Module 2

Data
 Data
• Data and Information are interrelated, as the data is the basic building
block for the later.
• Data is scattered, Uncategorized, unorganized that do not really mean
anything. Information is the second level of knowledge where you
wire up the data and assign them some context.
• And generally, we say, “Data is a collection of raw facts and figures
that we need to process to extract meaning or information”.
 Parameters Data Information
Meaning Data does not have any It carries meaning that has
specific purpose. been assigned by
interpreting data.
Support for Decision making It can't be used for decision It is widely used for decision
making making.
Dependency Data depends upon the Information depends upon
sources for collecting data. data.
Significance Data alone has no Information is significant by
signifiance. itself.
Information is a Resource
 It is scarce
 It has a cost
 It has alternative uses
 There is an opportunity cost factor involved if one does
not process information
Types and classification of Information

Information classification
 Action v/s no-action
 Recurring v/s non recurring
 Internal v/s external
 Information system
 An information system is integrated and co-ordinate
network of components, which combine together to convert
data into information.
Components of information
systems
An information system is essentially made up of five
components
 Hardware: consists of input/output device, processor, operating system
and media devices.
 software,
 database,
 Network: Network consists of hubs, communication media and network
devices. and
 people.

These five components integrate to perform input, process,

output, feedback and control.
Classification of Information system
Information
system

Management Operations
support support
system system

Management
information
system
Management Information system
Management Information system
 A Management Information System is an integrated user-
machine system, for providing information, to support the
operations, management, analysis & decision-making
functions in an organization
Difference between management information
systems and information systems
The terms MIS and IS are often confused. IS may include systems
that are not intended for decision making.  In effect, MIS must not
only indicate how things are going, but why they are not going as
well as per plan.

 Information system applied to management context is called MIS.

IS can be applied to any area of business while MIS is applicable
for managerial decision-making.
 MIS is used to analyze other information systems applied in
operational activities in the organization.
 MIS
 The MIS plays exactly the same role of heart in the body
(which supplies pure blood to all elements of the body
including brain, it regulates and controls the incoming
impure blood process it and send it to the destination
required) in the organization.
 Role and importance
 The MIS satisfies the diverse needs through variety of systems
such as query system, analysis system, modelling system and
decision support system.
 The MIS helps in strategic planning, management control,
operational control and transaction processing
 Helps in 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 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. 
Conceptual and detailed designs of MIS
 Describing the structure of MIS is a bit challenging as there is no
standard or universally accepted framework of MIS.
 MIS can be described by various different approaches, like-

1. Physical structure of MIS – Hardware, Software, Database, Network,

Personnel

2. MIS structure based on Management activity-

Hierarchy of Management activities:-
a. Strategic Planning
b. Management control and tactical planning
c. Operational planning and control
Cont..
 Strategic planning
1. Evaluation of current capabilities based on internal data
2. Internal projection of future capabilities by analyzing past data
3. Fundamental market data on the industry and competitors

 Management control
1. Planned performance
2. Variance from planned performance
3. Problem analysis models to analyze data to provide input for decision making
4. Decision models to analyze a problem situation and provide possible solutions
5. Inquiry model to provide assistance to enquiries

 Operational control-
1. Transaction processing
2. Enquiry processing
3. Report processing
System development methodology
in MIS
System development methodology
 A system development methodology refers to the
framework that is used to structure, plan, and control the
process of developing an information system.
 Like any other product development, system development
requires careful analysis and design before
implementation. 
Steps in system development
 Understanding a problem or opportunity
1. Defining problem and opportunity
2. Gathering data and information
 Developing a solution

1. Designing alternative solutions

2. Evaluating alternative solutions
3. Selecting the best solution
 Implementing a solution

1. Implementing a solution
2. Post-implementation review