Data & Data Processing

In computing, data is information that has been translated into a form that is efficient for movement
or processing. Relative to today's computers and transmission media, data is information converted
into binary digital form. It is acceptable for data to be used as a singular subject or a plural subject.
Raw data is a term used to describe data in its most basic digital format.

Data can be defined as a representation of facts, concepts, or instructions in a formalized manner,

which should be suitable for communication, interpretation, or processing by human or
electronic machine.
Data is represented with the help of characters such as alphabets (A-Z, a-z), digits (0-9) or
special characters (+,-,/,*,<,>,= etc.)
The concept of data in the context of computing has its roots in the work of Claude Shannon, an
American mathematician known as the father of information theory. He ushered in binary digital
concepts based on applying two-value Boolean logic to electronic circuits. Binary digit formats
underlie the CPUs, semiconductor memories and disk drives, as well as many of the peripheral
devices common in computing today. Early computer input for both control and data took the form
of punch cards, followed by magnetic tape and the hard disk.

Early on, data's importance in business computing became apparent by the popularity of the terms
"data processing" and "electronic data processing," which, for a time, came to encompass the full
gamut of what is now known as information technology. Over the history of corporate computing,
specialization occurred, and a distinct data profession emerged along with growth of corporate
data processing.

Whether the internet is used to research a topic, make transactions online, food ordering, data is
continuously generating each second. The amount of data has increased due to the increased
utilization of online shopping, social media and streaming services. A study has estimated that
1.7MB of data is generated each second for every single human being on this earth in 2020. To
avail and get intuitions from such huge amounts of data – data processing is useful.
So what is Data Processing? To be put in simple words is the collection, manipulation, and
processing of collected data for the intended use. It translates huge amounts of collected data into
a desirable form used by commoners to analyze and interpret the meaning of data processed. Data
processing in computers refers to the manipulation of data by computers. This is inclusive of output
formatting or transformation. Data flow through the memory and CPU to the output device and of
course, the reformation of raw data into machine language.

WHAT IS DATA PROCESSING?

Concept of Data processing is collecting and manipulating data into a usable and appropriate form.
The automatic processing of data in a predetermined sequence of operations is the manipulation
of data. The processing nowadays is automatically done by using computers, which is faster and
gives accurate results.
Thereafter, the data collected is processed and then translated into a desirable form as per
requirements, useful for performing tasks. The data is acquired from various sources like excel
file, database, text file data, and unorganized data such as audio clips, images, GPRS and video
clips. The most commonly used tools for data processing are Storm, Hadoop, HPCC, Statwing,
Qubole and CouchDB. The output is worthwhile information various file formats like a chart,
audio, table, graph, image, vector file depending on software or application necessary.
Therefore, the meaning of Data processing is a method of collecting raw data and converting it
into useful information. Data Processing is performed in a predetermined procedure by a team of
data scientists and data engineers in an organization.
HOW IS DATA PROCESSED?
Data processing requires six steps, and those are:

Data Collection: The primary stage of data processing is to collect data. Data is acquired from
sources like data lakes and data warehouses. The collected data must be trustworthy and of high
quality.

Data Preparation: Also called “pre-processing”, this stage is where the collected data is cleansed
by checking for errors and arranged for the following data processing stage. Elimination of useless
data and to generate quality data for quality business intelligence is the motive of this stage.
Data Input: The prepared data is translated into machine language by using a CRM such as
Salesforce and Redshift, a data warehouse.

Processing: The processing of input data is done for interpretation. The processing is
accomplished by machine learning algorithms. Their process is variable depending on the data
which is processed (connected devices, social networks, data lakes, etc.) and the intended use
(medical diagnosis, ascertain customer wants, examining advertising patterns, etc.).

Data Interpretation: The non-data scientists find this data very helpful. The data is converted
into videos, graphs, images and plain text. Members of a company can start analyzing this data
and applying it into their projects.
Data Storage: Storage utilization in future is the final step of processing. Effective properly
storage of data is necessary for compliance with GDPR (data protection legislation). Properly
stored data to be accessed easily and quickly by employees of an institution as and when needed
is of utmost importance.
DIFFERENT TYPES OF OUTPUT

The different types of output files in data processing are –

 Plain Text File – The text file is the simplest format of a data file will be exported as
Notepad or WordPad files.
 Table/Spreadsheet – the data is represented in columns and rows that helps in quick
analysis and understanding of data. Tables/ Spreadsheet allows numerous operations like
sorting & filtering in descending/ascending order and statistical operations.
 Charts and graphs – The most common features in almost all software is the graphs and
charts format. This format enables easy analysis of data by just a glance.
  Maps/Vector or Image File – The requirement to store and analyze spatial data and export
data can be fulfilled by this image and map formats.
 Specialized software can process software specific file formats.
DIFFERENT METHODS

The three prominent data processing methods are as follows:

Manual Data Processing: Data is processed manually in this data processing method. The entire
procedure of data collecting, filtering, sorting, calculation and alternative logical operations is all
carried out with human intervention without using any electronic device or automation software.
It’s a low-priced methodology and needs very little to no tools; however, it produces high errors
and requires high labor prices and much of your time.
Mechanical Data Processing: data is processed using machines and simple devices such as
typewriters, calculators, printing press, etc. Simple data processing operations can be
accomplished by this method. There are fewer errors compared to manual data processing, but the
only drawback is that this method cannot be utilized with the increase of data.
Electronic Data Processing: Data processing software and programs are used to process data. A
series of instructions are given to the software to process the data and produce the desired output.
It is more expensive but provides faster processing with the highest reliability and accuracy.

TYPES OF DATA PROCESSING

The types of data processing are as below:

 Batch Processing: The collection and processing of data is done in batches where there is
a huge quantity of data. E.g., the payroll system.
 Real-time processing: For a small quantity of data, real-time processing is done where
data can be processed within seconds of data input. E.g., withdrawing money from ATM
 Online Processing: As and when data is available, it is automatically entered in the CPU.
This is useful for processing of data continuously. E.g., barcode scanning
 Multiprocessing: This also goes by the name parallel processing, where data is fragmented
into small frames and processed in two CPUs within a single computer system. E.g.,
weather forecasting
 Time-sharing: Allocates computer resources and data in time slots to several users
simultaneously.
WHY WE SHOULD USE DATA PROCESSING

In the modern era, most of the work relies on data, therefore collection of large amounts of data
for different purposes like academic, scientific research, institutional use, personal and private use,
for commercial purposes and lots more. The processing of this data collected is essential so that
the data goes through all the above-stated steps and gets sorted, stored, filtered, presented in the
required format and analyzed.
The amount of time consumed and the intricacy of processing will depend on the required results.
In situations where large amounts of data are acquired, the necessity of processing to obtain
authentic results with the help of data processing in data mining and data processing in data
research gets inevitable.

