-effective/ beneficial
6. Principle of selectivity and control by exception
7. Responsive to changes in and around the organization
8. Fast and accurate

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 9. Validated and authentic information
10. Data not manipulated

Importance of MIS
• It helps the HRD manager in finding out the requirement of the human resource, their wages
and salary, performance appraisal, training, promotion, absenteeism and employee’s turnover,
which is useful in drafting sound HRD polices
• The data regarding production helps the production manager in deciding about capacity
utilization, number of rejections per batch, frequency of break down, status of shipment of
processed order and product, region wise
• It provides information regarding inventory position, and ensures that the chances of inventory
out of stock may be minimized
• It provides information regarding product, price, promotion, segmentation, demand, sale etc. to
marketing manager instantly and ensures smooth functioning of that department
• It helps in minimizing risk in decision making
• It processes the data and derives information out of them
• It provides information about the various aspects of business
• It helps the executives to avail the information regarding the functional areas quickly
• The database helps in inducting research. The data stored are used as secondary data
• It provides sound information regarding the financial health of business organization
• It helps in preparing corporate report

Drawbacks of MIS
• MIS takes into account mainly quantitative factors, thus it ignores the non-quantitative factors
like morale, attitudes of members of the organization, which have an important bearing on the
decision making process of executives
• MIS is less useful for making non-programmed decision making. Such types of decisions are not
of routine type and thus they require information, which may not be available from existing MIS
to executives. MIS effectiveness decreases due to frequent changes in top management,
organizational structure and operational team
• MIS is not a substitute for effective management. It means that it cannot replace managerial
judgement in making decisions in different functional areas. It is merely an important tool in the
hands of executives for decision making and problem solving
• The quality of the outputs of MIS is basically governed by the quality of inputs and processes
• MIS may not have requisite flexibility to quickly update itself with the changing needs of time,
especially in a fast changing and complex environment
• The effectiveness of MIS is reduced in organization, where the culture of hoarding information
and not sharing with others hold

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Types of Systems
Transactional Processing System (TPS)
A transaction process system (TPS) is an information processing system for business transactions
involving the collection, modification and retrieval of all transaction data. TPS is also called as Real-Time
processing and includes performance, reliability and consistency

Components of TPS:
Inputs: The source documents fetched from the transactions made by customers or organizations and
contain information regarding money. These may be bills, invoices, coupons, customer orders, etc.

Outputs: The documents generated after the complete processing of the inputs are called outputs.

Processing units: Processing refers to the step where the information provided at the input step is
broken down into segments to be processed into relevant output.

Storage: The location in the memory where all the desired information is stored is called memory.
Generally, the information is stored in the form of ledgers.

Examples: Booking flight tickets, Hotel reservations, buying from a shop

Office Automation System (OAS)

Office automation System (OAS) refers to the collective hardware, software and processes that enable
automation of the information processing and communication tasks in an organization. It involves
automating most routine tasks and processes in a standard office.

Components of OAS:
Data Storage and Manipulation: This component makes use of office raw data- forms, records and
documents. This component is responsible of capturing and editing of data- data may be in any form like
text, images, audio, video etc. Word processing software help the users to present the document in a
presentable form using fonts, colors, templates, headers/footers etc. Visual information adds much to
the value of text, so photographs and pictures/images can be added to the text using photo editing
software like Photoshop, Corel Draw etc., audio can be added using Adobe Premier Etc.

Data Exchange: The data stored can be exchanged and can be sent to multiple users at one time.
Facsimile, Electronic Mail and Voice Mail can be used to transfer information. Network communication
standards and protocols are used for transferring data/information electronically.

Data Management: Data management is the last component of OAS. Task management, scheduling
system and reminder programs etc. Used for controlling and monitoring the OAS.

For example: Leave Management System, Attendance capturing system, Emails, Interactive Voice
Recorder/ Responder

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Decision Support System (DSS)
A decision support system (DSS) is a system which analyzes business data and presents it, so that users
can make business decisions more easily. Reports are incorporated more from informational application
rather than operational application. DSS supports structured & semi-structured decision. A well-
designed DSS aids decision maker in compiling a variety of data from many sources: raw data,
documents, personal knowledge from employees, management, executives and business models. It
processes Information as compared to Data in MIS.

