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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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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.
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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?
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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)
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
System Development Life Cycle
The Phases in the SDLC are:
Feasibility Study
Post Implementation/
Maintenance
Implementation System Design
System Analysis
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
UNIT- III
Data & Information
Data : The raw facts and figures.
Information: The processed data.
Attributes of Information
ACCURACY
VALIDITY
TIMELINESS
FREQUENCY RELIABILITY
IMPARTIALITY
CORRECTNESS
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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.
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
• 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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
• 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)
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
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
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Applications of Multimedia
• Better information presentation for decision
making
• Advertising & Sales Promotion
• After sales service
• Employee training
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Recent Developments in MIS
E-Commerce (Transacting through World Wide
Web)
Networking (Remote Logins)
Mobile Commerce (Mobile Apps.)
Management Information Systems

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Management Information Systems

  • 1. 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
  • 2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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.
  • 3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 6. • 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?
  • 7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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)
  • 8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 System Development Life Cycle The Phases in the SDLC are: Feasibility Study Post Implementation/ Maintenance Implementation System Design System Analysis
  • 12. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 13. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 UNIT- III Data & Information Data : The raw facts and figures. Information: The processed data. Attributes of Information ACCURACY VALIDITY TIMELINESS FREQUENCY RELIABILITY IMPARTIALITY CORRECTNESS
  • 14. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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.
  • 15. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 16. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 17. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 • 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
  • 18. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 • 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)
  • 19. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 20. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 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
  • 21. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Applications of Multimedia • Better information presentation for decision making • Advertising & Sales Promotion • After sales service • Employee training
  • 22. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Recent Developments in MIS E-Commerce (Transacting through World Wide Web) Networking (Remote Logins) Mobile Commerce (Mobile Apps.)