Module - 1

Introduction to MIS
BBA 4th Semester MIS Lecture Notes
Module - 1 Introduction to MIS

Table of Contents
1. Data, Information, Organization, Management and System ................................................................2
1.1. Data ...............................................................................................................................................2
1.2. Information ...................................................................................................................................2
1.3. Difference between Data and Information...................................................................................4
2. Organization and Management ............................................................................................................4
2.1. Levels of Management..................................................................................................................6
2.2. System ...........................................................................................................................................8
3. Introduction to Information System (IS) ...............................................................................................9
3.1. Types of Information Systems ......................................................................................................9
1.1. Transaction Processing System (TPS) ......................................................................................... 10
3.2. Management Information System (MIS) ................................................................................... 10
3.3. Decision Support System (DSS) .................................................................................................. 12
3.4. Executive Support System (ESS) ................................................................................................. 12
4. Definition of Management Information System (MIS) ...................................................................... 14
4.1. Purpose and Objectives of MIS .................................................................................................. 15
4.2. Components of MIS ................................................................................................................... 15
4.3. MIS Functions............................................................................................................................. 16
4.4. Benefits of MIS ........................................................................................................................... 17
5. Enterprise Information Systems ........................................................................................................ 18
5.1. ERP ( Enterprise Resource Planning) .......................................................................................... 18
5.2. The Disadvantages of ERP Software .......................................................................................... 21
5.1. SCM (Supply Chain Management) ............................................................................................. 22
6. CRM (Customer Relationship Management) ..................................................................................... 23
7. Question Bank .................................................................................................................................... 24

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1. Data, Information, Organization, Management and System

Before we understand meaning of Information System (IS) and Management Information
System (MIS), it is important to define and understand the terminologies - Data, Information,
Organization, Management and System
1.1. Data
Data are raw facts or observation, typical about physical phenomenon or business
transaction which are recorded and stored.
Data are objective assessments of attributes (the characteristics) of entities such as
people, place, things and event.
These measurement are usually represented by symbols such a numbers, words, codes,
composed of a mixture of numerical, alphabetical and other characters.
Examples:
o For instance, 20040512derryseansullivan could be considered as raw data
without meaning.
o Height of a man, suppose 160 cm, is a data;
o His name, suppose Rajesh, is a data;
o His weight, suppose 65 kg is a data;
o His colour, suppose brown complexion is a data; and so on.
o Sale of a mobile generates lot of data describing that transaction.
Order ID, Mobile name , Date, List Price, Date of delivery, Address to be
delivered, Discount, Total Amount, Payment Type, Payment status
Characteristics of Data:
Data is a distinct piece of information
Data is the raw material from which useful information is derived.
Data are not meaningful and does not have value in decision making.
Data is unorganized or unprocessed
1.2. Information
The data which has been converted into a useful and meaningful form is called
“information”.
Information is the simplified form of data.
When the data is processed or organized it becomes information.
The conversion of facts into meaningful information is known as “Data Processing”.
Examples:
20040512 derry sean Sullivan Date of Birth: 12/05/2004
Birthplace: Derry
First Name: Sean
Surname: Sullivan

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o The average height of several people, suppose 157.48 cm, is an information;

o The average weight of the class, suppose 58.967 kg, is information; and so on.
o The average percentage of class is 62.5%.
o The highest percentage of class is 92.2%
o The lowest percentage of class is 45.2%

Characteristics of Data:
Information is the resultant version of some data.
Information always be processed or organized
Information is the context in which data is taken.
Information is meaningful and has value in decision making

Information
DATA INFORMATION
System

Data Vs. Information by a Practical Example

Suppose, in your MBA first, second, third and fourth year GPAs(Grade Point
Average) are: 3.0, 3.5, 3.5, and 4.0
Then so the CGPA(Cumulative Grade Point Average) is say something like: 3.5
Here, the individual GPAs are data
And then the finally calculated CGPA is information.
Suppose, in your three year BBA , you got individual sem percentage as: 87.0, 91.5,
76.5, 80.5, 73 and 67.0
Then your average grade = (87 + 91.5+ 76.5+ 80.5+ 73 + 67)/6 = 79.25
Here, the individual sem percentage you got are data,
And the average percentage that is calculated is information

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1.3. Difference between Data and Information

Data Information
It is raw material for data processing. When data is processed, organized, structured or
Data relates to facts, event, and presented in given context so as to make it useful
transactions is called information.

