Management Information Systems

TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated to Institution of G.G.S.IP.U, Delhi
MIS - Management Information Systems
Code: BBA (307)
Ridhi Bajaj
Assistant Professor

Syllabus
Unit I
Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization with particular reference to
Management Levels. MIS Growth and Development, Location of MIS in the Organization – concept and design.
Transaction Processing System, Decision Support System, Executive Information system, Expert System, and the
recent developments in the field of MIS.
Unit II
System Development: Concept of System, Types of Systems – Open, Closed, Deterministic, Probabilistic, etc. Relevance
of choice of System in MIS, Integration of Organization Systems and Information Systems, System Development
Life Cycle, System Analysis, Design and Implementation, MIS Applications in Business.
Unit III
Information Concepts: Data and Information – meaning and importance, Relevance of Information in Decision Making,
Sources and Types of Information, Cost Benefit Analysis – Quantitative and Qualitative Aspects, Assessing
Information needs of the Organization.
Unit IV
Information Technology: Recent Developments in the Field of Information Technology: Multimedia Approach to
Information Processing. Decision of Appropriate Information Technology for proper MIS.
Choice of appropriate IT Systems – Database, Data warehousing & Datamining Concepts.

Relevant Books
Name: Management Information System
Author: W. S. Javadekar
Publication: Tata Mc Graw Hill
Course Coverage: 60%
Availability in the Library: 50 Books
Name: Management Information System
Author: L. M. Prasad, Usha Prasad
Publication: Sultan Chand & Sons
Course Coverage: 90%
Availability in the Library: 168 Books

Objective of the Study
The Objective of this paper is to:
Understand the basic concept of MIS
The components which form a part of MIS
How do the different components work together
Why does a company need MIS

UNIT - I
MANAGEMENT INFORMATION SYSTEM
A SYSTEM/ set of systems, which MANAGES the INFORMATION in an
organization.
Technically, A management information system provides information that
organizations require to manage themselves efficiently and effectively. They
are used to analyze and facilitate strategic and operational activities.
Importance of MIS (What does it do?)
Collect Data  Process it  Disseminate
Strategic Planning
Information Generation
Communication
Problem Identification Operational Control
Management Control
Transaction Processing

• Transaction Processing
• Answers queries on the data pertaining to:
> the transaction,
> the status of a particular record and
> references on a variety of documents.
• provides the operational data for planning,
scheduling and control, and
• decision making at the lower level
Top
Level
Middle Level
Lower Level
HOW DOES MIS HELP?
• Short term planning,
• target setting and
• controlling the business functions.
• Goal setting,
• Strategic planning and
• Evolving the business plans and
• Their implementation
Fig.: Functions of MIS systems at different levels of management in an organization
WHAT DO THE MANAGERS DO?
WHY DO WE NEED MIS?

Classification of MIS
TPS (Transaction Processing Systems)
 Processes transactions & produces reports
 Used at lowest level
 Provides NO information for decision making
DSS (Decision Support Systems)
 Assist in decision making
 Useful in planning and assessing the alternatives
 Each DSS is distinct & Tailor-Made for its manager
 Contains:
 Database (combination of internal & external data)
 Model Base (Includes models to analyse data like PERT, CPM)
 User Interface (provide interactive dialogue between machine & user)

Classification of MIS
Expert Systems
 Knowledge based IS.
 Based on Artificial Intelligence – acts as an expert on specific
application areas
 Contains:
 Knowledge Base – contains facts about a specific expert area with
reasoning
 Inference Engine – contains the logic of reaching an inference
 User Interface – Interactive platform between user & machine
EIS (Executive Information Systems)
 Specially tailored for the use by Chief Executive of an
organization to support his decision making
 Uses the concepts of Database, Data warehouse, & Data mining

UNIT - II
• A system is a set of interacting or interdependent components forming an
integrated whole.
• A system has
– Structure,
– Behavior, &
– Interconnectivity
Elements of a system: –
• Inputs and outputs
• Processor
• Control
• Environment/surroundings
• Feedback
• Boundaries and interface
CONCEPT OF SYSTEM
Input/Output
Control
Processor
Feedback
Environment
Boundary

