Couse Unit : MANAGEMENT INFORMATION SYSTEMS (MIS) (BPCD 1211)

Lecturer: Florah K. Akampurira (CCA-MUST, CCNA-MUST, BIT-MUST, PGDE -BSU,

MSC.IS -MUST)
contacts: 0781167404 / 0756148446, fkobusingye@must.ac.ug, kobusingyeflorah@gmail.com

Chapter-1 : Introduction to MIS

Management Information Systems (MIS), referred to as Information
Management and Systems, is the discipline covering the application of people,
technologies, and procedures collectively called information systems, to
solving business problems.
“'MIS' is a planned system of collecting, storing and disseminating data in
the form of information needed to carry out the functions of management.”
Academically, the term is commonly used to refer to the group of information
management methods tied to the automation or support of human decision
making, e.g. Decision Support Systems, Expert Systems, and Executive
Information Systems.

Management: Management is art of getting things done through and with the
people in formally organized groups. The basic functions performed by a
manager in an organization are: Planning, controlling, staffing, organizing, and
directing.

Information: Information is considered as valuable component of an

organization. Information is data that is processed and is presented in a form
which assists decision maker.
System: A system is defined as a set of elements which are joined together to
achieve a common objective. The elements are interrelated and
interdependent. Thus every system is said to be composed of subsystems. A
system has one or multiple inputs, these inputs are processed through a
transformation process to convert these input( s) to output.

1.1 MIS DEFINITION:

The Management Information System (MIS) is a concept of the last decade or
two. It has been understood and described in a number ways. It is also known
as the Information System, the Information and Decision System, the
Computer- based information System.
The MIS has more than one definition, some of which are give below.
1. The MIS is defined as a system which provides information support for
decision making in the organization.
2. The MIS is defined as an integrated system of man and machine for providing
the information to support the operations, the management and the decision
making function in the organization.
3. The MIS is defined as a system based on the database of the organization
evolved for the purpose of providing information to the people in the
organization.
4. The MIS is defined as a Computer based Information System.

Thought there are a number of definitions, all of them converge on one

single point, i.e., the MIS is a system to support the decision making function
in the organization. The difference lies in defining the elements of the MIS.
However, in todays world MIS a computerized business processing system
generating information for the people in the organization to meet the
information needs decision making to achieve the corporate objective of the
organization. In any organization, small or big, a major portion of the time goes
in data collection, processing, documenting it to the people. Hence, a major
portion of the overheads goes into this kind of unproductive work in the
organization. Every individual in an organization is continuously looking for
some information which is needed to perform his/her task. Hence, the
information is people-oriented and it varies with the nature of the people in the
organization.
The difficulty in handling this multiple requirement of the people is due to a
couple of reasons. The information is a processed product to fulfill an imprecise
need of the people. It takes time to search the data and may require a difficult
processing path. It has a time value and unless processed on time and
communicated, it has no value. The scope and the quantum of information is
individual dependent and it is difficult to conceive the information as a well-
defined product for the entire organization. Since the people are instrumental
in any business transaction, a human error is possible in conducting the same.
Since a human error is difficult to control, the difficulty arises in ensuring a
hundred per cent quality assurance of information in terms of completeness,
accuracy, validity, timeliness and meeting the decision making needs.
In order to get a better grip on the activity of information processing, it is
necessary to have a formal system which should take care of the following
points:
1. Handling of a voluminous data.
2. Confirmation of the validity of data and transaction.
3. Complex processing of data and multidimensional analysis.
 4. Quick search and retrieval.
5. Mass storage.
6. Communication of the information system to the user on time.
7. Fulfilling the changing needs of the information.
The management information system uses computers and communication
technology to deal with these points of supreme importance.

