Management Information

Systems
 What is MIS?

MIS is the use of information technology, people, and business

processes to record, store and process data to produce information that decision
makers can use to make day to day decisions.

 Management Information Systems is a collection of systems,

hardware, procedures and people that all work together to process, store, and
produce information that is useful to the organization.
 Components of MIS

The major components of a typical management information

system are;

People – people who use the information system

Data – the data that the information system records

Business Procedures – procedures put in place on how to record,

store and analyze data

Hardware – these include servers, workstations, networking

equipment, printers, etc.

Software – these are programs used to handle the data. These

include programs such as spreadsheet programs,
database software, etc.
 The need for MIS
The following are some of the justifications for having an MIS system

Decision makers need information to make effective decisions.

 Management Information Systems (MIS) make this possible.

MIS systems facilitate communication within and outside the organization –

Employees within the organization are able to easily access the required
information for the day to day operations. Facilitates such as Short Message
Service (SMS) & Email make it possible to communicate with customers and
suppliers from within the MIS system that an organization is using.

Record keeping –
Management information systems record all business transactions of an
organization and provide a reference point for the transactions
The History of Management Information Systems

The history of MIS divided into the Five Eras

As computer technology advanced and computers shrank in size,
companies could afford minicomputers, still enormously
expensive by today's standard but sufficiently affordable for large
companies to own and do their own in-house computing.
The introduction of VisiCalc spreadsheet software empowered
ordinary employees with the ability to do tasks that companies
paid huge sums to do 10 years earlier.
Employees at all levels of the organization could share
information in a variety of formats through computer terminals
linked to computer servers over common networks called 
intranets.
Enterprise computing allows a 360-degree view of the entire
business operation.
The fifth era is also the time of the knowledge worker's control. As decision-
making pushes to the lowest levels of organizations, MIS is expected to
increasingly empower workers not only as producers of information but also as
consumers of the same information.
Fundamental Roles of IS in Business

Chapter 1 Foundations of
Information Systems in 11
Business
Trends in Information Systems
Types of Information Systems
 Information Concepts

Data Vs Information

Data can be described as unprocessed facts and figures. Plain

collected data as raw facts cannot help in decision-making.

Information is interpreted data; created from organized,

structured, and processed data in a particular context.

Data - The raw material of information.

(Sales data is names, quantities, )

Information - Data organized and presented by someone.

(Sales information is amount of sales by product
type, sales territory, or salesperson )

Knowledge - Information read, heard, or seen, and

understood.
(Knowledge is which product to give the maximum
gain to the organization)
 Most essential characteristic features for information quality

Reliability - It should be verifiable and dependable.

Timely - It must be current and it must reach the users well in time, so that
important decisions can be made in time.
Relevant - It should be current and valid information and it should reduce
uncertainties.
Accurate - It should be free of errors and mistakes, true, and not deceptive.
Sufficient - It should be adequate in quantity, so that decisions can be made on
its basis.
Unambiguous - It should be expressed in clear terms. In other words, in should
be comprehensive.
Complete - It should meet all the needs in the current context.
Unbiased - It should be impartial, free from any bias. In other words, it should
have integrity.
Explicit - It should not need any further explanation.
Comparable - It should be of uniform collection, analysis, content, and format.
Reproducible - It could be used by documented methods on the same data set to
achieve a consistent result.
 Five main uses of information by businesses

Planning - At the planning stage, information is the most important ingredient

in decision making.

Recording - Business processing these days involves recording information

about each transaction or event. This information collected, stored and updated
regularly at the operational level.

Controlling - A business need to set up an information filter, so that only

filtered data is presented to the middle and top management.

Measuring - A business measures its performance metrics by collecting and

analyzing sales data, cost of manufacturing, and profit earned.

Decision-making - MIS is primarily concerned with managerial decision-

making, theory of organizational behavior, and underlying human behavior in
organizational context.
 Establishing Frame Work

A framework is a brief set of ideas for organizing a thought

process about a particular type of thing or situation.

Any useful framework helps make sense of the world’s

complexity by identifying topics that should be considered and showing
how these topics are related.

Objectives

The primary objective of the framework is to enhance decision

making, policy development and service delivery by providing greater
insight and supporting evidence.
 A FRAMEWORK FOR DECISION MAKING

Type of Operational Management Strategic Planning Support Needed

Decision/Task Control Control
1 2 3
Structured Inventory reordering Budget Analysis, Plant Location, Clerical, MIS, OR
short-term forecasting, Financial Models, Transaction
Make or Buy Analysis Management Processing Systems
(investment),
Distribution Systems.

4 5 6
Semi- Bond trading, Credit Evaluation, Building New Plant, Decision Support
structured Production Scheduling Budget Preparation, Mergers & Systems
Plant Layout, Project Acquisitions, New
Scheduling, Reward Product Planning,
Systems Design Compensation
Planning, Quality
Assurance Planning
7 8 9
Selecting a Cover for a Negotiating, Recruiting R & D Planning, Human Intuition,
Unstructured Magazine, Approving Executives, Lobbying Expert Systems,
Loans, Buying Software
New Technology Executive Support Systems
Development, Social
Responsibility
Planning
 Business models

A business model is an "abstract representation of a business, be it

conceptual, textual, and/or graphical, of all core interrelated architectural, co-
operational, and financial arrangements designed and developed by an
organization presently and in the future, as well as all core products and/or
services the organization offers, or will offer, based on these arrangements
that are needed to achieve its strategic goals and objectives.

A business model is a conceptual framework that expresses the

underlying economic logic and system that prove how a business can deliver
value to customers at an appropriate cost and make money.

A business model answers vital questions about the fundamental components

of a business, such as:

Who are our customers?

What do our customers value?
How much will it cost to deliver that value to our customers?
How do we make money in this business?
 Conceptual Model

A conceptual model is a representation of a system, made of the

composition of concepts which are used to help people know, understand,
or simulate a subject the model represents. It is also a set of concepts.

Some models are physical objects; for example, a toy model which may be

assembled, and may be made to work like the object it represents.

The term conceptual model may be used to refer to models which are formed

after a conceptualization or generalization process.[1] 

Conceptual models are often abstractions of things in the real world whether
physical or social.