Chapter 1

Concepts of Information
Systems
Contents

Information System Concepts

Elements of MIS: Management, Information, and
Systems
Types of Information Systems
Components of Information Systems
 Learning Objectives
To understand the concept of information systems
To define three elements in MIS: the management,
information, and system
To define management information systems
To differentiate between various types of information
systems
To know various components of information systems
 Concept of MIS
Businesses have been using information for decision
making for centuries, but MIS is a comparatively recent
concept.

With computers and IT advancements, MIS refers to

computer based information systems (CBIS)

The electronic data processing in businesses

metamorphosed into systems or IT departments

MIS involves three elements, viz., management,

information, and systems
 Why MIS?????
What do you infer from the data?
Exhibit 1.2 pg 7

Statement of Sales

April May June

Gifts 80355 72746 90736
Perfumes 44500 43400 64200
Music CDs 139787 135898 170400
 Management
Managers use information systems in organizations

Managerial responsibilities and duties vary at various

levels of the organization

Based on the types of jobs they perform or nature of

decisions they take within the organization, managers
are categorized into three categories: senior level, middle
level, and operational level.
Management
 Information
MIS: Information is the next important element in MIS,
which is considered a valuable resource in the successful
running of a business

Information is data that is processed and presented in a

form to assist decision-makers

Data, in contrast, are streams of raw facts representing

events occurring in organizations or the physical
environment before they have been organized and
arranged into information
 System
The third element in the MIS is the system

A system is a set of elements which are joined together to

achieve a common objective. These elements are
interdependent and interrelated.

For every system, the set up elements are input, process,

and output. The input(s) are processed and converted
into output(s).
 Define MIS
Management information system can be understood as a
system that enables people to gather, consolidate, and
compute data, and present the information in a
meaningful and intelligent (that makes sense to the user)
format, either with the help of computers or manually.

It is a set of interrelated components that collect

(retrieve), process, store, and distribute information to
support decision making, coordination and control in an
organization.

Oxford University Press 2013. All rights reserved.

 Types of Information Systems
The following six types of information systems are
regrouped either as operational or management level
information systems. Thus we can call them either
operations support systems or management support
systems:
TPS
OAS
KMS
MIS
DSS
EIS
Types of Information Systems
 Operations Support Systems
TPS: Transactions processing systems are the basic business
systems that work at the operational level of the organization.
Predefined pattern-Bill

OAS: Office automation systems include applications for

workgroup communications and productivity. Office
automation tools like world processors, spreadsheets, emailing,
storage, and retrieval of electronic files come under this
category.

KMS: The collaborative activities are knowledge works and the

system that promotes, preserves, distributes, and manages the
knowledge works is known as knowledge management system.
Learning System-Format of Reports
 Management Support Systems
MIS: The MIS provide managers with reports and on-line
access to the organizations current performance and historical
records that include routine, periodical, and exception reports.
Availability of information as and when required.

DSS: Decision support systems help managers in decision

making by providing analytical reports. The data
generated at TPS is processed to generate reports, graphs, and
further analysis to be used by managers for making decisions.
Exhibit 1.3

EIS: Executive information systems provide critical

information from a variety of internal and external sources to
the top management for strategic decisions. Strategic and
long term planning decisions are made by the senior
and top executive level management.
Components of Management
Information Systems
 Components of MIS
Hardware: In addition to resources like desktops, laptops, and
servers, hardware resources cover peripherals like printers, storage
devices.

Software: These applications are used for processing the data and
presenting it in meaningful form for managerial decision making.
Software systems not only include applications but system software,
utilities, programming languages, procedures, and operating
systems.

Data: Data is the most indispensable component of an information

system and a valuable resource for an organization. Data resources
are more than just raw material for information systems. Data can
be independent of applications and can be created, stored, and
retrieved with the help of modern sophisticated database
management tools.
Contd.

Network: Networks and communication resources are

fundamental components of computer based management
information systems. They provide communication between
two computers or a cluster of computers.
Telecommunications networks consist of computers,
communication processors, and other devices used to control
the communication.

People: People resources are very critical component of any

management information system as they are instrumental in
using and managing the systems. These are the set of people
who spend their time in creating, sharing, and disseminating
the information within and outside the organization.