Components of DSS:
Inputs: Records, Data factors, numbers, and characteristics for analyzing.

User Knowledge and Expertise: To run the proper functioning and provide inputs, the user must know
how to use the system.

User Interface: DSS should support model construction and model analysis by providing a well-
structured user interface.

Decisions: Based on user requirements, results are generated by the Decision Support System.

For example: bank giving a loan to a individual based on marginal low credit score, Comparison of
deposits to withdraws trend

Executive Support System (ESS)/ Executive Information System (EIS)

An Executive Support System (ESS) is system that allows users to transform enterprise data into quickly
accessible and executive-level reports. An ESS enhances and supports decision making for executives.
Decisions are unstructured and non-programmed

Executive support systems are intended to be used by the senior managers directly to provide support
to non-programmed decisions in strategic management. This information is often external, unstructured
and even uncertain. Exact scope and context of such information is often not known beforehand.

Decisions like – Technological, Investment, Expansion, Retrenchment and other non-programmed

decisions would be ESS based decisions.

Components of ESS:
Inputs: Reports, Trends, Numbers and characteristics for analyzing

User Knowledge and Expertise: experience plays an important aspect in this decision making since most
of the decision are non-programmed

For example: a bank investing in newer Digital technologies, opening of a new branch, closing of existing
branch, applying a new interest rate for credit card holders or increasing the credit limit for platinum
card holders

Knowledge Management System (KMS)

A knowledge management system (KMS) is a system for applying and using knowledge derived from
past experiences or history of a given process or system. Based on which new set of processes/ rules/
manuals are created and maintained for future references.

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A knowledge management system comprises a range of practices used in an organization to identify,
create, represent, distribute, and enable adoption to insight and experience. Such insights and
experience comprise knowledge, either embodied in individual or embedded in organizational processes
and practices.

Components of KMS:
Governance: The leadership that commits to an organizational structure that is capable of managing the
knowledge.

Content: The quantity and quality of the data and information that is managed.

Processes: The standards and guidelines that will be used to collect, manage, and disseminate
information.

Technology: The system supporting the other three components

Purpose of KMS:
• Improved performance
• Competitive advantage
• Innovation
• Sharing of knowledge
• Integration
• Continuous improvement by
o Driving strategy
o Starting new lines of business
o Solving problems faster
o Developing professional skills
o Recruit and retain talent

Artificial Intelligence (AI)

the theory and development of computer systems able to perform tasks normally requiring human
intelligence, such as visual perception, speech recognition, decision-making, and translation between
languages.

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Face Recognition: Face recognition is a method of identifying or verifying the identity of an individual
using their face.

Deep learning: a type of machine learning based on artificial neural networks in which multiple layers of
processing are used to extract progressively higher level features from data.

Data Ingestion: Data ingestion is the transportation of data from assorted sources to a storage medium
where it can be accessed, used, and analyzed by an organization.

Automate Task: Task automation is the use of software to reduce the manual handling of simple tasks or
a series of more complex tasks with the goal of making processes more efficient and employees more
productive.

Quantum Computing: Quantum computing is an area of study focused on the development of computer
based technologies centered around the principles of quantum theory.

Cloud Computing: the practice of using a network of remote servers hosted on the internet to store,
manage, and process data, rather than a local server or a personal computer.

Chatbots: a computer program designed to simulate conversation with human users, especially over the
internet.

Subsystems

Functions - Subsystems
Functions Sub-System

Marketing Sales forecasting, Sales planning, Customer and Sales analysis

Production/ Service Production/services, Planning and scheduling, Cost control analysis

Logistics Planning and control of purchasing, Inventories, Distribution

Personnel Planning personnel requirements, Analyzing performance, Grievances

Finance n Accounts Financial analysis, Cost analysis, Capital requirements, income measurement

Information
Information system, Cost-benefits analysis, Report generations
Technology

Top Management Strategic planning, Resource planning, Expansion

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 Security Security planning, Register, ID management, Access management

