1

Management Information System

Lecture by
Dr. Ruchi Garg
Lloyd Business School
Greater Noida
 What is MIS?
2/19

 It is an information system used for

 decision-making
 For coordination, control, analysis, and visualization
of information in an organization.
 The study of the management information systems
involves people, processes and technology in an
organizational context.
 What is MIS?
3/19

 A management information system (MIS) is a computer system

consisting of hardware and software that serves as the backbone
of an organization's operations.

 An MIS gathers data from multiple online systems, analyzes the

information, and reports data to aid in management decision-
making.
 Objectives of the Subject
4/19

 To help the students understand the importance of information

management in business and management
 To provide understanding about different types of information
systems in business
 To apply the theory and concepts in practical with help of
software
 To understand various security and ethical issues with Information
Systems
 To provide hands on learning of applications on Spreadsheet and
database software
5/19

But What is Information and

Why is it important???
 Information
6/19

 Information is needed to survive in the modern competitive world.

 Information is needed to create strong information systems and

keep these systems up to date.

 Data ----- Processing------- Information

 Brainstorm!!
7/19

 What is Data ??

 What is Information??
 Information and MIS
8/19

 An Information System is a system that gathers data and disseminates

information with the sole purpose of providing information to its users.

 The main object of an information system is to provide information to its users.

Information systems vary according to the type of users who use the system.

 A Management Information System is an information system that evaluates,

analyzes, and processes an organization's data to produce meaningful and
useful information based on which the management can take right decisions to
ensure future growth of the organization.
 Need of MIS
9/19

 MIS is an information system that provides information in the form

of standardized reports and displays for the managers.

 MIS is a broad class of information systems designed to provide

information needed for effective decision making.
 Need of MIS
10/19

 Managers make decisions. Decision-making generally takes a

four-fold path −
 Understanding the need for decision or the opportunity,

 Preparing alternative course of actions,

 Evaluating all alternative course of actions,

 Deciding the right path for implementation.

 Objective of MIS
11/19

 Objective is to help executives of an organization

to make decisions that advance the organization's
strategy and to implement the organizational
structure and dynamics of the enterprise for the
purpose of managing the organization in a better
way for a competitive advantage.
 Contemporary Approaches to MIS
12/19

 Contemporary Approaches to Management provides a

framework of management practices based on more recent
trends, such as globalization, theory Z concepts, McKinsey's 7-S
approach, excellence models, productivity and quality issues, etc.
 Contemporary Approaches to MIS
13/19

 sociotechnical systems
 quantitative management
 organizational behavior
 systems theory
 Sociotechnical systems
14/19

 The combination of these two things (Social and Technical) can

lead to an organizations effectiveness in keep customers satisfied.

 The social system consists of the organizations workers and the

technical system looks the workers training, tools and knowledge.
 Quantitative management
15/19

 This style of management puts a focus on mathematical and

statistical analysis.

 Most managers cannot rely on statistics and math alone to make

decisions so this approach to management is often used as a tool
to make decisions rather than complete management.
 Organizational behavior
16/19

 Organizational behavior is the management style of knowing how

people interact within groups.

 The principles of the study of organizational behavior are applied

primarily in attempts to make businesses operate more effectively.
 Systems theory
17/19

 The systems theory of organization is a theory that organizations

are composed of many subsystems that aren't necessarily related
to one another and yet work together to form the whole.

 This theory is helpful for understanding things like organizational

behavior, organizational change and organizational development.
 Strategic resource
18/19

 A strategic resource is an asset that is valuable, rare, difficult to

imitate, and non-substitutable.

 A resource is valuable to the extent that it helps a firm to create

strategies that capitalize on opportunities and ward off threats.
 Information as a strategic resource
19/19

 Information is Strategic Resource because it helps in taking

Strategic, Tactical and operational Decisions.

 It is one of critical and importance resource.

 It helps to understand Cost, Quality, price, technology, productivity

and product in any company.
 Types of Information
20/19

 Factual
 Analytical
 Subjective
 Objective
 Types of Information
21/19

 Factual information is information that solely deals with facts. It is

short and non-explanatory.
 Analytical information is the interpretation of factual information.
What does the factual information mean? What does it imply?
 Subjective information is information from only one point of view.
Opinions are subjective.
 Objective information is information that is understood from
multiple viewpoints and presents all sides of an argument.
 Information as a strategic resource
22/19

 Availability of information regarding the alternatives improves the

odds in favor of making a correct decision.

