Types, Importance, impact of Information systems Data Data vs Information MIS Importance of MIS Impact of MIS Need of MIS Outputs of MIS Business objectives of Information systems

1. Information
Systems, Data
and MIS
By:
Mohit Bansal

2. What Is An Information
System?
An Information System can be any organized combination Of:
 people,
 hardware,
 software,
 communications networks,
 data.

3. How Information Systems Are
Transforming Business
 Increase in cell phone usage
 Increase in Internet usage
 Internet shopping
 Online payment
 Advertisement on the Internet
 Awareness of prices, etc.

4. Business Objectives of
Information Systems
 Operational excellence
 New products, services, and business models
 Customer and supplier intimacy
 Improved decision making
 Competitive advantage
 Survival

5. Operational excellence
 Improvement of efficiency to attain higher profitability
 Information systems, technology an important tool in achieving greater
efficiency and productivity
 Wal-Mart’s Retail Link system links suppliers to stores for superior
replenishment system

6. New products, services, and
business models
 Business model: describes how company produces, delivers,
and sells product or service to create wealth
 Information systems and technology a major enabling tool
for new products, services, business models
 Examples: Apple’s iPod, iTunes, and iPhone, Netflix’s
Internet-based DVD rentals

7. Customer and supplier
intimacy
 Serving customers well leads to customers
returning, which raises revenues and profits
 Example: High-end hotels that use computers to
track customer preferences and use to monitor and
customize environment
 Intimacy with suppliers allows them to provide
vital inputs, which lowers costs
 Example: J.C.Penney’s information system which
links sales records to contract manufacturer

8. Improved decision making
Without accurate information:
 Managers must use forecasts, best guesses, luck
Leads to:
 Overproduction, underproduction of goods and
services
 Misallocation of resources
 Poor response times
 Poor outcomes raise costs, lose customers
Example: Verizon’s Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, etc

9. Competitive advantage
 Delivering better performance
 Charging less for superior products
 Responding to customers and suppliers in real time

10. Survival
 Information technologies as necessity of business
 Industry-level changes, e.g. Citibank’s introduction
of ATMs
 Governmental regulations requiring record-keeping
 Examples: Toxic Substances Control Act, Sarbanes-
Oxley Act

11. The Role of Information
Systems in Business
Information Builders’
digital dashboard
delivers
comprehensive and
accurate information
for decision making.
The graphical
overview of key
performance
indicators helps
managers quickly spot
areas that need
attention.

12. Perspectives on Information
Systems and Information
Technology
Information technology: The hardware and software a
business uses to achieve objectives
Information system: Interrelated components that manage
information to:
 Support decision making and control
 Help with analysis, visualization, and product creation
Data: Streams of raw facts
Information: Data shaped into meaningful, useful form

13. The Fundamental Roles Of
Information
System In Business
There are three fundamental roles:
1. Support of its business processes and operations.( like
keeping inventories record or payment details etc.)
2. Support of decision making by its employees and
managers.
3. Support of its strategies for competitive advantage.

14. Types of Information Systems

15. Major Types of Systems
 Executive Support Systems (ESS)
 Decision Support Systems (DSS)
 Management Information Systems (MIS)
 Knowledge Work Systems (KWS)
 Office Automation Systems (OAS)
 Transaction Processing Systems (TPS)

16. Major types of systems in organizations

17. Executive Support Systems
(ESS)
Information system at the organization’s strategic level
designed to address unstructured decision making through
advanced graphics and communications.
Sales And Marketing Sales Trend Forecasting
Manufacturing Operating Plan
Finance Budget Forecasting
Accounting Profit Planning
Human Resource Personnel Planning

18. Decision Support Systems
(DSS)
Information systems at the management level of an
organization that combine data and sophisticated analytical
models to support non-routine decision making.
Example: Contract cost analysis
Sales And Marketing Sales Region Analysis
Manufacturing Production Scheduling
Finance Cost analysis
Accounting Profitability Analysis
Human Resource Contract Cost Analysis

19. Management Information
Systems (MIS)
Information systems at the management level of
organization that serve the functions of planning,
controlling, and decision making by providing routine
summary and exception reports.
Sales And Marketing Sales Management
Manufacturing Inventory Control
Finance Annual Budgeting
Accounting Capital Investment Analysis
Human Resource Relocation Analysis