Conclusion
Finally, to define data processing in simple terms, it is the procurement of worthwhile information
by conversion of data. The processing of data is done in six stages which are data collection, sorting
of data, storage of data, processing of data, data presentation and data analysis.
The three prominent methods of processing data are Mechanical, Electronic and Manual. Data
processing is crucial for organizations to create better business strategies and increase their
competitive edge. By changing the data into a legible format like graphs, charts and documents,
workers throughout the organization will be able to perceive and use the data to analyse and
interpret according to their requirements.

What is Information?
Information is organized or classified data, which has some meaningful values for the receiver.
Information is the processed data on which decisions and actions are based.
For the decision to be meaningful, the processed data must qualify for the following
characteristics−

 Timely − Information should be available when required.

 Accuracy − Information should be accurate.
 Completeness − Information should be complete.

Data Processing Cycle

Data processing is the re-structuring or re-ordering of data by people or machine to increase their
usefulness and add values for a particular purpose. Data processing consists of the following basic
steps - input, processing, and output. These three steps constitute the data processing cycle.

 Input − In this step, the input data is prepared in some convenient form for processing.
The form will depend on the processing machine. For example, when electronic
 computers are used, the input data can be recorded on any one of the several types of input
medium, such as magnetic disks, tapes, and so on.
 Processing − In this step, the input data is changed to produce data in a more useful form.
For example, pay-checks can be calculated from the time cards, or a summary of sales for
the month can be calculated from the sales orders.
 Output − At this stage, the result of the proceeding processing step is collected. The
particular form of the output data depends on the use of the data. For example, output data
may be pay-checks for employees.
Information System:
An information system is integrated and co-ordinated network of components, which combine
together to convert data into information. An information system (IS) is a formal, sociotechnical,
organizational system designed to collect, process, store, and distribute information.

The six components that must come together in order to produce an information system are:

1. Hardware: The term hardware refers to machinery and equipment. In a modern

information system, this category includes the computer itself and all of its support
equipment. The support equipment includes input and output devices, storage devices and
communications devices. In pre-computer information systems, the hardware might
include ledger books and ink.
2. Software: The term software refers to computer programs and the manuals (if any) that
support them. Computer programs are machine-readable instructions that direct the
circuitry within the hardware parts of the system to function in ways that produce useful
information from data. Programs are generally stored on some input/output medium, often
a disk or tape. The "software" for pre-computer information systems included how the
hardware was prepared for use (e.g., column headings in the ledger book) and instructions
for using them (the guidebook for a card catalog).
3. Data: Data are facts that are used by systems to produce useful information. In modern
information systems, data are generally stored in machine-readable form on disk or tape
until the computer needs them. In pre-computer information systems, the data are generally
stored in human-readable form.
4. Procedures: Procedures are the policies that govern the operation of an information
system. "Procedures are to people what software is to hardware" is a common analogy that
is used to illustrate the role of procedures in a system.
5. People: Every system needs people if it is to be useful. Often the most overlooked element
of the system is the people, probably the component that most influence the success or
failure of information systems. This includes "not only the users, but those who operate
and service the computers, those who maintain the data, and those who support the network
of computers."
6. Feedback: it is another component of the IS, that defines that an IS may be provided with
feedback (Although this component isn't necessary to function).
Characteristics of Information System
Information System plays a very important role in every aspect of an organization. These
characteristics are generic in nature.

Following are the characteristics of Information system:

• System Approach
The information system follows a System’s approach. The system’s approach implies a holistic
approach to the study of system and its performance in the light for the objective for which it has
been constituted.

• Management Oriented
The top-down approach must be followed while designing the IS. The top-down approach suggests
that the system development starts from the determination of management needs and overall
business objectives.
The IS development plan should be derived from the overall business plan. Management oriented
characteristic of IS also implies that the management actively directs the system development
efforts.

• Need-Based
IS design and development should be as per the information needs of managers at different levels,
strategic planning level, management control level and operational control level. In other words,
IS should cater to the specific needs of managers in an organization’s hierarchy.

• Exception Based
IS should be developed on the exception-based reporting principle, which means an abnormal
situation, i.e. the maximum; minimum or expected values vary beyond tolerance limits. In such
situations, there should be exception reporting to the decision-maker at the required level.

• Future Oriented
Besides exception-based reporting, IS should also look at the future. In other words, IS should not
merely provide past or historical information; rather it should provide information, on the basis of
projections based on which actions may be initiated.

• Integrated
Integration is a necessary characteristic of a management information system. Integration is
significant because of its ability to produce more meaningful information.
For example, in order to develop an effective production scheduling system, it is necessary to
balance such factors as setup costs, Workforce, Overtime rates, Production capacity, Inventory
level, Capital requirements and Customer services.
• Long Term Planning
IS is developed over relatively long periods. Such a system does not develop overnight. A heavy
element of planning is involved. The IS designer must have the future objectives and needs of the
company in mind.

• Sub-System Concept
The process of IS development is quite complex and one is likely to lose insight frequently. Thus,
the system, though viewed as a single entity, must be broken down into digestible sub-systems
which are more meaningful at the planning stage.

• Central Database
A central database is a mortar that holds the functional systems together. Each system requires
access to the master file of data covering inventory, personnel, vendors, customers, etc. It seems
logical to gather data once, validate it properly and place it on a central storage medium, which
can be accessed by any other subsystem.

Roles (Need) of Information System in Business

Although there are a seemingly endless number of software applications, there are three
fundamental reasons for all business applications of information technology. They are found in the
three vital roles that information systems can perform for a business enterprise:

Figure: The three fundamental roles of the business applications of information systems. Information systems provide an
organization with support for business processes and operations, decision making, and competitive advantage.

