You are on page 1of 72

Management Information System

   

The management information system (MIS) is a concept of the decade or two. It has been understood and described in a number of ways. It is also popularly known as the information system. The information and decision system, the computer based information system.

Meaning

MIS

Management

Information

System

Management Information System is defined as 
    

³An integrated user machine system, for providing information, to support the operations, management analysis and decision-making functions. The system utilizes computer hardware and software, manual procedures, models for analysis, planning, control, decision making and database´.
-Gordon B. Davis

and Strategic Advantage Technology IS Hardware. Software. Networks . Management. and Data Management Foundation Concepts of IS Fundamental Behavioral and Technical Concepts .A Framework for Business End Users Management of IS Resources and Strategies Development of IS Solutions to Business Problems Applications of IS To Operations.

Information System Resources People Data Software Hardware Networks .

Operations and Management Classifications of Information Systems Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Management Information Systems Decision Support Systems Executive Information Systems .

.

.

Murdrick . The MIS is a strategy which provides the information for making decisions regarding the integration of the organization through the process of management. -Robert G.

maintain and operate purposive organization through systematic. coordinated cooperative human effort. . direct. Management: It is the process by which managers create.

argument or as a basis for forecasting or decision making. Information: Information consists of data that have been retrieved. processed or other wise used for informative or inference purposes. .

and the parts are divisions. are subsystem. System: System can be described simply as a set of elements joined together for a common objective. Example: organization is a system. . units etc. departments.

MIS COMPONENTS     Data gathering Data entry Data transformation Information utilization .

FUNCTIONS OF AN MIS    Collect data Store and process data Present information to managers .

CHARACTERISTICS OF MIS MIS is management oriented  Management directed  Integrated system  Avoids redundancy in data storage  Avoids redundancy in data storage  .

Common data flow  Heavy planning element  Subsystem concept  Common database  Flexibility  Computerization  .

modeling systems and DSS.Role of MIS    The role of MIS in an organization is compared to the role of heart in the body. . The information is the blood and the MIS is the heart. MIS helps the clerical persons in the transaction processing and answers their queries on the data pertaining to the transaction. status and reference on a variety of document. MIS satisfies the diverse needs through a variety of systems such as query system. analysis system.

scheduling and control. . and help them further in decision making at the operations level to correct an out of control situation. The MIS helps the junior management personnel by providing the operational data for planning.

.  The MIS helps the middle management in short term planning. strategic planning and evolving the business plans and their implementation. The MIS helps the top management in goal setting. target setting an controlling the business functions.

therefore. plays a vital role in the management. The MIS. MIS plays the role of information generation. administration and operations of an organization. problem identification and helps in the process of decision making. communication. .

. the management of marketing. production becomes more efficient. finance. performance and productivity. With good MIS support.Impact of MIS  MIS creates an impact on the organization¶s functions.

inducing him to take an action or a decision in that matter. . MIS helps the manager to be alert by providing certain information indicating the probable trends in the various aspects of business. The manager¶s attention is brought to a situation which is exceptional in nature.

 



MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. MIS calls for a systemization of the business operations for an effective system design. Since the goals and objectives of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.



Each age has its own tool. The New Economy¶s central tool is Information Technology« just as automation was the central tool for the Industrial Revolution

 

The need to master the use of Information Technology ± in the broader sense of Information and Communication Technologies ± is not negotiable, it¶s the world¶s direction Information Technology is multidisciplinary and you need to identify the portion you wish to ³swim in´

 Information Sciences. Networks. Telecommunications. Computing and Emerging Technologies have converged to provide this generation with a tool with which we can acquire appropriate skills.g leadership . e.

meet with the living and the dead who lived your dream. Explore it. study the content. . and shorten the distance between you and knowledge Don¶t just get. give.  The Internet remains the world¶s largest library. encyclopedia and resource centre rolled into one. Contribute your own quota to the world¶s pool of leadership skills by uploading content to the web.

sustaining and improving relationships. The new paradigm of eCommerce is built not just on transactions but on building. .Introduction to e-Commerce  It is most commonly associated with buying and selling information. but it is also used to transfer and share information within organizations through intranets to improve decision-making and eliminate duplication of effort. products. and services via the Internet. both existing and potential.

customer preferences and a sophisticated database of customers can be monitored to provide tailored or customised services to clients. Personal identification. Electronic Fund Transfer (EFT) makes it possible for transaction to be completed with payments carried our real-time and online. . office. Web surfing brings each eCommerce (Electronic Commerce) site and its product or service into the home. room or palm of the client and orders can be placed with the click of a mouse or the push of a key.

THE CHARACTERISTICS OF INFORMATION     Quality Timeliness Completeness Relevance .

Data. Information and Systems .

.

Data & Information Systems  What Is a System? System: A set of components that work together to achieve a common goal Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems .

it is a set of related activities which may or may not involve computers. used for processing data. The term system is generally used for a group of actions. . personnel and procedures. In general.SYSTEMS  System is defined as a set of elements arranged in an orderly manner to accomplish an objective.

.3 Several subsystems make up this corporate accounting system.Data & Information Systems Figure 1.

