Management Information

System
JLC

DR. RENELINA D. MAÑABO

Contents

• Historical Development
• Evaluation of MIS
• Differing Information for Different Management Levels
• Designing a Computer-based MIS
• Guidelines for Effective Design
 Data, Information and Knowledge

Data Domain of
(Letters, numbers, graphics… Technology
Representing reality and knowledge)

Knowledge
Information (Complex cognitive entity;
(Data understood, cause-effect theories,
meaning) vocabularies/conceptual maps,
know-how, experience)

Domain of Human Brain

• Knowledge is also embedded in computer software!
(e.g., math operations in Excel, procedures in
Accounting IS, decision trees in Expert Systems)

• In plain English, we often do not differentiate between data,

information and knowledge, simply calling it all “information”.
Data, Information and Knowledge

DIY1014
Context
A product code but still not
known what is product code
for so it is still data

Meaning
A product code for printer.
Information, Knowledge and Business
Intelligence

• Knowledge - Information read, heard, or seen, and understood.

• Wisdom - Distilled and integrated knowledge and understanding.
• Business Intelligence - Information Management pertaining to an
organization's policy or decision-making, particularly when tied to
strategic or operational objectives.
 Intelligence Cycle

is the process of developing raw

information into finished
intelligence for policymakers to
use in decision making and
action.

• Source:
https://fas.org/irp/cia/product
/facttell/intcycle.htm
Concept of Information System

Information Technology (IT) • In plain English, we often

(Computers, Other) do not differentiate between
Information data, information
System (IS) and knowledge, simply
• Data (organized, Use
calling it all “information”.
meaningful) Procedures
Supports • We often use term
• Representations of “technology” to refer to
Knowledge either IT or IS.

Use
Information,
Users Knowledge
(Organizational members: -----------------
Managers, Professionals, Clerks) Task, Business
Perform on Process
Types of Information System
Management Information Systems (MIS)

• are planned system of collecting, storing, and disseminating data

in the form of information needed to carry out the functions of
management.
• are distinct from regular information systems in that they are used
to analyze other information systems applied in operational
activities in the organization. MIS involve three primary resources:
technology, information, and people.
Role of MIS

• The role of MIS in an organization can be compared to the role of heart in the
body.

• The information is the blood and MIS is the heart. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the
brain.

• The MIS plays exactly the same role in the organization.

• The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations.
Role of MIS (Continued…)

• The system is expected to fulfill the information needs of an individual, a

group of individuals, the management functionaries: the managers and the
top management.

• The MIS satisfies the diverse needs through a variety of systems such as
Query Systems, Analysis Systems, Modeling Systems and Decision
Support Systems.

• The MIS helps in Strategic Planning, Management Control, Operational

Control and Transaction Processing.
Characteristics of MIS

• Management-oriented: The basic objective of MIS is to provide

information support to the management in the organization for
decision making.
• Management directed: When MIS is management-oriented, it
should be directed by the management because it is the
management who tells their needs and requirements more
effectively than anybody else.
• Integrated: It means a comprehensive or complete view of all the
subsystems in the organization of a company.
• Common data flows: The integration of different subsystems will
lead to a common data flow which will further help in avoiding
duplicacy and redundancy in data collection, storage and
processing.
• Heavy planning-element: The preparation of MIS is not a one or
two day exercise. It usually takes 3 to 5 years and sometimes a
much longer period.
• Subsystem concept: When a problem is seen in 2 sub parts, then
the better solution to the problem is possible.
• Common database: This is the basic feature of MIS to achieve the
objective of using MIS in business organizations.
• Computerized: MIS can be used without a computer. But the use
of computers increases the effectiveness and the efficiency of the
system.
• User friendly/Flexibility: An MIS should be flexible.
• Information as a resource: Information is the major ingredient of
any MIS.
Features of MIS

• Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance
DIFFERING INFORMATION FOR DIFFERENT
MANAGEMENT LEVELS

