MANAGEMENT INFORMATION

SYSTEMS
An Introduction

Session: 2014-15

Trimester III

Objectives

The Role of Information Systems

MIS : A concept, its importance
Management: What is management?
Information: What is information?
Systems: What are systems?
Definition of MIS

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The Role of Information systems

Information Systems are Transforming Business

Technology, to a large extent, has driven organizations to
change the way they operate and that includes the way
they manage

Increase in wireless technology use, Web sites

Shifts in media and internet advertising

Globalization challenges and opportunities

Internet has drastically reduced costs of operating on

global scale

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The Role of Information systems

In the emerging, fully digital firm

Significant business relationships are digitally enabled
and mediated
Core business processes are accomplished through
digital networks
Key corporate assets are managed digitally

Digital firms offer greater flexibility in

organization and management

Time shifting, space shifting

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The Role of Information systems

Strategic Business Objectives of Information Systems

Business firms invest heavily in information to
achieve six strategic business objectives:
Operational

excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival
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MIS : A Concept

MIS acronym of three words

Management
Information
System

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Management

What is management?
Management

is an art of getting things done through

others to achieve certain objectives of the organization.

It involves:

Planning

Organizing

Staffing

Directing

Controlling

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Management: What is management?

Planning
Setting

Goals and objectives

Setting time period for the plan
Lay down Polices, procedures, rules, programmes
Forecasting
Budget
Organizing
Analyzing

the activities to be performed

Dividing the jobs into subtasks
Allocating and Delegating Authority
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Management: What is management?

Staffing
Putting

right person at the right place

Training and development
Delegation of responsibilities
Directing
Leadership
Motivation

Communication

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Management: What is management?

Controlling:

Resources- Money (capital),

manpower (people), materials, machines,
movement (Distribution, flow), and Information
Fixing

standards
Measuring actual
Evaluating
Reporting
Taking corrective action

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What Managers do?

According the French management theorist, Henri

Fayol, managers perform five major functions.
They plan what they are to do
They organize to meet the plan.
They staff their organization with the necessary
resources.
They direct the available resources to execute the plan.
Finally, they control the resources, keeping them on
course.

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Management Hierarchy

Strategic Management
Management Control

Operational Control

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Information

What is information?
A definition: Information is data that has been processed
into a form that is meaningful to the recipient (USER)
and is presented in a form which assists decision makers
It may contains---

an element of surprise
reduce uncertainty or
provoke a manager to initiate an action

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Transforming Data Into Information

Data Inputs

Information Outputs

Query Response
External Internal Capture
Data
Data
Decision Outcome
Manipulation
Expert-System Advice
Storage
Transaction Document
Provision of Access
at User Location
Report

Organization
Environment

Information System
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Information sources

External Information
Govt.

polices
Economic trends
Availability and cost of
various resources
Competitors activities
Customer feedback

Internal Information
Sales

forecast
Financial resources and
plans
Capacity utilization
pattern
Personnel utilization
pattern
Budget allocation and
utilization
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Information needs
Information
Top

Management:
Unstructured,
Non-programmed,
Futuristic,
Approximate,
External

Operating

needs of different management levels

Management:

Structured,
Programmed,
Historical,
Exact,
Internal
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Characteristics of Information

Relevance
Timeliness
Accuracy
Completeness
Summarization
Reliability

Validity
Consistency
Age
Impartiality
Frequency
Cost-benefit Analysis

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System

A definition of a system:
A

system is a set of interrelated components

(subsystems or elementary parts) that
operate together to achieve a common
objective (or multiple objective).

Business is also a system

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Systems Concepts
General Model of a System:
Input, process and output.
Elements of a system define its boundary
The

system is inside the boundary and the

environment is outside the boundary.

Boundary

depicts the scope of activities.

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Systems Concepts
A

system is composed of subsystems

The

interconnections and interactions between the

subsystems are the INTERFACES.

Example

of a system: An information system:

subsystems:

PC Monitor, PC software, PC hard disk,

User.

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System and its subsystem

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Management Information Systems

Management Information Systems

Definition: A Management Information system is:

an integrated user-machine system
for providing information
to support the operations, management, analysis, and decision
making functions
in an organization
The system utilizes
Computer hardware & software
Manual procedures
Models of analysis, planning, control, and decision making and
a database.

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Management Information Systems

MIS can provide managers with information in a
usable from.
A

MIS is a formal Information network using computers to

provide management information for decision making
The goal of MIS is to provide the correct information to
the appropriate manager at the right time in a useful
form.

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