Management Information System: MIS

System Concept: A Foundation What is a System Input / Process / Output / Feedback & Control Concept of interface / Environment / Sub ± System Cybernetic System Component of Information System People / Hardware / Software / Data / Network Resources Data & Information The fundamental roles of IS applications in Business Trends in Information System Types of Information System Other Classification of System Managerial Challenges of Information Technology Challenges of Ethics & IT The IS Function

System & Its Meaning
The term system has multiple meanings :««
A collection of organized things; as, a solar system. A way of organizing or planning. A whole composed of relationships among the members.

System: can be simply defined as a group of interrelated or interacting elements forming a unified whole.
Like: Physical System of the Sun & Planets. : Biological System of the human Body. : Technological system of an oil refinery. : Socioeconomic System of a business organization.

Generic System Concept: A system is a group of interrelated component working together towards a common goal by accepting inputs and producing outputs in an organized transformation process.

Most systems share the same common characteristics. These common characteristics include the following:««.
Systems have a structure that is defined by its parts and processes. Systems are generalizations of reality. Systems tend to function in the same way. This involves the inputs and outputs of material (energy and/or matter) that is then processed causing it to change in some way. The various parts of a system have functional as well as structural relationships between each other.

Basically System has three basic interacting components or functions«.
Input«involves capturing and assembling elements. Processing«involves transformation process. Output«transferring elements that have been produced by a transformation process to their ultimate destination.

Feed-back«data about performance of a system. (Like: data about sales performance is a feedback to a sales Manager ) Control«..involves monitoring and evaluating feedback to determine whether a system is moving towards the achievement of its goal or not & makes necessary adjustments to a system·s input and processing components.

Cybernetic System
A system with feedback and control components is called a Cybernetic System. i.e. Self-monitoring and self ² regulating. Like: Thermostat-controlled heating system. : Human Body : Sometimes a business also has many control activities, like«accounting procedure, sales quotas and sales bonuses etc.

Other System Characteristics
Environment«..A system does not exit in vacuum, it , exists and function in an environment.
Environment containing other systems.

Sub ±System«.If system is one of the component of a larger system, it is a Sub ±system & larger system is its«..

³Environment´ Interface«.Several system may share the same environment. Some of these system may be connected to one another by means of shared boundary or interface. Open System:,«..The system that can exchanges inputs and outputs with its environment. i.e. connected to its environment by input and output interfaces. Adaptive System«. System that has the ability to change itself in order to survive is an adaptive system.

Components Of Information System: (The components are to
perform input, processing, output, storage, and control activities)

People Resources
Control of system Performance

Software Resources

Input of data resources

Processing Data into Information

Output of Info Products

Data Resources

Storage of Data resources

Hardware Resources

Network Resource

Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)

IS model shows that info system consists of 05 major resources«..

People resources«..include
End User«.people who use an info system / or info it produces. IS Specialists««people who develop and operate info system. Like:
system analyst« info system. software developers«.,create computer programme. system operator«.. Help to monitor and operate large system and network.

Hardware Resources«..include
Computer system«consists of CPU etc. Computer Peripherals«devices like key-board, mouse, printer etc.

Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)

Software Resources«includes all sets of info processing instruction. For example«
System Software«such as operating system programme which control and supports the operations of a computer system. Application Software«.programs that direct processing for a particular use of computers. Procedure««which are the operating instructions for the people who will use an info system. Like Instructions for filling out a paper form or using a software package.

Data Resources«.Like
Traditional alphanumeric data Text Data Image Data Audio Data The data resources of IS are typically organized, stored, and accessed by a variety of data resource management technologies.

Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)

Network Resources«..Telecom technologies and networks like the Internet, Intranet and Extranets. Network Resources include«
Communication Media«Like Twisted pair cable, Coaxial cable etc Network Support«generic category emphasizes that many hardware, software and data technology. Like Modems, browser packages etc.

Data (plural of ³datum´ )are raw fact or observations typically about physical phenomena or business transaction.
Objective measurements of the attributes and entities

Information««basically processed form of data / in the form of product. / Data that have been converted into a meaningful and useful context for specific end ±user.

Concept of Internet / Intranet / Extranet Internet«.Global network of computers. There is no one central computer.
Instead, the internet is comprised of a series of special computer which hold data, called«..server. through the internet one can upload and download files, send and receive e-mail etc.

Intranets«. Are commonly used for internal communication in
corporations or educational institutions. An intranet does not allow any access from the outside internet. Only computers connected to the internal network can connect to the intranet. Extranets«.. Once you allow authorized external users to connect to an intranet, it becomes an extranet.
An extranet is still restricted, but allows access by certain networks, computers or individual user. Like between an enterprise and its trading partners.

Business today depend on the Internet, intranet and extranet to implement and manage electronic business , operations, ecommerce and enterprise collaboration««««.

The Internet«.

Suppliers & Partners

Supply chain Mgt. Accounting & Finance

Engineering & Research


Customer Relationship Mgt.



Information System Activities Input of data resource..... Processing of data into information.« Output of information products«.. Storage of data Resources«. Control of System Performance«..