1.2 OBJECTIVES OF MIS :

1. Data Capturing : MIS capture data from various internal and external
sources of organization. Data capturing may be manual or through computer
terminals.
2. Processing of Data : The captured data is processed to convert into required
information. Processing of data is done by such activities as calculating, sorting,
classifying, and summarizing.
3. Storage of Information : MIS stores the processed or unprocessed data for
future use. If any information is not immediately required, it is saved as an
organization record, for later use.
4. Retrieval of Information : MIS retrieves information from its stores as and
when
required by various users.
5. Dissemination of Information : Information, which is a finished product of
MIS, is disseminated to the users in the organization. It is periodic or online
through computer terminal.
1.3 CHARACTERISTICS OF MIS:
1. Systems Approach : The information system follows a systems approach.
Systems approach means taking a comprehensive view or a complete look at
the interlocking sub-systems that operate within an organization.
2. Management Oriented : Management oriented characteristic of MIS implies
that the management actively directs the system development efforts. For
planning of MIS, top-down approach should be followed. Top down approach
suggests that the system development starts from the determination of
management’s needs and overall business objective. To ensure that the
implementation of system’s polices meet the specification of the system,
continued review and participation of the manager is necessary.
3. Need Based : MIS design should be as per the information needs of managers
at different levels.
4. Exception Based : MIS should be developed on the exception based also,
which means that in an abnormal situation, there should be immediate
reporting about the exceptional situation to the decision –makers at the
required level.
5. Future Oriented : MIS should not merely provide past of historical
information; rather it should provide information, on the basis of future
projections on the actions to be initiated.
6. Integrated : Integration is significant because of its ability to produce more
meaningful information. Integration means taking a comprehensive view or
looking at the complete picture of the interlocking subsystems that operate
within the company.
7. Common Data Flow : Common data flow includes avoiding duplication,
combining similar functions and simplifying operations wherever possible. The
development of common data flow is an economically sound and logical
concept, but it must be viewed from a practical angle.
8. Long Term Planning : MIS is developed over relatively long periods. A heavy
element of planning should be involved.
9. Sub System Concept : The MIS should be viewed as a single entity, but it
must be broken down into digestible sub-systems which are more meaningful.
10. Central database : In the MIS there should be common data base for whole
system

1.4 ROLE OF THE MANAGEMENT INFORMATION SYSTEM:

The role of the MIS in an organization can be compared to the role of heart in
the body. The information is the blood and MIS is the heart. In the body the
heart plays the role of supplying pure blood to all the elements of the body
including the brain. The heart works faster and supplies more blood when
needed. It regulates and controls the incoming impure blood, processes it and
sends it to the destination in the quantity needed. It fulfills the needs of blood
supply to human body in normal course and also in crisis. The MIS plays exactly
the same role in the organization.

(1) The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations. The system
is expected to fulfill the information needs of an individual, a group of
individuals, the management functionaries: the managers and the top
management.
(2) The MIS satisfies the diverse needs through a variety of systems such as
Query Systems, Analysis Systems, Modeling Systems and Decision Support
Systems the MIS helps in Strategic Planning, Management Control, Operational
Control and Transaction Processing.
(3) The MIS helps the clerical personnel in the transaction processing and
answers their queries on the data pertaining to the transaction, the status of a
particular record and references on a variety of documents. The MIS helps the
junior management personnel by providing the operational data for planning,
scheduling and control, and helps them further in decision making at the
operations level to correct an out of control situation.
(4) The MIS helps the middle management in short them planning, target
setting and controlling the business functions. It is supported by the use of the
management tools of planning and control. The MIS helps the top management
in goal setting, strategic planning and evolving the business plans and their
implementation.
(5) The MIS plays the role of information generation, communication, problem
identification and helps in the process of decision making. The MIS, therefore,
plays a vita role in the management, administration and operations of an
organization.

