The document discusses the growth and development of management information systems (MIS). It describes a six stage model of MIS growth in organizations proposed by Nolan, from the initial initiation stage to a final maturity stage. Key factors responsible for MIS development are also outlined, including external factors like industry trends and internal factors such as organizational characteristics and strategy. Major challenges for MIS include issues around information quantity, analysis, availability, accuracy, and security. The concepts of MIS are defined as integrating computers, databases, decision-making, and the external environment. Finally, the historical development of MIS is reviewed from early transaction processing systems to modern knowledge and decision support systems.

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2. BBA -307 UNIT -1
MANAGEMENT
INFORMATION SYSTEM
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3. CONTENT
• Growth in MIS
• MIS Development Process
• Factors Responsible for Development
• Major Challenges in MIS
• Concept in MIS
• Historical development in MIS
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4. GROWTH OF MIS
Information systems cannot deliver value from the first day in an organization.
The organization needs time and maturity to be able to leverage
the information system. Various organizations are at different levels of maturity
in dealing with information systems. Nolan has provided a model for such
information systems using maturity in organizations.
To leverage the benefits of information, an organization has to first appreciate
the usefulness of information. This requires a change in the mindset and way of
working.
Organization culture needs to change to accommodate this kind of information-
based working. Changing organizations takes time and hence, organizations pass
through stages of maturity in dealing with information systems. 4

5. GROWTH STAGES
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INITIATION
CONTAGION
CONTROL
INTEGRATION
DATA ADMIN.
MATURITY

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Nolan (1979) indicated that there are six stages in the information system evolutionary
process. It is an improvement over the four-stage model.
The stages are:
1. Initiation- in which the organization has an operational focus and tries to get operational
efficiency and thereby limited value from the information systems.
2. Contagion-in which the organization moves towards online systems after having tasted
success in the initiation stage. More users are added.
3. Control-in which the management exercises control and makes a cost-benefit type of
assessment.
GROWTH STAGES

7. 4. Integration-in which the organization moves away from an ad hoc isolated solutions based on
information system to a service based information system. This is the stage when the organization
transitions from a data processing outlook about information systems to more holistic information-based
decision-making approach towards information systems. A more comprehensive approach towards
information systems results in changes in the organization's behavior towards information systems and
initiates a new appreciation for data and information.
5. Data administration-in which the organization begins to appreciate the value of information and makes
efforts to centralize the data management to take advantage of the benefits of information based decision-
making.
6. Maturity - in which the organization creates synergies in its corporate objectives and information
systems planning so that the two can work in a synchronized manner.
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GROWTH STAGES

8. GROWTH STAGES
I
INITIATIONS
II
CONTAGION
III
CONTROL
IV
INTEGRATION
V
DATA ADMIN
VI
MATURITY
• Users are "hands
off" in approach
• Extensive IT/IS
planning
• Cost reduction
primary focus
• Functional
application is in
focus
• MIS dept./IS dept.
is not under strict
management
control
• Proliferation of
applications
• Little
management
control
• Huge allocation
of financial
resources
• Rapid growth of
fundamental use
of IT
• IS/IT
performance
below importation
and several crisis
occur
• IT/IS dept. is
considered as an
important
function
• Centralized
controls are
applied for IT/IS
• No reduction in
IT/IS use
• Applications are
often incompatible
• Unhappy users
• Use of database
but with
unsatisfactory
outcome
• Greater use of
database
• Greater IT/IS
budget
• IT/IS dept. now
works on a
professional utility
model
• Formal planning
and control within
IT/IS dept.
• Steering
committees are
widely used for
application
development.
• Data in
administration
• Applications are
in sync with the
organization
• Shift from IT/IS
booking after DB
to holistic
information
management
• IT/IS dept.
becomes partners
of users in data
management
• Applications
reflect real
information needs
• Strategic
planning of IT/IS
becomes
important
• Managers of IT/IS
dept. considered at
par with other
dept.
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9. MIS DEVELOPMENT PROCESS
In MIS, the information is recognized as a major resource like
capital and time. If this resource has to be managed well, it calls
upon the management to plan for it and control it, so that the
information becomes a vital resource for the system.
• The management information system needs good planning.
• This system should deal with the management information not
with data processing alone.
• It should provide support for the management planning, decision-
making and action.
• It should provide support to the changing needs of business
management. 9

10. FACTORS RESPONSIBLE FOR
DEVELOPMENT
Factors Responsible for the development of MIS are numerous and
have been a prime concern for many Researchers and Practitioners.
Both Inter and external factors must be taken into account when
trying to understand and organization’s criteria for deciding about
technology. The following are the factors which are responsible for
development of MIS :
1. External
2. Internal
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11. • External Factors : External Factors are conditions that exist in organization’s
external environment. The factors can be found at the industry level or in
national policies.
• Industry level : At the industry level, we are looking at characteristics as degree of
diffusion of certain technologies, the availability of external know-how, for example,
technology suppliers, the degree of innovativeness of the industry, the requirements
imposed by major customers and external markets and overall levels of competition
and technology sophistication in the industry.
• National Policies : For the external factors the national policies also affect the
organization that indirectly affects the subsystems of the organization.
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EXTERNAL FACTORS

12. • Internal Factors : Internal factors internal of the firm that may affect the development of
MIS can be grouped into three categories:
• Past Experience with Technology : The organizations past experience about the technology in terms of exposure
and organizational learning ultimately affects its future in developing technology.
• Organizational Characteristics : An organization’s characteristic like size, influence the adoption of MIS
application in organization. The adoption of certain technologies may appear more appropriate for the larger
firms because of the large capital investments and the skilled human resources involve in the implementation
and operation of such technologies. Smaller firms are less affected by organizational inertia and they show a
greater degree of involvement of organizational member’s especially top management during implementation.
Ready to use software and less expensive equipment's of MIS application are more attractive to smaller firms.
• Organizational Pursued strategy : Internal factors deal with the organizations pursued strategy on both
orientation and technology policy. An organization’s strategy reflects its action with market and technology,
which ultimately modify its experience and consequently its overall characteristics and capabilities. The need for
a strong technology has been advocated by a number of authors and investments in MIS should therefore be
closely aligned with overall corporate strategy. 12
INTERNAL FACTORS

13. • Other Factors :
• Customer Satisfaction : Development of MIS is affected by customer
satisfaction. Customer of the services should be satisfied by the presented
system.
• Effective : Development should be effective in terms of organizational benefit
& user satisfaction.
• Efficient : Development should use all the resources, organization values
efficiently.
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OTHER FACTORS

14. MAJOR CHALLENGES IN MIS
• Quantity, content and context of information - how much information
and exactly what should it describe.
• Nature of analysis and presentation - comprehensibility of information.
• Availability of information - frequency, contemporariness, on-demand
or routine, periodic or occasional, one-time info or repetitive in nature
and so on
• Accuracy of information.
• Reliability of information.
• Security and Authentication of the system.
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15. CONCEPT OF MIS
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Processing
logic
Computers
Human
beings
Database
Intelligence ChoiceDesign
MIS
Decision Making
Inform
ation
Data
Judgment/
Intuition
Skill/
Experience
Exter
nal Environment
Choice
Decision
Implementation
Decision
Monitoring & Feedback

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17. HISTORIC DEVELOPMENT OF MIS
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TPS
Transactio
n
Processing
System
KS/ES
Knowledg
e / Expert
System
ESS
Executive
Support
System
DSS
Decision
Support
SystemMIS
Managem
ent
Informatio
n SystemOAS
Office
Automatio
n System
AI
Artificial
Intelligenc
e

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