 Support of Business Processes and Operations. As a consumer, you regularly encounter

information systems that support the business processes and operations at the many retail
stores where you shop. For example, most retail stores now use computer-based
information systems to help their employees record customer purchases, keep track of
inventory, pay employees, buy new merchandise, and evaluate sales trends. Store
operations would grind to a halt without the support of such information systems.
 Support of Business Decision Making. Information systems also help store managers and
other business professionals make better decisions. For example, decisions about what lines
of merchandise need to be added or discontinued and what kind of investments they require
are typically made after an analysis provided by computer-based information systems. This
function not only supports the decision making of store managers, buyers, and others, but
also helps them look for ways to gain an advantage over other retailers in the competition
for customers.
 Support of Strategies for Competitive Advantage. Gaining a strategic advantage over
competitors requires the innovative application of information technologies. For example,
store management might make a decision to install touch-screen kiosks in all stores, with
 links to the e-commerce Web site for online shopping. This offering might attract new
customers and build customer loyalty because of the ease of shopping and buying
merchandise provided by such information systems. Thus, strategic information systems
can help provide products and services that give a business a comparative advantage over
its competitors.

Fundamental Resources of Information System

An information system consists of five major resources: people, hardware, software, data, and
networks. Let’s briefly discuss several basic concepts and examples of the roles these resources
play as the fundamental components of information systems. You should be able to recognize these
five components at work in any type of information system you encounter in the real world.

People Resources
People are the essential ingredient for the successful operation of all information systems. These
people resources include end users and IS specialists.

• End users (also called users or clients) are people who use an information system or the
information it produces. They can be customers, salespersons, engineers, clerks, accountants, or
managers and are found at all levels of an organization. In fact, most of us are information system
end users. Most end users in business are knowledge workers, that is, people who spend most of
their time communicating and collaborating in teams and workgroups and creating, using, and
distributing information.

• IS specialists are people who develop and operate information systems. They include systems
analysts, software developers, system operators, and other managerial, technical, and clerical IS
personnel. Briefly, systems analysts design information systems based on the information
requirements of end users, software developers create computer programs based on the
specifications of systems analysts, and system operators help monitor and operate large computer
systems and networks.

Hardware Resources
The concept of hardware resources includes all physical devices and materials used in information
processing. Specifically, it includes not only machines, such as computers and other equipment,
but also all data media, that is, tangible objects on which data are recorded, from sheets of paper
to magnetic or optical disks. Examples of hardware in computer-based information systems are:
• Computer systems, which consist of central processing units containing microprocessors and a
variety of interconnected peripheral devices such as printers, scanners, monitors, and so on.
Examples are handheld, laptop, tablet, or desktop microcomputer systems, midrange computer
systems, and large mainframe computer systems.

• Computer peripherals, which are devices such as a keyboard, electronic mouse, trackball, or
stylus for the input of data and commands, a video screen or printer for the output of information,
and magnetic or optical disk drives for the storage of data resources.

Software Resources
The concept of software resources includes all sets of information processing instructions. This
generic concept of software includes not only the sets of operating instructions called programs,
which direct and control computer hardware, but also the sets of information processing
instructions called procedures that people need.
It is important to understand that even information systems that do not use computers have a
software resource component. This claim is true even for the information systems of ancient times
or the manual and machine-supported information systems still used in the world today. They all
require software resources in the form of information processing instructions and procedures to
properly capture, process, and disseminate information to their users.
The following are examples of software resources:

• System software, such as an operating system program, which controls and supports the
operations of a computer system. Microsoft Windows and Unix are two examples of popular
computer operating systems.
• Application software, which are programs that direct processing for a particular use of
computers by end users. Examples are sales analysis, payroll, and word processing programs.
• 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 software package.

Data Resources
Data are more than the raw material of information systems. The concept of data resources has
been broadened by managers and information systems professionals. They realize that data
constitute valuable organizational resources. Thus, you should view data just as you would any
organizational resource that must be managed effectively to benefit all stakeholders in an
organization. The concept of data as an organizational resource has resulted in a variety of changes
in the modern organization. Data that previously were captured as a result of a common transaction
are now stored, processed, and analyzed using sophisticated software applications that can reveal
complex relationships among sales, customers, competitors, and markets. In today’s wired world,
the data to create a simple list of an organization’s customers are protected with the same energy
as the cash in a bank vault. Data are the lifeblood of today’s organizations, and the effective and
efficient management of data is considered an integral part of organizational strategy.

Data can take many forms, including traditional alphanumeric data, composed of numbers, letters,
and other characters that describe business transactions and other events and entities; text data,
consisting of sentences and paragraphs used in written communications; image data, such as
graphic shapes and figures or photographic and video images; and audio data, including the human
voice and other sounds.

Data Resources
The data resources of information systems are typically organized, stored, and accessed by a
variety of data resource management technologies into:

• Databases that hold processed and organized data.

• Knowledge bases that hold knowledge in a variety of forms, such as facts, rules, and case
examples about successful business practices.
For example, data about sales transactions may be accumulated, processed, and stored in a Web-
enabled sales database that can be accessed for sales analysis reports by managers and marketing
professionals. Knowledge bases are used by knowledge management systems and expert systems
to share knowledge or give expert advice on specific subjects. We explore these concepts further
in subsequent chapters.
Data versus Information. The word data is the plural of datum, though data commonly represents
both singular and plural forms. Data are raw facts or observations, typically about physical
phenomena or business transactions. For example, a spacecraft launch or the sale of an automobile
would generate a lot of data describing those events. More specifically, data are objective
measurements of the attributes (the characteristics) of entities (e.g., people, places, things, events).

Example. Business transactions, such as buying a car or an airline ticket, can produce a lot of data.
Just think of the hundreds of facts needed to describe the characteristics of the car you want and
its financing or the intricate details for even the simplest airline reservation.

People often use the terms data and information interchangeably. However, it is better to view data
as raw material resources that are processed into finished information products. Then we can define
information as data that have been converted into a meaningful and useful context for specific end
users. Thus, data are usually subjected to a value-added process (data processing or information
processing) during which (1) their form is aggregated, manipulated, and organized; (2) their
content is analyzed and evaluated; and (3) they are placed in a proper context for a human user.

The issue of context is really at the heart of understanding the difference between information and
data. Data can be thought of as context independent: A list of numbers or names, by itself, does
not provide any understanding of the context in which it was recorded. In fact, the same list could
be recorded in a variety of contexts. In contrast, for data to become information, both the context
of the data and the perspective of the person accessing the data become essential. The same data
may be considered valuable information to one person and completely irrelevant to the next. Just
think of data as potentially valuable to all and information as valuable relative to its user.

Example. Names, quantities, and dollar amounts recorded on sales forms represent data about
sales transactions. However, a sales manager may not regard these as information. Only after such
facts are properly organized and manipulated can meaningful sales information be furnished and
specify, for example, the amount of sales by product type, sales territory, or salesperson.