AN ORGANIZATIONAL NEED FOR MIS

To facilitate the management decision making at all levels of company, the MIS
must be integrated. MIS units are companywide. MIS is available for the Top
management. The top management of company should play an active role in
designing, modifying and maintenance of the total organization wide
management information system. Information system and Information
technology have become a vital component of any successful business and are
regarded as major functional areas just like any other functional area of a
business organization like marketing, finance, production and HR. Thus it is
important to understand the area of information system just like any other
functional area in the business. MIS is important because all businesses have a
need for information about the tasks which are to be performed. Information
and technology is used as a tool for solving problems and providing
opportunities for increasing productivity and quality. Information has always
been important but it has never been so available, so current and so
overwhelming. Efforts have been made for collection and retrieval of
information, however, challenges still remain in the selection analysis and
interpretation of the information that will further improve decision making and
productivity.

MIS for a Business Organization :

1. Support the Business Process : Treats inputs as a request from the
customer and outputs as services to customer. Supports current operations and
use the system to influence further way of working.
2. Support Operation of a Business Organization : MIS supports operations
of a business organization by giving timely information, maintenance and
enhancement which provides flexibility in the operation of an organizations.
3. To Support Decision Making : MIS supports the decision making by
employee in their daily operations. MIS also supports managers in decision
making to meet the goals and objectives of the organization. Different
mathematical models and IT tools are used for the purpose evolving strategies
to meet competitive needs.
4. Strategies for an Organization : Today each business is running in a
competitive market. MIS supports the organization to evolve appropriate
strategies for the business to assented in a competitive environment.

The Role of Information Systems in Business Today

Growing interdependence between ability to use information technology and

ability to implement corporate strategies and achieve corporate goals

Business firms invest heavily in information systems to achieve six strategic

business objectives:

1. Operational excellence

2. New products, services, and business models

3. Customer and supplier intimacy

4. Improved decision making

5. Competitive advantage

6. Survival

Operational excellence:

• Improvement of efficiency to attain higher profitability

• Information systems, technology an important tool in achieving

greater efficiency and productivity

New products, services, and business models:

• Business model: describes how company produces, delivers, and

sells product or service to create wealth
 • Information systems and technology a major enabling tool for
new products, services, business models

Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS, and Netflix

Customer and supplier intimacy:

• Serving customers well leads to customers returning, which raises

revenues and profits Example: High-end hotels that use computers to
track customer preferences and use to monitor and customize
environment

• Intimacy with suppliers allows them to provide vital inputs, which

lowers costs Example: J.C.Penney’s information system which links sales
records to contract manufacturer

Improved decision making Without accurate information:

• Managers must use forecasts, best guessesto control:

• Overproduction, underproduction of goods and services.

• Misallocation of resources.

• Poor response times.

• Poor outcomes raise costs, lose customers.

In Summary

Operational excellence:

• Improvement of efficiency to attain higher profitability

New products, services, and business models:

• Enabled by technology

Customer and supplier intimacy:

• Serving customers raises revenues and profits

• Better communication with suppliers lowers costs

Improved decision making

• More accurate data leads to better decisions

Competitive advantage

• Delivering better performance

• Charging less for superior products

• Responding to customers and suppliers in real time

Survival

• Information technologies act as a necessity of business to

survive:

• Industry-level changes, e.g. Citibank’s introduction of ATMs

• Governmental regulations requiring record-keeping

 The Interdependence between Organizations and Information
Technology

In contemporary systems there is a growing interdependence between a firm’s

information systems and its business capabilities. Changes in strategy, rules, and
business processes increasingly require changes in hardware, software,
databases, and telecommunications. Often, what the organization would like to
do depends on what its systems will permit it to do.

The New Role of Information Systems in Organization

• MIS in an organization is akin to the heart in the body.

• The information is the blood and MIS is the heart.

Support to sub-systems

• MIS works through a variety of systems, such as;

• Query Systems,

• Analysis Systems,

• Modeling Systems,
 • And, Decision Support Systems.

Support for Long term (Strategic) Planning

• MIS helps long term planning in several ways, including;

• Strategic Planning and Management Control,

Operational Control and Transaction Processing

Support for Transaction Processing

• Answers queries on the data relating to transactions;

• the status of a particular record,

• and, references on a variety of documents.

