This document provides an overview of management information systems (MIS). It begins with an introduction to information systems in business and their typical components, including hardware, software, data, and telecommunications. It then discusses the fundamentals of information systems and defines the major types of information systems, including transaction processing systems, office automation systems, knowledge work systems, management information systems, decision support systems, and executive support systems. The document also distinguishes MIS from data processing and outlines some key characteristics of MIS.

1. Management
Information
System(UNIT 1)
BY:SURBHI SAROHA

2. SYLLABUS
 Introduction to information system in business
 Fundamental of information system
 Types of information system
 MIS versus Data Processing
 MIS & Decision Support Systems
 MIS & Information Resources Management
 Systems approach
 Management and organizational behavior

3. Introduction to information system in
business
 An information system is a combination of software, hardware, and
telecommunication networks to collect useful data, especially in an
organisation.
 Many businesses use information technology to complete and manage their
operations, interact with their consumers, and stay ahead of their
competition.
 Some companies today are completely built on information technology, like
eBay, Amazon, Alibaba, and Google.
 “An information system (IS) can be defined technically as a set of interrelated
components that collect, process, store, and distribute information to support
decision making and control in an organization.”

4. CONT….
 “Information systems are combinations of hardware, software, and
telecommunications networks that people build and use to collect, create,
and distribute useful data, typically in organizational settings.”
 “Information systems are interrelated components working together to
collect, process, store, and disseminate information to support decision
making, coordination, control, analysis, and visualization in an organization.”

5. Typical components of information
systems
 1. Hardware – This is the physical component of the technology.
 It includes computers, hard disks, keyboards, iPads, etc.
 The hardware cost has decreased rapidly while its speed and storage capacity
has increased significantly.
 However, the impact of the use of hardware on the environment is a huge
concern today.
 Nowadays, storage services are offered from the cloud, which can be
accessed from telecommunications networks.

6. CONT….
 2. Software – Software can be of two types, system software and application
software.
 The system software is an operating system that manages the hardware, program
files, and other resources while offering the user to control the PC using GUI.
 Application software is designed to manage particular tasks by the users. In short,
system software makes the hardware usable while application software handles
specific tasks.
 An example of system software is Microsoft windows, and an example of
application software is Microsoft Excel.
 Large companies may use licensed applications which are developed and managed
by software development companies to handle their specific needs. The software
can be proprietary and open source, available on the web for free use.

7. CONT….
 3. Data – Data is a collection of facts and is useless by themselves, but when
collected and organised together, it can be very powerful for business
operations.
 Businesses collect all the data and use it to make decisions that can be
analysed for the effectiveness of the business operations.
 4. Telecommunications – Telecommunication is used to connect with the
computer system or other devices to disseminate information.
 The network can be established using wired or wireless modes.
 Wired technologies include fiber optics and coaxial cable, while wireless
technologies include radio waves and microwaves.

8. Fundamental of information system
 Data are only the raw facts, the material for obtaining information. Information
systems use data stored in computer databases to provide needed information. A
database is an organized collection of interrelated data reflecting a major aspect
of a firm's activities.
 1. Information systems capture data from the organization (internal data) and its
environment (external data).
 2. They store the database items over an extensive period of time.
 3. When specific information is needed, the appropriate data items are
manipulated as necessary, and the user receives the resulting information.
 4. Depending on the type of information system, the information output may take
the form a query response, decision outcome, expert-system advice, transaction
document, or a report.

9. Types of information system
 Six Major Types of Information Systems
 Now that we have dealt with the basics, let's look at the six primary types of
information systems. Although information systems are not limited to this list,
typical businesses and organizations have the following six, each system
supporting a different organizational level.
 For starters, we have the transaction processing systems (TPS) at the
operational level. Next are the office automation systems (OAS) and
knowledge work systems (KWS), both working at the knowledge level. Next,
the management level has the management information systems (MIS) and
decision support systems (DSS), and we conclude with the executive support
systems (ESS) at the strategic level. Let’s explore the different types of
information systems more in-depth.