•Management functions and levels

•functions of management can be
grouped into five areas: planning;
decision making; organization and
co-ordinating; leadership and
motivation and control.
DESIGNING A COMPUTER-BASED MIS

• MIS provides information for managing an organization. It

provides pre-specified reports and schedule basis:
• Top managers make strategic decisions
• Middle managers make tactical decisions
• Line managers make operations decisions
• Knowledge workers create and integrate knowledge
• Clerical workers use and manipulate information
Transaction Processing System (TPS)

• Transaction Processing System (TPS) is a computerized system that

performs and records daily routine transactions necessary to the
conduct of the business.
• TPS has five (5) stages :
• data entry
• Processing
• database maintenance
• document and report generation
• inquiry processing
Research Systems (RS)

• research be the systematic

and objective search for and
analysis of data and
information relevant to the
identification and solution of
any problem
Intelligence System (IS)

• The process of acquiring and

analyzing information in order to
understand the market (both
existing and potential customers);
to determine the current and future
needs and preferences, attitudes
and behavior of the market; and to
assess changes in the business
environment that may affect the
size and nature of the market in the
future.
Internal Records System (IRS)

• managers rely on
internal reports on
orders, prices, costs,
inventory levels,
receivables, payables,
incident reports and so
on.
Decision Support System (DSS)

• is a computer-based information
system that supports business or
organizational decision-making
activities. DSSs serve the
management, operations, and
planning levels of an organization and
help to make decisions, which may be
rapidly changing and not easily
specified in advance.
MIS - Customer Relationship Management

• CRM is an enterprise application

module that manages a company's
interactions with current and future
customers by organizing and
coordinating, sales and marketing,
and providing better customer
services along with technical
support.
MIS - Knowledge Management System

• comprises a range of
practices used in an
organization to
identify, create,
represent, distribute,
and enable adoption to
insight and experience.
MIS - Business Intelligence System

• 'Business Intelligence' has evolved

from the decision support systems
and gained strength with the
technology and applications like data
warehouses, Executive Information
Systems and Online Analytical
Processing (OLAP).
Communication Systems

Sharing information in many different forms

• Videoconferencing
• interactive meeting involving groups of people that can see each other using
display screens
• E-mail, Voice Mail, and Fax
• Instant Messaging and Chat
• Groupware
• Software and related procedures that help teams work together by sharing
information and by controlling internal workflows. e.g. Lotus Notes
Communication Systems Cont.

Sharing information in many different forms

• Teleconferencing
• The use of electronic transmission to permit same-time different-place
meetings
• Audio conferencing
• a single telephone call involving 3 or more people
• Audio-graphic conferencing
• an extension of audio conferencing, permitting the participants to see
graphical material
Communication Systems Cont.

Sharing information in many different forms

• Intranets and Extranets
• INTRANETS: Private networks, Use the same interface as the Web,
Accessible only to company employees
• Examples of applications: Corporate news, Employee manuals,
Corporate policies, Telephone directories, etc.
• EXTRANETS: Similar to intranets, but geared towards customers
• Examples of applications: Detailed product descriptions, FAQs,
Maintenance information, etc.
Outputs Of a MIS

• Scheduled reports which are

produced periodically, or on a
Schedule (daily, weekly, monthly).

• Key-indicator report which

summarizes the previous day’s
critical activities and also it is
typically available at the beginning
of each day.
• Demand report which gives certain
information at a manager’s request.

• Exception report which is automatically

produced when a situation is unusual or
requires management action.
Aim of Management Information System

• The main aim of MIS is to inform management and help them make
informed decisions about management and the way the business is
run.
Benefits of MIS

• It improves personal efficiency.