It does not have value in decision It has value in decision making.

making.

It is collection of facts. It is the outcome derived after processing the data.

It is not meaningful. It is always meaningful.

Data are atomic level piece of the Information is organized and meaningful collection
information of data.

It is generally unorganized. It is in organized form

Data is collected from the various Information is dependent on the data that is
sources directly and hence is not gathered.
dependent on information.

Example: If we say 45, 87, 99 are the Example: If we say 45, 87, 99 are marks of three
numbers then it becomes data. subjects POM, MM, HRM then it becomes
information.

2. Organization and Management

Organization
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An organization is a collection of people who work together and coordinate their

actions to achieve organizational goals.
Theo Haimann defines organization as a process of defining and grouping the activities
of the enterprise and establishing the authority relationship among them for the
achievement of clearly defined objectives.
Management
Management is the art of getting things done through an individual or group of
individuals to achieve the goal and objective of the organization efficiently.
Management is a distinct process consisting of planning, organizing, activating and
controlling, performed to determine and accomplish the objectives by the use of people
and resources- George R Terry
Manager
A Manager is the person responsible for planning and directing the work of a group of
individuals, monitoring their work, and taking corrective action when necessary.
A manager is a person responsible for supervising and motivating employees and for
directing the progress of an organization.

The traditional description of what managers do was first characterized by French industrialist
Henri Fayol in 1916. Fayol considered the manager’s job as a composite of five separate
functions:
Managerial Functions
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

1. Planning
• It involves establishing organizational goal & developing strategies to achieve goal. It
bridges the gap between where we are and where we want to go.
• Following questions are answered at the time of planning process:-
• What to do?
• When to do?
• Who is to do?
• How is it to be done?
• Where is it to be done?
• Why it is to be done?

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2. Organizing
• It refers to grouping of people activities in order to facilitate the achievement of
organizational goal.
• It involves identifying the activities divide them into convenient jobs and delegating the
authority to each individual so that the job is carried out as planned.

3. Staffing
• It is the process of putting the right person at right job.
• This involves
a. Recruitment- defining the requirement for the people with respect to the job to be
done,
b. Selection- selecting the right person for the position,
c. Training & development- train them so that they can accomplish their task
efficiently and effectively.

4. Directing
• It is the process of activating the plan, structure and group efforts in the desired
direction. It is needed for the implementation of plans by providing the desired
leadership, motivation and proper communication.

5. Controlling
• Controlling is the mode of checking the progress of plans and also correcting any
deviations that may occur along the way. It involves
a. Fixing the standard for measuring the work performance.
b. Measurement of the actual performance.
c. Comparing the actual with standards & find the deviations.
d. Taking the corrective actions

2.1. Levels of Management

A series of managerial positions in an organization is called levels of management.
A level of management determines the amount of authority and status enjoyed by any
managerial positions.

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Top Management
Strategic Level

Middle Management
Management Level

Operating Management
Operational Level

1. Strategic Level
Levels of Management Hierarchy
o Managerial positions at the strategic level are at top level management.
o These managerial positions include the board of directors including Vice president
and CIO (chief information officer), chief executive including GM (General Manager)
and the departmental heads.
o They are mainly responsible for strategic functions of the organization.
o The main functions of the managers ate the strategic level are to:
Establish the overall long term goals of an organization
Establish ways of attaining the long term goals
Lay down the overall policies.
Provide direction and leadership to the organisation.

2. Management Level
o After the strategic level, the next level of management is the management level.
o The various managerial positions at this include the departmental and branch
managers such as sales and marketing managers, purchase managers, finance
managers, HR Managers, etc.
o These managers are mostly involved in tactical planning and control.
o The main functions of the managers ate management level are to:
Link the top and lower levels of management.
Transmit orders, suggestions, policy decision and detailed instructions
downwards.
Carry the problems and suggestions upwards.
Inspire the operating managers towards better performance.

