DESIRED LEARNING OUTCOMES (DLO)

At the end of the topic, the learner must:

1. Define the term Management Information System.
2. Define the term Information.
3. Identify the different IS Managers and define its functions.

INTRODUCTION TO MANAGEMENT INFORMATION

SYSTEM (MIS)
A Management Information System (MIS) focuses on the management of information
systems to provide efficiency and effectiveness of strategic decision making. The concept may
include systems termed transaction processing system, decision support system, expert
system, or executive information system. The term is often used in the academic study of
businesses and has connections with other areas, such as information systems, information
technology, informatics,e-commerce and computer science; as a result, the term is used
interchangeably with some of these areas.

Information is a set of classified and interpreted data used in decision making. It has also been
defined as some tangible or intangible entity which serves to reduce uncertainty about future
state or events.

A Management Information System (MIS) is an integrated user-machine system for providing

information to support operations, management and decision-making functions in an
organization. The system utilizes computers, manual procedures, models for analysis, planning,
control and decision making, and a database.

MIS facilitates managerial functioning. Management information is an important input at every

level in the organization for decision making, planning, organizing, implementing, and
monitoring and controlling. MIS is valuable because of its content, form and timing of
presentation. In the context of different levels of decision making, information can be described
as: source, data, inferences and predictions drawn from data, value and choices
(evaluation of inferences with regard to the objectives and then choosing a course of action),
and action which involves course of action. The MIS concept comprises three interrelated
and interdependent key elements: management, system and information.
DIFFERENT AREAS OF CONCENTRATION OF AN ISM

There are different areas of concentration with different duties and responsibilities in information
system managers starting from the Chief information officer (CIOs), Chief technology officer
(CTOs), IT directors and IT security managers.

1. Chief Information Officers (CIOs)- are responsible for the overall technology stately of
their organizations. Basically, they are more of the decision makers and action takers
when it comes down to determining the technology or information goals of an
organization and making sure the necessary planning to implement those goals is being
met.

2. Chief Technology Officers (CTOs)- are responsible for evaluating how new technology
can help their organization. They usually recommend technological solutions to support
the policies issued by the CIO.

3. IT Directors- including MIS directors are in charge of both their organization's

Information technology departments and the supervision of thereof. They are also in
charge of implementing the policies chosen by the other top branches (CIOs, CTOs). It
is their role to ensure the availability of data and network services by coordinating IT
activities.

4. IT Security Managers- oversee the network and security data as the title implies. They
develop programs to offer information and awareness to their employees about security
threats. This team is very important because they must keep up-to-date on IT security
measures in order to be successful within their organization. Any security violations need
to be investigated and supervised by this specific team.
 SELF-TESTING ACTIVITY NO. 1
Name: Date:
Course / Section: Score

MATCHING TYPE: Match Column A with Column B. Write the letter of the correct answer
before the number.

COLUMN A COLUMN B

1. IS Security Managers A. Information System Managers

2. Information B. they recommend technological

solutions to support policies

3. Mngt. Information System C. System

4. IT Directors D. They ensure availability of data and

network services by coordinating IT activities

5. Chief Information Officer E. are more of the decision makers and action
takers

6. Chief Technology Officer F. Management

7. Key Elements of MIS G. Focuses on the management of information

systems to provide efficiency and effectiveness
of strategic decision making

8. Key Elements of MIS H. Information

9. Key Elements of MIS I. They oversee the network and data security

10. ISM J. is a set of classified and interpreted data

used in decision making
DESIRED LEARNING OUTCOMES (DLO)
At the end of the topic, the learner must:
1. Identify the Fiveeras of Management Information System.
2. Cite the Eight Characteristics of Good MIS.
3. Identify the Types of MIS and the terminology used.

FIVE ERAS OF MANAGEMENT INFORMATION SYSTEM

Kenneth and Aldrich Estel identify fiveeras of Management Information System evolution
corresponding to the five phases in the development of computing technology.