10. CONT….
 1. Transaction Processing System (TPS)
 Transaction processing is essential to helping businesses perform daily
operations. Transactions are defined as any activity or event that affects the
company, and include things like deposits, withdrawals, shipping, billing
customers, order entry, and placing orders. TPS supports these business
transactions.
 2. Office Automation System (OAS)
 OAS consists of computers, communication-related technology, and the
personnel assigned to perform the official tasks. The OAS covers office
transactions and supports official activity at every level in the organization.
The official activities are subdivided into managerial and clerical activities.

11. CONT…..
 Office automation systems include the following applications:
 Email: The email application also covers file attachments such as audio,
video, and documents.
 Voice Mail: This application records and stores phone messages into the
system’s memory and can be retrieved anytime.
 Word Processing: Word processing covers the creation of documents, including
memos, reports, letters, and anything else that’s printable electronically. The
created text can be copied, edited, and stored via word processing
commands, and checked for grammar and spelling, line and word counting,
and headers and footers.

12. CONT….
 3. Knowledge Work System (KWS)
 The KWS is a specialized system that expedites knowledge creation and ensures that the
business's technical skills and knowledge are correctly applied. The Knowledge Work System
aids workers in creating and disseminating new information using graphics, communication,
and document management tools. Here are some examples of KWS:
 Computer-Aided Design Systems (CAD): CAD systems automate design creation and revision
via computers and graphics software, especially in the manufacturing and tooling processes.
 Financial Workstations: These systems pull and combine data from many different internal
and external sources, covering research reports, market data, and management data.
Financial workstations can rapidly analyze huge amounts of financial data and trading
situations.
 Virtual Reality Systems: These systems take the CAD system to the next level, using
interactive graphics utilities to create realistic computer-generated simulations. VR systems
are typically found in scientific, educational, and business circles.

13. CONT…
 4. Management Information System (MIS)
 Middle managers handle much of the administrative chores for day-to-day
routines and performance monitoring, ensuring that all the work is aligned
with the organization's needs. That's why MIS is such a valuable tool.
Management Information Systems are specially designed to help middle
managers and supervisors make decisions, plan, and control the workflow.
The MIS pulls transactional data from various Transactional Processing
Systems, compiles the information, and presents it in reports and displays.
 Additionally, these reports can be produced monthly, quarterly, or annually,
although MIS can have more immediate reports (e.g., hourly, daily).

14. CONT…..
 5. Decision Support System (DSS)
 The DSS is a management-level, interactive computer-based information
system that helps managers to make decisions. The Decision Support System
specifically gives middle managers the information necessary to make
informed, intelligent decisions.
 Decision Support Systems use different decision models to analyze or
summarize large pieces of data into an easy-to-use form that makes it easier
for managers to compare and analyze information. Often, these summaries
come in the form of charts and tables.

15. CONT….
 6. Executive Support System (ESS)
 The ESS is like the MIS but for executive-level decision-making. The decisions
involve company-wide matters, so the stakes are higher. Consequently, they
demand more insight and judgment.
 The ESS provides greater telecommunication, better computing capabilities,
and more efficient display options than the DSS. Executives use ESS to make
effective decisions through summarized internal data taken from DSS and MIS
and external sources. In addition, executive support systems help monitor
performances, track competitors, spot opportunities, and forecast future
trends.

16. MIS versus Data Processing
 1. Management Information System (MIS) :
MIS is an application of computer related technology to programs.
 It provides managers with information and support for effective decision-
making and provides the feedback on daily operations.
 The outputs or reports are usually generated through accumulation of
transaction processing data.
 It ensures that appropriate data is collected from the valid sources, processed
and passed to needy destinations.
 It satisfies the needs through query systems, analysis systems, modelling
systems.

17. MIS

18. The main characteristics of MIS are :
 It supports data processing functions.
 It uses an integrated database and supports a variety of functional areas.
 It provides operational, tactical and strategic levels of organization.
 It is flexible
 It can adapt to the changing needs of the organization which is a big
advantage of MIS.
 For Example : Human resource management systems, sales and marketing
systems etc.