Activities - Subsystems
Activities Sub-System

Transaction
Sales forecasting, sales planning, customer and sales analysis
Processing

Operational Control Production/services planning and scheduling, cost control analysis, manpower

Management Control Planning and control of purchasing, inventories, distribution

Planning personnel requirements, analyzing performance, grievances, long
Strategic Planning
term plans, strategic decisions

Systems – Information Inputs

System Information Inputs

ESS/ EIS – Executive
Support/ information Aggregate data, external, internal
System
DSS – Decision
Low-Volume data, Analytic Models, trouble shooting
Support System
MIS – Management
Summary transaction data; high volume data, simple models
Information System
KMS – Knowledge
Past records, historical data, problems encountered, lessons learnt
Management System
OAS – Office
Documents, schedules, repetitive task, emails
Automation system
TPS – Transaction
Transactions, events, orders
Processing System

Social and Ethical Issues of the Internet

• Information System and Society - helped the organizations; retain, control and distribute
• Technological aspects of ethics
• Legal Issues in Information systems

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 • Privacy, Accuracy, Property, Accessibility
• Social Issues in Information System
• Culture, Law and Order Issues, Cultural Behavior and Identity Issues

Information System and Society

The information system has transformed the way information is being transmitted and communicated
from one place or person to other. This use of computer technology has allowed business and social
communities to interrupt, interconnect and manage data among themselves. Therefore, this system has
helped the organizations by providing them efficiency, innovation, ease, speed, quality, security,
accuracy, and reliability of information transferability. However, the innovation brought by the
information system in data collection, processing, and storage practices have also introduced many
social and ethical concerns which require attention and adequate solutions.

There are many challenges faced by common people, businesses, national and international institutions.
The billions of devices which are linked with millions of miles of optical fiber, wires and airwaves are
connecting people around the globe. We are living in the age of technology where information is being
handled and employed by people who want to retain, control and distribute information as per their
desire for various purposes. The information systems can only be successful when they are reliable,
accurate and efficient so that data can be in an appropriate area when required.

As we humans live together in information society rather than isolation, enforcement of laws is
essential, but it also requires some unwritten etiquettes, collective norms and ethics to continue the
social harmony. Ethics is an important concern in information system because businesses which adopt
ethical practices will sustain, grow and earn consumer acceptance in the market. Because the unethical
practices adopted by organizations has caused social turmoil and authorities interference that created
problems for them and disturbed the whole information system.

Different challenges

1. Technological Ethics
2. Legal issues
3. Ethical Issues of Information Age
a. Privacy: This concern relates to the questions about what information should be shared?
With whom? What information should be forced to keep to ones’ self only? The privacy
concern has increased the importance of information sensitivity and its value on a
strategic level, so it is required to be private and not shared.
b. Accuracy: This concern related to the questions that who is going to be responsible for
the authenticity of the information? If the authenticity hurts, who is going to be set up
for the inaccurate information being conveyed and loss occurred in the result?
c. Property: The third ethical issue is the property of the information that who is conveying
the information and at what price? Who own the ways and channels through which
information is being transferred?
d. Accessibility: This concern relates to the questions that what is right for an individual or
organization access information and what are the conditions under which this access is
obtained?
e. Social Issues in Information System: The information system has many social issues that
are triggered by the unethical behaviors. These social problems have a great impact on