• Helps the junior management personnel by;

• providing the operational data for planning,

• scheduling and control,

• supports decision making at the operations level,

• and, corrects an out of control situation.

Support for Short Term Planning

• Helps the mid career managers in the following;

• short them planning,

• target setting and

• and, controlling the business functions.

• Helps the top managers in the following;

 • goal setting,

• strategic planning and

• evolving the business plans

• and, the business plan implementation.

• Supports information generation and communication.

• Aids problem identification and sound decision making.

MIS in Public Sector Organizations (PSOs)

• PSOs are increasingly inundated with data and information.

• PSOs need IS to support its various activities.

Centralized Vs. Decentralized PISs

• PISs need to cover eight main areas of responsibility:

• information systems planning;

• organizational structures and staffing;

• data management;

• computing and data management architecture;

• information systems development;

• information technology acquisition;

• training, and technical support.

Centralized Vs. Decentralized PISs

• A centralized PIS may be efficiency, but difficult to manage.

 • A decentralized PIS spreads the tasks, but may be wasteful.

• A mix of central and local action is considered most effective.

MIS and Public Sector Accountability

• The broad set of accountabilities in PSOs include:

• Managerial accountability;

• Political accountability;

• And, Financial accountability

CURRENT TRENDS IN INFORMATION TECHNOLOGY

 If you want to be ahead of the competition, you will need to know the
latest trends and events occurring within your industry.

 However, having a good knowledge of your industry is not enough as

there is one key external factor that is important and will dictate the
direction of the industry – the IT sector. The Information Technology
Association of America defines IT as the study, development, designs,
implementation, support, and management of information systems that
are computer-based.

 Today, IT has become a huge agent of change in different business aspects

of the society. It is a game changer when it comes to the resolving of social
and economic issues. Some of the major trends in the IT sector are
obvious.

1. The Internet of Things (IoT)

Industry experts say that while the Internet of Things (IoT) had a false start
particularly in regard to the augmented technology, in 2018, we should expect
to see it improve our ways of doing things at home, work and even during
leisure activities. This is why we expect to see it be among the biggest IT trends
of 2018. The IoT is usually driven by the industry and will succeed the most if
it focuses on getting solutions for some specified problems. The industry
focuses on firmware and software that is hardware centric and suits those who
love creating solutions and meets the demands of the engineering field.

2. 5G Proliferation

Among the main IT trends 2019, there is the long-awaited launch of 5G. The
networks of the new generation have been already testing throughout 2018,
and in the coming year, the first 5G-ready smartphones will be released.

The new standard promises to bring broadband download speeds over mobile
networks and to provide 10x faster internet services than 4G.

However, the use of new generation network is much wider. 5G will provide
impetus for the further development of the Internet of Things, self-driving cars,
virtual and augmented reality, robotic surgery, drone delivery and more

3. Biometrics: Moving Far Beyond Fingerprints

Biometrics are changing the way we think about security. Here are some of the
more innovative ways biometrics are being used and what we can expect in the
future.

4. Mobile application

The mobile application is another trend that has become popular in the recent
past. Mobile apps are designed to run on mobile devices such as tablets and
smartphones. These can be downloaded from different operating systems such
as Blackberry, Apple, Nokia etc. Some of these are available for free while others
come at a cost. Any revenue collected is usually between the app developer and
distributor.

5. Cloud computing

A key IT concept that is commonly talked about is cloud computing. This

involves the use of computer services like hardware and software over the
internet.

There are 3 various benefits of cloud computing. These include:

– Minimizing the cost of IT infrastructure to a company
– Promoting the virtualization concept which can enable storage devices and
servers to be used across different organizations
– It makes it easier to maintain hardware and software and there is no need for
installation on each of the end-users computers.

However, there are also certain concerns regarding cloud computing such as
compliance, IT governance, privacy, legal abuse and many more.