1. mainframe and minicomputer computing,

2. personal computers,
3. client/server networks,
4. enterprise computing, and
5. cloud computing.

The first era (mainframe and minicomputer) was ruled by IBM and their mainframe computers;
these computers would often take up whole rooms and require teams to run them—IBM
supplied the hardware and the software. As technology advanced, these computers were able
to handle greater capacities and therefore reduce their cost. Smaller, more affordable
minicomputers allowed larger businesses to run their own computing centers in-house / on-site /
on-premises.

The second era (personal computer) began in 1965 as microprocessors started to compete
with mainframes and minicomputers and accelerated the process of decentralizing computing
power from large data centers to smaller offices. In the late 1970s, minicomputer technology
gave way to personal computers and relatively low-cost computers were becoming mass market
commodities, allowing businesses to provide their employees access to computing power that
ten years before would have cost tens of thousands of dollars. This proliferation of computers
created a ready market for interconnecting networks and the popularization of the Internet.
(NOTE that the first microprocessor — a four-bit device intended for a programmable calculator
— was introduced in 1971 and microprocessor-based systems were not readily available for
several years. The MITS Altair 8800 was the first commonly known microprocessor-based
system, followed closely by the Apple I and II. It is arguable that the microprocessor-based
system did not make significant inroads into minicomputer use until 1979, when VisiCalc
prompted record sales of the Apple II on which it ran. The IBM PC introduced in 1981 was more
broadly palatable to business, but its limitations gated its ability to challenge minicomputer
systems until perhaps the late 1980s to early 1990s.)

As technological complexity increased and costs decreased, the need to share information
within an enterprise also grew—giving rise to the third era (client/server), in which computers
on a common network access shared information on a server. This lets thousands and even
millions of people access data simultaneously. The fourth era (enterprise) enabled by high
speed networks, tied all aspects of the business enterprise together offering rich information
access encompassing the complete management structure. Every computer is utilized.

The fifth era (cloud computing) is the latest and employs networking technology to deliver
applications as well as data storage independent of the configuration, location or nature of the
hardware. This, along with high speed cellphone and Wi-Fi networks, has led to new levels of
mobility in which managers may access the MIS remotely with laptops, tablet computers and
smartphones.

EIGHT CHARACTERISTICS OF GOOD MIS

1. Understandable - since information is already in a summarized form, it must be

understood by the receiver so that he will interpret it correctly. He must be able to
decode any abbreviations, shorthand notations or any other acronyms contained in the
information.

2. Relevant - information is good only if it is relevant. This means that it should be pertinent
and meaningful to the decision maker and should be in his area of responsibility.
3. Complete- it should contain all the facts that are necessary for the decision maker to
satisfactorily solve the problem at hand using such information. Nothing important should
 be left out. Although information cannot always be complete, every reasonable effort
should be made to obtain it.
4. Available - information may be useless if it is not readily accessible in the desired form,
when it is needed. Advances in technology have made information more accessible
today than ever before.
5. Reliable - the information should be counted on to be trustworthy. It should be accurate,
consistent with facts and verifiable. Inadequate or incorrect information generally leads
to decisions of poor quality. For example, sales figures that have not been adjusted for
returns and refunds are not reliable.
6. Concise - too much information is a big burden on management and cannot be
processed in time and accurately due to “bounded rationality”. Bounded rationality
determines the limits of the thinking process which cannot sort out and process large
amounts of information. Accordingly, information should be to the point and just enough
– no more, no less.
7. Timely - information must be delivered at the right time and the right place to the right
person. Premature information can become obsolete or be forgotten by the time it is
actually needed.Similarly, some crucial decisions can be delayed because proper and
necessary information is not available in time, resulting in missed opportunities.
Accordingly the time gap between collection of data and the presentation of the proper
information to the decision maker must be reduced as much as possible.
8. Cost-effective - the information is not desirable if the solution is more costly than the
problem. The cost of gathering data and processing it into information must be weighed
against the benefits derived from using such information.