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 culture and society. Due to the advancement of technology, various moral and political
issues are the main cause of social unrest and unethical practices
f. Culture: The issues of education, uneven distribution of wealth, multiethnic and
multigenerational workforce are commonly discussed in society
g. Relationships Issues: Unlike past, the development of partnerships are more diverse
with long distant teams working together. The relationship of buyers, sellers and
suppliers have become easy, but it has also created social issues like lack of trust and
low moral values. Many cases have been reported where people have used personal
and business information for their stake or fraud purpose.
h. Law and Order Issues: The national and international databases have information about
millions and billions of people for identity purpose. But the cybercrime practices and
hacking of these sensitive websites have laid the foundation for many law and order
situations. Nowadays, it is very easy to access someone’s information through social
networking sites, but the cases of ATM scamming, using fake sim cards and national
identity cards have made it very difficult for law enforcement agencies to main the
peace.
i. Information Usage Issues: The information is created or collected for a purpose, but
inappropriate use of information can cause serious problems. For example, in the
recent controversial scandal of “Blue Whale” game in many countries (‶Blue Whale
Game Blamed, ″2017) the convicts had an e-mail address and information about the
teenagers and children who installed the game, and it caused them to kill themselves as
it was a trap from the game designers. Therefore, using the technology and social
websites or engines have various risks attached to it.
j. Health and Safety: The people-oriented organizations have health and safety concerns
faced by the workers in their workplace which require the responsible regulations and
acts to provide them legal cover. The most participants of information system work on
various computer stations at their work, and it is important to outline their rights and
responsibilities of both employers and employees to maintain occupational health and
safety.
k. Accountability and Control: The moral obligation related to information systems
demand accountability and control over the information transfer from one point to the
other. This is important to comply with the rule and regulations. For example,
information gathered by the bank about client requires complete secrecy and Central
bank of any country has accountability and monitoring standards for commercial banks
for their evaluation and regulation purpose to avoid fraud and secure consumer rights

Value of Information
Just like Quality of information – Value of Information cannot be determined directly. Having said that,
information becomes extremely valuable for an organization for its growth and smooth operations.
Organization usually would rely on their own research, collection and collation of data before making
any decision. Data collection can be done through various primary and secondary sources which then
can be converted into Information.

Organizations require to constant stream of information which they can utilize to make their strategic
and operational decisions. Although, companies can not predict or pre-budget this aspect, but they are

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usually open and exploring various possibilities of acquiring, producing or creating value from existing/
available data sources.

For example –

An organization looking for potential customers whom it can target with their product range, essentially
STP. Organization would pay Market Researcher to acquire this data which would be an indication of
their STP. Based on the data as provided by the market researcher, organization would then start
targeting those STP with their marketing efforts. The said data can also be procured from secondary
research based on readily available data.

Quality of Information
Data can have some value in terms of Money or quality – however Information cannot be translated
into, likewise. Information is a non-tangible item which can be determined for its value only after the
results can be measured. Data of various sort can be mixed and matched in search of information –
however the quality of the Information derived may not necessarily be determined until it proves
worthwhile or otherwise.

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Quality of information is something which organizations would always like to keep it high and would
take all steps involved in doing so. Despite all these, organizations may NOT be able to control the
outcomes.

Quality of Information can be determined as per below list – however as stated earlier it is subjective

1. Reliability − It should be verifiable and dependable

2. Timely − It must be current and it must reach the users well in time, so that important decisions
can be made in time
3. Relevant − It should be current and valid information and it should reduce uncertainties
4. Accurate − It should be free of errors and mistakes, true, and not deceptive
5. Sufficient − It should be adequate in quantity, so that decisions can be made on its basis
6. Unambiguous − It should be expressed in clear terms. In other words, in should be
comprehensive
7. Complete − It should meet all the needs in the current context
8. Unbiased − It should be impartial, free from any bias. In other words, it should have integrity
9. Explicit − It should not need any further explanation
10. Comparable − It should be of uniform collection, analysis, content, and format
11. Reproducible − It could be used by documented methods on the same data set to achieve a
consistent result

Information Security
Information security is usually seen from only security of personal information – however at the larger
sense Information security also can include the above-mentioned points under Challenges of
Information Ethics

Information Security – within organization will include below

A. Application Security – Security of all the application as used by the Organization to control,
manage, monitor and operate their day-to-day operations. This will also include all applications
which are used for people, financial and reporting management
B. Incident Management – Managing an incident which may cause failure/ hurdle in completing a
given operation. Organizations usually have a team of people who would manage Incident and
always working towards reduction of the same
C. Encryption – Encryption of data transfer from within organization to outside world or even
within one department to another. Encryption of data depends on the infrastructure utilized by
the organization for transfer of data
D. Proactive Monitoring – Scanning their applications and proactively monitoring operations to
ensure that there are no failures and or reduce vulnerability of systems/ applications as us ed by
the organization
E. Disaster Recovery – having a robust disaster recovery plan of action in place to ensure quick fix/
start off in case of any natural, political or physical disaster. Organizations usually perform
audits/ drill of their DR activities

Integrated Management Systems: (IMS)

An Integrated Management System (IMS) integrates all of an organization’s systems and processes into
one complete framework, enabling an organization to work as a single unit with unified objectives .
Integration of systems helps Managers, Executives to generate structured/ semi-structured/ non-

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structured information reports and start off Decision making process. Top Management of MNC/
Conglomerate companies makes effective use of this integration process. This also ensures that the
data/ information across all the companies under the banner follows uniform standard.

