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Unit 1

Introduction to MIS
Kavipriya krishnaswamy

Management Information System :
people,Procedure, database and data
models as its elements.
The system gather data from the internal
and external sources of an organization
,process it and supply Management
information to assist Managers in the
process of Decision Making

The three sub-components of MIS are

Information and System . They together bring
the focus, clearly & effectively.
System, emphasize a fair degree of
integration and a holistic view;
Information, stresses on processed data in the
context, in which it is used by the end users;
Management, focuses on the ultimate use of
such information systems for managerial
decision making.

MIS utilizes
Computer H/w and S/w
Databases: a structured set of data held in a computer,
especially one that is accessible in various ways.

Model bases:

A model is simply an abstraction of reality.

It is a representation of the current state of the business and the
environment in which it operates. Some models are already
popularly used today for strategic business planning. Consider
financial models such as the balance sheet, income statement,
and cash-flow statement.Each is an abstraction of the current
state of the business.

Operating procedures:


Components of MIS
MIS is based on four major components :
Data Gathering: Data pertinent to the operations of the
organization are gathered from both external and internal
Data Entry: The above data is input and stored in
Data Transformation: Data is transferred in to useful
information through the application of computer software

Information Utilization: This useful information is

retrieved as and when needed by the management and
technical personnel. This is applied to a wide variety of
decisions related to the conduct of organizational

MIS Characteristics

System Approach
Management Oriented
Need Based
Future Oriented
Common Data Flows
Long Term Planning
Sub-System Concept
Central Database

MIS Functions

Data Capturing
Processing Of Data
Storage of Information
Retrieval Of Information
Dissemination of Information

Role of MIS
The MIS satisfies the diverse needs through variety of
systems such as query system, analysis system, modeling
system and decision support system.
The MIS helps in strategic planning, management control,
operational control and transaction processing. The MIS
helps in the clerical personal in the transaction processing
and answers the queries on the data pertaining to the
transaction, the status of a particular record and reference 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
operation level to correct an out of control situation.

The MIS helps the middle management in short term 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 level management in goal setting, strategic
planning and evolving the business plans and their implementation.
The MIS plays the role of information generation, communication,
problem identification and helps in the process of decision-making.


MIS plays a very important role in the organization; it creates an
impact on the organizations functions, performance and
The impact of MIS on the functions is in its management with a
good MIS supports the management of marketing, finance,
production and personnel becomes more efficient.
The MIS creates another impact in the organization which relates to
the understanding of the business itself.
The MIS calls for a systematization of the business operations for an
effective system design.
The goals and objectives of the MIS are the products of business
goals and objectives. It helps indirectly to pull the entire
organization in one direction towards the corporate goals and
objectives by providing the relevant information to the organization.

A well designed system with a focus on the manager makes an

impact on the managerial efficiency.

MIS has a direct impact on this overhead. It creates information

based working culture in the organization.

MIS work on the basic system such as transaction processing and

database, the drudgery of the clerical work is transferred to the
computerized system, relieving the human mind for better work.

Classification of IS



Support System


on systems

Support System



n systems

Operating Support System :

Process the data Generated by
Business operations
Support the Business Operations,
control industrial processes, support
enterprise communications.

Definition: A Transaction Processing

System (TPS) is a type of information
system that collects, stores, modifies
and retrieves the data transactions of
an enterprise.
The success of commercial enterprises
depends on the reliable processing of
transactions to ensure that customer
orders are met on time. The field of
transaction processing, therefore, has
become a vital part of effective
business management

Features of Transaction Processing Systems

Rapid response fast performance with
rapid results
Reliability well designed backup and
recovery with a low failure rate
Inflexibility treat every transaction
equally. It may be used many times each
day which means it has to be precise and
Controlled processing maintain specific
requirements for the roles and
responsibilities of different employees.

Atomicity - the transaction

starts and each step must be
In order to
completed or it will be
qualify as a
Consistency - data is agreed
upon, remains in a consistent
made by the state and is accounted for.
system must Isolation - treats each
transaction separately and
pass the
keeps data from each
ACID test .
transaction separate.
Durability - the data should
continue to exist.

System Architecture:
Transaction Processing System

Batch processing:
Batch Processing transactions is the
processing as the collection/storage of
data at the time of the event with actual
updating of the database later when it is
scheduled or there is enough data.
An example may be the accounts which
are not able to be easily stored and
updated due to the amount and type of
data used. Examples of this may be a
telephone account, which accumulates
over a period of time.

Real time processing

Real time processing is where all details
of the transaction are recorded and
changed at the time as it occurs.
Examples of real time processing are
ATMs, which have user input which
requires immediate feedback.

Data validation and Database maintenance:

This is a process that ensures that the correct
type and valued data are entered into a system
and Corporate databases are updated to reflect
the day-to-day business transactions
There are two types involved in TPS:
1. Transaction Initiation - provides correct steps
of access.
2. Field Checking - ensures correct data type is
used by
checking entered data by type
required. (comparison)
Document and report generation:
A variety of documents and reports are produced

Application of TPS

Process Control System

Monitor and control Industrial process
Physical production process are
automatically made by computers
They deals with architectures,
mechanisms, and algorithms for
controlling the output of a specific
Example : Petroleum refineries uses
electronic sensors linked to computer to
monitor chemical processes.

Enterprise Collaboration

It is a Cross-functional e-business systems that

enhance communication, coordination, &
Communicate share information with each other
Coordinate coordinate individual work efforts &
use of resources with each other.
Collaborate work together cooperatively on joint
projects and assignments
Enterprise Systems are ones that have a large
involve or integrate all parts of an organization.
For an ECS, like Outlook, both the grunts and the
President use it...
Its not specific to any functional areas.
Its not specific to the operations level, tactical
level, or strategic level.

Tools for Enterprise Collaboration

Electronic communication

Voice mail
Web publishing
Bulletin boards
Internet phone systems

Electronic conferencing

Data & voice conferencing

Chat systems
Discussion forums
Electronic meeting systems
Synchronous. Team members can meet at the same
time and place in a decision room setting

Collaborative work management

Calendaring & scheduling

Task & project management
Workflow systems
Knowledge management