3. Operational Level
o The operational level is the lowest level of management hierarchy.
o It includes all the managers and supervisors who work under the management level.
o The main functions of the operational level are to:

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Assign jobs and tasks to the subordinates.

Assist and advise the subordinates by explaining the work and procedures.
Supervise the work of subordinates to ensure the quality and quantity of
work.
Report the problem faced and suggestions made by workers to the higher
level.

2.2. System
A system is a group of elements that are integrated with the common purpose of
achieving objective.
A system is a group of interrelated components working together toward a common
goal by accepting inputs and producing output in an organized transformation process.
Human body is a system composed of various parts, which are working together
towards a common objective that is to stay alive.
Similarly a system is an orderly grouping of interdependent components linked together
according to a plan to achieve a specific objective.
These components are Input, Process and output; they are interrelated and
interdependent.
The capturing of raw data from the environment that enters the system for processing
is called Input. The conversion, manipulation, and analysis of raw inputs into processed
data is called processing. The distribution of processed information in the form of a
report is called output.

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3. Introduction to Information System (IS)

An Information System can be defined as “a set of interrelated components that collect
(or retrieve), process, store, and distribute information to support decision making and
control in an organization” (Laudon & Laudon)
An information system is an organized combination of people, hardware, software,
communications networks and data resources that collects, transforms, and
disseminates information in an organization.
An information system (IS) is an arrangement of people, data, processes,
communications, and information technology that interact to support and improve day-
to-day operations in a business as well as support the problem-solving and decision
making needs of management and users.
With help of information systems, enterprises and individuals are able to use computers
to collect, store, and process, analyse and distribute information.
3.1. Types of Information Systems
Information systems are classified into the following four categories based on the
various management levels of an organization.
1. Transaction Processing System
2. Management Information System
3. Decision Support System
4. Executive Support System

Executive
Support Strategic
System

Decision Support Management

System

Management Information
System

Operational
Transaction Processing System

Types of Information Systems

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1.1. Transaction Processing System (TPS)

Transactions are events that occur as a part of doing business, such as sales,
purchases, deposits, withdrawals, refunds, payments etc.
Without information systems, recording and processing business transactions would
consume much more time and resources in organization. TPS is used for this task in
organization
TPS is a computerized system that perform and records the everyday routine
transactions necessary to run the business.
Example of transaction processing include sales order processing in a trading
organization, hotel reservation system in a hotel business, out-patient registration
system in a hospital, and payroll and financial transaction systems in all
organization.

TPS have the following basic characteristics:

Generate primary data that is further made available to other information systems
for analysis.
Works on highly structured and predefined procedures.
It doesn’t provide any information to the user for decision making.
It is routine and repetitive in nature.
Works at the operation level of the organization.
3.2. Management Information System (MIS)
Management information system (MIS) is an information system which processes
data and converts it into information.

A MIS uses TPS for its data inputs and processes (aggregate, compare and
summarizes) the data and gives the information in the form of routine, periodical
and exception report.
o Example of exception reports include missing bills, goods sent to branch but
not received by them, difference in goods received from supplier and
accepted by company’s inventory system.
These reports are simple and are not analytical in nature.

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Generated report can be used for monitoring, controlling and decision making
activities of middle level managers. MIS will be discussed in detail in the subsequent
section of the chapter.

Transaction Management
Processing System Information System

Purchase Daily sales position

Sales Weekly leads status

Material Pending purchase orders

Production Wastage control report

Accounts Bills Payable

Personnel Employee provident fund

status

We can summarize the characteristics of an MIS as follows:

MIS don’t generate any data, they work on data offered by TPS.
MIS primarily serve the purpose of planning, controlling, and decision-making at the
management level.
MIS supports mainly structured (routine) decision making.
This system provides managers with routine periodical reports and summaries.
They work on internal data and don’t consider external data.
Office automation systems such as word processors and spreadsheets support MIS.