The Fundamental Role of IS applications in Business«.. SBP«like In retail format to record customer purchase, keep track of inventory, pay employees. SDM«.. Like what lines of merchandise need to be added or discounted. SCA«.. Innovative use of info tech.

Support strategies for competitive Advantage

Support Business Decision Making

Support Business Processes & operations

Trends in Information Systems

90 ± 00, networked e-business and e-commerce systems (internet based) 80-90¶s End-user computing system / EIS /ES / SIS

70 -80¶s DSS / Inactive ad-hoc support for managerial decision making process 60 ± 70¶s Mgt. reporting i.e. MIS/ reports on pre-specified info to support decision Making. Until 60¶s transaction processing / record keeping / other EDP operations

Types of Information Systems

Information System








Operational and managerial classification of Information systems. This conceptual overview emphasizes The main purpose of information system that support business operations and managerial decision making.


Types of Information Systems
The applications of info systems can be classified in different ways. Operational Support System«..there role is to efficiently process business transactions, control industrial process, support enterprise communication and collaboration and update corporate database. Such OSS produce a variety of info products for internal / external user, but they do not emphasize producing the specific information products that can best be used by manager. Like«
TPS««.Transaction processing systems. PCS««. Process control systems. ECS««..Enterprise collaboration systems.

Operational Support Systems
TPS««.Transaction processing systems««..that records and process the data resulting from business transaction. There are two basic ways.. ± Batch Processing«..transaction data are accumulated over a period of time and processed periodically. ± Real time Processing« are processed immediately after a transaction occurs. (POS) PCS«Process Control System«..that monitor and control physical process. Like Petro refinery uses electronic sensors linked to computer to monitor chemical process and make instant (real ±time) adjustments that control the refinery process. ECS«.Enterprise Collaboration System«..enhance team and work ± group communication and productivity, sometimes called as OAS.

Management Support Systems
MSS«.it focus on providing information and support for effective decision making by managers. But providing support for all types of managers is a complex task. So major types of info ± system support a variety of decision-making responsibilities.
MIS«.Management information system«.provide info in the form of reports and displays to managers. DSS«.Decision Support System«..give direct computer support to managers during the decision making process. Like Ad manager may use an electronic spreadsheet programme to do what ± if analysis as they test the impact of alternative advertising budgets on the forecasted sales of new products. EIS«..Executive information system«provide critical info from a wide variety of internal and external sources in easy to ±use & displays to executives and managers.

Other Classifications of Information Systems Several other categories of info ± system can support either operations or management applications. Like«.
Expert System«. Basically intelligence is the ability to acquire and apply knowledge and drawing systematic conclusions. can provide expert advice for operational chores like equipment diagnostics, portfolio management.
Like.. MACSYMA(1969)..solver of complex mathematical problem «.MYCIN (1973)..system for the diagnosis of bacterial diseases.

Knowledge Management System«.are knowledge based info system that support the creation, organization, and dissemination of business knowledge to employees and managers throughout a company. Strategic Information System«..apply information technology to a firm¶s products, services or business processes to help it gain a strategic advantage over its competitors.

Points as Notes«..
Applications of info systems in real world are typically integrated combinations of the several types of info systems. That¶s becoz conceptual classification of info systems are designed to emphasize the many roles of info systems. So whenever you analyze an info system, you will probably see that it provides info for a variety of managerial levels and business functions. Shipment tracking , eCommerce web systems are examples of SIS, however credit application advisor is example of Expert system, similarly intranet access to best business practices, or sales proposal strategies are the part of KMS. MIS«is an integrated user-machine system for providing info to support ; Operational / Management / & Decision ± making functions in an organization.

Managerial Challenges of Information Technology«
Info system must be managed to support the b-strategies; B ² Process & OS. Therefore success of IS should not be measured by the efficiency but also be measured by effectiveness in supporting process, structure, etc.

Business - Enterprise B ± Strategies B ± Process Structure & Culture IT In rastructure Internet orked In o system Customer Value Business Value

Global B - Environment

From failure to success with IT
The Boeing Company«
Business Failure
Costly delay in obtaining 6 million parts to build each craft with unintegrated IT system

New IT solution
Integrate entire supply chain into internal production systems.

Business ± Success
Output capacity up 100% in 4years. Craft lead times reduced by 60%.

Thomson Consumer Electronics«
Business Failure
Retailers not getting quick replenishment of core products.

New IT solution
Integrate entire supply chain into internal production systems.

Business ± Success
Out of stock scenario reduced to 1% with forecast accuracy now above 95%

Challenges of Ethics & IT
Examples of some of the ethical challenges that must be faced by business managers who implement major application of info ± technology.
Potential Hams How likely are customer Employees, b-partners to Be affected by«. ‡Infringement on privacy ‡Inaccurate Info ‡Exclusion from essential b -resource

Applications of IT ‡CRM ‡HRM ‡BIS ( Intelligence) ‡ECS(E-Com)

Potential Risk How likely are legal actions, boycott, work stoppages & other threats to occur?

Possible Response

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