What is MIS? Describe the Subsystems of MIS.

Answer
MIS - Management Information System
Management information system (MIS) refers to the processing of information through computers
and other intelligent devices to manage and support managerial decisions within an organization.

Definition of MIS

MIS - Management Information System can be defined as "a system providing management with
accurate and timely information necessary to facilitate the decision-making process and enable the
organization's planning, control, and operational functions to be carried out effectively".

Subsystems of MIS

Systems may consist of numerous sub-systems, each of which has elements, interactions, and
objectives. Subsystems perform specialized tasks related to the overall objectives of the total
system.
A system exists on more than one level and can be composed of subsystems or element parts.

Following are the subsystems of the Management Information System:

1. Transaction Processing System

2. Management Reporting System
3. Decision Support System
4. Office Information System
5. Business Expert System

Transaction Processing System - A transaction is defined as an exchange between two or more

business entities. Overall transaction processing, also known as data processing, reflects the
principal business activities of a firm like - sales, production, inventory, shipping, receiving, billing,
accounts payable, accounts receivables, payroll, general ledger, etc. Transactions are important
events for an organization, and collecting data about them is called transaction processing.
Transaction Processing System's primary purpose is to record, process, validate, and store
transactions that take place in the various functional areas of a business for future retrieval and use.
Transaction processing systems are cross-functional information systems that process data resulting
from the occurrence of business transactions.

● A TPS records internal and external transactions for a company.

● A TPS performs routine and repetitive tasks. It is mostly used by lower-level managers to
make operational decisions.
● Transactions can be recorded in batch mode or online. In batch mode files are updated
periodically; and in online mode, each transaction is recorded as it occurs.
● TPS is a six-step process - Data entry, Data capture, Data validation, Processing and re-
validation, Storage, Output generation, and Query support.

Management Reporting System - Management Reporting Systems are the most elaborate of
management-oriented MIS components. Its main objective is to provide lower and middle
management with printed reports and inquiry capabilities to help maintain operational and
management control of the enterprise.

● MRSs are usually developed by information system professionals, rather than by end-users.
 ● MRSs are oriented towards reporting on the past and the present, rather than projecting the
future.
● MRSs largely report on internal company operations.
● MRSs generally have limited analytical capabilities.
● MRSs do not directly support the decision-making process
● MRSs provide Scheduled or Periodic Reports, Exception Reports, and Demand or Ad-hoc
Report.

Decision Support System - Decision Support Systems are a class of computerized information
systems that support decision-making activities. DSS are interactive computer-based systems and
subsystems intended to help decision-makers. A DSS may present information graphically and may
include an expert system or artificial intelligence. DSS tends to be designed primarily to serve
management control level and strategic planning level managers.

● DSSs support for decision-makers in semi-structured and unstructured problems.

● DSSs are more focused on specific decisions rather than routine flows of information.
● DSS present information graphically and may include an expert system or artificial
intelligence.
● DSSs are adaptive over time.

Office Information System - Office Information System is an information system that uses
hardware, software, and networks to enhance workflow and better communication between
employees. Office automation refers to the application of computer and communication technology to
office functions. Office automation systems are meant to improve the productivity of managers at
various levels of management by providing secretarial assistance and better communication
facilities. Office automation systems are the combination of hardware, software, and people in
information systems, that process office transactions and support office activities at all levels of the
organization. These systems include a wide range of support facilities, which include word
processing, electronic filing, electronic mail, message switching, data storage, data and voice
communication, etc.

Business Expert System - The business expert system is a knowledge-based information system
that uses its knowledge about a specific, complex application area to act as an expert. This system is
one of the knowledge-based information systems. The expert system provides decision support to
managers in the form of advice from an expert in a specific problem area. Expert systems find
application in diverse areas, ranging from medical, engineering, and business.