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1. Answer
Definition of management information system
Management Information System (MIS) is a planned system of collecting, storing, and
disseminating data in the form of information needed to carry out the functions of management.
This tutorial covers the concepts related to information and provides a detailed coverage on MIS
and other major enterprise-level systems.
Importance of MIS in Business:
Overall cost of information systems is growing overtime and should be spent wisely. Well
managed IS can bring about Improves process Improves products and services Improves quality
Cuts costs Improves management, problem solving and decision making
Role of management information system
MIS provide managers with the necessary information they need to make informed decisions,
and they enable organizations to operate more efficiently and effectively. MIS is used by a
variety of people within an organization, including managers, marketing, and operational staff.

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There are two Contemporary approaches to information systems
 Technical Approach
 Behavioral Approach

The technical approach.The technical approach focuses on the development of hardware and
software components, while the behavioral approach focuses on the study of how people interact
with information systems.
Behavioral Approach: Emphasize how humans perceive and use formal information. and it
concentrates on changes in attitudes, managements and organizational policy and behaviors.
Behavioral approach concentrates on changes in attitudes, management and organizational
policy, and behavior.

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The Evolution of the Information Age
Before 1800s, long before the day of the Lexus, people lived in partnership with the land. In
most parts of the world, the majority of people were farmers whose lives revolved around
agriculture. These technological advances have had a significant impact on the way information
is processed and transmitted.
The Characteristics of the Information Age
An information-based society has arisen Information Society A society in which more people
work at handling information than at agriculture and manufacturing combined.
Businesses depend on information technology to get their work done.
Work processes are being transformed to increase productivity.
 Work Processes: The combination of activities that workers perform, the way they
perform those activities, and the tools they use.
 Productivity: The relationship between the results of an activity (output) and the
resources used to create those results (inputs)
 Productivity: is a measure of the amount of work that can be accomplished with a given
level of effort
 Effectiveness: The extent to which desirable results are achieved.

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What is Information Technology?
Information technology (IT) is a technology which uses computers to gather, process, store,
protect, and transfer information. Today, it is common to use the term Information and
communications technology (ICT) because it is unimaginable to work on a computer which is
not connected to the network. Information technology is a systemic study of artifacts that can be
used to give form to facts in order to provide meaning for decision making, and used for
organization, processing, communication and application of information.
The fundamental reasons for the use of information technology in business are:
 Support of business operations
 Support of managerial decision making
 Support of strategic competitive advantage

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Functional Areas ERP is a business management software is usually a suite of integrated
applications that a company can use to collect, store, manage, and interpret data from many
functional areas including :
a. Financial Accounting: Deals with financial transactions and data.
b. Human Resource: Deals with information related to employee of an organization.
c. Customer Relationship Management: Deals with capturing and managing customers
relationship, facilitating the use of customer experience to evaluate the knowledge database.
d. Sales and Distribution: Deals with order placement, delivery, shipment and invoicing.
e. Logistics and Warehouse Management: Deals with storage of products and shipment.
f. Manufacturing and Material Management: Deals with the production and production
planning activities.
g. Supply Change Management: Deals with the movement of products, storing, managing,and
controlling supplies.
h. Business Intelligence: Analyzes data and converts the same to information.

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Data, Information, Knowledge and wisdom (DIKW)
Data is defined as 'groups of non-random symbols in the form of text, images, and voice
representing quantities, action and objects. However, data is the raw material that is organized,
structured, and interpreted to create useful information systems. Data are facts and figures that
are not currently being used in a decision process and usually take the form of historical records
that are recorded and filed without immediate intent to retrieve for decision making.
Information: is consists of data that have been retrieved, processed, or otherwise used for
informative or inference purposes, argument, or as a basis for forecasting or decision making.
Information is interpreted data; created from organized, structured, and processed data in a
particular context.
Knowledge is the capability of evaluating information in some meaningful or purposeful way.
Having the knowledge or ability to perform some complex task involves more than just having a
list of instructions or the information needed; that is, the ability to manipulate the information or
perform the sub-tasks is required. Knowledge, thus, is a cognitive state beyond awareness. It can
also refer to the organized record of human experience such as books, reports etc.
Wisdom: is an extrapolative and non-deterministic, non-probabilistic process. Implies the
application of knowledge as contained in human judgment centered on certain criteria or values
that are generally accepted by the culture or society.
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Sources of Data/Information
a. Formal Sources
 Primary sources via different data collection methods.
 Secondary sources such as Statistical sources and Databases in different media, other
documentary sources, Web pages (on the Internet), discussion groups, online bulletin boards, etc.
b. Informal Sources such as business contacts, invisible colleges, etc.
Types of Information
Operational Information: Operational information relates to the day-to-day operations of the
organization and thus, is useful in exercising control over the operations that are repetitive in
nature.
Tactical information Tactical information helps middle level managers allocating resources and
establishing control to implement the top-level plans of the organization. For example,
information regarding the alternative sources of funds and their uses in the short run,
opportunities for deployment of surplus funds in short term securities, etc.,
Strategic information: While the operational information is needed to find out how the given
activity can be performed better, strategic information is needed for making choices among the
business options.
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E-business is Systems describes how information systems integrate and support enterprise-wide
business processes and the business functions of marketing, manufacturing, human resource
management, accounting, and finance Electronic business (e-business): All electronically
mediated information exchanges, both within an organization and with external stakeholders
supporting the range of business processes.
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A database management system (DBMS) is simply the software that permits an organization, to
centralize data, manage them efficiently, and provide access to the stored data by application
programs. The DBMs acts as an interface between application programs and the physical data
files.
A file system has a number of shortcomings:
1. Data redundancy,
2. Poor data control,
3. Inadequate data manipulation capabilities and
4. Excessive programming effort.
A database management system has three components:
1. A data definition language the data definition language is the formal language used by
programmers to structure of the database
2. A data manipulation language most DBMs have a specialized language called a data
manipulation language that is used in conjunction with some conventional third or fourth
generation programming languages to manipulate the data in the database.
3. A data directory the third element of DBMs is a data dictionary. This is an automated or
manual file that stores definitions of data elements and data characteristics such as usage,
physical representation, ownership (who in the organization is responsible for maintaining the
data), authorization, and security
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1. The marketing (including sales) function: Which is responsible for communicating the
organization products and services to its markets in order to generate customer requests for
service; Marketing is concerned with identifying the customers for the firm‘s products or
services,
2. Manufacturing and Production Systems: Which is responsible for fulfilling customer
requests for service through the production and delivery of products and services.  The
manufacturing and production function is responsible for actually producing the firm goods and
services.
3. Finance function: Searching and utilizing financial resources. The finance function is
responsible for managing the firm’s financial assets, such as cash, stocks, bonds, and other
investments, in order to maximize the return on these financial assets.  The finance function is
also in charge of managing the capitalization of the firm. In order to determine whether the firm
is getting the best return on its investments, the finance function must obtain a considerable
amount of information from sources external to the firm.
4. Human Resource Management: Human resource information systems support human
resource management in organizations. They include information systems for staffing the
organization, training and development, and compensation administration. HRM Web sites on
the Internet or corporate intranets have become important tools for providing HR services to
present and prospective employees.

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