DEFINITION OF INFORMATION SYSTEM
 All necessary information that supports the
 Information System
 is an organized combination of people,
hardware, software, communications
networks and data resources that collects,
transforms, and disseminates information in
organizations.
 An integrated set of components for
collecting, storing and processing data;
and for providing information, knowledge
and digital products to the end users
 Businesses rely on information to manage their
operations, interact with their customer,
suppliers and to be able to compete in their
CLASSIFICATION OF INFORMATION SYSTEM
own area
 Management Support
 Are used to run inter organizational supply
 Support of Knowledge Work
chain and electronic markets within an entity
 Specialized system that is build to promote
 Ultimate goal is to generate business
intelligence
TYPES OF INFORMATION SYSTEM
 Knowledge Work System is a system that is
 Operational Support
DEFINITION OF MANAGEMENT INFORMATION SYSTEM
 Management Information System (MIS)
 Executive Information System (EIS)
 are computer- based systems that provide
the top managers with capability to attain
easy access to internal and external
information which are relevant to support
strategic decisions and other executive
responsibilities
 Management Reporting System (MRS)
 is a type of IS which is a part of management
system that provides business information in
the form of reports or other statement that is
designed to assist the member of
management by providing timely pertinent
information.
 Decision Support System (DSS)
 Computerized program or system that use to
support determinations, judgements and
courses of action in an organization or
business
 Digs through and analyzes huge amount of
data from all other IS across other entity;
compiles this comprehensive information that
would be used to support decision or a
judgement or a course of action by the top
management
 It helps solve problems and it helps primarily in
the decision making of the management
 Business Intelligence Systems
 Office Information Systems
 Knowledge Management Systems
 Transaction Processing Systems
 Processes of the company’s business
transactions and support the operations of an
enterprise
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operation of an enterprise are being
stored, collected and processed by the TPS
 Have been applied to structures tasks such as
record keeping, simple clerical operations
and inventory control
 Ex: Payroll was one of the first application to
be automated. TPSs focus on data
collection and processing, and they have
provided enormous reductions in costs
 Operations – computers are most beneficial in
transaction-processing operations
creation of knowledge and make sure that
such knowledge and technical skills are
properly integrated into the business
build to promote the creation of knowledge
 This is where we build up technical
skills and necessary information that
would later on be catered to the
management support
 A system based on the database of the
evolved for the purpose of providing
information to the people in the organization
 An organized integration of hardware and
software technologies, data, process and
human elements
 An integrated system that helps the
management with relevant information to run
the business effectively and efficiently
 The core aim is to make the raw data into
useful information that helps in managerial
decision making
 Information System is used to reduce costs
and gain competitive advantage in the
market place
 Ex: Personal digital assistants (PDA) used to
conduct business on the go;
 Internet is used for all kinds of
activities, from shopping to
learning to working
 Networking/social networking sites is
used to give customers up-to-date
information and how-to support via
videos
 Computers and information
technology will help the knowledge
workers of the future perform more
effectively and productively
 Connection to connect to the rest of
the world to share information,
knowledge, videos, ideas and almost
anything that can be digitalized
 Computer Literacy is skill in using
productivity software, such as word
processors, spreadsheets, database
systems and presentation software
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 Information Literacy is understanding