6. User interface

The user interface is one area that has undergone massive revolution since the
touch screen was introduced. The capability of the touchscreen has
revolutionized how the end users are able to interact with the application. With
the touchscreen capability, the way users are able to interact with the
application. Users are now able to interact freely with what is being displayed
without the need for an intermediate device such as a mouse.

7. Mobile web performance

A website that hasn’t been optimized for the mobile devices is now getting
penalized by the search engines. Nowadays, more users are expecting a better
online performance from mobile devices. This has resulted in a race for the
improvement of the mobile performance. This means that the 2018 web trends
will include user-triggered animations, mobile-only development, secured apps
and pages and natural language processing. There will also be an increased
usage of white or negative spaces.

8. Artificial intelligence

According to a leading essay writing service, Artificial intelligence (AI) is

definitely among the biggest hits when it comes to IT trends that has impacted
creativity in the online space. AI can be manifested through different algorithms
for machine learning. This can be manifested not only in the amount of funding
that AI receives but also the wide range of applications where it is being
incorporated. Instead of focusing on a single goal such as communicating with
humans or mastering a certain game, AI has now started to get into new
platforms, device or app and we will continue to see this trend accelerating in
the future. This is why AI is a trend that will affect human resources
development.

9. Big data

The technologies that are related to the big data will continue rising in
importance in 2018. Due to its great return on investment, impact speed and
measurability, digital marketing are now more popular as compared to the
traditional marketing. This means that big data is now applied to the big
business as many of the digital marketing campaigns can rely on the huge data
quantities to ensure effectiveness and a greater reach. This is why companies
are now relying on the data management to ensure conversions from online
connections.

10. Visual Engagement

Today, customers want fast, easy and effective engagement. Companies need to
adapt a customer-centric approach to offer quick and excellent customer
services and to build a long-lasting relationship with the customers.

Visual engagement is one of the latest and noteworthy tech trends to offer great
customer support. Companies increasingly leverage visual engagement tools —
video, co-browsing, screen sharing, and annotations — to cut through the
customer conversation clutter, to be better understood, and to connect
emotionally.

11. Data and security applications

Probably, the most important element on this list. New security requirements
of Apple are changing mobile development. Google is likely to present
something similar for Android. The latest trends in this area are connected with
blocking. Together with two-factor authentication and other methods, you can
significantly increase data protection

12. Digital Wallet apps

While doing online shopping most of the people use internet banking or
credit/debit cards for payments. Also, customers prefer to pay digital cash even
doing offline shopping from grocery stores or shopping malls. That payment is
done through digital wallet apps. People gradually shifting to m-commerce with
the introduction of Google Wallet and Apple Pay. This trend is getting more
stronger day by day in 2018. With this, the organizations can harvest data and
offer in-depth analysis about clients in a good way. Customers will get more
comfortable with this payment option.

13. Mobile Computing and Applications

Mobile phones, tablets, and other devices have taken both the business world
and the personal realm by storm. Mobile usage and the number of applications
generated have both skyrocketed in recent years. Now, 77 percent of Americans
own smartphones a 35 percent increase since 2011. Pew Research Center also
shows using phones for online use has increased and fewer individuals use
traditional Internet services like broadband.

Experts project mobile traffic to increase even further in 2019, and mobile
applications, consumer capabilities, and payment options will be necessary for
businesses. The fastest-growing companies have already established their
mobile websites, marketing, and apps for maximized security and user-
friendliness. Cloud apps are also available for companies to use for on-the-go
capabilities.

14. Automation

Another current trend in the IT industry is automated processes. Automated

processes can collect information from vendors, customers, and other
documentation. Automated processes that check invoices and other accounts-
payable aspects expedite customer interactions. Machine processes can
automate repetitive manual tasks, rather than assigning them to employees.
This increases organization-wide productivity, allowing employees to use their
valuable time wisely, rather than wasting it on tedious work.
Automation can even produce more job opportunities for IT professionals
trained in supporting, programming, and developing automated processes.
Machine learning can enhance these automated processes for a continually
developing system. Automated processes for the future will extend to groceries
and other automatic payment methods to streamline the consumer experience.