TYPES AND TERMINOLOGIES OF DIFFERENT SYSTEMS

The terms Management Information System (MIS), Information System, Enterprise Resource
Planning (ERP), and Information Technology Management (ITM) are often confused.
Information systems and MIS are broader categories that include ERP. Information technology
management concerns the operation and company of information technology resources
independent of their purpose.
 Management Information Systems produce fixed, regularly scheduled reports based
on data extracted and summarized from the firm’s underlying transaction processing
systemsto middle and operational level managers to identify and inform semi-structured
decision problems.
 Decision Support Systems (DSS) are computer program applications used by middle
and higher management to compile information from a wide range of sources to support
problem solving and decision making. A DSS is used mostly for semi-structured and
unstructured decision problems.
 Executive Information Systems (EIS) is a reporting tool that provides quick access to
summarized reports coming from all company levels and departments such as
accounting, human resources and operations.
 Marketing Information Systems are Management Information Systems designed
specifically for managing the marketing aspects of the business
 Accounting Information Systems are focused accounting functions.
 Human Resource Management Systems are used for personnel aspects.
 Office Automation Systems (OAS) support communication and productivity in the
enterprise by automating workflow and eliminating bottlenecks. OAS may be
implemented at any and all levels of management.
 School Information Management Systems (SIMS)covers school administration, and
often including teaching and learning materials.
 Enterprise Resource Planning facilitates the flow of information between all business
functions inside the boundaries of the organization and manages the connections to
outside stakeholders.
 SELF-TESTING ACTIVITY NO. 2
Name: Date:
Course/ Section Score

COMPLETION:Complete the table below. Write your answer on the space provided.

Computing Era Phases of Development in Computing Technology

First Era

Second Era

Third Era

Fourth Era

Fifth Era

MODIFIED TRUE OR FALSE. Read and analyze each item. Write #IamWise if the statement is
correct. If the statement is wrong, change the underline word or words to make the statement
correct. (Two points each number)
1. Information must be delivered at the wrong time and the right place to the wrong person.
2. A MSS is used mostly for full structured and unstructured decision problems.
3. Information Technology System concerns the operation and company of information
technology resources relevant of their purpose.
4. Information should inaccurate, consistent with facts and not verifiable.
5. Executive Information Systems (EIS) is a reporting tool that provides quick access to
summarized reports coming from all company levels and departments such as
accounting, human resources and operations.
 SELF-TESTING ACTIVITY NO. 3
Name: Date:
Course/ Section Score

MULTIPLE CHOICE: Read and analyze the statements carefully. Choose the best answer.
Shade the letter of your answer.

A B C D
1. The first era in computing was creation of the __________.
A. Mainframe and minicomputer C. Minicomputer and medium PC
B. Personal Computer and mainframe D. Large PC and microcomputer

2. The first microprocessor was relased in the year __________.

A. 1970 B. 1971 C. 1972 D. 1973

3. The client-server era which allows access to people is on _____ era.

A. First B. Second C. Third D. Fourth

4. The cloud computing is on ___________ era.

A. Second B. Third C. Fourth D. Fifth

5. The first commonly known microprocessor is ______________.

A. Altair 8800 B. Altair 9800 C. VisCalc69 D. VisCalc175

6. The Fourth Era is the _____________ era.

A. Design B. Making C. Testing D. Enterprise

7. It should contain all the facts that are necessary for the decision maker to
solve the problem at hand using such information is _____.
A. Relevant B. Concise C. Timely D. Complete

8. It is focused on accounting functions. It is the _____________.

A. EIS B. AIS C. DSS D. OAS

9. It covers school administration. It is the ________________.

A. OAS B. ERP C. SIMS D. HRMS

10. The personal computer began in _______ as microprocessor started.

A. 1975 C. 1985
B. 1965 D. 1995