Chapter#1
Define MIS
A Management Information System (MIS) is a structured, computerized information system that
gathers, processes, stores, and disseminates data to aid decision-making, planning, and control in an
organization. It bridges the gap between raw data and actionable insights, serving as a critical tool for
managers by providing accurate, timely, and relevant information.
Capabilities of an MIS:
1. Data Collection and Storage: Collects data from both internal and external sources and stores it in a
centralized database for easy access and retrieval.
2. Data Processing and Analysis: Transforms raw data into meaningful information through aggregation,
calculations, and analysis to aid decision-making.
3. Report Generation: Produces reports (daily, weekly, monthly) in various formats like dashboards,
summaries, and detailed records to meet diverse managerial needs.
4. Decision Support: Helps in analyzing trends, forecasting outcomes, and making informed decisions by
providing data-driven insights.
5. Monitoring and Control: Tracks and monitors organizational performance metrics, allowing managers
to quickly identify and address issues.
6. Improved Communication: Provides a platform for information sharing across departments,
enhancing coordination and efficiency.
7. Resource Management: Helps manage and allocate resources effectively by offering insights into
inventory, labor, finances, and other key areas.
Needs for an MIS:
1. Data Quality: Requires accurate, timely, and relevant data to be effective. Data needs to be
continuously updated and maintained.
2. System Integration: Integration with existing systems (ERP, CRM, HRM) is essential to have a
comprehensive view of organizational operations.
3. Security and Access Control: Needs strong security protocols to protect sensitive information and
ensure only authorized access.
4. User Training and Support: Staff need training to use MIS tools effectively, and ongoing support for
troubleshooting and updates.
5. Scalability: As organizations grow, the MIS should scale to handle increased data volume and
complexity without a drop in performance.
6. Customization and Flexibility: Should be adaptable to the unique requirements of the organization,
including report formats, data fields, and workflows.
7. Continuous Improvement: Needs regular updates and improvements to meet changing business
requirements and technology advancements.
Batch Transaction Processing
Batch Processing: Involves collecting transaction data over a period and processing it all at once in a
batch. It’s useful for high-volume, repetitive transactions that don’t require immediate processing.
Example: Payroll processing, where employee hours are collected over a week or month and processed
at the end of the pay period.
On-Line Processing
On-Line (Interactive) Processing: Processes transactions immediately as they occur. This type allows
users to interact with the system in real-time, making it ideal for situations where prompt data update is
essential.
Example: ATM transactions or point-of-sale (POS) systems where updates are instant.
Real-Time Transaction Processing
Real-Time Processing: A type of on-line processing that involves the instantaneous updating of data and
responses to transactions. Real-time systems provide immediate processing and feedback for each
transaction, essential in environments where timing is critical.
Example: Stock trading platforms, where prices and transaction statuses are updated instantly.
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Principles of Reporting
Reporting in an MIS environment should be:
1. Accurate: Reports must reflect accurate data to ensure reliable decision-making.
2. Relevant: Only relevant information should be included to avoid overwhelming users.
3. Timely: Reports need to be delivered on time to support real-time decision-making.
4. Clear and Understandable: Presented in a way that users can easily interpret and act upon.
Report Presentation Modes
1. Tabular Reports: Organized in rows and columns, useful for displaying large volumes of data.
2. Graphical Reports: Uses charts, graphs, and visual elements to present data in an easily interpretable
way.
3. Dashboard Reports: Consolidates multiple reports into a single, interactive view, often updated in
real-time.
4. Drill-Down Reports: Allows users to see high-level summaries with the option to explore details
further by "drilling down" into specific areas.
Types of Reports
1. Summary Reports: Provides a condensed view of data for quick insights, typically showing key metrics
and performance indicators.
2. Detail Reports: Offers in-depth information on specific transactions or activities, helpful for audits and
analysis.
3. Exception Reports: Highlights data or events that fall outside normal parameters, allowing managers
to focus on problem areas.
4. Periodic Reports: Generated at regular intervals (daily, weekly, monthly), giving ongoing snapshots of
business operations.
5. Ad-Hoc Reports: Custom reports created as needed to answer specific questions or explore certain
issues.
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What is Information Resources Management (IRM)?
IRM: The strategic management of information resources (data, people, technology) to support an
organization’s goals and objectives. IRM involves developing policies and practices for managing
information assets effectively, ensuring they’re used optimally to support decision-making, productivity,
and competitiveness.
Ingredients of IRM
1. Data Management: Organizing, storing, and securing data for accessibility and integrity.
2. Technology Infrastructure: Hardware, software, and network resources required to store, process,
and transmit information.
3. Human Resources: Skilled personnel to design, manage, and use information systems effectively.
4. Policies and Procedures: Guidelines and standards that govern how information resources are
handled and protected.
Organization of IRM
IRM is typically structured around departments or teams, each responsible for different aspects:
IT Department: Manages technology infrastructure.
Data Governance: Ensures data accuracy, security, and compliance.
Training and Support: Educates staff on using information resources effectively.
Policy and Compliance: Establishes and enforces guidelines for information management.
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Why Managers are Often Frustrated with their MIS
1. Complexity and Usability Issues: MIS can be complex and challenging for non-technical managers to
navigate and interpret without adequate training.
2. Data Overload: Some MIS generate too much data, making it difficult for managers to filter relevant
information from the noise.
3. Lack of Customization: Systems may lack flexibility to meet the specific needs of managers or
departments.
4. Outdated or Inaccurate Data: If data is not updated or maintained, decisions based on the MIS may
be flawed.
5. Slow Response Time: If the system is not optimized, it can slow down decision-making, which is
frustrating for managers who rely on timely information.
6. Integration Challenges: MIS may not integrate well with other systems, resulting in data silos and
inefficiencies.
7. Cost and Maintenance: High costs for implementation, customization, and maintenance can be
discouraging, especially if managers don’t see immediate returns.
