Introduction to MIS

Lecture-1:
Importance
Riphah International College
Adeel Riaz Hussain
MSCS (MPhil)
What is MIS
 An information system (IS) is an interconnected set of
components used to collect, store, process and transmit
data and digital information. At its core, it is a collection
of hardware, software, data, people and processes that
work together to transform raw data into useful
information.

2
Importance of MIS
 custom data to help with a specific task or decision-
making
 custom format (eg list, chart, etc) which can be tailored
to the user's need
 real-time data, particularly useful where fast action is
needed
 archived data, particularly useful for reports, analysis
and business planning
 operational efficiencies
 cost reductions
 supply of information to decision-makers

3
GOAL..
 The goal of an information system is to transform data
into information in order to generate knowledge that can
be used for decision making. In order for information to
add value to a business and the decision maker it must
possess characteristics to ensure quality.

4
Characteristics of MIS
 Accessible
Must be easily accessible by users to meet their needs in
the right format at the right time. Access should be
secure and prevent unauthorized access.
 Consistent

Contains no discrepancies, and the same measurements or

structure are used regardless of the data source.
 Complete

Contains all information and is not missing anything.

5
 Timely
Delivered when needed.
Accurate
 Free of errors and bias, and can be verified or validated.

Cost
 Balance the value of information to the cost of producing
it.
Relevant
 Important to decision makers.

Clear
 Not overly complex, easy to understand.

6
Objectives of IS

 1. Operational Excellence (OpEx)

Operational Excellence is an approach to business
management that emphasizes continuous improvement
and employee empowerment. It aims to create a culture
where everyone is invested in the business and can
identify and solve problems before they disrupt
operations.

7
 2. New Products, Services & Business Models
New products, services, and business models are vital for
business success, enabling competitiveness and
relevance in a dynamic market. Innovation is the key to
their development, creating new revenue streams and
improving existing offerings
 3. Customer and Supplier Intimacy

Customer intimacy is a relationship-building strategy in

which brands acquire better knowledge about customers
and use that data to meet their needs and expectations
in thoughtful, personalized ways.

8
 4. Improved decision making
Information systems play a crucial role in providing decision
makers with essential data and tools to make informed
decisions. These systems enable businesses to identify
trends and patterns in real-time data, analyze
information more efficiently and accurately compared to
manual methods
 5. Competitive advantage

Competitive advantage refers to the factors that enable a

company to produce goods or services better or more
affordably than its competitors. These factors contribute
to increased sales, superior margins, and overall value
for the company and its shareholders

9
 6. Survival
Survival in IS refers to the ability of a business to continue
operating despite changes in the business environment.
This is achieved by investing in information systems that
help businesses adapt to changes in the environment
and remain competitive.

10
Trends in Information System

 1: Artificial intelligence
The rise of artificial intelligence and machine learning
technologies have led to an unprecedented level of
automation
2: Augmented reality. Augmented reality (AR) is one of
the top new technology trends that many experts are
predicting will be influential in the future
3: Blockchain is helping to keep data more secure and
creating a reliable history of transactions. The
applications extend far beyond that of cryptocurrency.

11
 4: Internet of Things (IoT) Internet of Things (IoT)
uses connected devices, such as wearables and
sensors, to provide more optimal results for businesses.
 5: Cyber security involves much more than passwords,
antivirus software, In addition, the greater use of the
internet of things puts companies at higher risk for
cyberattacks. Businesses need to take steps to better
protect their data if they want to continue benefiting from
enhanced tech capabilities.
 6: Big data brought about by digitization is the fuel for
the Fourth Industrial Revolution. It's critical to many of
the other technology trends in business

12
 Four Step Method of Problem solving
 The model we’ve used with clients is based on problem-
solving methodology used by many “lean” production-
based companies. In addition to being simpler, our 4-
step method is visual, which helps remind the user what
goes into each box.
The steps are as follows
 Develop a Problem Statement
 Determine Root Causes
 Rank Root Causes in Order of Importance
 Create an Action Plan

13
 Develop a Problem Statement

 Developing a good problem statement always seems a

lot easier than it generally turns out to be. For example,
this statement: “We don’t have enough staff,” frequently
shows up as a problem statement. However, it suggests
the solution—“GET MORE STAFF” — and fails to
address the real problem that more staff might solve,
such as answering phones in a timely manner.

14
 Determine Root Causes
 Root Cause Analysis is a useful process for
understanding and solving a problem. Figure out what
negative events are occurring. Then, look at the complex
systems around those problems, and identify key points
of failure. Finally, determine solutions to address those
key points, or root causes.

15
 Rank Root Causes
 Once you know what’s causing the problem (and there
may be multiple root causes), it’s time to move to Step 3
to understand which causes, if solved for, would close
your gap. Here you rank the root causes in order of
importance by looking at which causes would have the
greatest impact in closing the gap.
 Create an Action Plan
 In Step 4 you create your action plan — who is going to
do what and by when. Documenting all of this and
making it visible helps to communicate the plan to others
and helps hold them accountable during implementation.

17
 Types of Information Systems
 1. Transaction Processing System (TPS)
 2. Office Automation System (OAS)
 3. Knowledge Work System (KWS)
 4. Management Information System (MIS)
 5. Decision Support System (DSS)
 6. Executive Support System (ESS)

18
 Transaction Processing System
 Transaction processing is essential to helping
businesses perform daily operations. Transactions are
defined as any activity or event that affects the company,
and include things like deposits, withdrawals, shipping,
billing customers, order entry, and placing orders. TPS
supports these business transactions.

19
 Office Automation System

 OAS consists of computers, communication-related

technology, and the personnel assigned to perform the
official tasks. The OAS covers office transactions and
supports official activity at every level in the organization.
The official activities are subdivided into managerial and
clerical activities.
Office automation systems include the following
applications:
 Email: The email application also covers file attachments
such as audio, video, and documents.
 Voice Mail: This application records and stores phone
messages into the system’s memory and can be
retrieved anytime. 20
 Office Automation System

Word Processing: Word processing covers the creation of

documents, including memos, reports, letters, and anything
else that’s printable electronically. The created text can be
copied, edited, and stored via word processing commands,
and checked for grammar and spelling, line and word
counting, and headers and footers.

21
 Knowledge Work System (KWS)

The KWS is a specialized system that expedites knowledge

creation and ensures that the business's technical skills
and knowledge are correctly applied. The Knowledge Work
System aids workers in creating and disseminating new
information using graphics, communication, and document
management tools

22
 Management Information System (MIS)

Middle managers handle much of the administrative chores

for day-to-day routines and performance monitoring,
ensuring that all the work is aligned with the organization's
needs. That's why MIS is such a valuable tool.
Management Information Systems are specially designed
to help middle managers and supervisors make decisions,
plan, and control the workflow.

23
 Decision Support System (DSS)

The DSS is a management-level, interactive computer-

based information system that helps managers to make
decisions. The Decision Support System specifically gives
middle managers the information necessary to make
informed, intelligent decisions.

24
 Executive Support System (ESS)

 The ESS is like the MIS but for executive-level decision-

making. The decisions involve company-wide matters,
so the stakes are higher. Consequently, they demand
more insight and judgment.
 The ESS provides greater telecommunication, better
computing capabilities, and more efficient display options
than the DSS. Executives use ESS to make effective
decisions through summarized internal data taken from
DSS and MIS and external sources.

25