BUSINESS

MANAGEMENT
INFORMATION SYSTEM
 Information Systems in
Organizations
The computer age introduced a new element to
businesses, universities, and other organizations: a
set of components called the information system,
which deals with collecting and organizing data
and information.
 Information Systems in
Organizations
 An IS is defined as the software that helps
organize and analyze data.
 The purpose of an information system is to turn
raw data into useful information that can be
used for decision making in an organization.
 Data and Information
o Many organizations deal with massive amounts of
data. Data is a collection of basic values or facts
that is stored in a database.
o Many people mistakenly believe that data and
information are the same thing; however,
information is data that has been organized to
help answer questions and solve problems.
 Information System: Example
o A big sales company of your city uses their Information
System to help their salespersons connect to the top
customers on a more personal basis.
o Working from a prioritized list of customer names
displayed on a computer screen, the salesperson clicks on
a name to view relevant information about the customer,
such as background and preferred purchase activities.
 Information System: Example
o Such a system is very helpful to the middle or top-
level managers, who need systems to help them carry
out their oversight and planning responsibilities.
o To design marketing programs, for instance, marketing
managers rely on summary information taken from a
dedicated customer-relationship management system.
 Components of Information
System
While IS may differ in how they are used within an
organization, they typically contain the following components:

1.Hardware
2.Software
Information Technology
3.Database
4.Network
5.People and Procedures Information System
 Components of Information
System
1. Hardware

Physical components such as processors,

monitors, keyboard and printers.
 Components of Information
System
2. Software

Instructions that tell the physical components what to do.

System Software – Operating system, interacts with the hardware
e.g., widows, linux, mac.
Application software – interacts with the user e.g. MS word
 Components of Information
System
3. Database: Data, organized into tables and files.

For example, a company database may include tables for

products, employees, and financial records. Each of these
tables would have different fields that are relevant to the
information stored in the table.
 Components of Information
System
4. Network: allows the transmission and sharing
of data.

Different elements need to be connected to each

other, especially if many people in an organization
are using the same information system.
 Components of Information
System
5. People and procedures:

People that are needed to run the system.

Procedures they follow so that the knowledge in
the huge databases can be used in decision
making, to interpret what has happened in the past
and guide future action.
 Components of Information
System
5. People and procedures:

People: Also known as users

 Person who uses and operates the computer or other
machine
 All levels of the organization
 Can be your outside partners such
as suppliers
 Components of Information
System
5. People and procedures:

Procedures: Series of steps to achieve a desired outcome

Benefits:
 Increased productivity
 Better decision-making ability
 Improved processes using available data
 Within the company
 Externally with suppliers and customers
 Continuous improvement using technology
 Information System History

1950 - 1960 1970 - 1980 Mid 1980s to Mid 1990s to Post early
• Mainframes • First early 1990s early 2000s 2000s
• Manufacturing microcompute • Client Server • Web 3.0 now
• World Wide
Resource r (PC) • Networking Web • Mobile
Planning • Windows Computing
• ERP
Systems operating • Cloud
system Computing
 So what is Management
Information System?

MIS is the use of hardware, software and

telecommunication networks to achieve
business objectives.
 Purpose of Information System

o To assist the managers in making effective and

efficient strategic, tactical, and operational
level decisions.
o It gives managers access to useful information
gathered from various sources and departments in
a single database that is easily understandable.
 Features of MIS

o Understandable:
The information in MIS is already in the summarized
form but it should be easily understandable to the
receivers of information.

o Relevant:
Information should be relevant to the receiver who is
going to use the information in his decision making.
 Features of MIS
o Complete: The information provided to the manager
should be complete in all regards.

o Available: Information should be readily access to the

manager for the decision making

o Reliable: The information should be trustworthy,

accurate and can verify all the facts.