Network Resources
Telecommunications technologies and networks like the Internet, intranets, and extranets are
essential to the successful e-business and e-commerce operations of all types of organizations and
their computer-based information systems. Telecommunications networks consist of computers,
communications processors, and other devices interconnected by communications media and
controlled by communications software. The concept of network resources emphasizes that
communications technologies and networks are fundamental resource components of all
information systems. Network resources include:
• Communications media. Examples include twisted-pair wire, coaxial and fiber optic cables, and
microwave, cellular, and satellite wireless technologies.

•Network infrastructure. This generic category emphasizes that many hardware, software, and
data technologies are needed to support the operation and use of a communications network.
Examples include communications processors, such as modems and inter-network processors, and
communications control software, such as network operating systems and Internet browser
packages.

Types of Information Systems

Most businesses utilize six different information technology systems, each with functionality that
assists in managing a particular business unit or organizational level.

1. Transaction Processing Systems

A transaction encompasses all of the purchases and sales of products and services, along with any
daily business transactions or activities required to operate a company. Quantities and the types of
transactions performed vary, depending on the industry and size/scope of the company. Examples
of typical transactions include billing clients, bank deposits, new hire data, inventory counts, or a
record of client-customer relationship management data. By utilizing a TPS, organizations can
have a high level of reliability and accuracy in their user/customer data while minimizing the
potential for human error.

2. Office Automation Systems

An office automation system is a network of various tools, technologies, and people required to
conduct clerical and managerial tasks. Primarily, an office automation system assists in enhancing
communication among different departments so everyone can collaborate to complete a task. An
OAS can integrate with e-mail or word processing applications to ensure all communication data
is easily accessible and in one centralized location. By utilizing an office automation system,
businesses can improve communication between workers, streamline managerial activities, and
optimize knowledge management.

3. Knowledge Management Systems

The word knowledge refers to the understanding that individuals acquire through study or practice,
while management can be defined as the coordination of tasks from superiors to subordinates with
a specific goal or endpoint to be achieved. Therefore, the definition of knowledge management
can be identified as the process by which an organization or company collects, organizes, creates,
and manages information in order to make it easily available to all employees. A knowledge
management system stores and extracts information to help users enhance their knowledge and
optimize collaboration efforts to complete tasks. Examples of documents found in a knowledge
management system include employee training materials, company policies, and procedures,
or answers to customer questions.

4. Management Information Systems

A management information system (IS) is an information system used for decision-making, and
for the coordination, control, analysis, and visualization of information in an organization.
The study of the management information systems involves people, processes and technology in
an organizational context. In a corporate setting, the ultimate goal of the use of a management
information system is to increase the value and profits of the business. This is done by providing
managers with timely and appropriate information allowing them to make effective decisions
within a shorter period of time.

5. Decision Support Systems

A decision support system processes data to assist in management decision-making. It stores and
gathers the information required for management to take the proper actions at the correct time. For
example, a bank manager can use a DSS to assess the evolving loan trends to determine which
yearly loan targets to meet. Decision models are programmed into the IS to analyze and summarize
large quantities of information and put it into a visual that makes it understandable. Because a DSS
is interactive, management can easily add or delete data and ask important questions. This provides
the evidence required for mid-management to make the right choices that will ensure the company
meets its targets.

6. Executive Support System

Executive support systems are similar to a DSS but are primarily used by executive leaders and
owners to optimize decision-making. An expert system helps enterprise leaders find answers to
non-routine questions so they can make choices that improve the company's outlook and
performance. Unlike a DSS, an executive support system provides better telecommunication
functionality and a bigger computing functionality.

Objectives of MIS
MIS has five major objectives which include:

 Data Capturing
  Processing of Data
 Storage
 Retrieval
 Dissemination

Data Capturing
MIS capture data from various internal and external sources of the organization. Data capturing
may be manual or through computer terminals.

Processing of Data
The captured data is processed to convert into the required information. Processing of data is
done by such activities as calculating, sorting, classifying, and summarizing.

Storage of Information
MIS stores the processed or unprocessed data for future use. If any information is not
immediately required, it is saved as an organization record, for later use.

Retrieval of Information
MIS retrieves information from its stores as and when required by various users.

Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the organization.
It is periodic or online through a computer terminal.

Characteristics of MIS

Following are the characteristics of an MIS −

 It should be based on a long-term planning.
 It should provide a holistic view of the dynamics and the structure of the organization.
 It should work as a complete and comprehensive system covering all interconnecting sub-
systems within the organization.
 It should be planned in a top-down way, as the decision makers or the management should
actively take part and provide clear direction at the development stage of the MIS.
 It should be based on need of strategic, operational and tactical information of managers of
an organization.
 It should also take care of exceptional situations by reporting such situations.
 It should be able to make forecasts and estimates, and generate advanced information, thus
providing a competitive advantage. Decision makers can take actions on the basis of such
predictions.
 It should create linkage between all sub-systems within the organization, so that the
decision makers can take the right decision based on an integrated view.
 It should allow easy flow of information through various sub-systems, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practicability as possible.
  Although the MIS is an integrated, complete system, it should be made in such a flexible
way that it could be easily split into smaller sub-systems as and when required.
 A central database is the backbone of a well-built MIS.

Characteristics of Computerized MIS

Following are the characteristics of a well-designed computerized MIS −

 It should be able to process data accurately and with high speed, using various techniques
like operations research, simulation, heuristics, etc.
 It should be able to collect, organize, manipulate, and update large amount of raw data of
both related and unrelated nature, coming from various internal and external sources at
different periods of time.
 It should provide real time information on ongoing events without any delay.
 It should support various output formats and follow latest rules and regulations in practice.
 It should provide organized and relevant information for all levels of management:
strategic, operational, and tactical.
 It should aim at extreme flexibility in data storage and retrieval.