Information.Data. Keeps managers focused on overall goals and operations of business. . and Systems  Information and Managers Systems thinking   Creates a framework for problem solving and decision making.

and Systems . Information.Data.

Information.Data. and Systems  The Benefits of Human-Computer Synergy Synergy  When combined resources produce output that exceeds the sum of the outputs of the same resources employed separately Allows human thought to be translated into efficient processing of large amounts of data .

Data. Information. and Systems Figure 1.6 Components of an information system .

Data processing: Data is manipulated into information using mathematical. statistical.Data. and other tools. Information. and Systems  The Four Stages of Data Processing Input: Data is collected and entered into computer. . Storage: Data and information are maintained for later use. Output: Information is displayed or presented.

Why Study IS?  Information Systems Careers Systems analyst. database administrator.  Computer Literacy Replacing Traditional Literacy Key to full participation in western society . consulting. etc. specialist in enterprise resource planning (ERP).  Knowledge Workers Managers and non-managers Employers seek computer-literate professionals who know how to use information technology. telecommunications specialist.

 Employee Privacy IT supports remote monitoring of employees. . violating privacy and creating stress.Ethical and Societal Issues The Not-So-Bright Side  Consumer Privacy Organizations collect (and sometimes sell) huge amounts of data on individuals.

less than 3% have Internet access. .Ethical and Societal Issues The Not-So-Bright Side  Freedom of Speech IT increases opportunities for pornography.  Social Inequality Less than 20% of the world¶s population have ever used a PC. prevention may abridge free speech.  IT Professionalism No mandatory or enforced code of ethics for IT professionals--unlike other professions. an d other intrusions. hate speech. intellectual property crime.

NEED FOR INFORMATION     To improve representation of an entity To update the level of knowledge To reduces uncertainty To aid in decision making. planning and control .

ORGANIZATION AND INFORMATION EXTRNAL LOW TOP MGMT SOURCES OF INFORMATION MIDDLE MGMT OPERATIONAL MGMT STRUCTURED INFORMATION INTERNAL ORGANIZATION STRUCTURE HIGH .

The Traditional Organizational Pyramid .

Characteristics of Information at Different Managerial Levels  Data Scope Amount of data from which information is extracted  Time Span How long a period the data covers  Level of Detail Degree to which information is specific .

Internet . government agencies.Characteristics of Information at Different Managerial Levels  Source: Internal vs. External Internal data: collected within the organization External data: collected from outside sources  Media. newsletters.

conversations.  Valuable in managerial decision making . presentations.Characteristics of Information at Different Managerial Levels  Structured and Unstructured Data Structured data: numbers and facts easily stored and retrieved Unstructured data: drawn from meetings. etc. documents.

Characteristics of Information at Different Managerial Levels .

Characteristics of Effective Information  Tabular and Graphical Representation Certain information better presented graphically    Trends as lines Distributions as pie charts Performance comparisons as bar charts Many people prefer tabular data for complex problem solving .

Tabular and Graphical Representation .

On-line Analytical Processing (OLAP)  Cube of tables showing relationships among related variables Operates on specially organized data or on relational database data Easily answers questions like ³What products are selling well?´ or ³Where are the weakestperforming sales offices?´ Faster than relational applications    .

) .OLAP (Cont.

OLAP (Cont.) .

Business Intelligence  Generate quickly figures and ratios about store sales. inventory. profitability. category reviews and more Tracking information for operations as well as for sales and marketing use  .

Dynamic Representation  Data presented in real time Includes moving images representing speed or direction Changing colors represent rate of change Use expected to grow    .

Managers and Their Information Systems .

Types of organization    Functional organization Project organization Matrix organization .

transforms and disseminates information in an organization or a system that accepts data resources as input and process them into information products as output. .INFORMATION SYSTEM Information system are a set of people. procedures and resources that collects.

storage and control activities that transform data resources into information products. Information system is a system that uses the resources of hardware. output. processing. . software and people to perform input.

Organizational Structure  IT Flattens the Organization Eliminates middle managers .

or location of work More successful for smaller.The Matrix Structure People report to different supervisors. depending on project. entrepreneurial firms IT supports matrix structure Easier access to cross-functional information    . product.

The Matrix Structure .

The term system is generally used for a group of actions. it is a set of related activities which may or may not involve computers. In general. . used for processing data.SYSTEMS  System is defined as a set of elements arranged in an orderly manner to accomplish an objective. personnel and procedures.

COMPONENTS of a system INPUT PROCESS ENVIRONMENT OUTPUT INPUT PROCESS OUTPUT FILTER Generalized Model of a System .

TYPES OF SYSTEM       Sub system Black box system Closed system Open system Deterministic system Probability system .

current & future Relevance & utility for DM On time when needed Just in Time . 7. 5. 2. Accuracy in representation Complete in content Form of presentation Frequency of reporting Scope of coverage Sources of collection Time dimension: Past.Attributes of Information 1. 8. 10. 9. 4. 3. 6.

Fundamental Roles of IS in Business .

Business: A system of systems Purchasing Distribution Management & Administration Receiving Collection Inventory Billing Sales Business: System of Systems Production .

Organizational Levels and Functions .

Four Major Types of IS .