2. Information System
• IS, can be any organized combination of
People, Hardware, Software and data
resources that collects transformation or
screening the information in an organization.
Input Processing Output
Storage
FeedBack
3.
4.
5. What Is an Information System?
• Information system has been defined in terms of two
perspectives:
– one relating to its function;
– the other relating to its structure.
• From a functional perspective; an information system is a
technologically implemented medium for the purpose of
recording, storing, and disseminating linguistic expressions
as well as for the supporting of inference making.
• From a structural perspective; an information system
consists of a collection of people, processes, data, models,
technology and partly formalized language, forming a
cohesive structure which serves some organizational
purpose or function.
7. Components of Information Systems
• Resources of people: (end users and IS specialists,
system analyst, programmers, data
administrators etc.).
• Hardware: (Physical computer equipments and
associate device, machines and media).
• Software: (programs and procedures).
• Data: (data and knowledge bases), and
• Networks: (communications media and network
support).
9. Type of Information System
• Transaction Processing Systems. These systems have been
designed to collect, process and store transactions that
occur in the day to day operations of a company.
• The system can also be used to cancel or modify
transactions done in the past if the need arises. One
property of this system that enables them to work
effectively is the ability to accurately record multiple
transactions even if the different transactions take place
simultaneously.
• They are built to be able to handle large volumes of
transactions. Examples include stock control systems,
payroll systems, order processing systems etc.
10. • Decision Support Systems. These systems help decision
makers to make the best decisions by generating statistical
projections from analyzed data.
• Although it does not eliminate the need for the manager’s
judgment, it significantly improves the quality of the
decision by offering forecasts that help determine the best
course of action.
• These systems compile information from several sources
for purposes of aiding in decision making. Examples of
these systems include computer supported cooperative
work, group decision support systems, logistics systems and
financial planning systems.
11. • Executive Information Systems. Also known as
Executive Support System, this is a tool used for
reporting enterprise-wide data to top executives.
• These systems provide quick and easy to use reports
that are presented in graphical displays that are easy to
compare. They can be taken as specialized decision
support systems because they provide information
necessary to help improve the quality of decisions.
Owing to the high expectations from such a system,
these systems need to be highly individualized hence
they are usually custom made for specific clients. They
are also customizable to fit the specific needs of the
clients.
12. • Management Information Systems. These systems make
use of information technology to help managers ensure a
smooth and efficient running of the organization.
• Information collected by these systems is structured so that
the managers can easily evaluate the company’s current
performance vis-à-vis previous outputs.
• Some of the common types of Management Information
Systems include process control systems, human resource
management systems, sales and marketing systems,
inventory control systems, office automation systems,
enterprise resource planning systems, accounting and
finance systems and management reporting systems.
13.
14. 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.
15. MIS
• Management information systems are distinct from
regular information systems in that they are used to
analyze other information systems applied in
operational activities in the organization. MIS involve
three primary resources: technology, information, and
people.
• 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.
16. 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.
• 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.
17. Features of MIS
• Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance
18. 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.
19. Marketing Intelligence System
(MIS)
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.
20. Internal Record System (IRS)
• 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.
21. Decision Support System(DSS)
• 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.
22. 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.
23. 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.
25. 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.
26. Outputs Of a MIS
• 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.
27. 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.
• 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.
28. Component of Management IS
• To effectively deliver the information needed to decision makers,
Management Information Systems need to have the necessary
components to collect, process, store and retrieve the information
whenever it is needed.
• To achieve this, these systems use the following four components:
• Information System. This is a combination of software, hardware,
personnel and infrastructure. This component helps in the
collection of data that is stored in the MIS. The hardware includes
computers, scanners, printers and network devices. The software
elements include the company’s enterprise software and any other
software that is used in the running of the company’s network. This
component makes it possible for employees to interact with the
system and thus information can be collected
29. • Database Management System. This component is
primarily made up of computer programs that help in the
storage and retrieval of data. Of course, it also includes the
actual physical databases where the information is stored
after it has been captured. There are several different
database management systems that can be used in
Management Information Systems. The suitability of the
systems will depend on the amount of data that will need
to be processed and stored in the system. There are small
database management systems that can comfortably work
on personal computers and there are huge ones that will
need larger and more complex machines like mainframe
computers. Learn more about database technologies.
30. • Intelligence System. This component is concerned with processing
of the data collected and presenting it in a manner that is easy to
comprehend. Everything from the processing of the data to the
displaying of the data is designed to give top executives an easy
time as they try to make decisions concerning the business. It is
sometimes referred to as business intelligence which stores human
knowledge and uses the logic to formulate quick solutions for
future problems where patterns match.
• Research System. This component is concerned with identifying the
main management problems in the organization and coming up
with alternative decisions that could have sufficed in a particular
situation. This helps ensure that all the possible options are
analyzed and the best decision made. The best decision is not
always the most obvious one. This component of Management
Information systems ensures that the best decision is reached even
in those instances.
31. Role of MIS in Business
• The main role of Management Information Systems is to report on
business operations with the purpose of supporting decision making.
• This is to ensure that the organization is managed in a better and more
efficient way so that it can be able to achieve full potential thus gain
competitive advantage.
• To provide information readily to company decision makers. Regardless
of whether it is a marketing, financial or operational issue, managers need
quick access to information so that they can make good decisions that will
have a positive impact on the company’s performance. Management
Information Systems enhance this by strategically storing vast amounts of
information about the company in a central location that can be easily
accessed by managers over a network. This means that managers from
different departments have access to the same information hence they
will be able to make decisions that collectively help solve the company’s
problems in the quickest way.
