BUS 201: Introduction to Business

Fundamentals of Management Information

Systems (MIS)
What is MIS?
 Management Information Systems (MIS) is a discipline that
teaches us how management, organization, and technology
create information systems to solve business
problems/challenges in an organization.
 For Example:
 Business Challenges: Registration in open credit system is a business
problem for IUB. If this registration were done manually, it would be
almost impossible to complete it successfully for employees. An
employee has to check lot of issues before allocating a course to
student e.g. prerequisites, course level, time clash, class capacity, room
capacity, dues and many more. These issues if checked manually would
make the registration process very time consuming and erroneous.
 MIS: MIS studied the problem, proposed a solution to the problem,
and finally, deployed IRAS which is an information system to solve the
problem.
 Results: IRAS system does this registration within 1-2 days, checking
all above issues simultaneously for many students. Thus, IRAS reduces
registration time, number of employees, and error rate for IUB.
This is how MIS supports an organization
Information Systems (IS)
Information Systems (IS ) is a collection of people, hardware,
software, data, and telecommunication technologies that work
together to collect, process, store, and disseminate information
in an organization.
Components of Information Systems

People Resources: end users and IS specialists, system

analyst, programmers, data administrators etc.
Hardware Resources: Physical computer equipments and
associate devices, machines and media.
Software Resources: programs and procedures.
Data Resources: Customers records and employee files.
Networks Resources: Communications media and
Communication processors.
Fundamental Roles of IS
Three major roles of the business applications of information
systems include:
Support Business Processes- involves dealing with
information systems that support the business processes and
operations in a business.
Support Decision Making- helps decisions makers to make
better decisions and attempt to gain a competitive
advantage.
Support Competitive Advantage- helps decision makers to
gain a strategic advantage over competitors requires
innovative use of information technologies.
Functional Business Systems
 Many organizations are structured based on
functional areas. Typically, functional areas
include the following:
 Accounting
 Finance
 Marketing
 Human resource management
 Production and Manufacturing
 Many of these functional areas have their own
Information System.

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IT in Business

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Marketing Systems
A marketing system supports activities
throughout the many activities of marketing
departments. Some of the marketing functions that
are supported by marketing systems are:
 marketing research,
 product development and delivery,
 promotion and advertising,
 product pricing and sales analysis etc.

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Manufacturing Information Systems
 Supports the production/operations functions
 Includes all activities concerned with planning and control
of the processes producing goods or services
 provides information on production /operation activities of
an organization and thus facilitates the decision-making
process of production managers of an organization.

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Human Resource Management
Systems
 This functional information system supports the

functions of human resource management of an

organization. Human Resource Management
System supports the following activities of HRM: 
 Workforce planning
 Staffing
 Training and development
 Performance evaluation etc.

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Accounting Information Systems
 The oldest and most widely used information
system in business.
 Records and reports business transactions and
economic events
 Produces financial statements
 Forecasts future conditions etc.

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Financial Management Systems
 A financial system provides financial
information for managers to make daily
decisions on operations within the organization.
Most systems provide these functions:
 Integrate financial information from multiple sources
 Provide easy access to financial information in
summarized form
 Enable financial analysis using easy-to-use tools
 Compare historic and current financial activity etc.

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Functions of IS
 Input captures or collects raw data from within the
organization or from its external environment.
 Processing converts this raw input into a meaningful
form.
 Output transfers the processed information to the people
who will use it or to the activities for which it will be
used.
 Information systems also require feedback, which is
output that is returned to appropriate members of the
organization to help them evaluate or correct the input
stage.
Thank You!