Management Information systems

1. CHAPTER ONE
1. Terminology Basic Concepts
 Management: Management has been defined as process or activities that describe what managers
do in the operation for their organization plan, organize, initiate and control operations.
 It is the process of dealing with or controlling things or people.
 Information: Data must be distinguished from information and the distinction is clear and
important for present purpose. It is accurate and timely. It is specific and organized for purpose.
 An information system: is an organized combination of people, hardware, software,
communications Networks and data resources that collects, transforms, and disseminates
information in an organization.
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2. 1.2 DEFINITION OF MIS
• A Management Information System (MIS) is generally thought
of as an integrated system providing information to support
operations, management and decision-making functions in an
organization.
• The increasing interest in MIS had led to much activity in
developing techniques and software for data management.
• MIS is basically concerned with the process of collecting,
processing, storing and transmitting relevant information to support
the management operations in any organizations.
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3. …Count’’’
 Basic objectives of an MIS:
 Capturing Data: Capturing contextual data, or operational information that will contribute in
decision making from various internal and external sources of organization.
 Processing Data: The captured data is processed into information needed for planning, organizing,
coordinating, directing and controlling functionalities at strategic, tactical and operational level.
Processing data means:
o Making calculations with the data
o Sorting data
o Classifying data and
o Summarizing data
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4. Cont..
Information Storage: Information or processed data need to be stored for
future use.
Information Retrieval: The system should be able to retrieve this
information from the storage as and when required by various users.
Information Dissemination: Information or the finished product of the MIS
should be circulated to its users periodically using the organizational
network.
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5. Characteristics of MIS:
 It is based on a long-term planning.
 Provides a holistic view of the dynamics and the structure of the organization.
 It works as a complete and comprehensive system covering all interconnecting sub-systems
within the organization.
 It should be planned in a top-down way, as the decision makers should actively take part
and provide clear direction at the development stage of the MIS.
 strategic, operational and tactical information
 It should be able to make forecasts and estimates, and generate advanced information,
thus providing a competitive advantage.
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6. Cont..
 It should allow easy flow of information
 Avoiding redundancy and duplicity of data.
 The MIS is an integrated, complete system, it should be made in such a flexible way that
it could be easily split into smaller sub-systems as and when required.
 A central database is the backbone of a well-built MIS.
 process data accurately and with high speed,
 It should provide real time information
 It should support various output formats and follow latest rules and regulations in practice.
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7. Cont..
 It should be able to collect, organize, manipulate, and update large amount of raw data, coming
from various internal and external sources at different periods of time.
 It should provide organized and relevant information for all levels of management: strategic,
operational, and tactical.
Features of MIS:
 Timeliness
 Accuracy
 Consistency
 Completeness
 Relevance
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8. 2. Importance of Management Information Systems (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 reveals new approaches to thinking about the problem space.
 It helps to automate the Managerial processes.
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9. Cont’’’
• Enable Organizations to highlight their strengths and weaknesses due to the presence
of revenue reports, employees' performance records etc.
• MIS gives an overall picture of the company and acts as a communication and planning
tool. The availability of customer data and feedback in the MIS can help the company to
align their business processes according to the needs of the customers.
• MIS can help an organization to gain a competitive advantage. Competitive
advantage is a firm’s ability to do something better, faster, cheaper, or uniquely,
when compared with rival firms in the market.
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10. 1.3. Information Systems in Business
 An information system (IS) can be any organized combination of people, hardware,
software, communications networks, data resources, and policies and procedures that
stores, retrieves, transforms, and disseminates information in an organization.
 People rely on modern information systems to communicate with one another using a
variety of physical devices (hardware) , information processing instructions and
procedures (software) , communications channels (networks) , and stored data (data
resources) .
 Information systems and information technologies are, quite simply, an essential
ingredient for business success in today’s dynamic global environment.
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11. Cont..
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Figure 1.1 Framework that outlines the major areas of information systems knowledge
needed by business professionals.

12. Cont..
 Foundation Concepts. Fundamental behavioral, technical, business, and managerial concepts
about the components and roles of information systems.
 Information Technologies. Major concepts, developments, and management issues in
information technology that is, hardware, software, networks, data management, and many
Internet-based technologies.
 Business Applications. The major uses of information systems for the operations, management,
and competitive advantage of a business.
 Development Processes. How business professionals and information specialists plan, develop,
and implement information systems to meet business opportunities.
 Management Challenges. The challenges of effectively and ethically managing information
technology at the end-user, enterprise, and global levels of a business.
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13. 1.3.1. Fundamental Roles of Information System in Business
 Support business processes and operations-
 Support decision making by employees and managers-
 Support strategies for competitive advantage- gaining a strategic advantage over
competitors requires the innovative application of information technologies.
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14. Cont..
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Figure 1.1 Fundamental roles of the business applications of information systems.

15. 1.4. Types of Information System
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Figure 1.4 Operations and management classifications of information systems.

16. Cont..
Operation Support System: Information systems have always been needed to process
data generated by, and used in, business operations.
 Transaction processing systems: These systems process a large volume of routine,
recurring transactions.
Process control systems: Monitor and control industrial processes. Examples:
petroleum refining, power generation, and steel production systems.
 Enterprise collaboration systems: Support team, workgroup, and enterprise
communications and collaborations. Examples: e-mail, chat, and videoconferencing
groupware systems.
Management Support System: When information system applications focus on
providing information and support for effective decision making by managers, they are
called management support systems.
 Decision support systems: These systems help mangers with the necessary
information to make intelligent decisions.
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17. Cont..
 Management information systems. Provide information in the form of prespecified
reports and displays to support business decision making. Examples: sales analysis,
production performance, and cost trend reporting systems.
 Executive information systems. Provide critical information from MIS, DSS, and other
sources tailored to the information needs of executives.
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18.  Expert systems: They are meant to mimic humans in making decisions in a specific field.
 Knowledge management systems. Knowledge-based systems that support the creation,
organization, and dissemination of business knowledge within the enterprise.
 Strategic information systems. Support operations or management processes that provide
a firm with strategic products, services, and capabilities for competitive advantage.
 Functional business systems. Support a variety of operational and managerial applications
of the basic business functions of a company.
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19. Thank You
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