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3.3. Decision Support System (DSS)

Decision support systems (DSS) are interactive software-based systems intended to
help managers in decision-making by accessing large volumes of information
generated from various related information systems involved in organizational
business processes, such as MIS, TPS etc.
DSS combine data and supplicated analytical models or data analysis tools to
support unstructured (non-routine) decision making.
They have more analytical power than other system. By using tools such as Online
Analytical Processing (OLAP) and Data Warehousing (DW), users can derive reports
by changing parameter, assumptions and questions.
o OLAP and DW are database analysis tools that work on the huge data in the
organization and produce the desired reports.
The system also provide sensitivity analysis, that is, “what-if” analysis. In a what-if
analysis, the manager can pose hypothetical questions regarding future course of
business, probability, and product-market situations, and get analytical reports
through these tools.
Examples for “what-if” questions:
o What would be the impact of employees' performance if we double the
production lot at the factory?
o What would happen to our sales if a new competitor entered the market?
The characteristic of DSS can be summarized as follows
DSS are meant for managers taking unstructured (non-routine) decisions.
DSS use internal TPS data, MIS reports, and other financial and revenue data for
decision making.
They help the senior middle management with an abstract and summary of the data
in the graphical form.
They use tools such as OLAP, DW, modelling, and sensitivity analysis for decision
making.
3.4. Executive Support System (ESS)
Executive Support System (ESS) is a type of management support system that
facilitates and supports senior executive information and decision-making needs.
ESS provide critical information from a variety of internal and external sources to
the top management for taking strategic decisions.
Decision concerned with strategy and long term planning are made by the senior
and top executive level management.
Strategic decision are unique, non-repetitive, unplanned and have deep impact on
the organization.
o Example: Relocating a production unit, venturing out a new line of business,
tie-ups, amalgamation and liquidation.

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ESS are supported by both TPS and DSS. By and large, executive information is
presented in the form of graphs and abstract data by processing the internal and
external data.

The characteristic of ESS can be summarized as follows

ESS are meant for the top management of the organization.
ESS uses internal financial and revenue data, and external data such as industry
trend, government policies etc.
They help the management with an abstract and summary of the data, usually in a
graphical form.
They use tools such as OLAP, DW, and sensitivity analysis.

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4. Definition of Management Information System (MIS)

MIS is the acronym for Management Information Systems, In order to understand the
meaning of Management Information System (MIS), it is necessary to first understand
the meaning of terms – Management, information and System.

Manage Informat
ment ion
System MIS

Management comprises the basic activities or operations of an organisation, viz. Planning,

Organising, Staffing, Controlling and Directing for its smooth functioning with optimum
utilisation of various resources.
Information is the processes data, which has some meaning.
System is a set of interrelated elements that form an activity in order to achieve a goal.

Now, we can define Management Information System as follows:

The MIS is defined as a system which converts data into information for the purpose of
decision-making in the organization.
The MIS is defined as a system which provides information support for decision making in
the organization.
According to Schwartz, “MIS is system of people, equipment, procedures, documents and
communication that collects, validates, operates on transformers, stores, retrieves, and
present data for use is planning, budgeting, accounting, controlling and other management
process”
“MIS is a system which collects, processes, stores and distributes information to help in
decision making for managerial functions.” (Planning, staffing, directing, controlling and
organizing )
Management information System (MIS) is an integrated system that consists of human and
capital resources that enable collection, storage and processing of data and information to
produce and communicate relevant information to different levels of management in order
to provide requisite support in performing management related activities.
Thought there are a number of definitions, all of them converge on one single point, i.e., the
MIS is a system to support the decision making function in the organization. The difference lies
in defining the elements of the MIS. However, in today’s world MIS a computerized business
processing system generating information for the people in the organization to meet the
information needs decision making to achieve the corporate objective of the organization.