 A collection of all relevant data organized in
the role of information in
a series of integrated files
generating and using business
 Comprehensive database is essential for the
intelligence
success of any information system
 Business Intelligence is more than
 Reducing time – databases are also important
just information, it is corner stone
for reducing personnel time needed to
of management information
gather, process and interpret data manually
systems and provides the context
 Decision making – the purpose of an
on how we used technology
information system’s process component is
 Hardware include input, output, and
generating the most useful type of
memory devices and vary
information for making decisions
depending on the application and
 Ex: transaction processing reports and
the organization
models for taking analysis that can be
 Software – MIS Software can include
built to the system or exert from an
commercial programs, software
external source
developed in-house, or both. The
 Reports – IS can include a wide range of
application or organization
models to support all levels of decision
determines the type of software used
making. Users should be able to query an
 Processes are usually methods for
information system and generate a variety of
performing a task in an
reports
MIS Application
 Information – different from data
 Human Element includes users,
 Usefulness – the quality of information is
programmers, system analysts, and
determined by its usefulness to users, and its
other technical personnel
usefulness determines the success of an IS
 Qualities of relevant data
DESIGNING AN MANAGEMENT INFO SYSTEM
 Timeliness
 Objectives – in designing an MIS, the first task is to
 Integration with other data and
clearly define the system’s objectives
information
 Data – second, data must be collected and
 Consistency and accuracy
analyzed
 Relevance
 Information – must be provided in a useful format
 Insights – if information lacks any of these
for decision-making purposes
qualities, the results are incorrect decisions,
misallocation of resources and overlooked
INFORMATION SYSTEM 4 MAJOR COMPONENTS
windows of opportunity
 Data is considered the input to the system
 Process
 Information that users need affects the type of
 Information is the second most important resource
data that is collected and used
(after human element) in any organization
 Sources – IS should collect data from both
 Personnel Information System (PIS)/ Human
sources, although organizational objectives
Resource Information System (HRIS) is
and the type of application also determine
designed to provide information that helps
what sources to use
decision makers in personnel carry out
 Internal data includes sales records,
their tasks more effectively
personnel, records etc.
 Also known as Human Resource
 External data includes customers, competitors
Management System
and suppliers; government agencies and
 HRIS support Decisions:
financial institutions; labor and population
 Choosing the best job
statistics; economic conditions
candidate
 Time – data has a time orientation too.
 Scheduling and assigning
 Ex: past data is collected for
employees
performance reports; current data is
 Predicting future personnel
collected for operational reports
needs
 Future Data is predicted for budgets or cash
 Providing statistics on
flow reports
employee demographics
 2 FORMS OF DATA COLLECTION
 Allocating human and
 Aggregated like sub-totals or
financial resources
categories of information
 Logistics Information System (LIS) is designed
 Can be useful for reporting
to reduce the cost of transporting materials
overall performance during
while maintaining safe and reliable delivery
a particular sales quarter, for  LIS support Decisions:
example, but it limits the
 Improving routing and
ability of decision makers
delivery schedules
to focus on specific factors
 Selecting the best modes of
 Disaggregated like itemized lists
transportation
 Goals – if an organization has defined its
 Improving transportation
strategic goals, objectives and critical success
budgeting
factors, then structuring the data component
 Improving shipment planning
to define what type of data is collected and
 Manufacturing Information System (MFIS) is
in what form is usually easy
used to manage manufacturing resources
 Relevant data is organized in a series of
so companies can reduce manufacturing
integrated files
costs,
 Database is the heart of an IS
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increase product quality, and make better 4. Prediction/forecasting – MIS can predict business
inventory decisions using historical data as a base
 MFIS support Decisions:
 Ordering decisions
 Product cost calculations
 Space utilization
 Bid evaluation process
 Analysis of price charges and
discounts
 Financial Information System (FIS) goal is to
provide information to financial executives in
a timely manner
 FIS support Decisions:
 Improving budget allocation
 Minimizing capital
investment risks
 Monitoring cost trends
 Managing cash flows
 Determining portfolio
structures
 Marketing Information Systems (MKIS) are
used to improve marketing decisions
 MKISs Support Decisions:
 Analyzing market share,
sales, and sales personnel
 Sales forecasting
 Price and cost analysis of
items sold
 Strategies – IS can help organizations reduce
the cost of products and services and, if
designed correctly, they can assist with
differentiation and focus strategies
 Information technologies can help
bottom-line and top-line strategies
 IT job market has been one of the
fastest growing segments in the
economy
 Education – educational background for OT
position can include an AA, BA, BS, MS, or
MBA in information systems and related fields
 Salaries – vary based on educational
background, experience and the job’s
location

FUNCTIONS OF MIS
1. Data Capturing is the process of gathering data from
various sources
 Customer touchpoint like stores, e-commerce
sites, mobile shopping, self-checkout etc.
 Output of one or more systems like sales,
finance, market analysis, operations etc.
 Digital and social media sites
1. Data Storage – all data collected are stored on
database or data files
 These data are also stored in various storage
media like hard drive, DVDs etc.
 Cloud-based applications stores data on
virtual servers
2. Data Processing is converting raw data into
meaningful information
 Important function of MIS, is the core
necessity for achieving competitive
advantage
3. Data and information distribution are distribution of
right information to the right person at the right time
 The information can be in the form of
report, image, message file, form, video or
audio
 To facilitate comparison the information is
presented in the form of charts, tables,
graphs
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5. Planning – reports are generated based
enterprises’ needs. These reports help
management to plan in advance
 These enables each functional department
to work efficiently
6. Control – MIS helps in monitoring and
tracking operations against organizational plans
 The deviation between operations and the
organizational plan is analyzed for exercising
control

3 PRIMARY SOURCES OF MIS

1. Technology
2. Information
3. People

ROLE OF MANAGEMENT INFO SYSTEM

 It ensures that all appropriate data are
collected from various sources
 Data collected are to be processed and be
sent further in all the necessary destinations
that needs such information for decision
making and for problem-solving
 The system is expected to fulfill the
information needs of individuals, group of
individuals as well as the management and the
top management
 It satisfies the various need of other systems
 Helps in strategic planning, management and
operational control and transaction processing
 Does all the work for other systems in an
organization