For example:

Reliance Fresh integrated all their sub-systems viz:

1. Inventory
2. Sales
3. Logistics
4. Accounts
5. Human resource
6. Advertising
7. Marketing
8. Complaint management
9. Security
10. Supplier Management
11. Information Systems
12. Public relation
13. Top management

This helps Reliance Fresh to manage and control their day-to-day operations and expansion. Managers
and Management can make business decision based on the trend reports as generated by the system.

Like-wise parent company of Reliance Fresh, i.e. Reliance Retail also has integrated various systems of
other businesses with each other. This helps Reliance Retail to generate trend reports of their
businesses across the board and take decisions accordingly. This helps Executive Staff of Reliance
execute their roles appropriately.

Companies within Reliance Retails:

1. Reliance Fresh
2. Reliance Smart
3. Reliance Smart.in
4. Reliance Logistics
5. Reliance Market
6. Reliance Digital
7. Reliance Trends
8. Reliance Jio Store
9. Reliance Mall
10. Reliance Footprint
11. Reliance Jewels
12. AJIO
13. Reliance Eve

These systems are further integrated with Reliance Industries which is the parent company of Reliance
Retail. Like-wise Board members of Reliance Industries can generate reports based on the performances
of their companies all the way down to base company (Reliance Fresh). Board members of Reliance
Industries are now equipped with Executive Support Systems

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Companies under Reliance Industries:

1. Reliance Retail
2. Reliance Life Sciences
3. Reliance Institute of Life Sciences
4. Reliance Logistics
5. Reliance Clinical Research Services
6. Reliance Solar
7. Relicord
8. Reliance Jio Infocomm Ltd
9. Reliance Industrial Infrastructure Ltd
10. LYF (mobile phones)
11. Network 18
12. Reliance Eros Productions LLP

Differences:

Difference: MIS vs Data processing

Data Processing
Transfers data into Information
Any data can be processed
Not a decision-making process
Does not take into account external factors
MIS
Transfers information into logical output
Not all data inputs produce desired output
Enables Decision making process
Is susceptible to external factors

Differences MIS vs DSS

MIS DSS
Management Information System is the system A decision support system (DSS) is a system which
which makes available the right information, to analyzes business data and presents it, so that
the right people, at the right place, at the right users can make business decisions more easily.
time, in the right form and at the right cost. Reports are incorporated more from
informational application rather than operational
application. DSS supports semi-structured
decision
Support Structured decision-making process Supports Structured and Semi-Structured
decision-making process
Provides information to support internal Provides information to support specific
operations situations
Uses large amount of data as input and gives Uses low volume of data as input and gives a
summarized report as output decision analysis as the output
Focuses on Operational efficiency Focuses on making Effective decisions
Used by Middle and Low-level Management Used by Senior managers and Analysts
It processes data to derive reports of various data It processes information to derive reports which
sets can enable in Decision making