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Example of MIS
Bank Information System
Railway Information System
Library Information System(LIS)
Examination Information System(EIS)
Customer Relationship Management System(CRM)
Marketing Information System
Human Resource Information System(HRIS)
Enterprise Resource Planning System(ERP)
Payroll Information System

4.1. Purpose and Objectives of MIS

To collects data and process into information in a systematic and a routine manner.
To provide right type of information which facilitate the decision-making process.
To provide requisite information at each level of management to carry out their
functions.
To ensure information overloads as well as generation of redundant information is
avoided.
To provide a system of people, computers, procedures, interactive query facilities
documents for collecting, storing, retrieving and transmitting information to the users.

4.2. Components of MIS

The MIS consists of following components which are as follows-

People – These are the users who use the information system to record the day to day
business transactions. The users are usually qualified professionals such as accountants,
human resource managers, etc. The IT department usually has the support staff who ensure
that the system is running properly.
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Hardware – hardware is made up of the computers, server, printers, other peripherals. The
hardware provides the computing power for processing data. The hardware speeds up the
processing of data into information.
Software – these are programs that run on the hardware. The software is broken down into
two major categories namely system software and applications software. System software
refers to the operating system i.e. Windows, Mac OS, and Ubuntu, etc. Applications
software refers to specialized software for accomplishing business tasks such as a MS office,
Tally, ERP, Payroll program, banking system, etc.
Database/Data warehouse: This is the repository of organizational data from within and
outside the organization.
Model Base: This is the group of various models like mathematical model, arithmetical
model, statistical model, financial model, and descriptive model etc., which are essential to
process the data into information.
Network: The network means communication media, it includes internet, modems
(communication processor), inter network processors, and communication control
software, such as network operating systems and internet browser packages.
Processes: Include business processes, procedures, and policies of the organization.

4.3. MIS Functions

MIS is set up by an organization with the prime objective to obtain management
information to be used by its managers in decision making. Thus, MIS must perform the
following functions in order to meet its objectives.

Processing of Storage of
Data Capturing
Data Information

Retrieval of Dissemination of
Information Information

Data Capturing: MIS captures data from various internal and external sources of an
organization. Data capturing may be manual or through computer terminals. End users
typically, record data about transactions on some physical medium, such as a paper form,
or enter it directly into a computer system.

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Processing of Data: The captured data is processed to convert it into the required
management information. Processing of data is done by activities such as calculating,
comparing, sorting, classifying and summarizing. These activities organize, analyze, and
manipulate data using various statistical, mathematical, operations research and other
business models.
Storage of Information: MIS stores processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organizational record. In this
activity, data and information are retained in an organized manner for later use. Stored
data is commonly organized into fields, records, files and databases.
Retrieval of Information: MIS retrieves information from its stores when required by
various users. As per the requirements of management users, the retrieved information is
either disseminated as such or it is processed again to meet the exact MI demands.
Dissemination (Distribution) of Information: Information, which is a finished product of
MIS, is disseminated to the users in the organization.

Source User
Source

Data Capture Processing Dissemination User

Source
User

Source
Retrieval

Storage of
Information

4.4. Benefits of MIS

1. It provides timely and accurate, scientific, reliable and permanent information.
2. It avoids duplication of efforts.
3. Coordinate the whole organization.
4. It provides the information in form and formats required by the information system.
5. It helps in making the better and scientific decisions by the management.
6. Speed of processing and fast retrieval of data is possible.
7. Improves communication within the firm.

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5. Enterprise Information Systems

An Enterprise Information System (EIS) is any kind of information system which

enables a company to integrate the data used throughout the entire organization
and provides a single system that is central to the organization that ensures
information can be shared across all functional levels and management hierarchies.

5.1. ERP (Enterprise Resource Planning)

An Enterprise is a group of people with a common goal, which has certain resources at its
disposal to achieve that goal. The group has some key functions to perform in order to achieve
its goal. Resources included are money, manpower, materials, and all the other things that are
required to run the enterprise. Planning is done to ensure that nothing goes wrong. Planning is
putting necessary functions in place and more importantly, putting them together. Therefore,
Enterprise Resource Planning or ERP is a method of effective planning of all the resources in an
organization.
Enterprise – the enterprise is large & complex organization that has set of common
goal.
Resource – Resource is nothing but assets that a company utilizes in the process of
producing a product or services.
o Financial resource Money, Securities
o Physical resources Finished Goods, Raw Materials Stock, Machine, Plants
and Warehouse
o Human resources Manpower - People who do the work
Planning – for effective usage of resources to achieve organization goals.
So ERP refers to the system meant for planning the resources of an organization and
also supports the operations of an enterprise.

