UNIT-1

MIS
MANAGEMENT
INFORMATION
SYSTEM
Module 1

Class: BBA III Year

2
 Contents of Module 1

Management Information System

■ Definition, Basic Concepts

■ Major trends in application of Information Technology

■ ERP

■ Framework ,

■ InformationTheory
,

■ ResourceManagement ,,

■ eBusiness & eGovernance

Slide 1-3
 In previous sessions,

We covered

■ Definition, Basic Concepts

■ Major trends in application of Information

Technology

■ ERP

Slide 1-4
 In this session,

We shall look into

■ Framework ,

■ InformationTheory
,

■ ResourceManagement ,,

■ eBusiness & eGovernance

Slide 1-5
Framework of MIS

Slide 1-6
The major uses of information system for operations management and competitive advantage of
a business

Challenges of effectively ethically managing Information Technology

at the end user enterprise and global level of a business

Conceptual framework to address major concepts

development and management issues related to :
● Hardware
● Software
● Network
● Data management
● Internet Technologies

Fundamental behavioural, technical, businesses and

managerial concept about the components and roles
of information system

How professionals and information specialist plan, develop and implement Information
Systems to meet Business Opportunities

Slide 1-7
Information Theory

Slide 1-8
 Information Theory

Classification by Characteristics

● Strategic Information − Long term policy decisions that defines the

objectives of a business. For example, acquiring a new plant, a new product,
diversification of business etc, comes under strategic information.

● Tactical Information − The information needed for exercising control over

business resources, like budgeting, quality control, service level, inventory
level, productivity level etc.

● Operational Information − Plant/business level information and is used to

ensure proper conduction of specific operational tasks as planned/intended.
Example: Various operator/shift specific jobs

Slide 1-9
 Information Theory

Classification by Application

● Planning Information − For establishing standard norms and specifications in an

organization. Examples: Time standards, Design standards.

● Control Information − For establishing control over all business activities through
feedback mechanism.

● Knowledge Information − acquired through experience and learning, and used

for training new employees

Slide 1-10
 Information Theory

Classification by Application

● Organizational Information − emphasizes that an organization collects, manages

and uses information prudently.

● Functional/Operational Information − This is operation specific information. For

example, daily schedules in a manufacturing plant that refers to the detailed
assignment of jobs to machines or machines to operators.

● Database Information − large quantities of information that has multiple usage

and application. For example, material specification or supplier information is
stored for multiple users.

Slide 1-11
 Information Theory

Classification by Hierarchy
 Resource Management

Information is needed in Human Resources Management:

Strategic Information:
1. Long range human resource requirements at different levels.
2. Policies on human resource development and training
3. Policies on personnel welfare and facilities

Tactical Information:
1. Performance appraisal.
2. Production incentives.
3. Morale of personnel, Absentee reduction.
4. Leave and overtime policies,Personnel deployment policies.

Operational Information:
1. Routine assessment. ,Skills inventory.
2. Loan/advances and recoveries, Leave record.

Slide 1-13
eBusiness

E-business is the conduct of business processes on the internet. These include

buying and selling goods and services, servicing customers, processing payments,
managing production control, collaborating with business partners, sharing
information, running automated employee services, recruiting; and more.

Slide 1-14
eGovernance

Slide 1-15
eGovernance: Application Areas

Slide 1-16
Examples of G2B / B2G:

● government procurement
● electronic procurement marketplaces
● electronic auctions
● e-learning
● electronic incorporation forms
● updating corporate information
● sending filled-out electronic forms (eg tax forms, social
insurance forms)
● sending electronic payments
● sending / receiving answers electronically
● on-line meetings
● project management cooperation
● data centers, SaaS, PaaS or IaaS for e-government use

Slide 1-17
Slide 1-18
What is a System?

Slide 1-19
What is an Information System?

🞂 Combinations of hardware, software, and telecommunications

networks that people build and use to collect, create and
distribute useful data, typically in organizational settings.

Control of System Performance

Input of Output of
Processing
Data Information
Data
Resources Products

Storage of Data Resources

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Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
Information Technologies - Today

🞂 POS system
◦ Fast customer service
◦ Improved inventory management
🞂 Wireless network
◦ Efficient in-store communication
🞂 Web site
◦ Communicate with customers
◦ Increase sales with online orders
🞂 RFID tags
◦ Better manage inventory

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
The Beginning: TPS

• Transaction processing systems (TPSs)

◦ Focus on data collection and processing,
◦ Cost reduction
◦ Operations repetitive
◦ Human involvement minimal

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
Components: Information System

🞂 Data
🞂 Database
🞂 Process
🞂 Information

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
Database

🞂 Database
◦ Heart of an information system
◦ Collection of all relevant data organized in a series of
integrated files

🞂 For example – Oracle

🞂 Oracle gathers, processes, and interpret data – so, no more

manual data keeping

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
MIS Concept

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
MIS Utilities

For Record Keeping

For Communication

For Decision Making

Copyright@IPER/2016-17/BBA-4/MIS/Manish Nair
Role of Computers in MIS

Huge/Volumes of Data

Accurate & Timely Reports

Strategic Planning in MIS

Identify
Strategic Plan
Projects

Prioritize and If MIS is to support

Select
Business

Determine resources
required (people, $, time)

Create planning
document

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Strategic Plan Example

3-Year Business Plan 3-Year Info. System Plan

🞂 Accelerate Product Intro 🞂 Engineering Automation

Process to 4 months

🞂 Extend Corporate network

🞂 Move Product to offshore manufacturing
Manufacturing to Europe partners

🞂 Create internet sales site

🞂 Expand e-commerce and custom catalog
capabilities to direct online framework
selling and custom
catalogs
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Corporate Management Information System

Software Applications with the

Key Performance Indicators
(KPIs) suitable for managerial
Decision-making.
MIS Development Process
Organizational Planning & Control

MIS is directed towards the managerial

functions of planning, controlling and
monitoring, and decision making.
Organizational Planning & Control

Planning consists of 5 steps:

1. selecting objectives
2. identification of the activities for objectives
3. detailing the resources required
4. determining the duration of each activity to be
performed; and
5. defining the sequence of the activities.
Organizational Planning & Control

Monitoring & Controlling consists of 3

steps:

1. establishing standards;
2. measuring actual performance against the set
standards; and
3. correcting deviations as they appear
Need for Information

5 main uses of information by

businesses & other organizations:

1. Planning
2. Recording
3. Controlling
4. Measuring
5. Decision-making