32. • Management Information Systems also help in data
collection. Data from everyday operations in the company
is collected and brought together with data from sources
outside the organization.
• This enables a healthy and functional relationship between
distributors, retail outlets and any other members of the
supply chain.
• It also helps keep good track of performance since
production and sales numbers will be recorded and stored
in a central database that can be accessed by all members
of the MIS. Access to this information also helps ensure
that problems are detected early and decisions are made
quickly using the latest information.
33. • To promote collaboration in the workplace. In any large
company, there are many situations that call for input from
several individuals or departments before decisions can be
made. Without an efficient communication channel, these
decisions can take a very long time.
• To run possible scenarios in different business
environments. Before making a decision that will affect the
overall standing of the business, a lot of precaution must be
taken. There is a need to check and verify that the company
will not suffer after making a decision. Management
Information Systems enable executives to run what-if
scenarios so that they can see how some of the important
metrics in the business will be affected by a given decision.
34. • Management Information systems give accurate
projections of the company’s standing in the
short and long term.
• Management Information Systems help track the
implementation of particular decisions in a
company.
• To improve on the company’s reporting. One of
the reasons why Management Information
Systems are favored by large companies is the
effectiveness of the reporting features.
35. Advantage of MIS
• All stakeholders in the company have access to one single database that holds all
the data that will be needed in day to day operations.
• Employees and other stakeholders in the organization will be able to spend more
time doing productive tasks.
• Another benefit of Management Information Systems is that they bring the power
of data processing tools that help significantly improve the quality of decisions
made in the company.
• Owing to the flexibility that is brought by the use of mobile devices such as tablet
computers and smartphones, Management Information Systems ensure that
employees have easier and closer interaction with information about the progress
of any process within the organization
• Management Information Systems help reduce the amount of paperwork
• Reports make it easy for companies to easily identify their strengths and
weaknesses in carrying out various tasks
• From a top executive perspective, Management Information Systems help give an
overall impression of where the company stands financially.
• MIS helps eliminate redundant roles
36. System
• System is a group of interrelated components working
together toward a common goal, by accepting inputs
and processing outputs in an organized transformation
process.
• System Concepts:
– Technologies (H/W, S/W and Telecommunication
Technology)
– Application
– Development
– Management
• Components of System:
– Input, Output and Processing
37. Systems Theory
• Systems theory is the interdisciplinary study of systems.
• A system is a cohesive conglomeration (collection/
gathering/ assembly/ mass) of interrelated and
interdependent parts that is either natural or man-made.
• Every system has, its spatial and temporal boundaries,
surrounded and influenced (subjective/ partial/ unfair) by
its environment, described by its structure and purpose or
nature and expressed in its functioning.
• The goal of systems theory is systematically discovering a
system's dynamics, constraints, conditions and elucidating
principles (purpose, measure, methods, tools, etc.) that can
be discerned and applied to systems at every level of
nesting, and in every field for achieving
optimized equifinality
38. Systems Theory
• Systems theory is an interdisciplinary theory about the nature of complex
systems in nature, society, and science, and is a framework by which one
can investigate and/or describe any group of objects that work together to
produce some result.
• This could be a single organism, any organization or society, or any electro-
mechanical or informational artifact
• The systems framework is also fundamental to organizational theory as
organizations are complex dynamic goal-oriented processes
• In software and computing: CASE Tools
• Systems Engineering is an interdisciplinary approach and means for
enabling the realization and deployment of successful systems.
• It can be viewed as the application of engineering techniques to the
engineering of systems, as well as the application of a systems approach to
engineering efforts
• Systems Engineering considers both the business and the technical needs
of all customers, with the goal of providing a quality product that meets
the user needs
39. Importance of the System Approach Principle
• The success of your business in achieving its
objectives depends on your management
approach.
• The systems approach will ensure quality products
that meet user requirements.
• This is because the approach systematically
integrates all functions into an interrelated team
effort, providing a structured framework for the
development process that proceeds from concept
to production.
• This ensures that all the system functions are
optimized to achieve maximum compatibility for
enhanced productivity
40. Benefit
• The systems approach to management introduces a
structured configuration where personnel work as a
combined unit.
• Feedback provides a good basis of control, leading to
higher quality of products. Overall, the approach
improves strategic and management decision-making
due to the interrelationships between the various
subsystems.
• Overall, the approach improves strategic and
management decision-making due to the
interrelationships between the various subsystems.
41. Limitations
• A systems approach does not adequately specify the
interdependence and nature of interaction between an
organization and its environment.
• The system tends to be rigid and will react slowly in
open systems that interact with external forces.
• It generally is suitable for the manufacturing industry
but not the service industry, which often has to adapt
to the external environment.
• It also does not offer practicing managers specific tools
and techniques, remaining rather abstract for practical
problems.
42. System Administration
• In the context of the OS service provisioning, system
administration plays a pivotal
(critical/crucial/fundamental) role.
• This is particularly the case when a system is accessed
by multiple users. The primary task of a system
administrator is to ensure that the following happens:
• a. The top management is assured of efficiency in
utilization of the system's resources.
• b. The general user community gets the services which
they are seeking.
• In other words, system administrators ensure that
there is very little to complain about the system's
performance or service availability
43. This is not an exhaustive list, yet it represents most of
the tasks which system administrators perform:
• System startup and shutdown
• Opening and closing user accounts
• Helping users to set up their working environment
• Maintaining user services
• Allocating disk space and re-allocating quotas when the needs grow
• Installing and maintaining software
• Installing new devices and upgrading the configuration
• Provisioning the mail and internet services
• Ensuring security of the system
• Maintaining system logs and profiling the users
• System accounting
• Reconfiguring the kernel whenever required