• It expedites problem solving(speed up the
progress of problems solving in an
organization).
• It facilitates interpersonal communication
• It promotes learning or training.
• It increases organizational control.
• It generates new evidence in support of a
decision.
• It creates a competitive advantage over
competition.
• It encourages exploration and discovery on
the part of the decision maker.
• It reveals new approaches to thinking
about the problem space.
• It helps automate the Managerial
processes.
MIS Tools Needed

• Data warehouses (comprehensive, integrated MIS databases)

• Online Analytical Processing or OLAP
• Artificial intelligence and expert systems for new classification
systems
• Data-mining technologies
Data Warehouses: Integrated Databases

• The data should be verified for the following characteristics:

Correctness (high likelihood of being true).

Consistency and reliability (i.e., there is only one version of each data
element).
Relevancy (the selected data elements pertain to management problems
and decisions).
Online Analytical Processing /OLAP

• The importance of OLAP for classification is that it

allows many kinds of data analysis procedures to be
used to monitor the process and quality of classification
and its impacts without the risk of data overload

• OLAP tools generally are organized into separate

modules for data exploration, calculated fields,
forecasting, graphics, and reports.
Data Mining and Advanced Technologies

• This technique offers many advanced exploratory statistical classification

techniques that can aid the PNP administrator or planner. Data-mining
procedures can be incorporated into blotter / cases classification
procedures because many of them are focused explicitly on classification
and prediction.

• Data mining and AI offer smart programs that automatically search the
database to find patterns that can be used in building classifications or
predictions. The formulation of queries can be difficult when using a large
multidimensional database.
GUIDELINES FOR EFFECTIVE DESIGN

• System development Life

Cycle (SDLC)

The SDLC is a phased approach to

analysis and design that holds
that systems are best developed
through the use of a specific
cycle of analyst and user
activities.
GUIDELINES FOR EFFECTIVE DESIGN

1. Identifying
This stage is critical to the Problems ,
Opportunities
success of the rest of the project, and Objectives

because no one wants to waste

subsequent time addressing the
wrong problem. The first phase
requires that the analyst look
honestly at what is occurring in a
business.
GUIDELINES FOR EFFECTIVE DESIGN

2.
Determining
The second phase, the analyst human
information
enters is that of determining the requirements
human needs of the users
involved, using a variety of tools
to understand how users interact
in the work context with their
current information systems.
GUIDELINES FOR EFFECTIVE DESIGN

Again, special tools and

techniques help the analyst make
requirement determinations. 3. Analyzing
Systems Need
Tools such as data flow diagrams
(DFD) to chart the input,
processes, and output of the
business’s functions, or activity
diagrams or sequence diagrams to
show the sequence of events,
illustrate systems in a structured,
graphical form.
GUIDELINES FOR EFFECTIVE DESIGN

• In the design phase of the SDLC,

the systems analyst uses the
information collected earlier to
accomplish the logical design of
the information system. The
analyst designs procedures for
users to help them accurately 4. Designing the
enter data so that data going recommended
system
into the information system are
correct.
GUIDELINES FOR EFFECTIVE DESIGN

• In the fifth phase of the SDLC, the

analyst works with programmers to
develop any original software that
is needed. During this phase the
analyst works with users to
develop effective documentation
for software, including procedure
manuals, online help, and Web
sites featuring Frequently Asked
Questions (FAQs), on Read Me files
shipped with new software. 5. Developing
and
documenting
the software
GUIDELINES FOR EFFECTIVE DESIGN

• A series of tests to pinpoint

problems is run first with
sample data and eventually
with actual data from the
current system.

6. Testing and
maintaining the
system
GUIDELINES FOR EFFECTIVE DESIGN

• This phase involves training users

to handle the system. Vendors do
some training, but oversight of
training is the responsibility of the
systems analyst. In addition, the
analyst needs to plan for a smooth
conversion from the old system to 7. Implementing
and evaluating
the new one. This process includes the system
converting files from old formats
to new ones, or building a
database, installing equipment,
and bringing the new system into
production.
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Assessment

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