UNIT 3

MIS in Functional Areas of Business:

1. Accounting:
- Definition: In accounting, MIS helps generate financial reports, manage ledgers, and track
transactions.
- Example: A company might use MIS software like QuickBooks to automate balance sheet
and income statement generation, ensuring accuracy and timeliness.

2. Human Resource:
- Definition: MIS in HR manages employee data, payroll, recruitment, and performance
evaluations.
- Example: An HR MIS could track employee training, benefits, and career progression,
streamlining HR processes and improving workforce management.

3. Inventory:
- Definition: MIS for inventory management tracks stock levels, orders, and deliveries to
prevent overstocking or stockouts.
- Example: A retailer might use an inventory MIS to predict demand based on historical data,
maintaining optimal stock levels and improving efficiency.

4. Manufacturing:
- Definition: MIS in manufacturing monitors production processes, quality control, and
maintenance schedules.
- Example: A manufacturing MIS oversees the production line, ensuring efficiency and
minimizing downtime by scheduling maintenance proactively.

5. Marketing:
- Definition: MIS in marketing analyzes market trends, customer behavior, and campaign
effectiveness.
- Example: A marketing MIS segments customers and personalizes marketing efforts,
improving engagement and ROI for marketing campaigns.

MIS Development:

Definition: MIS development involves creating systems tailored to an organization’s needs,

including software selection, system design, and integration with existing processes.
- Example: Developing a custom MIS for a hospital might involve integrating patient records,
appointment scheduling, and billing systems into a cohesive platform, improving patient care and
administrative efficiency.
Principles of System Development:
1. User-Friendly Design:
- Definition: Systems should be easy to use and navigate for end-users.
- Example: Designing an online banking system with a simple interface and intuitive
navigation improves user experience and reduces errors.

2. Efficiency:
- Definition : Systems should perform tasks quickly and with minimal resources.
- Example : Optimizing code and database queries in an e-commerce platform reduces page
load times and improves scalability.

3. Scalability:
- Definition: Systems should be able to handle increased workload or users without
performance degradation.
- Example: Designing a cloud-based customer relationship management (CRM) system allows
businesses to scale their operations as they grow without investing in additional infrastructure.

4. Modularity:
- Definition: Systems should be built with independent modules that can be updated or
replaced without affecting other parts of the system.
- Example: Developing separate modules for inventory management, sales, and finance in an
enterprise resource planning (ERP) system allows for easier maintenance and updates.

These principles ensure that MIS are effective, adaptable, and aligned with the organization's
goals, driving efficiency and innovation across all business functions.

UNIT 4

Decision Making & Decision Support System:

MIS Support at Each Phase: Intelligence, Design, and Choice

1. Intelligence Phase: This is where businesses gather information to identify problems and
opportunities. MIS helps by analyzing data to spot patterns or trends. For instance, a retail store might use
MIS to notice a decrease in sales during certain times of the year, indicating a potential issue or
opportunity for improvement.

2. Design Phase: In this phase, businesses come up with different solutions to address the identified
issues or opportunities. MIS assists by providing tools to simulate various scenarios. For example, a
manufacturing company might use MIS to simulate the impact of different production strategies on costs
and efficiency.

3. Choice Phase: Here, businesses select the best solution among the alternatives. MIS supports decision-
making by offering tools to compare options. For instance, a marketing team might use MIS to compare
the potential outcomes of different advertising campaigns based on past performance data.

Decision Making and MIS

Decision Making and MIS involve using insights from MIS to make informed decisions. For example, a
restaurant owner might use sales data from MIS reports to decide on menu changes or promotional offers.

Decision Support System

A Decision Support System (DSS) is a computer-based tool that helps in making decisions by analyzing
data and providing insights. For instance, a financial institution might use a DSS to analyze customer
credit scores and financial history to make lending decisions.

Group Decision Support System (GDSS)

A Group Decision Support System (GDSS) helps groups of people make decisions together. It enables
collaboration and sharing of information among team members. For example, a project team might use
GDSS software to brainstorm ideas and prioritize tasks.

Expert System
An Expert System is AI software that uses knowledge to solve problems that typically require human
expertise. For example, a healthcare organization might use an expert system to assist doctors in
diagnosing diseases based on symptoms and medical history.

Office Automation System

Office Automation Systems streamline office tasks to improve efficiency. For example, email automation
software can schedule and send emails automatically, reducing the time spent on repetitive tasks.

These systems, including MIS, Decision Support Systems, Expert Systems, and Office Automation
Systems, are essential tools that businesses use to gather information, analyze data, and make better
decisions.