MBA project for educational purposes only.

1. MIS and Other
Subsystems
Submitted by:
Narayan Sharma and Srinivas Kulkarni
Batch: (MBA-8) ITM EEC., Dombivali

2. INFORMATION GENERATORS
• Information systems are developed in a company to meet not only its internal
reporting needs, but also external reporting needs.
Information Generators
Vendors
Advertising
Lenders
Customers
Unions
Paying
Collection
Billing
Distribution
Sales
Production
Inventory
Receiving
Purchasing
Central Government
State Government
Local Government
Stockholders
ExternalGeneratorsInternalGenerators

3. INFORMATION GENERATORS
• Not all the information generated externally is useful to a corporation.
• That which is useful is most likely to be use of the upper levels of management (to
the strategic and management level).
• In its ‘raw’ form not all the information is useful to all levels within the corporation.
• Different types of reports must be prepared to meet the information needs of each
level of user.
Because of these differing user needs, we must identify the levels of information system.

4. INFORMATION SYSTEM LEVELS
• Information systems meet not only operational needs, but also three levels of
management needs. Both vertical and horizontal integration exist among all four
information level.
Strategic
Tactical
Supervisory
Functional

5. HORIZONTAL AND VERTICAL INTEGRATION OF
AN INFORMATION SYSTEM
• There are also both horizontal and vertical integration system structures. The nine
internal function systems are collected vertically as major system. These are shown
below:
Strategic
Tactical
Supervisory
Functional
a) Marketing Systems include:
Sales, Distribution.
b) Product development systems
include: Purchasing, Receiving
Inventory, Production.
c) Financial Systems include:
Billing, Collection, Paying.
d) Administrative support system
include: Personnel, Contracts.

6. HORIZONTAL AND VERTICAL INTEGRATION OF
AN INFORMATION SYSTEM
• Horizontal integration system may occur within or between major systems. An
example of horizontal integration, internal to a major system, is the combination of
purchasing, receiving, inventory (within product development)in to a procurement
system on the basis of shared database.
• An example horizontal integration, between major systems (between finance and
administrative support) is a personnel payroll system based on employee related
data elements common to both personnel and payroll.
• Vertical integration of an information system within production occurs as follows:
a) Machine Assignment and Job time reporting – Functional
b) Machine scheduling – Supervisory
c) Make(in own shop) or Buy (from vendor) decision – Middle Management
d) New product design –Top Management

7. FRAMEWORK DELINEATED BY ROBERT
ANTHONY
• Robert Anthony has delineated a framework which
distinguishes between the different types of planning
and control process that typically occur in
organisations.
• His basic thesis is that thinking of planning and
control as two separate and homogeneous activities
in an organization is not only meaningless but
positively dysfunctional.
• Instead of this segment of management planning and
control in to two categories, he segmented into three
categories.
• The three category suggested by Anthony are:
a) Strategic planning
b) Management control and
c) Operational control

8. FRAMEWORK DELINEATED BY ROBERT
ANTHONY
• Anthony’s definition in relation to these are:
Strategic Planning is the process of deciding on objectives of the organization, on changes in these
objectives, on the resources used to attain these objectives, and on the policies that are to govern the
acquisition, use and disposition of these resources.
Management Control is the process by which managers assure that these resources are obtained and
used effectively and efficiently in the accomplishment of the organization’s objectives.
Operational Control is the process of assuring that specific tasks are carried out effectively and
efficiently.

9. FRAMEWORK DELINEATED BY ROBERT
ANTHONY
Strategic planning
Tactical planning and
Management control
Operational Control
Transaction
processing
Levels of
Management
Anthony’s framework of
Planning and control

10. FRAMEWORK DELINEATED BY ROBERT
ANTHONY
Levels
Production Marketing Finance Personnel
Strategic planning Location of a
new factory
Entering the
export market
Raising capital
with issue of new
shares
Deciding changes
required in the
organisation structure
Management control Determining
product mix for a
monthly
production
program
Media planning for
advertising
expenditure
Determining
maximum levels of
credit for
customer
Determining who will be
promoted to fill a vacant
post
Operational control Scheduling
specific jobs on
specific
machines during
a shift
Planning sales
contacts to be
made by a
salesman in the
immediate future
Decide what
action to betaken
against default in
payment by a
specific customer
Determining which of
the workers will be on
each shift
Functions

11. FEEDBACK AND CONTROL
• These are essential design any management system:
a) Feedback is the process of comparing an actual output with a desired output for the
purpose of improving the performance of a system
b) Control is the action taken to bring the difference between an actual output and a
desired output within an acceptable range.

12. OPEN AND CLOSED LOOP SYSTEMS
• Open Loop System: The below figure depicts a system in which there is no
feedback and control. The system does transfer an input into output; however, it lacks
feedback. It provides no opportunity for management control.