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Traditional business application software packages (such as financial accounting and Inventory)
serve the needs of people in the concerned department (such as Account or Purchase) only and
are developed independently of the needs of other departments. Such software packages are
stand-alone MIS application systems and are generally not integrated with one another.
The major problems with stand-alone systems is that there is no link among information stored
at different systems, and thus no one in the company can easily know the status of a business
transaction( such as customer order) at any given time. Moreover, there is duplication and
inconsistency of the information stored at many different databases.
Enterprise resource planning is a software architecture that combines the different application
of various departments into a single, integrated software package that runs on a single
database so that various departments can easily share information with each other.
It enables managers to have an enterprise-wide view of the information they need for
management functions and decision making in a timely, reliable and consistent manner.
Thus, ERP is an excellent example of integrated organizational systems combining the power of
both MIS and TPS that provides the backbone for enterprise-wide information systems.

ISOLATED INFORMATION SYSTEM - A PRE-ERP SCENARIO

Problems:
• Data is maintained locally at the individual departments
• Departments do not have access to information or data of other departments

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Solution:
• Data is maintained at a central location and is shared with various Departments
• Departments have access to information or data of other Departments

Definition of ERP:
• Enterprise resource planning is an integrated, computer based organisational system
that is designed to process not only the organisation’s transactions but also facilitate
sharing of information and real time planning, productions, and customer response.
• ERP system is a set of application software/package that integrates information from
manufacturing, finance, sales, distribution, human resources and other business
functions that facilitates decision making.
• Enterprise Resource Planning is a software architecture that combines the different
applications of various departments into a single, integrated software package that runs
on a single database so that various departments can easily share information with each
other.

Benefits/Advantages of ERP
Why do organizations need ERP packages? There are a number of advantages of ERP
packages. Let’s discuss some of them.

1. Information Integration: In an ERP system, since all information is available from a

central, single database, the information from different departments is integrated.
Thus as soon as some transaction happens, no one has to wait for some other
department or system to provide the required information.

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2. Improved decision support: ERP systems not only automate key transactions
process, but also improve management reporting and decision-making. Critical
reports are structured around cross-functional business processes and provided to
managers, thus enabling them to make timely and correct decision.

3. Enterprise uniformity: ERP systems help in creating and maintaining uniform

organization structure, systems, and procedures throughout the geographical area. A
uniform organizational structure refers to the type of system in which everyone uses
similar processes and informatics. For example, Samsung uses similar system
procedures, and documents for purchases throughout the world. Similarly, coca-cola
uses similar distribution process throughout the globe.

4. Customer care: ERP system helps customer care executives in serving the customers
efficiently by way of prompt response and follow up due to integration of
information from all the concerned departments.

5. Human Resource Control: Due to integration of employees information from various

departments and branches of the company, ERP systems helps HR managers in
requirements, placements, training, payroll, and performing other HR functions of
the organizations efficiently.

6. Inventory control: Due to streaming of manufacturing processes and integration of

customer order processing. ERP system also helps warehouse managers and shipping
dock supervisors to maintain the finished goods inventory at optimum level at
warehouse and dock.

7. Connecting with the outside world: ERP systems not only smoothen and streamline
internal operations but also connect with the outside world that is, customers and
vendors.

The Disadvantages of ERP Software

With so many benefits of ERP software, there are few common disadvantages also.