MIS Application in Business

MIS application in business falls into several different categories that provide information on all
forms of functioning within an organization. Executives and departments within an organization
could obtain any of the following forms of data:

 Business Intelligence System: In BI, all levels of management and executives can print
data and graphs showing information or trends relating to growth, costs, strategic control,
efficiency, risk and performance.
 Executive Information System: An EI system provides the same information as a BI
system, but with greater attention to detail and more confidential information, designed to
help top-level executives make choices that impact the entire organization.
 Marketing Information System: MI systems provide data about past marketing
campaigns so that marketing executives can determine what works, what does not work
and what they need to change in order to achieve the desired results.
 Transaction Processing System: TPS handles sales transactions and makes it possible for
customers to sort search results by size, color or price. This system can also track trends
related to sales and search results.
 Customer Relationship Management System: Keeping up with customers is key to
overall success, and CRMS helps companies know when and how to follow up with
customers in order to encourage an ongoing sales relationship with them.
 Sales Force Automation System: Gone are the days when sales teams must do everything
manually. SFA systems automate much of what must be done for orders and to obtain
customer information.
 Human Resource Management System: HRM systems track how much employees are
paid, when and how they are performing. Companies can use this information to help
improve performance or the bottom line.
  Knowledge Management System: Customers with questions want answers right away
and knowledge management systems allow them to access frequently asked questions or
troubleshoot on their own timetable.
 Financial Accounting System: Financial accounting systems help to track accounts
receivable and accounts payable, in order to best manage the cash flow of a company.
 Supply Chain Management System: SCM systems record and manage the supply of
finances, goods and data from the point of origin domestically or abroad, all the way to its
destination in the hands of a customer.

Who Uses MIS Business Applications?

Whether you recognize it or not, you have probably used an MIS application in your day-to-day
life as a customer. When you sort and filter your search on your favorite clothing site, you are
actually using MIS. Nearly everyone in an organization uses MIS business applications, whether
it is the salesperson using an order screen, the hiring manager choosing a new employee or the
CIO making major reorganizational shifts to keep a company in the black. MIS in company
operations makes business as we know it faster, more accurate and more profitable.

Improving MIS in Company Choices

The better a company's MIS business applications, the easier it is to make key decisions. In order
to improve MIS in company decision making, examine what is working or not in your
organization. If your MIS reports show increasing sales, but you are still in the red, try adjusting
your supply chain management system. If human resources show low productivity, yet increased
profit, consider removing parameters from the human resource management system. When in
doubt, MIS consultants can audit your current systems to help you get the results you are hoping
for.

Benefits of MIS
The advantages provided by MIS can be well-understood from points given below: –
Improved decision making: The first and foremost advantage of MIS is that it facilitates
managers in effective decision making. It is a computerized system which supplies all relevant
information to managers in timely manner. Availability of right information enables in developing
better understanding of business operations. Managers frame effective strategies in quick time
which results in practicing better control over all activities.
Fast data processing and information retrieval: This is one of crucial role played by the
computerized information system. Businesses are able to convert raw data into a meaningful piece
of information at a faster rate. It results in providing quality services to customers/clients.

Enhance data security: A computerized information system offers high security of data stored in
business database. It restricts the unwanted access to database server and also implement various
other security measures like user’s authentication, access right control, biometric authentication
system etc.
Eliminates data duplication: MIS designs database systems in a way where duplication of data
can be minimized to maximum possible level. Whenever a data is uploaded in one department, it
automatically become available to other departments also.
Improved data accuracy: Implementation of data validation and verification checks is quite
easier in computerized information system as compared to manual system. This way it ensures
more accuracy of data stored on company’s database.

Disadvantages of Management Information Systems (MIS)

1. Costly Implementation – Implementing an MIS system can be costly for organizations.

There may be expenses related to purchasing software, hardware, and training employees
to use the system. This can be a significant investment for some organizations.
2. Technical Issues – MIS systems can experience technical issues, such as system crashes
or data loss. This can be frustrating for employees who rely on the system to do their jobs.
Organizations may need to invest in additional technical support to address these issues.
3. Security Risks – MIS systems can also pose security risks. If the system contains sensitive
data, such as customer information or financial records, it could be targeted by
cybercriminals. Organizations need to ensure that their systems are secure and take steps
to protect against potential data breaches.
4. Dependence on Technology – MIS systems are dependent on technology, which means
that if the system goes down, employees may not be able to perform their job duties. This
can lead to lost productivity and revenue for the organization.
5. Potential for Human Error – Finally, MIS systems can be prone to human error. If
employees enter incorrect data or fail to update the system in a timely manner, it can lead
to inaccurate data and decision-making. This can be a significant issue for organizations
that rely heavily on data to make informed decisions.

Limitations of MIS
A Management Information System (MIS) is a valuable tool company management uses to gauge
the effectiveness of their business operations. The management information system (MIS) can
provide comprehensive insight into certain facets of an organization and assist management in
making important business decisions. Although the MIS's style and format have evolved over time,
its use in management decisions has increased dramatically it has some limitations too. Followings
are some of its limitations:
1. In decision-making, MIS cannot take the place of managerial decisions. It is merely a
valuable method for top-level executives in making decisions and solving problems.
2. MIS can be considered mainly for quantitative factors. It hard to make Qualitative
decisions about the business activities using MIS. An MIS does have limitations, like its
developing cost, employee training time, lack of versatility, and the storage of incorrect or
incomplete data.
3. For businesses looking to improve their operations management, MIS implementation may
be prohibitively costly.
4. The output quality of MIS is directly proportional to the input and process quality.
 5. Only those employees who have been educated and well trained are able to work on MIS,
hence the employees who are not educated cannot work with MIS.
6. Non-programmed decisions are less useful for MIS.
7. Depending on the MIS style and functionality, making improvements quickly to represent
changing business operations can be impossible.
8. The most serious fault in an MIS is when sometimes in few instances, it provides inaccurate
or incomplete information to the management executives. This issue causes heavy costs to
the company and sometimes wrong decisions can be carried out due to this MIS treated as
knowledge flaws.
9. MIS is less effective to those organizations, where information is not important and not
sharing with others.

Approaches of MIS Development

MIS development is a strategic process of developing an informative information system for a

company. To do this, many experts from different levels of a system sit together and investigates
and examine a feasible approach to MIS development. An approach is a method of developing a
system in such a way so that it can be designed as per system needs and meet all the system
objectives.

MIS (Management Information System) is an important source of information for an organization.

An approach of MIS development offers some significant facts for the organizations that influence
each approach. MIS approaches to distinguish between each other; organizations are using an
appropriate MIS development approach as per their need.

There are 3 different approaches of MIS development –

1. Top-down approach
In this method, the entire system is partitioned into a hierarchy of subsystems. The overall system
is divided into a number of subsystems, which are then divided into a number of other subsystems
in a top-down approach.
A behavioral classification is used in the top-down approach of MIS development. This approach
also defines the strategic and tactical decisions and the necessary decisions to operate the various
key activities of MIS development. Many of them, strategies, goals, and plans are recognized by
top management executives and conveyed to the administrative management levels.
The key objectives of the systems are established and ways to achieve them are decided in top-
down design. They're gradually pushed down the organizational hierarchy to be created and
defined well.