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Differences ESS vs DSS
ESS
An Executive Support System (ESS) is system that
allows users to transform enterprise data into
quickly accessible and executive-level reports. An
ESS enhances and supports decision making for
executives. Decisions are unstructured and non-
programmed
Support UnStructured and Non-Programmed
decision-making process
Decisions are more inclined towards expansion,
trying new things, opportunities, adventurous,
experimental in nature
Chances of crossing the boundary of the Policy to
address a situation
Information and Reports are mostly derived from
external factors along with Internal factors which
becomes input for ESS
Used by Senior and Executive level Management
It processes information to derive inputs or
indications to make an Executive call
Element of risk in the outcome of decision is high
Business Challenges are in question
Policy may be created as a solution for a situation
Structure of MIS based on Management activities
MIS provides useful information to the different levels of management for discharging their function
more effectively and efficiently
• Strategic Management
• Management Control or Tactical Management
• Operational Management
• Management level Reporting
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DSS
A decision support system (DSS) is a system which
analyzes business data and presents it, so that
users can make business decisions more easily.
Reports are incorporated more from
informational application rather than operational
application. DSS supports semi-structured
decision
Supports Structured and Semi-Structured
decision-making process
Decisions are more inclined to tactical or
operational level, most of the time sticks to the
policy
Most of the time sticks to the Policy of the
company for a given situation
Information and Reports are mostly derived from
internal factors and less from external references,
which becomes input for DSS
Used by Senior managers and Analysts
It processes information to derive reports which
can enable in Decision making
Element of risk in the outcome of decision is low
Operational and Tactical management Challenges
are in question
Policy will be followed as in previous situation
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 • Strategic Management: MIS for Strategic Management are developed with the purpose and
objective of the organization strategic process - organization’s mission, objectives and strategy;
as well as certain other strategic organizational attributes which are of particular relevance to
the MIS

• Management Control or Tactical Management: The use of tactical management in a business

environment allows a manager to choose the best tactics or methods for each situation that
arises, rather than following a particular standard procedure. MIS provides ready to use
information which can help Tactical manager make a decision.

For example:

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 Diagram Not a part of exam

Digital Dashboard, which gives near real-time report and updates on the progress of work on the shop
floor.

• Operational Management: In order to achieve higher profitability, businesses improve their

operations’ efficiency. Managers make use of MIS in business operations to achieve higher
levels of productivity, efficiency and Quality/ Customer experience

For example: Hotel keeping “small details” of their guest so that they can give personalized services and
gain service experience.

• Management level Reporting: precise with indicators without details. Designing of the report
depends on the requirement as specified

For example: Key Performance Indicator reports, Business report, Projects report

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 Diagram Not a part of exam

Decision Support System

Decision support systems (DSS) are interactive software-based systems intended to help managers in
decision-making by accessing large volumes of information generated from various related information
systems involved in organizational business processes, such as office automation system, transaction
processing system, etc.

DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A
decision support system helps in decision-making but does not necessarily give a decision itself. The
decision makers compile useful information from raw data, documents, personal knowledge, and/or
business models to identify and solve problems and make decisions

Some examples are as discussed below: (not restricted to)

Status Inquiry System - It helps in taking operational, management level, or middle level management
decisions, for example daily schedules of jobs to machines or machines to operators. Based on the trend

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analysis – managers can take a decision of either reducing the resources or increase it based on the
requirement. But this status data gives managers an input to make the decision

Data Analysis System − It needs comparative analysis and makes use of formula or an algorithm, for
example cash flow analysis, inventory analysis. Based on the analysis – managers can answer questions
like whether to increase the inventory or advice for more advertising campaigns or change the
operational procedure

Accounting System − It keeps track of accounting and finance related information, for example, final
account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the
business. Based on this data – managers can decide the cash flow increase/ decrease, focusing more on
short term profits or offering more lucrative loans

Sensitivity Analysis
Sensitivity analysis is a technique used for distributing the uncertainty in the output of a mathematical
model or a system to different sources of uncertainty in its inputs.

From business decision perspective, the sensitivity analysis helps an analyst to identify cost drivers as
well as other quantities to make an informed decision. If a particular quantity has no bearing on a
decision or prediction, then the conditions relating to quantity could be eliminated, thus simplifying the
decision-making process.

