MANAGEMENT

INFORMATION SYSTEM
 Concept of MIS
Management Information System is considered to be a subset
of the overall internal control procedures in a business, which
includes people, documents, technologies and procedures,
working together to provide the right information to the right
person.

It is basically concerned with processing data into information

which is then communicated to the various departments in an
organisation to support the operations, the management and
the decision making function.
 Examples of MIS
There are number of companies which serves the core purpose
of providing information but also considers various other
activities such as financing and investing.

• Idelic is a driver management platform designed to

consolidate fleet data systems.
• Rivery.io is a cloud based platform which helps to store data
just like google.
• Certus Software offers technological solutions for business
management.
 MANAGEMENT
MIS
INFORMATION

SYSTEM
 MANAGEMENT
Management is the process of getting things done through
others for the achievement of desired results. These desired
results can be achieved by the following functions that are :-

• Planning
• Organising
• Staffing
• Directing
• Controlling
 INFORMATION
The second component of MIS is the concept of information.
Actually, it involves two terms, namely data and information,
which are often used interchangeably. However, there is a
difference between these two terms.

DATA PROCESSING INFORMATION

 SYSTEM
The third component of MIS is the concept of System. It is a set
of related activities that are joined together to achieve a
common goal.
Even the human body is a system composed of various parts,
which are working together towards a common objective; that is
to live.
System can be of two types:-
• Open system is one that constantly interacts with the
environment, such as human body.
• Closed system does not interact and does not change with
the change in environment.
SCOPE OF MIS

Strategic control Decision Support

level System

Management
Management
control level Information
System

Operational Transaction
control level Processing System
 SCOPE OF MIS
• Operational Control Level: At this level, the supervisors
require very precise information provided by the middle level
managers to manage the routine task.
• Management Control Level: The area of application is very
wide at this level as middle level managers works as an
interaction medium for both operational and top level. Thus,
the middle level management should have precise
information regarding the overall operations of the concern.
• Strategic Control Level: This level takes the help of Strategic
Information system for formulating strategies but again MIS
plays a crucial role as this level has to interact with the
management control level.
CLASSIFICATION OF INFORMATION SYSTEMS

Management
Transaction Decision Support
Information
Processing System System
System

Strategic Fuzzy Logic Based

Expert System Information Information
System System
 Transaction Processing System
This is the basic type of information system, which was used
extensively until MIS came into existence. Even now, it is used at
the operational control level.
At the operational control level, generally routine decisions are
taken and TPS helps to automate the routine transactions and
manage daily records.
The very basic example of TPS is the Automated Passbook Data
Entry Machine used at the banks for recording transactions.
The limitation of TPS is that the output of this is also data, which
is not processed.

Data Process Data

Management Information System
Due to increased competition, the needs of managers became
very demanding; they needed a type of information system that
can help them to take prompt decisions.
This resulted in the MIS, in which the input is data, it is
processed and the resulting information is given as the output
which is utilized by the managers to take decisions.

Data Process Information

 Decision Support System
• The decisions taken at the strategic control level are very
much unstructured in nature. The top level has to scan both
the internal and external environments.
• There are various factors that are not in the control of top
level management but they have to be taken into account. So,
the system used at the strategic level is known as Decision
Support System.
• It uses operation research models on properly maintained
databases, with the facility of dialogue, which helps managers
to analyse a complex problem from different perspectives and
guides them to take rational decisions.
 Subsystems of DSS
Being a specialized type of information system and having a very
complex process, there are different subsystems considered
under DSS:-
• Database Management Subsystem performs the function of
storing and maintaining the information that you want your
DSS to use and sources of information are organizational,
external and personal.
• Model Based Subsystem: A model is a representation of some
event, fact or situation. As it is not always practical to
experiment with reality, people build models and use them
for experimentation and businesses also use models to
represent variables and get results from gathered data.
 Subsystems of DSS (contd.)
• User Interface based Subsystem allows you to communicate
with the Decision Support System. This is the component that
allows you to combine your know-how with the storage and
processing capabilities of computer.

• Knowledge based Subsystem provides information about the

relationship among data that is too complex for a database to
represent. It consists of rules that can constrain possible
solution as well as alternative solutions and methods for
evaluating them.
 Expert System
• This is a specialized system that solves the problems
pertaining to a specific domain and requires technical
knowledge. These systems act like a technical experts to solve
a problem as organisations can not generalize their problems.

• The biggest example of expert system from Movies, we can

say that Jarvis from the movie Iron man.
• Sophia, the social robot, can also be the part of expert system
in real world.
 Strategic Information System
• Information systems such as SIS help organizations to gain
competitive advantage. It not only takes into account the
internal factors for processing information but also takes into
consideration the external factors that influence the
organisation.

• The very basic motive of using SIS is to formulate strategies by

using the data converted into relevant information which will
be helping the organisation for long term growth.
 Fuzzy Logic Based Information System
• Considering the fact that the conditions under which the
managers take decisions are highly uncertain, there is a need
to add this uncertainty in the system.

• The Fuzzy logic provides this uncertainty in the system. For

such uncertain situations, it is very important to give hazy
boundaries to the logic. It helps the system to create these
uncertain boundaries.
 CHARACTERISTICS OF MIS
• Focus on Management control level: MIS is specifically
designed for the middle level managers to manage the
organization effectively.
• Accurate information: MIS provides accurate information for
decision making by the management control level.
• System Application: All the subsystems of MIS works together
as a single unit to accomplish the goal of decision making.
• Functional Application: Organisations are divided into
different functional aspects such as Marketing, HR, finance,
production etc. And MIS provides the facility of serving the
needs of each and every functional aspect.
CHARACTERISTICS OF MIS (contd.)
• Focus on Decision-making: MIS is designed in such a way that
it helps managers to scan all such relevant sources of
information, which will help in taking accurate decisions.
• Authenticated source: MIS is supported by a proper database.
In this database, proper records of information are
maintained which is an authenticated source for future
reference.
• Tailor-made approach: MIS can not be generalised as the
situations in different organisations are different. That’s why it
is tailor-made according to the requirements.
• Secure: MIS provides proper safety and security to the stored
data.
 FUNCTIONS OF MIS
• Scanning of data: Due to increased competition, there is more
need of accurate data and MIS helps managers to scan all
possible sources of data.
• Storing of data: It is not possible to store data in one place
and segregate it into different functional categories. Thus, MIS
helps in doing above tasks.
• Refining of data: It is very important to refine the raw data so
that proper information can be obtained. MIS helps managers
to analyze and refine the data for taking out relevant
information.
 FUNCTIONS OF MIS (contd.)
• Providing information: MIS helps in providing the right
information to the right person. For eg. All information
regarding sales will be made available to the marketing
manager.
• Making Decisions: Using MIS, managers can create various
reports or even customize reports according to any particular
situation, which helps in decision making.
• Fulfilling functional requirements: The requirements of each
functional department are different, and MIS helps in fulfilling
the requirements of each and every functional manager. For
eg. MIS for inventory provides information regarding the time
of replenishment and EOQ levels.