19. 2. Data Processing System (DPS) :
 DPS is the manipulation of data by computers. It represents the automation of routines
processing to support operations. Basically, it converts raw data into readable format which
can be easily utilized by the people in the organization.
 The data processing functions are data collection, manipulation, storage as used to report
and analyze business activities. It is oriented primarily to processing transaction data for day-
to-day transactions.
 There are six stages of data processing :
 Data Collection
 Data Preparation
 Data Input
 Processing
 Data Output
 Data Storage

20. DPS
For Example : Typing sales numbers into an inventory
control software program.

21. MIS DPS
It uses an integrated database. It does not use integrated databases.
It provides greater flexibility to the management. It provides no such flexibility.
It integrates the information flow between functional areas. It tends to support a single functional area.
It focus on information needs of all level of management. It focuses on departmental level support.
Output is in the form of graph. Output is in the form of the table.
The model is simple. Sometimes, the model becomes complex.
Focuses on operational functionality. It focuses on converting data to another form or language.

22. MIS & Decision Support Systems
 A decision support system (DSS) is a computer program application used to
improve a company's decision-making capabilities.
 It analyzes large amounts of data and presents an organization with the best
possible options available.
 Decision support systems bring together data and knowledge from different
areas and sources to provide users with information beyond the usual reports
and summaries. This is intended to help people make informed decisions.
 Typical information a decision support application might gather and present
include the following:
 comparative sales figures between one week and the next;
 projected revenue figures based on new product sales assumptions; and
 the consequences of different decisions.

23. MIS & Information Resources
Management
 Information Resource Management (IRM) is a technique of managing
information as a shared organizational resource.
 Information Resources Management (IRM) is the planning, budgeting,
organizing, directing, training, and control associated with an organization’s
information.
 The term encompasses both information itself and the related resources, such
as personnel, equipment, funds, and technology.
 Information Resource Management (IRM) is a technique of managing
information as a shared organizational resource. IRM includes
(1) identification of information sources,
(2) type and value of the information they provide, and
(3) ways of classification, valuation, processing, and storage of that
information.

25. Systems approach
 Systems approach is a management perspective which advocates that any
business problem should be seen as system as a whole which is made up of an
hierarchy of sub-systems.
 So rather than seeing the problem in parts it should be seen as whole.
 The system approach is based on the generalization that all things are inter-
related and inter-dependent with one another.
 A system is made up of related and dependent elements that form a unique
system.
 A system is simply an assemblage of things to forming a single unit.

26. CONT…..
 One of the most significant characteristics is that it consists of a subsystem
hierarchy.
 These are the components that form the main device, and so on.
 For instance, it is possible to view the world as a system in which different
national economies are sub-systems.

27. Systems Approach Features
 A system consists of elements that interact. It is a set of interrelated and
inter-dependent components organized in a way that generates a cohesive
whole.
 In their inter-relationships, rather than in isolation from each other, the
different subsystems should be examined.
 There is a boundary in an organizational structure that defines which parts
are internal and which are external.
 In a vacuum, there is no device. It receives data, materials and energy as
inputs from other systems. Inside a system, these inputs undergo a phase of
transformation and exit the system as an output to other systems.
 As it is sensitive to its environment, an organization is a dynamic structure. In
his climate, he is vulnerable to change.

28. Management and organizational behavior
 Organizational Behavior (OB) can be defined as the understanding, prediction
and management of human behavior both individually or in a group that occur
within an organization.
 Internal and external perspectives are the two theories of how organizational
behavior can be viewed from an organization’s point of view.
 Importance of OB
 While working in an organization, it is very important to understand others
behavior as well as make others understand ours.
 In order to maintain a healthy working environment, we need to adapt to the
environment and understand the goals we need to achieve. This can be done
easily if we understand the importance of OB.

29. CONT….
 It helps in explaining the interpersonal relationships employees share with
each other as well as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective
communication.
 It assists in marketing.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve
organizational goals.
 It helps in making the organization more effective.

30. THANK YOU 