Sensitivity analysis also helps in some other situations, like −

• Resource optimization
• Future data collections
• Identifying critical assumptions
• To optimize the tolerance of manufactured parts

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Concept of MIS:

A. Data Captured from various ‘People’ (internal/ External users) through GUI – Graphic User
Interface (ex: Google Forms or Customized Forms)
B. Capturing of data is done through combination of Hardware/ Software/ Network elements
(Capturing mechanism)
C. Data thus generated is Processed through Processing Logic and Database is created
D. Further Designed and processed to produce Reports which enable Decision making process
E. Subsequent to Decision making and decision implementation – performance is monitored and
feedback is taken
F. These Feedback may encounter changes and modifications to be done in the MIS system

ERP System

What is ERP?
Enterprise resource planning (ERP) is a process used by companies to manage and integrate the
important parts of their businesses. The Enterprise Resource Planning software tries to integrate all the
different departments and functions of an organization into a single computer system to serve the
various needs of these departments. Many ERP software applications are important to companies

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because they help them implement resource planning by integrating all of the processes needed to run
their companies with a single system. An ERP software system can also integrate planning, purchasing
inventory, sales, marketing, finance, human resources, and more.

Benefits of ERP
• Businesses employ enterprise resource planning (ERP) for various reasons, such as expanding
business, reducing costs, and improving operations. The benefits sought and realized by one
company may be different from another; however, there are some worth noting.
• Integrating and automating business processes eliminates redundancies, improves accuracy, and
improves productivity. Departments with interconnected processes can now synchronize work
to achieve faster and better outcomes.
• Some businesses benefit from enhanced reporting of real-time data from a single source
system. Accurate and complete reporting help companies adequately plan, budget, forecast,
and communicate the state of operations to the organization and interested parties, such as
shareholders.
• ERPs allow businesses to quickly access needed information for clients, vendors, and business
partners, contributing to improved customer and employee satisfaction, quicker response rates,
and increased accuracy rates. Associated costs often decrease as the company operates more
efficiently.
• Departments are better able to collaborate and share knowledge; a newly synergized workforce
can improve productivity and employee satisfaction as employees are better able to see how
each functional group contributes to the mission and vision of the company. Also, menial,
manual tasks are eliminated, allowing employees to allocate their time to more meaningful
work.

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Decision making Systems and Modeling process

Decision Making Process

Two Categories:

• Programmed / Structured Decisions

• Non-Programmed/ Unstructured Decisions

Structured:
Structured decisions are the decisions which are made under the established situations. They are the
programmable decisions and they are preplanned. Decisions are made in the situations which are fully
understood. Structured decisions are generally made for routine tasks and are made for specified
processes. Structured decisions have a well-defined methodology for finding a solution and have the
data to reach a decision. They are usually straight forward and made on a regular basis

Structured decisions are Routine, Repetitive, Short-term, known situations, laid down norms, Lower
levels hierarchy, information oriented.

Unstructured:
Unstructured decisions rely on knowledge and/or expertise and often require data and models to solve.
They are made for a sudden one-shot kind of situations and are usually made for general processes. Also
are made for the situations which are uncertain and unclear; a sudden one-shot kind of situations.
Unstructured decisions are creative and they are not preplanned as they are made under an emergent
situation

Unstructured decisions are Innovative, Complex/ new situations, Important, Critical, Strategic, Long -
term, higher levels hierarchy, combined information oriented

Decision Pyramid

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Decision Making Flow Chart

Concept of Decision-Making

Decision-making is a cognitive process that results in the selection of a course of action among several
alternative scenarios.

Decision-making is a daily activity for any human being. There is no exception about that. When it comes
to business organizations, decision-making is a habit and a process as well.

Effective and successful decisions result in profits, while unsuccessful ones cause losses. Therefore,
corporate decision-making is the most critical process in any organization.

In a decision-making process, we choose one course of action from a few possible alternatives. In the
process of decision-making, we may use many tools, techniques, and perceptions.

Modelling Process
Process and Modeling in Decision-Making

There are two basic models in decision-making −

1. Rational models
2. Normative model

The rational models are based on cognitive judgments and help in selecting the most logical and sensible
alternative. Examples of such models include - decision matrix analysis, Pugh matrix, SWOT analysis,
Pareto analysis and decision trees, selection matrix, etc.

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A rational decision-making model takes the following steps −

• Identifying the problem

• Identifying the important criteria for the process and the result
• Considering all possible solutions
• Calculating the consequences of all solutions and comparing the probability of satisfying the
criteria
• Selecting the best option

The normative model of decision-making considers constraints that may arise in making decisions, such
as time, complexity, uncertainty, and inadequacy of resources.

