Management Information

System

An Introduction

First
Chapter
1
MIS
 To the managers, Management
Information System is an implementation
of the organizational systems and
procedures.

 To a programmer it is nothing but file

structures and file processing. However,
it involves much more complexity.

2-2
 MIS

Management Information System, commonly referred to as MIS is

a phrase consisting of three words:
management, information and systems. Looking at these three
words, it’s easy to define Management Information Systems as
systems that provide information to management.
Management information systems (MIS) are methods of using
technology to help organizations better manage people and make
decisions. Managers use management information systems to
gather and analyze information about various aspects of the
organization, such as personnel, sales, inventory, production or
other applicable factors.

3
MIS
What Is Management
 Management
• the process of getting things done
through others involving POSDCORB by
using resources (Natural, Human and
Capital) effectively and efficiently for
achieving organizational objectives.
• But now a days INFORMATION
considers the most important resources
all over the world.
 What is Management

 Management (cont.)
• Efficiency - getting the most output from the least
amount of inputs
• “doing things right” (not wasting resources)
• Effectiveness - completing activities so that
organizational goals are attained
• “doing the right things”
• concerned with ends
Key Resources of MIS
Information
 Data
Are raw facts that describe a particular phenomenon
e.g Current Temperature, Price of property, Age of a person etc.

A message which source wants to communicate to the receiver

e.g Text, Voice, Image, movies, Music etc

 Information: Data that is organized, meaningful,

and useful
 data with context
• summarized
• organized
• analyzed
Data Information

Raw facts Processed facts

Dead stored facts Live presented facts

Inactive (only exists in the backend) Active (being processed data for
knowledge base)

Technology oriented Business oriented

Characteristics of Valuable Information

 1. Accuracy.
 2. Verifiable.
 3. Timeliness.
 4. Organized.
 5. Meaningful.
 6. Cost effective.
 1.Accuracy

• The information a user receives has been

processed correctly
• Correct information
• Free from errors
• Inaccurate information can lead to
incorrect decisions
 2. Verifiable
User can confirm and verify
the information.

Identify source of information

 3.Timely Information

Having information when users

need it.

Right information must be produced

to users at right time.
 4. Organized

 Information is arranged to suit the

needs and requirements of the users.
 5. Meaningful
 Relevant to the user who receives or
uses it.

 Unnecessary information must be

eliminated.
 6.Cost-effective

 The cost to produce the information should

be less than the actual cost of the
information.
What is a System?
 A system is…
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing
outputs
• In an organized transformation process
Basic Functions of a System
 Input:
• Capturing and assembling elements that enter the system to
be processed

 Processing:

• Transformation process that converts input into output

 Output:

• Transferring transformed elements to their ultimate

destination
MANAGEMENT INFORMATION SYSTEM(MIS)

 The MIS is defined as a system based on the database of

the evolved for the purpose of providing information to
the people in the organization.

18
Management information systems, or MIS, are capable of
gathering and storing data from different departments, making
valuable reports and presentations that can be used by you and
your staff. Besides collecting and processing information, MIS's
goals include improving the performance of the company and
helping with decision-making.
Management information systems are regarded to be a subset of
the overall internal controls procedures in a business, which
cover the application of people, documents, technologies, and
procedures used by management accountants to solve business
problems such as costing a product, service or a business-wide
strategy.

19
Meaning Of Information Systems
 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.

20
Origin of Management Information
Systems

The history of management information system

can be traced back to the industrial exhibition
of Paris in 1801. There, Joseph Marie Charles
Jacquard introduced the world to punch cards.
These cards, which were similar to the
computer punch cards used through much of
the 20th century, were used in weaving looms
to make intricate patterns in cloth.
https://bizfluent.com/about-5444925-history-management-information-systems.html

21
The Five Eras of MIS

 First Era (mid-1960s to mid-1970s)

 During the first years of computerized MIS,
information systems were centralized and concerned
solely with governance and the needs of
management. Most information systems and their
reports were under the control of accounting
departments. Technology included third-generation
mainframe computers, like the IBM 360. Languages
included Assembler, Fortran, COBO and, Database e.
Ethernet networks were developed during this time.