1. Daunting Implementation: Implementation is the toughest part of ERP systems. This is not
only requires changes in the current systems, but also a deep understanding and analysis of
the existing business process of the company. Failure to understand a critical business may
lead to faulty implementation and hence, the organization may not be able to reap the fruits
of its investment.
2. High Upfront Cost: ERP systems are very costly. There are large upfront costs that are highly
visible. Upfront costs are direct costs such as hardware, software licences, and training and
implementation costs.
3. Resistance to Change: Resistance to change is a rule rather than a exception. This is more
so because of dramatic changes in the processes or introduction of new process. For

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example, employees of many Indian banks restoring to strikes in the 1980s-90s against the
introduction of computerization.
4. Belated ROI: As ERP system take a long time for implementation, the benefits start showing
only later, and the return on investment (ROI) takes a long time.

5.2. SCM (Supply Chain Management)

A firm’s supply chain is a network of organizations and business processes for

procuring raw materials, transforming these materials into finished products, and
distributing the finished products to customer. It links suppliers, manufacturing
plants, distribution centers, retail outlets, and customers.
In simple terms, SCM is managing the supply chain.
Supply Chain Management System (SCMS) is cross functional inter-enterprise
system that uses information technology to integrate supplier, manufacturer,
warehouses, distributor, retailer and customers to supply goods from source to
consumptions.
SCMS makes supply chain management more efficient by helping each organization
to coordinate, schedule, and control procurement, production, inventory
management and delivery of goods.

Benefits of SCMS
• The organization would be able to decide when and what to produce, store, and move.
• Orders can be communicated quickly.
• Organizations can track the status of Orders and Shipment.
• Inventory availability can be checked and inventory levels can be monitored.
• Inventory, transportation, and warehousing costs can be reduced.
• Production can be planned based on the actual availability of resources.
• Any changes in the product design can be communicated quickly.

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Module - 1 Introduction to MIS

Challenges
• Lack of proper demand planning knowledge, tools, and guidelines
• Inaccurate or overoptimistic demand forecasts
• Inconsistent or wrong data due to lack of integration with ERP
• Lack of adequate collaboration among marketing, production, inventory, supplier and
distributors.

5.3. CRM (Customer Relationship Management)

Customer relationship refers to keeping in touch with the customer, providing

personalized services, and thus, cultivating loyalty. That means it is process of
acquisition, enhancement, and retention of customers through organizational life.
CRM systems are processes and technologies that are used for managing relationships
with customers across business functions. It helps to capture and integrate customer
data from all over the organization, consolidate and analyse the data, and then
disseminate the results to various systems.
Customer Relationship Management (CRM) is a enterprise software to manage &
improve the relationship with potential and current customer in an organized way.
CRM System consolidates all the information and provides a unified view of a customer
across the organization.

Components of CRM system

Advantages of CRM system

Improved access to customer information

More responsive customer service
Streamline business processes
Enhanced forecasting capability
Connectivity anytime, anywhere

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Module - 1 Introduction to MIS

6. Question Bank

2 Marks Questions
1. Define MIS?
2. What is Transaction Processing System (TPS)?
3. Give any two differences between Data and Information.
4. How do you define MIS?
5. Define data and Information with example.
6. In your view with an example explain information and data.
7. State the difference between data and information.
8. Write characteristics of information.
9. State with an example of data and information
10. What are the characteristics of information?
11. Define information system.

8 Marks Questions
1. Explain any 5 benefits of MIS.
2. What are fundamental roles of an information system in Business?
3. Discuss different types of MIS available.
4. Discuss various activities performed by MIS in an organization.
5. Explain various components of MIS.
6. What do you understand by Transactions processing system? Explain with examples.
7. Describe the various levels of management with respect to the managerial tasks they
perform.
8. What do you mean by system? What are various elements of a system?
9. How does data differ from information? Write brief notes with example.
10. What do you understand by the term MIS? How does it assist managers in their
everyday functioning?
11. What are the difference among TPS, MIS and DSS?

14 Marks Questions
1. Explain different categories of Information system and illustrate with diagram which IS
suites to each levels of management hierarchy.
2. Identify and describe the three levels of the organisation hierarchy. Name the types of
information systems that serve each level.
3. Write short notes on the following
a. MIS
b. TPS
c. DSS
d. ESS

MIS Lecture Notes | Question Bank 24