According to this model, decision-making is characterized by −

• Limited information processing - A person can manage only a limited amount of information
• Judgmental heuristics - A person may use shortcuts to simplify the decision-making process
• Satisfying - A person may choose a solution that is just "good enough"

System Input-Output table

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 System Information Inputs Processing Outputs Users

Graphics,
Aggregate data, Projections, response Senior Mgt,
ESS/ EIS simulations,
external, internal to queries managers
interactive
Special reports,
Low-Volume data, Interactive, Professional, staff
DSS decision analysis,
Analytic Models simulations, analysis members
responses to queries
Summary
Routine reports,
transaction data; Summary and
MIS simple model, low Middle managers
high volume data, exception reports
level analysis
simple models
Design
specifications; Modeling, Lessons learnt, pre- Professional
KMS
knowledge base, simulations, RCA solutions technical staff
historical data
Document mgt,
Documents, Documents,
OAS scheduling, Clerical workers
schedules schedules, mail
communication
Operations,
Sorting, listing, Detailed reports, lists,
TPS Transactions, events personnel,
merging, updating summaries
supervisors

Definitions:
MIS:
Management Information System is the system which makes available the right information, to the right
people, at the right place, at the right time, in the right form and at the right cost.

DSS:
A decision support system (DSS) is a system which analyzes business data and presents it, so that users
can make business decisions more easily. Reports are incorporated more from informational application
rather than operational application. DSS supports semi-structured decision

ESS:
An Executive Support System (ESS) is system that allows users to transform enterprise data into quickly
accessible and executive-level reports. An ESS enhances and supports decision making for executives.
Decisions are unstructured and non-programmed

OAS:
Office automation System (OAS) refers to the collective hardware, software and processes that enable
automation of the information processing and communication tasks in an organization. It involves
automating most routine tasks and processes in a standard office.

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TPS:
A transaction process system (TPS) is an information processing system for business transactions
involving the collection, modification and retrieval of all transaction data. TPS is also called as Real-Time
processing and includes performance, reliability and consistency

KMS:
A knowledge management system (KMS) is a system for applying and using knowledge derived from
past experiences or history of a given process or system. Based on which new set of processes/ rules/
manuals are created and maintained for future references.

IMS:
An Integrated Management System (IMS) integrates all of an organization’s systems and processes into
one complete framework, enabling an organization to work as a single unit with unified objectives.

ERP:
Enterprise resource planning (ERP) is a process used by companies to manage and integrate the
important parts of their businesses. The Enterprise Resource Planning software tries to integrate all the
different departments and functions of an organization into a single computer sys tem to serve the
various needs of these departments. Many ERP software applications are important to companies
because they help them implement resource planning by integrating all of the processes needed to run
their companies with a single system. An ERP software system can also integrate planning, purchasing
inventory, sales, marketing, finance, human resources, and more.

AI:
the theory and development of computer systems able to perform tasks normally requiring human
intelligence, such as visual perception, speech recognition, decision-making, and translation between
languages.

Match the Following: (correct answered mapped)

Set 1:
MIT Attendance and marks Maintaining Record, history, information, reports
MIS Portal
AI Language Recognition Search Enhanced analysis of data with ability to decide
#theallnewdominos Changed Structured decision based on information provided
DSS pizza through MIS (survey data, feedback, history)
Medicine sales entry into Tracking and processing of transactions
TPS software
Non structured decision based on information
ESS BOI going Digital provided through MIS (risk factor inclusion)
OAS IVR System Improving productivity, automating operations
KMS Amazon e’shop FAQ applying and using knowledge from the information

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Set 2:
MIS Sales management software Maintaining Record, history, information, reports
AI Google SERP Enhanced analysis of data with ability to decide
Structured decision based on information provided
DSS CIBIL Credit Score through MIS (survey data, feedback, history)
TPS Airline booking system Tracking and processing of transactions
Non structured decision based on information provided
ESS Increase in Credit Card limit through MIS (risk factor inclusion)
OAS Outlook/ Lotus Notes Improving productivity, automating operations
Graphical models capable of analyzing data and
KWS 3D model of Burj Khalifa providing reports

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