22
 Second Era (mid-1970s to mid-1980s)
 While MIS was still mainly concerned with governance and the needs
of management, more departments were beginning to benefit from the
technology. In many companies, steering committees and user-led
initiatives determined the shape and scope of additional IS projects.
Technology included the first personal computers (PCs),
minicomputers and mid-range computers.

 Third Era (mid-1980s to late 1990s)

 During the third era, centralized information systems began to spread
out and information became decentralized. Each department had its
own computer system. Managing information was often referred to as
"herding cats." It was during this era that a new position emerged in
many companies to oversee the acquisition and management of
multiple information systems: the Chief Information Officer, or CIO.
Technology during this era included internetworking and the beginning
of the internet.

23
 Fourth Era (late 1990s to today)
 During the current era, information systems are still tightly tied to
governance and management, however the systems are widely
distributed, within the reach of nearly every employee who needs it
across multiple platforms. Many information systems are integrated
between different companies, so that a client business can readily access
supplier information and their customers, in turn, can access that
information. Technology now includes social media, search engines and
ubiquitous computing through a variety of platforms including laptops,
tablets and smartphones.
 Fifth Era (today forward)
 The increase in internet bandwidth over recent years has led to a
substantial reliance on cloud computing. As a result, some maintain that
this marks a new era in worker's ascendancy and that we are now in a
fifth era for management information systems. Today, practically any
employee is now in a position to make informed decisions with tools that
are readily available across multiple platforms. Furthermore, the line
between who produces and who consumes MIS information is
increasingly blurred.

24
WHAT’S NEW IN MIS

25
26
Types Of Information System

27
Functions of MIS
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.

29
 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.

30
While different organizations can use
CRM solutions for different purposes, at
its core, the role of CRM in business can
be summarized with four common goals:
To get more customers.

To retain existing customers.

To increase profitability.

To increase customer loyalty.

31
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.

32
  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.

33
  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.

34
Features of MIS
 Timeliness
 Accuracy

 Consistency

 Completeness

 Relevance

35
 Components of MIS
1) Marketing Research System (MRS)
Marketing research can be seen as the systematic and
objective search for and analysis of data and information
relevant to the identification and solution of any problem in
the field of marketing.

36
2) Marketing Intelligence System (MIS)
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.

37
3) Internal Record System (IRS)
Marketing managers rely on internal reports on orders, sales,
prices, costs, inventory levels, receivables, payables, and
so on. By analyzing this information, they can spot
important opportunities and problems.

38
4) Decision Support System(DSS)
A 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.

39
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.

40
Types Of MIS
 Transaction processing systems: These systems process
a large volume of routine, recurring transactions.
 Operations information systems: These systems gather
comprehensive data, organize it and summarize it in a
form that is useful for managers.
 Decision support systems: These systems help mangers
with the necessary information to make intelligent
decisions.
 Expert systems: They are meant to mimic humans in
making decisions in a specific field.

41
Elements of MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications and Networks

42
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.

43
 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.

44
 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.

45
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.

46
 IS Challenges

 Workforce downsizing
 Information overload
 Employee mistrust
 Difficult to build
 Security breaches
 Rapidly changing technology
 DATA & INFORMATION
 The terms "data" and "information" are sometimes misinterpreted
as referring to the same thing. However, they are not the same.
 information we mean data that have been shaped into a form that is
meaningful and useful to human beings. Data, in contrast, are
streams of raw representing events occurring in organizations or
the physical environment before they have been organized and
arranged into a form that people can understand and use
 Data is a collection of values. Those values can be characters,
numbers, or any other data type. If those values are not processed,
they have little meaning to a human. Information is data that was
processed so a human can read, understand, and use it.

48
 PROCESS OF CONVERTING DATA
INTO INFORMATION

Customers Suppliers Competitors Others

Data collection

Classification
Sorting
Summarizing
Storing
Retrieval
Dissemination
THANK YOU