Q1. What is an Information system? Explain its structure and components.

 Information system is an integrated set of components for collecting, storing, and

processing data and for providing information, knowledge, and digital products.
 Information systems are interrelated components working together to collect, process,
store, and disseminate information to support decision making, coordination, control, and
analysis in an organization.
 Information systems are combinations of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute useful data, typically in
organizational settings.
 Three activities in an information system produce the information that organizations need
to make decisions, control operations, analyze problems, and create new products or
services. These activities are input, processing, and output.

Components of Information Systems

An information system is essentially made up of five components hardware, software, database,

network and people.

1. Resources of people- End users and IS specialists, system analyst, programmers, data
administrators are involved in this. They can be accountants, salespersons, engineers, customers, or
managers. Most of us are information system end users.
2. Hardware: It involves machines and computer systems.
• Machines: Such as computers and other equipment along with all data media, objects on which
data is recorded and saved.
• Computer systems: It consist of variety of interconnected peripheral devices. Examples are
microcomputer systems, midrange computer systems, and large computer systems.
3. Software: It involves programs and procedures. Software resources includes all sets of
information processing instructions.
• System software, such as an operating system
• Application software, which are programs that direct processing for a particular use of computers
by end users.
• Procedures, which are operating instructions for the people, who will use an information system.
Examples are instructions for filling out a paper form or using a particular software package.
4. Data: It involves data and knowledge bases. Data resources include data which is raw material of
information systems and database. Data can take many forms, including traditional alphanumeric
data, composed of numbers and alphabetical and other characters that describe business
transactions and other events and entities.
5. Networks: It involves communications media and network support. Telecommunications
networks like the Internet, intranets, and extranets have become essential to the successful
operations of all types of organizations and their computer-based information systems.
Structure of Information system

Strategic Planning Level

 Fixing of Broad Goals
 Policies and General guidelines

Management Control & Tactical Planning Level

 For raising and utilization of resources
 Acquisition of tactics
 New product development
 Establishment and monitoring of budget

Requires information about

 Targets and actual
 Variations

Operational planning and control level

For efficient and effective use of existing resources to carry out activities within budget constraints.
Requires very short term information
 Production target
 Sales target
 Information about pre established rules and procedures.
 Q2. How MIS can be a tool for management process?

 Organizations use MIS to make executive decisions in all phases of the business. Using a
management information system, the organization is able to procure, analyze and
document facts and figures on all of its strategic business functions. Once an analysis is
done, the company top management then bases its decisions on the reports generated
by an MIS. Whenever there are tweaks in the functioning, the management is able to
take corrective action immediately.
 The management process requires a lot of data and information for execution of the
plan. This requirement arises on account of the fact in each step of management, a
variety of decisions are taken to correct the course of development. The decisions or
actions are prompted due to the feedback given by the control system incorporated in
the management system. The control of overall performance is made possible by way of
budget summarizes and reports.
 If effective management system is to be assured, it has to rest on business information.
The management performance improves if the business risk and uncertainties are
handled effectively. If the information provided is adequate, one can deal with these
factors squarely. The information support improves the lack of knowledge, enriches
experience and improves analytical abilities leading to better business judgment.  So, if
efficient information support is to be provided, it calls for a system with the goals of
generating management information. A good MIS must furnish information to the
managers to expand their knowledge base.  Manager must know the adverse trends in
business, the shortfalls and failures in the management process.

 The control of overall performance is made possible by the way of budget summaries and
reports.
 To support decision making - Decision makers need information to make effective decisions.
 Support operation of a business organization - It gives timely information, maintenance and
enhancement of business operations. 
 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
 Record keeping: Management information systems record all business transactions of an
organization and provide a reference point for the transactions.
 The information improves knowledge, enriches experience and improves analytical abilities leading
to better business judgment.