15. Machine learning

Another exciting emerging technology is machine learning, which is essentially

a computer’s ability to learn on its own by analyzing data and tracking
repeating patterns. For example, social media platforms use machine learning
to get a better understanding of how you’re connected with those in your social
network. They do this by analyzing your likes, shares and comments and then
prioritizing content from your closest connections, serving you that content
first.

How it’s affecting industries: In addition to shaping your day-to-day

interactions with friends on social media, machine learning is also changing the
way companies do business with customers. According to Deloitte, companies
like Google are using machine learning on mobile devices which can continue
learning even when offline. The result? Machine learning is reshaping the way
businesses interact with their customers in a big way by helping them
anticipate and meet customer needs more easily.

16. Touch commerce

Being able to buy anything you want with the touch of a finger may have seemed
like a fantasy a few years ago, but it’s now a reality. Merging touchscreen
technology with one-click shopping, touch commerce allows consumers to buy
products easily from their phones. After linking their payment information to a
general account and enabling the feature, customers are able to buy everything
from clothes to furniture with just a fingerprint.

How it’s affecting industries: According to Deloitte, this is one of the biggest
things to hit ecommerce in recent years with purchases of this type expected
to increase by 150% this year alone and retailers in almost every industry
anticipating an increase in sales directly related to this new technology.

17. Virtual Reality

While AI will infuse everything, from cloud services to IOT, there's one area that
will really develop and grow intelligent in 2019: virtual assistants. While Siri,
Cortana, and Google Now are not exactly new, such services are being sewed
into more areas.

For example, Apple finally opened Siri up to third-party developers in 2016, so

you can now tell Siri to send a payment to someone via Venmo. You can use
Cortana (via Windows 10) with many Microsoft Office apps, too.

The Global Intelligent Virtual Assistant (IVA) market size is expected to reach
USD 12.28 billion by 2024, according to Grand View Research.

NOTE Implement these latest tech trends of 2019 in your business to

significantly improve your customer service and to take your business to
the next level.

THE PREREQUISITES OF AN EFFECTIVE MIS.

Ans.: Essential Requirement of an Effective MIS :
(i) Qualified System and Management Staff : The prerequisite of an effective
MIS is that it should be managed by qualified officers. These officers should
have a mutual understanding about the roles and responsibilities of each other.
be understand clearly the view of their fellow officers. For this, each
organization should have two categories of officers :
(a) System and Computer Experts who in addition to their expertise in their
subject area , they should also be capable of understanding management
concepts to facilitate the understanding of problems asked by concern. They
should also be clear about the process of decision making and information
requirements for planning.
(b) Management experts who should also understand quite-clearly the
concepts and operations of a computer. This basic knowledge of computer will
be useful will place them in a comfortable position, while working with systems,
technicians in designing or otherwise, of the information system.
(ii) Futuristic Perspective: An effective MIS should be capable of meeting the
future requirements of its executives as well. This capability can be achieved by
regular monitoring and updating the MIS.
(iii) Support of Top Management: For a management information system to
be effective, it must receive the full support of top management. The Reasons
for this are:
(a) Subordinate managers are usually lethargic about activities which do not
receive the support of their superiors.
(b) The resources involved in computer based information system are larger
and are growing larger and larger in view of importance gained by management
information system.
(iv) Common Database: It is an integrated collection of data and information
which is utilized by several information subsystems of an organization. A
common database may be defined as a super file which consolidates and
integrates data records formerly stored in a separate data file. Such a database
can be organized as an integrated collection of data records into a single super
file or it can be organized as an integrated collection of several data file.
(v) Control and maintenance of MIS: Control of the MIS means the operation
of the system as it was designed to operate. Sometimes, users develop their own
procedures or short cut methods to use the system which reduces its
effectiveness.