MANAGEMENT INFORMATION

SYSTEM
Unit -1: Introduction
INTRODUCTION
 Information systems in Business
 Are sets of inter-related procedures using IT
infrastructure in a business enterprise to generate and
disseminate desired information.

 Such systems are designed to support decision making

by the people associated with the enterprise in the
process of attainment of its objectives.
INTRODUCTION
 Features of Business Information System
 The business information systems are subject to the dynamics of
business environment and need to be flexible enough to absorb
the inevitable changes in the information needs of business.

 They have to be efficient to satisfy the demanding and ‘hard task

masters,’ the business managers. Thus, there is need to balance
the conflicting objectives in the process of designing business
information systems.

 Business information systems need to be proactive. They should

anticipate changes in information needs of users and accordingly
adapt themselves to suit their needs. 
INTRODUCTION
 The purpose of business information system is to cater to
the information needs for decision making in business.
 The business information systems have to be designed
keeping in view the availability of financial and human
resources to the business enterprise.
  The cost effectiveness is a matter of prime concern in
the development and maintenance of business
information systems. Economic justification for
investment in IT infrastructure for business information
systems is a pre condition for its existence and
sustenance.
INTRODUCTION
Types of Information
Transaction Processing System (TPS)
Transaction processing systems are used to record day to day business
transactions of the organization. They are used by users at the operational
management level. The main objective of a transaction processing system
is to answer routine questions such as;
 How printers were sold today?
 How much inventory do we have at hand?
 What is the outstanding due for John Doe?

By recording the day to day business transactions, TPS system provides

answers to the above questions in a timely manner.
The decisions made by operational managers are routine and highly
structured.
The information produced from the transaction processing system is very
detailed.
INTRODUCTION
 Examples of transaction processing systems include;
 Point of Sale Systems – records daily sales
 Payroll systems – processing employees salary, loans management,
etc.
 Stock Control systems – keeping track of inventory levels
 Airline booking systems – flights booking management
INTRODUCTION
2) Management Information Systems (MIS) are used by tactical
managers to monitor the organization's current performance status. The
output from a transaction processing system is used as input to a
management information system.

The MIS system analyzes the input with routine algorithms i.e.
aggregate, compare and summarizes the results to produced reports that
tactical managers use to monitor, control and predict future performance.

For example, input from a point of sale system can be used to analyze
trends of products that are performing well and those that are not
performing well. This information can be used to make future inventory
orders i.e. increasing orders for well-performing products and reduce the
orders of products that are not performing well.
INTRODUCTION
 2Examples of management information systems include;
 Sales management systems – they get input from the point of sale
system
 Budgeting systems – gives an overview of how much money is
spent within the organization for the short and long terms.
 Human resource management system – overall welfare of the
employees, staff turnover, etc.
INTRODUCTION
 Decision Support System (DSS)
 Decision support systems are used by senior management to make
non-routine decisions. Decision support systems use input from
internal systems (transaction processing systems and management
information systems) and external systems.
 The main objective of decision support systems is to provide
solutions to problems that are unique and change frequently.
Decision support systems answer questions such as;
 What would be the impact of employees' performance if we double
the production lot at the factory?
 What would happen to our sales if a new competitor entered the
market?
INTRODUCTION
 Examples
 Bank loan management systems – it is used to verify the credit of
the loan applicant and predict the likelihood of the loan being
recovered.
MANAGERIAL CHALLENGES OF IT
 Lack of Powerful Computing Platforms
 Challenge - The major challenge in growing processing power of
computers has been the lack of energy and space to power
supercomputers. IT managers have always been on the lookout for
better and faster systems which will help in the faster processing of
the large amounts of data available today.
 Data Acquisition Problems
 Challenge - Firewalls which protect emails, applications and web
browsing can cause important packet losses in the TCP/IP networks.
This can result in important data loss and reduce the network speeds
considerably, making the online collaboration impossible. Similar
losses can occur due to the switches and routers which do not have
the required high-speed memory.
MANAGERIAL CHALLENGES OF IT
 Compute Management and Provisioning
 Challenge - One of the biggest challenges for IT managers is the
humongous amounts of data that is available today. High-
performance computing of these large data sets will require
virtualization and automation to avoid adding more people to these
processes. The major challenge for IT managers is to simplify these
tasks and speed up the processing.
 Lack of Efficient Data Storage Architectures
 Challenge - Cloud storage has taken over in most of the cases in the
modern world. Though it is a cost-effective and scalable alternative
for data storage for IT managers, it does not provide the required
data storage architectures which can accommodate a variety of
applications. The IT community needs something more flexible
which is beyond space and cost in cloud storage options.
MANAGERIAL CHALLENGES OF IT
 Dearth of Ways to Improve Data Analytics
 Challenge - Currently there are not many methods in place which
can be used by IT managers to separate quality data from the
humongous data sets. It is important to identify patterns in the data
and correctly analyze it and use it to take business decisions in
infrastructure management.
 Improper Networks and Connectivity
 Challenge - For any organization to work smoothly, it is important
that there is a good and reliable network in place. Without a reliable
network connection, IT infrastructure management can be a difficult
task for any IT manager of the organization. New software-based
methods and network architecture design are required for the
optimization of data.
COMPONENTS OF INFORMATION
SYSTEM RESOURCES AND ACTIVITIES
COMPONENTS OF INFORMATION
SYSTEM RESOURCES AND ACTIVITIES
1. Computer Hardware:

Physical equipment used for input, output and processing. It consists of input, an output
device, processor, and media devices. This also includes computer peripheral devices.
2. Computer Software:
The programs/ application program used to control and coordinate the hardware
components. It is used for analysing and processing of the data. These programs
include a set of instruction used for processing information.
 Software is further classified into:

 System Software : System software is a type of computer program that is designed

to run a computer's hardware and application programs

 Application Software : Application software, or app for short, is software that

performs specific tasks for an end-user.

 Procedure is a set of coded instructions that tell a computer how to run a program or
calculation. 
COMPONENTS OF INFORMATION
SYSTEM RESOURCES AND ACTIVITIES
A database is a collection of information that is organized so that it can be
easily accessed, managed and updated. 

A computer network is a set of connected computers. Computers on

a network are called nodes. The connection between computers can be
done via cabling, most commonly the Ethernet cable, or fiber optic
cable. Connections can also be wireless; you'll hear the term wi-fi to
describe information sent via radio waves.

Human Resources:

It is associated with the manpower required to run and manage the

system. People are the end user of the information system, end-user
use information produced for their own purpose,