Types of Systems
Open System
A deterministic system
is one in which the
occurrence of all
events is known with
certainty. If the
description of the
system state at a
particular point of time
is given, the next state
can be perfectly
predicted.
Like: A Calculator.
A probabilistic system
is one in which the
occurrence of events
cannot be perfectly
predicted. Though the
behavior of such a
system can be
described in terms of
probability, a certain
degree of error is
always attached to it.
An open system
exchanges matter
and energy with
its surroundings.
Most systems are
open systems.
Like: A Car, or a
Computer.
A closed system
exchanges
energy,
but not matter,
with its
environment.
Like: Earth,
Black Hole.
Probabilistic Deterministic

System Development Life Cycle
The Phases in the SDLC are:
Feasibility Study
Post Implementation/
Maintenance
Implementation System Design
System Analysis

Feasibility Study:
• Conduct a preliminary analysis,
• Propose alternative solutions,
• Describe costs and benefits and
• Submit a preliminary plan with
recommendations.
System Analysis:
• Define project goals into defined
functions and operation of the
intended application.
• Analyzes end-user information
needs.
Implementation:
• Bring all the pieces together into a special
testing environment,
• Check for errors
System Design:
• Describe desired features and
operations in detail,
• Includes project layouts, business
rules, process diagrams, and other
documentation.
Post – Implementation/ Maintenance:
• Changes,
• Correction,
• Additions
SYSTEM DEVELOPMENT LIFE CYCLE

UNIT- III
Data & Information
Data : The raw facts and figures.
Information: The processed data.
Attributes of Information
ACCURACY
VALIDITY
TIMELINESS
FREQUENCY RELIABILITY
IMPARTIALITY
CORRECTNESS

Types of Information
1. Action & Non-Action Information:
The information which induces action is called action information.
Ex.: Low Battery!
The information which communicates only the status of a situation is non-action information.
Ex.: The stock ledger showing the store transactions and the stock balances.
2. Recurring & Non-Recurring Information
The information which repeats itself after a certain interval of time is recurring information.
Ex.: The monthly sales reports.
The information which may occur only once or after a long gap is non-recurring information.
Ex.: The report on the market research study.
3. Internal & External Information
The information generated through the internal sources of the organization is termed as internal information.
Ex.: Employee Information.
The information generated through the sources of data that are outside the organization is external information.
Ex.: Government reports, industry surveys.

COST – BENEFIT ANAYLSIS
• Cost benefit analysis (CBA), sometimes
called benefit–cost analysis (BCA), is a
systematic process for calculating and
comparing benefits and costs of a project.
• A project should be considered only if:
– Benefits > Costs, or
– Benefits/ Costs ratio > 1

Types of C & B
• Tangible & Intangible Costs & Benefits
– TC: An outlay of cash for a specific item or activity.
• examples: Purchase of hardware or software, employees’ salary.
– IC: Costs that exist but their financial value cannot be
measured. Easy to identify, but difficult to quantify.
• Examples: Cost of System Breakdown.
– TB: Decreased Transaction Processing Time
– IB: Higher Customer Satisfaction

• Fixed and variable costs & benefits
– FC: Remain the same irrespective of volume
of activities of a system.
• Examples: Cost of physical assets, rental charges
– VC: Vary in proportion to the volume of activities of the
system.
• Examples: printer paper, supplies, telephone line charges
– FB: benefits from reduced number of errors due
To automation of processes.
– VB: Time saved in online counselling

• Direct and Indirect costs & benefits
– DC: are associated directly to an operation.
• Examples: Cost of a box of CDs.
– IC: are not directly associated with an operation. Also
called as ‘Overheads’.
• Examples: Insurance Cost, Maintenance Costs
– DB: A new system handling 30% more transactions
– IB: are realized as a by-product of another operation
(PPF – Cash + Tax)

UNIT- IV
• Database: An integrated collection of logically related data
elements.
• Data Warehouse: A collection of subjectively selected
operational data which can successfully answer any ad hoc,
complex, or statistical queries.
– It contains integrated historical data which is common to
the whole organization.
• Data Mining: Non-Trivial extraction of previously unknown &
potentially useful information from the data.
IT SYSTEMS – Database, Data Warehouse, Data Mining

Multimedia
• It is a form of communication that combines two or
more types of media together, such as: text,
graphics, sound, still video, full motion video, or
animation into a computer based application.
• Software Requirements:
– Painting & Drawing tools
– Computer aided design tools
– Sound editing programs
– Digital video movies

Applications of Multimedia
• Better information presentation for decision
making
• Advertising & Sales Promotion
• After sales service
• Employee training

Recent Developments in MIS
E-Commerce (Transacting through World Wide
Web)
Networking (Remote Logins)
Mobile Commerce (Mobile Apps.)

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