2. Bottom-up approach

As its name implies, this approach mainly starts with the leaf-level or bottom-most management
and proceeds progressively to the upper management levels. After recognizing the primary
transactions, the needed file requirements and information processing programs are developed for
each lifestream system which is then moved towards data integration that is stored in different files
of the information system. A bottom-up approach is functional to identify the various factors and
understand the difficult situations and formulate strategies to deal with them.

3. Integrative approach

In the integrative approach subsystems of a system are integrated with each other in such a way so
that the objective of the system can be fulfilled.

An integrative approach of a system development may consist of followings -

 Design a system that can be achieving the major objectives of the system using its
subsystems.
 Designing a system that combines the various functions performed by its subsystems.
 Designing a system that is not very clear to the user but is concealed under the previously
existing subsystems.

Managers at all levels can control the design using an integrated approach. Top management
determines the structure and design of MIS that is appropriate for the business.

Implementation of MIS
Implementation is a phase of system development where we implement all the planned work to
create a new system or get enhanced existing ones. MIS implementation is a management process
where all the objectives are implemented in the form of an MIS system. This system is further used
by management executives to do organizational activities. Successfully implemented MIS along
with testing, may be used by top-level executives of the company in decision making.

Implantation is one of the most crucial phases of the MIS system. After successful MIS design,
the implementation process starts. MIS implementation is a management process. The
implementation procedure is straightforward. Implementation preparation starts with defining and
establishing relationships between different tasks, assigning tasks for executing all tasks, making
cost estimation, and developing a monitoring and control system. After successful implementation
of the MIS; organizational changes occur.

Before implementing an MIS, MIS system must be designed using some certain steps which
are as follows -

1. Preparing organizational plans - Organizational plan is a process of defining a

company's objectives or goal, to prepare companies to plan to aim to find the potential
areas and how to do the task in a strategic manner so that company’s objectives can be
achieved. After finding desired goals, tasks need to recognize to accomplish these goals. A
good organizational plan can be prepared using the following stages

oStrategic
oTactical
oOperational, and
oContingency
2. Workflow Planning - Workflow preparation can be divided into two parts:

o Identifying or designing the workflow

o Executing or scheduling it.

A workflow can be planned using some set of organized activities.

3. Training of personnel - It refers to the process of trained staff about operating procedures
and standards. It also boosts the efficiency and awareness of employees. Employee
training, according to the proposed MIS system, boosts performance, effectiveness, and
productivity, as well as morale and work satisfaction.
4. Application Development - Application development is an implementation plan which
designs as per the system's need.
5. Acquiring computer hardware - Acquiring computer hardware is a process to acquire
hardware resources.
6. Designing the format for data collection - It gives a direction to plan a blueprint of data
storage.
7. Construction of data files - Data files are the documents that store data into them and can
be used for analysis whenever required.
8. Operation of old and new systems in parallel - Existing system always gives fruitful
direction to implement new ones with good strategies so that beneficial results can be
achieved.
9. Phasing out the old and inducting the new system - As time goes, new techniques and
technology come into existence, due to this change old one system needs to replace to
enhance work efficiency and accuracy.
 10. Evaluation, maintenance, and control of the new system - after implementation system
needs to evaluate and can be validated to check whether the system is fulfilling all the
necessary systems objectives or not.

The implementation of MIS involves the following steps,

1. Information needs - It can be examined using information need as per the organization.
2. MIS Objectives - MIS Objectives should be transparent in terms of what one wants to do
with the information he/she receives. The planning, management control, and continuous
flow of information are all related to the scale of the goals.
3. Determine Sources of information - Information should be determined at the right time
and right place. It may be internal or external.
4. Information classification - Accounts, files, statistical articles, and other internal sources,
as well as commercial and government journals, are external sources.
5. Method of giving information - as its name implies that the method of giving information
tells us about the information, its quantity, and formation as per our need.
6. Cost profit analysis - It is used to find out the specific profit for the organization.
7. Evaluation - Evaluation of MIS is a process in which the performance of an organizational
MIS is determined.

IS Development and SDLC

Information technology departments in larger organizations tend to strongly influence the

development, use, and application of information technology in the business. A series of
methodologies and processes can be used to develop and use an information system. Many
developers use a system engineering approach such as the system development life cycle (SDLC),
to systematically develop an information system in stages.
System development is done in stages
which include:

• Planning
• System Analysis and Requirements
• System Design
• Coding/Development
• Integration and Testing
• Implementation
• Operation and Maintenance

1. Planning
This is the first phase in the systems
development process. It identifies whether
or not there is the need for a new system to
achieve a business’s strategic objectives.
This is a preliminary plan (or a feasibility
study) for a company’s business initiative
to acquire the resources to build on an infrastructure to modify or improve a service. The company
might be trying to meet or exceed expectations for their employees, customers and stakeholders
too. The purpose of this step is to find out the scope of the problem and determine solutions.
Resources, costs, time, benefits and other items should be considered at this stage.
Because the process of development can be costly, the systems investigation stage typically
requires the development of a feasibility study. At this stage, this is a preliminary study where the
information needs of prospective users and the resource requirements, costs, benefits, and
feasibility of a proposed project are determined. A team of business professionals and IS specialists
might then formalize the findings of this study in a written report that includes preliminary
specifications and a developmental plan for a proposed business application. If the management
of the company approves the recommendations of the feasibility study, the development process
can continue. The goal of the preliminary feasibility study is to evaluate alternative system
solutions and to propose the most feasible and desirable business application for development. The
feasibility of a proposed business system can be evaluated in terms of five major categories.

Operational feasibility
The operational feasibility assessment focuses on the degree to which the proposed
development project fits in with the existing business environment and objectives with regard to
development schedule, delivery date, corporate culture, and existing business processes. Further,
this assessment also determines the degree to which the project meets the specific business
objectives set forth during the proposal phase. In the early stages of operational feasibility
assessment, we are primarily interested in determining whether the identified problem is worth
solving or the proposed solution actually solves the problem at hand.
Additionally, we must concern ourselves with an initial assessment of schedule feasibility:
Can we identify and solve the problem at hand within a reasonable time period? In the latter stages
of operational feasibility assessment, such as during the physical design phase of the SDLC, we
shift our focus to one of strategic fit and organizational impact, such as determining to what degree
the proposed physical system will require changes in our organizational structure, or what changes
in the current spans of authority need to be made to accommodate the new system.

