Chapter one

Introduction to MIS

Aman A. 1
 ROLE OF THE MANAGEMENT INFORMATION
SYSTEM
• The role of the MIS in an organization can be
compared to the role of heart in the body.
– The information is the blood and MIS is the heart.
• The MIS ensures that
– an appropriate data is collected, processed, and
distributed.
• MIS is expected to fulfill
– the information needs of stakeholders in the
organization.

Aman A. 2
Cont….
• The MIS
– satisfies the diverse needs through a variety of systems
– helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.
– helps the clerical personnel
• in the transaction processing and answers their queries on the
data pertaining to the transaction, the status of a particular
record and references on a variety of documents.
– helps the junior management personnel
• by providing the operational data for planning, scheduling
and control, and helps them further in decision making at the
operations level to correct an out of control situation.

Aman A. 3
Cont…
– 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.
– helps the top 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.
– plays a vita role in the management, administration
and operations of an organization.
Aman A. 4
 Advantages of MIS

• MIS
– facilitates planning
– minimizes information overload
– encourages decentralization:
– brings coordination
– makes control easier
– assembles, processes, stores, retrieves, evaluates
and disseminates the information.

Aman A. 5
 The bottlenecks associated with MIS are

• it is highly sensitive, thus requires constant

monitoring
• budgeting of MIS is extremely difficult
• quality of outputs is governed by the quality of
inputs
• it lacks flexibility to update itself
• effectiveness usually decreases due to frequent
changes in top management
• it takes into account only qualitative factors
Aman A. 6
 IMPACT OF MIS
• MIS creates an impact on the organization’s
functions, performance and productivity.
– The impact of MIS on the functions is in its
management.
– The MIS creates another impact in the
organization which relates to the understanding
of the business itself.
– It creates an information- based work culture in
the organization.

Aman A. 7
MIS AND THE USER
• Every person in the organization is a user of the MIS.  
• The MIS caters to the needs of all persons:
– A clerk can use the MIS for a quick search and reporting
the same to higher level.
– The MIS offers the methods and facilities to integrate the
data and report the same in a proper format for an
assistant
– The MIS provides facilities to analyze the data and offers
the DSS to perform the task of execution. It provides an
action oriented information.
– The MIS provides information in a structured or
unstructured format for him to react.
Aman A. 8
Information Technology: Principles, Practices,
and Opportunities

•Knowledge Workers:
• Workers involved in the creation, distribution, and
application of information.
Aman A. 9
 The Characteristics of the Information Age
• An information-based society has arisen.
• Businesses depend on information technology to get their work
done.
• Work processes are being transformed to increase productivity.
• Information technology provides the means to
rethink/recreate/reengineer conventional business processes.
• Success in business is largely determined by the effectiveness with
which information technology is used.
• Information technology is embedded in many products and services.
• Reengineering efforts to attain greater productivity:
– Industrial Age - Division of Labor
– Information Age – Teamwork, Interconnection, and Shared
Information.
Aman A. 10
 What is Information Technology?
• Information Technology
– A term used to refer to a wide variety of items and abilities used
in the creation, storage, and dispersal of data and information.
Its three main components are computers, communications
networks, and know-how.
• Data:
– Raw facts, figures, and details.
• Information:
– An organized, meaningful, and useful interpretation of data.
• Knowledge:
– An awareness and understanding of a set of information and
how that information can be put to the best use.

Aman A. 11
Aman A. 12
Functions of Information Technology

Aman A. 13
Aman A. 14
The opportunities of information technology

• Helping People
• Solving Problems
– Problem: A perceived difference between an
existing condition and a desired condition.
– Problem Solving: The process of recognizing a
problem, identifying alternatives for solving it, and
successfully implementing the chosen solution.

Aman A. 15
 Information Technology Is All Around Us,
Improving Our Lives
• Television • Agriculture
• Education • Taxation and
Accounting
• Training
• Health and Medicine
• Entertainment • Manufacturing
• Shipping • Journalism
• Paperwork • Energy
• Money and • Sports
Investments
Aman A. 16
 The responsibility of using information
technology
• To be Informed
• To Make Proper Use of IT
• To Safeguard

Aman A. 17
Any Question???

Aman A. 18
END OF CHAPTER ONE

Aman A. 19