Management Information System is An integrated User-Machine System For providing Information To support the operations, management, analysis and decision making functions In an organization. Primarily meant for providing information from the data after processing them.

1. MANAGEMENT INFORMATION
SYSTEM
by
NIJAZ N

2. MIS
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3. WHY INFORMATION?
 Has been recognized has one of the crucial corporate
resources which facilitate better utilization of other important
resources such as men, machines, materials, money &
methods.
 Proper information at the right time & the right place.
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4. DATA & INFORMATION
 Data : are raw facts that describe a particular phenomenon.
: Fact – which might take the form of a number, a statement or a
picture.
: Data is the raw material for the production of information.
 Information : conclusions that have meaning within a context.
: To become information, data is manipulated through tabulation,
addition, subtraction, division or any other operation that leads to greater
understanding of a situation.
: Usually to help make a decision.
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5. INPUT-OUTPUT PROCESS
Input-process-output
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6. THE DATA LIFE CYCLE
Stage Example
1. Origination Employee hiring, order supplies, selling a
product, issuing stock etc
2. Processing & Immediate
Use
Statistical Analysis, categorization
3. Ready access storage Stored in disk drives or storage devices
4. Destruction Deleting old files from storage
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7. TYPES OF INFORMATION
1. Strategic Information :
 Required by Managers at the strategic level.
 Relates to long- term planning policies of the organization as a
whole
 Eg: New product development, new technology adoption.
2. Tactical Information
 Used in management control level.
 Short-term planning
 Eg: Sales analysis & forecasts, resource requirements etc.
3. Operational Information
 Short period (vary from an hour to a few days).
 Eg: Work in progress, orders from customers
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8. WHAT IS A SYSTEM?
 System: A set of components that work together to achieve a common
goal
 Subsystem: One part of a system where the products of more than one
system are combined to reach an ultimate goal
 Closed system: Stand-alone system that has no contact with other
systems
 Open system: System that interfaces with other systems
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9. 9
WHY STUDY IS?
 Information Systems Careers
 Systems analyst, specialist in enterprise resource planning (ERP),
database administrator, telecommunications specialist, consulting,
etc.
 Knowledge Workers
 Managers and non-managers
 Employers seek computer-literate professionals who know how to
use information technology.
 Computer Literacy Replacing Traditional Literacy
 Key to full participation in western society

10. WHAT IS AN INFORMATION SYSTEM
 Technical Definition :
 As a set of interrelated components that collect (or
retrieve), process, store and distribute information to
support decision making , coordination and control in an
organization.
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11. WHY INFORMATION SYSTEM?
 Today, it is widely recognized that information systems
knowledge is essential for managers.
 Most organizations need information systems to survive and
prosper.
 Information systems can help companies extend their reach to
faraway locations, offer new products and services, reshape
jobs and workflows,
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12. WHY IS INFORMATION TECHNOLOGY IMPORTANT
 Personal Productivity:
 Increase production without increasing the number of workers.
 Helps employees to perform more tasks.
 Getting work done faster at lower cost.
 Team Work & Communication
 Online meetings can reduce the time
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13. THE ROLE OF INFORMATION TECHNOLOGY IN BUSINESS
TODAY
Business Problems
Business
Solution
Information
System
Technology
Organization
Management
Lack of Performance
High Cost
Competition
New Products
Manufacturing
Model
Product
Development
New Technology
Adoption
Model Product &
Process
Increase Sales
Decrease Costs 13