Economic feasibility
The purpose of the economic feasibility assessment is to determine the extent to which the
proposed system will provide positive economic benefits to the organization. This determination
involves the identification, and quantification, of all benefits expected from the system, as well as
the explicit identification of all expected costs of the project. In the early stages of the project,
defining and assessing all of the benefits and costs associated with the new system is impossible.
Thus, the economic feasibility assessment is an ongoing process in which the definable short-term
costs are constantly being weighed against the definable long-term benefits. If a project cannot be
accurately judged as economically feasible using hard costs, then the project should not proceed,
regardless of the other assessment category outcomes. The assessment of economic feasibility
typically involves the preparation of a cost/benefit analysis. If costs and benefits can be quantified
with a high degree of certainty, they are referred to as tangible; if not, they are called intangible.
Examples of tangible costs are the costs of hardware and software, employee salaries, and other
quantifiable costs needed to develop and implement an IS solution. Intangible costs are difficult
to quantify; they include the loss of customer goodwill or employee morale caused by errors and
disruptions arising from the installation of a new system. Tangible benefits are favorable results,
such as the decrease in payroll costs caused by a reduction in personnel or a decrease in inventory
carrying costs caused by reduction in inventory. Intangible benefits are harder to estimate. Such
benefits as better customer service or faster and more accurate information for management fall
into this category.

Technical feasibility
The assessment of technical feasibility is focused on gaining an understanding of the
present technical resources of the organization and their applicability to the expected needs of the
proposed system. The analyst must assess the degree to which the current technical resources,
including hardware, software, and operating environments, can be upgraded or added to such that
the needs of the proposed system can be met. If the current technology is deemed sufficient, then
the technical feasibility of the project is clear. If this is not the case, however, the analyst must
determine whether the technology necessary to meet the stated specifications exists. The danger is
that the project may require technology that does not yet exist in a stable form. Despite the claims
of vendors that they can supply whatever is required, the analyst must be able to assess accurately
the degree to which the needed technology exists in a form suitable for the proposed project.

Human factors (People) feasibility

It is one thing to assess the degree to which a proposed system can work and quite another to
evaluate whether the system will work. The human factors feasibility assessment focuses on the
most important components of a successful system implementation: the managers and end users.
No matter how elegant the technology, the system will not work if the end users and managers do
not perceive it to be relevant and, therefore, do not support it. In this category, we assess the degree
of resistance to the proposed system, the perceived role of the end users in the development
process, the degree of change to the end users’ working environment as a result of the new system,
and the current state of human resources available to conduct the project and to manage and use
the system on completion.

Legal and political feasibility

This category of assessment is often overlooked during the early stages of project initiation and
analysis. The legal and political feasibility of a proposed project includes a thorough analysis of
any potential legal ramifications resulting from the construction and implementation of the new
system. Such legal issues include copyright or patent infringements, violation of existing antitrust
laws (such as in the antitrust suit brought against Microsoft Corporation over Windows and
Internet Explorer by the U.S. Justice Department in 1998), foreign trade restrictions, or any
existing contractual obligations of the organization. The political side of the assessment

2. Systems Analysis and Requirements

The second phase is where businesses will work on the source of their problem or the need for a
change. In the event of a problem, possible solutions are submitted and analyzed to identify the
best fit for the ultimate goal(s) of the project. This is where teams consider the functional
requirements of the project or solution. It is also where system analysis takes place—or analyzing
the needs of the end users to ensure the new system can meet their expectations. Systems analysis
is vital in determining what a business’s needs are, as well as how they can be met, who will be
responsible for individual pieces of the project, and what sort of timeline should be expected.
Systems analysis traditionally involves a detailed study of:
 The information needs of a company and end users like yourself.
 The activities, resources, and products of one or more of the present information systems
being used.
 The information system capabilities required to meet your information needs, and those of
other business stakeholders that may use the system.

An organizational analysis is an important first step in systems analysis. How can people improve
an information system if they know very little about the organizational environment in which that
system is located? They can’t. That’s why the members of a development team have to know
something about the organization, its management structure, its people, its business activities, the
environmental systems it must deal with, and its current information systems.
Before you design a new system, it is important to study the system that will be improved
or replaced (assuming there is one). You need to analyze how this system uses hardware, software,
network, and people resources to convert data resources, such as transactions data, into information
products, such as reports and displays. Then you should document how the information system
activities of input, processing, output, storage, and control are accomplished.
One of the primary activities that occur during the analysis phase is the construction of a
logical model of the current system. The logical model can be thought of as a blueprint of the
current system that displays only what the current system does without regard for how it does it.
By constructing and analyzing a logical model of the current system, a systems analyst can more
easily understand the various processes, functions, and data associated with the system without
getting bogged down with all the issues surrounding the hardware or the software. Also, by
creating a logical model, the various non-computer components of a system can be incorporated,
analyzed, and understood. For example, in the physical version of a system, a person’s inbox may
be the location where new orders are stored until they have been entered into the computer. In the
logical model, that inbox is treated just like a computer hard drive or other electronic storage
media. In a logical sense, it is just another place to store data.

When this step of the life cycle is complete, a set of functional requirements for the
proposed new system will exist. Functional requirements are end-user information requirements
that are not tied to the hardware, software, network, data, and people resources that end users
presently use or might use in the new system. That is left to the design stage to determine.

There are several tools’ businesses can use that are specific to the second phase. They include:
• CASE (Computer Aided Systems/Software Engineering)
• Requirements gathering
• Structured analysis
3. Systems Design
The third phase describes, in detail, the necessary specifications, features and operations that will
satisfy the functional requirements of the proposed system which will be in place. This is the step
for end users to discuss and determine their specific business information needs for the proposed
system. It’s during this phase that they will consider the essential components (hardware and/or
software) structure (networking capabilities), processing and procedures for the system to
accomplish its objectives.
A useful way to look at systems design is illustrated in figure. This concept focuses on three major
products, or deliverables, that should result from the design stage. In this framework, systems
design consists of three activities: user interface, data, and process design. This results in
specifications for user interface methods and products, database structures, and processing and
control procedures.