13. OPEN AND CLOSED LOOP SYSTEMS
• Closed Loop System: The element are shown in the below figure, the flow chart
demonstrates that the comparison of desired and actual outputs results in the
management, which may modify the inputs, the systems or both. Many operation
systems are open loop systems. All true management systems are closed loop
system.
Comparison
of desired
and actual
outputs
Management
action
Input System
Actual
Output
Desired
output
ModifiedSystem

14. MIS ORGANISATION
• MIS is a system which:
a) Subserves managerial functions
b) Collects information systematically and routinely
c) Supports planning and control decision
d) Includes files, hardware, software and operations research models
• MIS helps the organization to handle the required information by four common
concepts namely:
I. Management accounting
II. Management science
III. Management theory
IV. Data processing

15. MIS ORGANISATION
• The management can be broadly classified depending upon the requirements of
information, for performing their management functions:
1. Top Management Strategic level
2. Middle Management Tactical level
3. Supervisory Management Operational level
4. Data processing Transactional level

16. FIVE TYPES OF INFORMATION SYSTEM
• They are:
1) TPS Transaction Processing System
2) MIS Management Information System
3) DSS Decision Support System
4) ESS Executive Support System
5) OAS Office Automation System
• TPS are used primarily for structured operational, and to a lesser degree,
management control applications.
• MIS are used primarily for semi-structured, management control application. It
also overlaps into the operational and strategic planning realms as well.
• DSS are used primarily for unstructured decision making whether that occurs at
operational, management and strategic planning levels

17. FIVE TYPES OF INFORMATION SYSTEM
• ESS are used primarily for structured management and strategic planning
applications.
• OAS are used as a facilitator of office correspondence and communication
underlies all of this activity.
Information systems can improve product in two basic ways:
(i) Improving product quality (ii) Improving product delivery
Information systems not only improve the quality of products, but also improve the
means by which products can be delivered to the customers.

18. DOMAINS OF INFORMATION SYSTEMS TYPE
Operational control Management control Strategic Planning
Structured TPS ESS
Semistructured MIS
Unstructured DSS
OAS

19. DATABASE POCESSING
• A database is a self describing collection of integrated records.
• A database is a like library of a big university.
• The database contains a description of its own contents.
• The records are integrated because a database contains multiple files and the
records within those files are process by relationship to one another.
The chart in the next slide shows how the employee and PC hardware records are
processed in a database setting.
The DBMS acts as an intermediary between the user, or application program and
the database.
The DBMS stores and processes the data so that records can be accessed via.
Their relationship to other records.

20. DATABASE POCESSING
• Example of database processing
Database
Management
System
(DBMS)
Report
Employee
Program
Report
PC hardware
program
Employee
data
PC
hardware
data

21. MIS v/s DATA PROCESSING
• A data processing system processes transactions and produces reports. It
represents the automation of fundamental routine processing to support
operation. Prior to computers this was done manually.
• An MIS is more comprehensive, it encompasses processing in support in a wider
range of organizational functions and management processes. Every MIS will
also include transaction processing as one of its functions.

22. MIS AS A FEDERATION OF SUBSYTEMS
• MIS is introduced as a broad concepts referring to as a ‘Federation of subsystem’
approaches to defining the subsystems of an MIS are on the following:
• Organizational functions subsystem
• Managerial activities subsystems
• Major organizational functions subsystems are:
(i) Marketing (ii) Personnel
(iii) Manufacturing (iv) Finance and accounting
(v) Logistic (vi) Information processing
(vii) Top management

23. MIS AS A FEDERATION OF SUBSYTEMS
• Each of the functional subsystems of the information system has some unique
data files which are only used by that subsystem. There are some files which
need to be accessed by more than one application and need to be available for
general retrieval.
Model base
Common
application
software
DATABASE MANAGEMENT SYSTEM
COMMON DATABASE
Unique to
application
Common to
many application
Management control
Operational Control
Strategic planning
Transaction Processing
Unique Subsystems files

24. MIS AS A FEDERATION OF SUBSYTEMS
• Managerial activities subsystems
The second approach to understand the structure of an information system in the terms of
the subsystems which performs various managerial activities and will be useful for more than
one organizational function subsystem such as:
a)Transaction processing b) Operational control
c) Management control d) Strategic Planning

25. THE MIS AS A PYRAMID
• The below figure indicates MIS as a pyramid. The amount of information
processing resources required varies by level of management activity.
Strategic
Planning
Management
Control
Operational
Control
Transaction Processing

26. ESTABLISHING AN MIS
• The process of establishing an MIS involves four stages:
• Planning for the MIS
• Designing the MIS
• Implementing the MIS
• Improving the MIS

27. Thank you