Management Information System

Data:
It is a fact and entity such as names, numbers

regarding any object, thing, man is called data. It is a raw fact or material for business organisation.

Information:
The processed data is called Information.
Data in proper order or meaning. According to Davis and Olson Information is data that

has been processed into a form that is meaningful to the recipient. When data are processed in such a way that these become helpful in decision making, they become information.

Quality of Information:
Availability- Information is to be collected in

minimum possible time and in minimum possible spending both in terms of money and labour. Timeliness- Information is available in the organisation in right time. Validity- The information should be valid to the purpose for which it will be used. Reliability- The reliability is also affected, if the data is not collected from the right and reliable source. Age- The information should be up to date, not old.

System:
Group of interrelated components working together

towards a common goal to accept input, produce output in an organised transformation process. Examples:- Computer System, Accounting system, Biological system, Digestive system, Business system etc.

System components:
System has five basic interactive components Input Raw materials, energy, data etc Process manufacturing process, Human breathing

process etc. Output Finished products, results etc. Feedback It is data about the performance of system. Ex- Sales performance is feedback to a sales manager. Control It involves monitoring and evaluating whether a system is moving towards the achievement of its goal or not.

Information System:
An Information system is a system that accepts data

resources as input and processes them into information product as output. Information system is an organised combination of people, hardware, software, network and data resources that collects, transform and disseminates information in an organisation.

Three major roles of Information system

Provide an Organization with support for business

operation Managerial decision making Support for strategic advantages

Components of Information System:

Hardware All physical devices and materials used in

information processing. Software All sets of information processing procedures or instructions. People People or operator are important component of information system. Data Database is mostly required for information system. Network Now for computer based information system (CBIS) network like Internet, Intranet, Extranet become essential for successful operation of business organisation and information system.

Management:
Art of getting things done through others.
Technique of getting things done through others by

satisfying their needs and provide the opportunity for growth and advancement.

Management, Information and System

The three sub-components-Management,

Information, and Systems- together bring to focus clearly and effectively. It is an integrated user machine system for providing information to support the operations, management analysis and decision making function in an organisation. It is a system for producing and delivering timely information that will support management in accomplihing its specific task in an enterprise.

Characteristics of MIS:
Integrated
Coordinated Transformation of data into information Relevant information Selective sharing of data Feedback

Why Information System:

For Decision making
For business operation Strategic planning Management control Operational planning and control

Major applications:
MIS provides a balanced perspective into the existing

applications of computers in the broad area of business. To the top management, MIS is a tool to gain insight into the overall health of the organization itself. Oil Exploration, Space exploration Transportation Weather forecasting Market Analysis Financial planning, Production planning Human Resource Management Education and Research Health care, Tourism etc.

Thanks.