During the design phase, the development process frequently takes the form of, or includes, a
prototyping approach. Prototyping is the rapid development and testing of working models, or
prototypes, of new applications in an interactive, iterative process that can be used by both IS
specialists and business professionals. Prototyping, as a development tool, makes the development
process faster and easier, especially for projects where end-user requirements are hard to define.
Prototyping has also opened up the application development process to end users because it
simplifies and accelerates systems design. Thus, prototyping has enlarged the role of the business
Stakeholders affected by a proposed system and helps make possible a quicker and more
responsive development process called agile systems development (ASD).
Prototyping can be used for both large and small applications. Typically, large business
systems still require using a traditional systems development approach, but parts of such systems
can frequently be prototyped. A prototype of a business application needed by an end user is
developed quickly using a variety of application development software tools. The prototype system
is then repeatedly refined until it is acceptable. End users with sufficient experience with
application development tools can do prototyping themselves. Alternatively, you could work with
an IS specialist to develop a prototype system in a series of interactive sessions. For example, you
could develop, test, and refine prototypes of management reports, data entry screens, or output
displays.
Usually, a prototype is modified several times before end users find it acceptable. Program
modules are then generated by application development software using conventional programming
languages. The final version of the application system is then turned over to its end users for
operational use. While prototyping is a useful method of allowing an end user to develop small
software applications, its real power is as a development tool, within a life cycle project, to help
analysts and users finalize the various interfaces and functions of a large business system.

System specifications formalize the design of an application’s user interface methods and
products, database structures, and processing and control procedures. Therefore, systems designers
will frequently develop hardware, software, network, data, and personnel specifications for a
proposed system. Figure shows examples of system
specifications that could be developed for an e-commerce
system of a company.

4. Development
The fourth phase is when the real work begins—in
particular, when a programmer, network engineer and/or
database developer are brought on to do the major work
on the project. This work includes using a flow chart to ensure that the process of the system is
properly organized. The development phase marks the end of the initial section of the process.
Additionally, this phase signifies the start of production. The development stage is also
characterized by instillation and change. Focusing on training can be a huge benefit during this
phase.
In end-user development, however, IS professionals
play a consulting role while you do your own application
development. Sometimes, user consultants may be
available to help you and other end users with your
application development efforts. This may include
training in the use of application packages; selection of
hardware and software; assistance in gaining access to
organization databases; and, of course, assistance in
analysis, design, and implementation of the business
application of IT that you need.
In end-user development, you and other business
professionals can develop new or improved ways to
perform our jobs without the direct involvement of IS specialists. The application development
capabilities built into a variety of end-user software packages have made it easier for many users
to develop their own computer based solutions. For example, You might choose instead to use an
electronic spreadsheet package as a tool to develop an easy way to analyze weekly sales results for
the sales managers in a company. You could also use a Web site development package to design
Web pages for a small business Web store or a departmental intranet Web site.

5. Integration and Testing

The fifth phase involves systems integration and system testing (of programs and procedures)—
normally carried out by a Quality Assurance (QA) professional—to determine if the proposed
design meets the initial set of business goals. Testing may be repeated, specifically to check for
errors, bugs and interoperability. This testing will be performed until the end user finds it
acceptable. Another part of this phase is verification and validation, both of which will help ensure
the program’s successful completion.

6. Implementation
The sixth phase is when the majority of the code for the program is written. Additionally, this
phase involves the actual installation of the newly-developed system. This step puts the project
into production by moving the data and components from the old system and placing them in the
new system via a direct cutover. While this can be a risky (and complicated) move, the cutover
typically happens during off-peak hours, thus minimizing the risk. Both system analysts and end-
users should now see the realization of the project that has implemented changes.
Systems implementation stage involves
hardware and software acquisition, final
integration testing of programs and
procedures, conversion of data resources,
and a variety of conversion alternatives. It
also involves the education and training of
end users and specialists who will operate a
new system. Implementation can be a
difficult and time-consuming process;
however, it is vital in ensuring the success
of any newly developed system. Even a
well-designed system will fail if it is not properly implemented, which is why the implementation
process typically requires a project management effort on the part of IT and business unit
managers. They must enforce a project plan, which includes job responsibilities, timetables for
major stages of development, and financial budgets. This is necessary if a project is to be
completed on time and within its established budget, while still meeting its design objectives.
Figure illustrates the activities and timetables that might be required to implement an intranet for
a new employee benefits system in the human resource department of a company.

7. Operations and Maintenance

The seventh and final phase involves maintenance and regular required updates. This step is when
end users can fine-tune the system, if they wish, to boost performance, add new capabilities or
meet additional user requirements.

If a business determines a change is needed during any phase of the SDLC, the company
might have to proceed through all the above life cycle phases again. The life cycle approach of
any project is a time-consuming process. Even though some steps are more difficult than others,
none are to be overlooked. An oversight could prevent the entire system from functioning as
planned.

Why MIS Fails?

MIS is a very crucial resource for an organization. MIS failures can create a big negative impact
on the company that has designed it. In this case, it brings bad publicity to the concerned company.
MIS failure is very expensive for the company in terms of money wastage, time wastage, resource
wastage, etc. Hope for the management of information system goes end by the concerned
company. So, the organization needs to identify the root causes of MIS failure and be alert to these
concerns during the development of MIS.

Followings are the main root causes of MIS failure -

 Incomplete analysis – incomplete analysis is the biggest cause of system failure. An

incomplete analysis is due to some common reasons like problem identification is not
 properly defined, key requirements and constraints are not properly understood and
identify at the early stages of the MIS design and development process.
 Lack of management involvement – it is the biggest cause of no-one understands the
system which creates a huge understanding gap and makes MIS fail. Lack of management
involvement have long-lasting consequences and can impact an entire system. Many
executives who are not personally involved in MIS system design would most likely is a
cause of system failure because the inputs of senior executives are always fruitful for the
system to get the right direction to work on.
 The accent of the computerized system – if someone doesn't understand the procedures
and its need for handling input and output system, hardware and its usage, and application
and its impacts; makes the biggest cause of MIS failure.
 Concentration on low-level data processing – Information must be easily accessible and
understood.
 Lack of management knowledge of ICT systems and capabilities – In the growth of
KM (Knowledge Management) systems, structures, data processes, and information
technologies, the implementation and use of ICT to enhance and encourage knowledge
management have brought to focus the urgent need to come up with new approaches,
resources, and techniques to promote effective knowledge management for enhanced
service delivery in system development. managers know what they want from the system
but don't understand the technology
 Lack of teamwork – For a variety of reasons, lack of coordination may be a problem. ...
People come together to create relationships that lead to productive teamwork. By good
communication of intent, the team leader aligns the team, so that individual abilities
combine with coordination to achieve results for the teams. During MIS design, An ICT
director must organize the divisions of accounts, marketing, distribution, etc. to help
everybody understand the benefits of the system.
 Lack of professional standards – The professional requirements have a purpose. These
criteria are for all members of the team who work for an organization in lifelong learning,
defining the abilities, expertise, and qualities needed for the organization. All systems
require simple documentation that can be understood by all users.