20. Knowledge Work Systems
(KWS)
Information systems that aid knowledge workers in the
creation and integration of new knowledge in the
organization
Example: Engineering work station

21. Office Automation Systems
(OAS)
Computer systems, such as word processing, electronic mail
systems, and scheduling systems, that are designed to
increase the productivity of data workers in the office

22. Transaction Processing
Systems (TPS)
A computerized system that performs and records the daily
routine transactions necessary to the conduct of the business
Example: payroll, accounts payable

23. What is Data?
 Data is a set of values of Quantitative and Qualitative
variables.
 “Big data" is when the size of the data itself becomes part
of the problem

24. Data Applications
 Data Analytics – From learning about consumer behavior
to know about frauds in banking/insurance
 Machine Learning/Artificial Intelligence – Self driving
vehicles, humanoid and ultimately to the master
algorithm
 Big Data – Trading Analytics, Traffic Control and
Smarter Healthcare

25. Data Vs Information
Data
 A “given,” or fact; a number, a statement, or an image
 Represents something (quantities, actions and objects) in the real world
 The raw materials in the production of information
Information
 Data that have meaning within a context
 Data that has been processed into a form that is meaningful to the recipient and
is of real or perceived value in the current or in the prospective actions or
decisions of the recipient.
Example:
 Sales data is names, quantities, and amounts
 Sales information is amount of sales by product type, sales territory, or
salesperson
Data Information
Raw facts Processed facts
Dead stored facts Live Presented Facts
Inactive (Backend) Active (Processed)
Technology Oriented Business Oriented

26. Recognizing Information
Systems
Business professionals should be able to look at an
information system and identify…
 The people, hardware, software, data, and network
resources they use
 The type of information products they produce
 The way they perform input, processing, output, storage,
and control activities

27. MIS
 Right Information
 To the right person
 At the right place
 At the right time
 In the right form
 At the right cost
The three sub-components
Management, Information and System
- together bring out the focus clearly & effectively.
System emphasizing a fair degree of integration and a holistic
view;
Information stressing on processed data in the context in
which it is used by end users;
Management focusing on the ultimate use of such information
systems for managerial decision making.

28. Function of MIS in business
 Data Capturing:
MIS captures data from various internal and external sources of
an organization
 Processing of data:
The captured data is processed to convert it into the required
management information.
 Storage of information:
MIS stores processed or unprocessed data for future use.
 Retrieval of information:
MIS retrieves information from its stores as and when required
by various users..
 Dissemination of MI:
Management information, which is a finished product of MIS, is
disseminated to the users in the organization..

29. Need of MIS in organization
 Support the Business Process : Treats inputs as a request
from the customer and outputs as services to customer.
 Support Operation of a Business Organization : gives
timely information, maintenance and enhancement of
business operations.
 To Support Decision Making : MIS also supports managers
in decision making to meet the goals and objectives of
the organization.
 Strategies for an Organization : MIS supports the
organization to evolve appropriate strategies for the
business to stay in a competitive environment

30. Outputs of MIS
 Scheduled reports
Produced periodically, or on schedule (daily, weekly,
monthly)
 Key Indicator Report
Summarizes the previous day’s critical activities
 Demand Report
Gives certain report at manager's request
 Exception Report
Automatically produced when a situation is unusual or
requires management action

31. MIS: Functional View

32. TPS to MIS

33. Sample MIS Report

34. Impact of MIS
 Management of marketing, finance, production and personnel
becomes more efficient, the tracking and monitoring becomes
easy
 Helps in understanding of business itself, MIS begins with
definition of data and its attributes – uses data dictionary and
brings common understanding of terms and terminology in
organization
 MIS calls for systemization of business operations – leads to
streamlining of operations, brings discipline in its operations
everyone is required to follow
 Since the goals of MIS are driven from organization goals, it helps
indirectly pulling everyone in organization towards corporate
goals by providing relevant information to the people in
organization

35. Impact of MIS
 MIS helps to monitor results and performances
 MIS provides alerts, in some cases daily, to managers at
each level of the organization, on all deviations
between results and pre-established objectives and
budgets.
 IT enabled MIS is partly responsible for the PARADIGM
shift (A change, a new model,) from support to
contributing to an organizations profitability