14. HOW LONG CAN AN ORGANIZATION OPERATE WITHOUT
COMPUTER INFORMATION SYSTEM
96%
84%
70%
56%
52%
28% 26%
21% 21% 21%
9%
0%
20%
40%
60%
80%
100%
120%
0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5
Source: D O Aasgaard, P P R Cheung, B J Hulbert & M C Simpson, “A Evaluation of Data
Processing ‘Machine Room’ Loss & Selected Recovery Strategies”
Days Without Computer
Percentofoperationalactivitiestocontinue
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15. THE COMPETITIVE BUSINESS ENVIRONMENT AND THE
EMERGING DIGITAL FIRM
 Four powerful worldwide changes have altered the business
environment.
 The first change is the emergence and strengthening of the global
economy.
 The second change is the transformation of industrial economies and
societies into knowledge- and information-based service economies.
 The third is the transformation of the business enterprise.
 The fourth is the emergence of the digital firm.
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16. EIGHT ENVIRONMENTAL ELEMENTS OF THE FIRM
FIRM
Government
Financial
Community
Customers
Global
Community
Suppliers
CompetitorsLabor
Unions
Stockholders
Society
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17. FUNDAMENTAL ROLES OF IS IN BUSINESS
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18. IS MODEL
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19. CONTEMPORARY APPROACHES TO
INFORMATION SYSTEM
Technical
Approaches Operations
Research
Sociology
EconomicsPsychology
Management
Science
Computer
Science
Behavioral
Approaches
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20. RISE OF THE INFORMATION ECONOMY
 All the major industrial powers are being transformed from industrial economies to knowledge-
and information-based service economies, whereas manufacturing has been moving to lower-
wage countries.
 In a knowledge and information based economy, knowledge and information are key ingredients
in creating wealth.
 Today, most people no longer work on farms or in factories but instead are found in sales,
education, health care, banks, insurance firms, and law firms; they also provide business services,
such as copying, computer programming, or making deliveries.
 These jobs primarily involve working with, distributing, or creating new knowledge and
information.
 In knowledge and information based economies, the market value of many firms is based on
largely intangible assets, such as proprietary knowledge, information, unique business methods,
brands, and other "intellectual capital”
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21. WHAT’S IN A NAME?
 A 1983 survey of 334 large organizations identified the following
names used for the information systems function:
 Ref: “Information Systems Planning to Meet Business Objectives: A Survey of Practice,” Creasap,
McCormick & Paget, New York, 1983 ,p B-7
Name Percent
Management Information System 33
Information Services 17
Information Systems 14
Data Processing 12
Information Resource Management 3
Others 21
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22. DEFINITION
 A Management Information System is
 An integrated User-Machine System
 For providing Information
 To support the operations, management, analysis and
decision making functions.
 In an organization.
 Primarily meant for providing information from the data
after processing them.
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23. MIS FUNCTIONS/ ROLE
User
User
User
User
Source
Source
Source
Source
Data
Capture
Processing
Retrieval
Storage of
Data
Dissemination
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24. WHY IS MIS IMPORTANT?
Purchasing
Inventory
Distribution
MIS
Sales Forecasting
CRM
Sales Planning
MARKETING
Planning Personnel Requirement
Analyzing Performance
Salary Administration
HR
Financial Analysis
Income Measurement
Cost Analysis
FINANCE
MANUFACTURING
Production Planning & Scheduling
Cost Control Analysis
LOGISTICS
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25. ACTIVITY SUBSYSTEM FOR MIS
Transaction processing , Inquiry
Response
MIS for
Strategic &
Policy
Planning
MIS for Tactical
Planning
MIS for Operational Planning & Control
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26. ACTIVITY SUBSYSTEM FOR MIS
ACTIVITY SUBSYTEM USES
Transaction Processing Processing of orders, shipments & receipts
Operational Control Scheduling of activities & performance
report
Management Control Formulation of budget & Resource
Allocation
Strategic Planning Formulation of objectives & Strategic Plan
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27. HOW INFORMATION SYSTEMS SUPPORT PEOPLE
IN ORGANIZATIONS
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28. PHYSICAL COMPONENTS OF MIS
PHYSICAL
COMPONENTS
DESCRIPTIONS
Hardware Input & Output devices, Primary Storage, Processor,
Communication System etc
Software Application & System Software
Database File, Secondary Storage (CD’s DVD’s etc)
Operations Personnel Computer Operators, System Analysts, Programmers,
Database Administrators etc
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29. THE WIDENING SCOPE OF INFORMATION SYSTEMS
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30. TOWARDS THE DIGITAL FIRM
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31. INFORMATION ARCHITECTURE AND INFORMATION
TECHNOLOGY INFRASTRUCTURE
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32. BUSINESS INFORMATION VALUE CHAIN
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33. HOW TO ANALYZE A BUSINESS INFORMATION SYSTEM
PROBLEM
 1. Identify the problem.
 2. What is the solution to the problem?.
 3. How will the solution provide value for the organization?.
 4. What technologies could be used to generate the solution?.
 5. What changes to organizational processes will be required by the
solution?
 6. What management policy will be required to implement the solution.
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