 Information is recognized as one of the most important corporate

resources.

 It is a source of competitive strength as it enables the management

to outmaneuver its business rivals at critical stages.
 Use of information for competitive advantage
23/19

 Companies can build winner-take-all positions by collecting and

analyzing customer data.

 The more customers a firm has, the more data it can gather and
mine; the resulting insights allow it to offer a better product that
attracts even more customers, from which it can collect still more
data.
 MIS as an instrument for the organizational change
24/19

 MIS can deliver facts, data and trends to businesses with lightning
speed.

 Having this information allows companies to react quickly to

market changes, regardless of the type (positive or negative) of
volatility.
 MIS as an instrument for the organizational change
25/19

 MIS tools move data and manage information.

 They are the core of the information management discipline and

are often considered the first systems of the information age.

 MIS produce data-driven reports that help businesses make the

right decisions at the right time.
 Information Technology – Characteristics
26/19
 Information Technology: Emerging Trends
27/19

 Machine learning
 Data Analytics
 Mobile Applications
 Cloud, Fog, Edge Computing
 3D Printing
 IT Capabilities and their organizational impact
 Business strategy - collapsing time and distance, enabling
28/19

electronic commerce
 Organization Culture - encouraging the free flow of information
 Organization Structures - making networking and virtual
corporations a reality
 Management Processes - providing support for complex decision
making processes
 Work - dramatically changing the nature of professional, and now
managerial work
 The workplace - allowing work from home and on the move, as in
telework
 IT enabled Services
29/19

 IT enabled Services (ITeS), also called web enabled services or

remote services or Tele-working, covers the entire gamut of
operations which exploit information technology for improving
efficiency of an organization.
 IT enabled Services
30/19

 It now offers services such as knowledge process outsourcing

(KPO), legal process outsourcing (LPO), games process outsourcing
(GPO) and design outsourcing among others.
 knowledge process outsourcing (KPO)
31/19

 Knowledge process outsourcing describes the outsourcing of core

information-related business activities which are competitively
important or form an integral part of a company's value chain.

 KPO requires advanced analytical and technical skills as well as a

high degree of specialist expertise.
 knowledge process outsourcing (KPO)
32/19
 legal process outsourcing (LPO)
33/19

 Legal process outsourcing (LPO) is the practice where law firms

and other organizations outsource legal work from other places or
other legal support services companies.
 Gaming Process Outsourcing (GPO)
34/19

 Gaming Process Outsourcing (GPO), as the name suggests, is the

outsourcing of different “processes” (each “process” can be
considered to be a group of allied activities) that are required for
the development of a game, to third party companies which are
specialized in those processes.
 Transaction Processing System
35/19

 A transaction processing system is software that ensures the

completion of a business transaction and also keeps track of
transactions.

 An OTPS, or online transaction processing system, is an equivalent

system that online merchants use for e-commerce.
 Transaction Processing System
36/19

 Examples include systems that manage sales order entry

 airline reservations,
 payroll,
 employee records,
 manufacturing,
 and shipping.
 TPS: Characteristics and its importance
37/19

 rapid processing
 reliability
 standardization
 control access
 TPS: Characteristics and its importance
38/19

 Transaction processing systems provide an execution environment

that ensures the integrity, availability, and security of data.

 They also ensure fast response time and high transaction

throughput.
 References
39/19

 Self Notes
 https://www.tutorialspoint.com/management_information_system/information_need_
objective.htm#:~:text=MIS%20is%20an%20information%20system,needed%20for
%20effective%20decision%20making.
 https://library.tctc.edu/researchprocess/typesinfo
 https://hbr.org/1985/07/how-information-gives-you-competitive-
advantage#:~:text=Information%20technology%20can%20alter%20the,scope%20t
o%20create%20competitive%20advantage.
 https://hbr.org/1985/07/how-information-gives-you-competitive-advantage
 https://www.linkedin.com/pulse/20140901121616-270946654-role-impact-and-
importance-of-mis/
 https://www.skyrme.com/insights/5itorg.htm
Thank You