CHARACTERISTICS OF MANAGEMENT INFO SYSTEM

 Management-oriented – the basic objective of MIS
is to provide information support to the management
in the organization for decision making
 It feed directly on what the management
needs and requires for a more effective
and efficient discharge of their duties
 Management directed – when MIS
is management-oriented, it should be
directed by the management because it is
the management who tells their needs and
requirements more effectively than anybody
else
 Integrated – it means a comprehensive or
complete view of all the subsystems in the
organization of a company
 Common data flow – the integration of
different sub-systems will lead to a
common data flow which will further help
in avoiding duplication and redundancy in
data collection, storage and processing
 Heavy planning-element – the preparation of MIS
is not a one- or two-day exercise.
 It usually takes 3 to 5 years and sometimes a
much longer period
 PROCESS INVOLVE IN MAKING MIS:
 Requires system survey
 Analysis of systems available in
the organization
 Design of system
 Implementation
 Testing
 Adapt to changes in the
environment
 Maintenance of the system
 Subsystem concept – when a problem is seen
in 2 sub parts, then the better solution to
the problem is possible

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 Common database – this is the basic feature

 Operations information systems gather
of MIS to achieve the objective of using MIS
comprehensive data, organize it and summarize it in
in business organization
a form that is useful for managers
 Computerized – MIS can be used without a
 Decision support systems help managers with the
computer, but the use of computers increases the
necessary information to make intelligent decisions
effectiveness and the efficiency of the systems
 Expert systems are meant to mimic humans in
 MIS can be created in a manual format
making decision in a specific field
 User friendly/flexible – MIS should be flexible
 Information as a resource – information is major
ELEMENTS OF MANAGEMENT INFO SYSTEM
ingredient of any MIS
1. Hardware
2. Software
FEATURE OF MANAGEMENT INFO SYSTEM
3. Control
 Timeliness refers to the time expectation for the
4. Databases and application programs
accessibility and time availability of information
5. People
 It can be measured as the time between
6. Telecommunications and networks
when information is expected and when it
is readily available for use
OUTPUTS OF MANAGEMENT INFO SYSTEMS
 Accuracy – MIS support accuracy and ensures that
 Schedules reports which are produced periodically or
the information in system is correct and without
on a schedule
any mistake
 Ex: daily, weekly, monthly
 Consistency or correctness refers to the requirement
 Key-indicator report which summarizes the previous
that any given database transactions must change
day’s critical activities
affected data only in allowed ways
 it is typically available at the beginning of
 Completeness – MIS should support completeness
each day
and have comprehensive information that are
 Demand Report which gives certain information at a
readily available to the users of the information
manger’s request
 Relevance – only relevant information is stored and
 Exception Report which is automatically produced
processed by the systems
when a situation is unusual or requires
management action
COMPONENTS OF MANAGEMENT INFO SYSTEM
1. Marketing Research System (MRS)
BENEFITS OF MANAGEMENT INFO SYSTEM
 Marketing Research can be seen as the
 It improves personal efficiency
systematic and objective search for and
 It expedites problem solving (speed up the progress
analysis of data and information relevant
of problem solving in an organization)
to the identification and solution of any
 It facilitates interpersonal communication
problem in the field of marketing
 It promotes learning or training
2. Marketing Intelligence System (MIS)
 It increases organizational control
 The process of acquiring and analyzing
 It generates new evidence in support of a decision
information in order to understand the
 It creates a competitive advantage over competition
market (both existing and potential
 It encourages exploration and discovery on the
customers)
part of the decision maker
 To determine the current and future needs
 It reveals new approaches to thinking about the
and preferences, attitudes and behavior of
problems space
the market
 It helps automate the Managerial process
 To assess changes in the business environment
that may affect the size and nature of the
market in the future
3. Internal Record System (IRS)
 Marketing managers rely on reports on orders,
sales, prices, costs, inventory level,
receivables, payables, and so on
 By analyzing this information, they can spot
important opportunities and problems
4. Decision Support System (DSS)
 Computer based information system that
supports business or organizational decision-
making activities
 Serve the management, operations and
planning levels of an organization and help to
make decisions which may be rapidly
changing and not easily specified in
advance

AIM OF MANAGEMENT INFO SYSTEM

 Main aim is to inform management and help them
make informed decisions about management and
the way business is run

TYPES OF MANAGEMENT INFO SYSTEM

 Transaction processing systems process a large
volume of routine, recurring transactions
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