The document discusses management information systems (MIS) which use computer hardware and software to collect, process, store, and disseminate information to support decision making and problem solving within an organization. An MIS manages information through acquiring, using, and discarding data efficiently. It also discusses the differences between data and information, skills required for MIS including computer and information literacy, and various computer-based information subsystems like accounting, management, and marketing information systems. Information specialists that support MIS are also outlined.

1. ManagementManagement
Information SystemInformation System
Lecture Notes for BusinessLecture Notes for Business
IntroductionIntroduction
By Fahmy RadhiBy Fahmy Radhi

2. Management Information SystemManagement Information System
(MIS)(MIS)
 Interrelated components that collect,Interrelated components that collect,
process, store and disseminateprocess, store and disseminate
information to support decision makinginformation to support decision making
and Problem Solvingand Problem Solving
 Information that rely on computerInformation that rely on computer
hardware and software for processing andhardware and software for processing and
disseminating informationdisseminating information

3. Information System withinInformation System within
an Organizationan Organization

4. Functions of an Information SystemFunctions of an Information System

5. Functions of an Information SystemFunctions of an Information System
 Input – the collection of raw data forInput – the collection of raw data for
processing information systemprocessing information system
 Processing – the conversion of dataProcessing – the conversion of data
into information for more meaningfulinto information for more meaningful
 Output – the distribution of processedOutput – the distribution of processed
informationinformation
 Feedback – output that is returned toFeedback – output that is returned to
help evaluate or correct inputhelp evaluate or correct input

6. MIS ActivitiesMIS Activities
 MISMIS is activities to manage information foris activities to manage information for
problem solving and decision making in anproblem solving and decision making in an
entity by managed the following activities:entity by managed the following activities:
 Acquiring information by gathering data andAcquiring information by gathering data and
processed the data to be the valuableprocessed the data to be the valuable
information efficientlyinformation efficiently
 Using the information in the most effectiveUsing the information in the most effective
wayway
 Discarding the information at the proper timeDiscarding the information at the proper time

7. Differences between DataDifferences between Data
and Informationand Information
 Data consists of facts and figures that areData consists of facts and figures that are
relatively meaningless to user. E.g. therelatively meaningless to user. E.g. the
number of hours worked for eachnumber of hours worked for each
employee in the companyemployee in the company
 Information is processed data that areInformation is processed data that are
more meaningfully. E.g. the hours worksmore meaningfully. E.g. the hours works
for each employee multiplied by the hourlyfor each employee multiplied by the hourly
rate, the out put information is the grossrate, the out put information is the gross
earningearning

8. Skills required in MISSkills required in MIS
1.1. Computer literacyComputer literacy
 understanding of computer terminologyunderstanding of computer terminology
 a recognition of the strength and weakness of thea recognition of the strength and weakness of the
computercomputer
 an ability to use the computeran ability to use the computer
2.2. Information literacyInformation literacy
 Understanding how to use information at each stepUnderstanding how to use information at each step
of problem solving processof problem solving process
 Understanding where information can be obtainedUnderstanding where information can be obtained
 Understanding how to share information with otherUnderstanding how to share information with other

9. Computer-based informationComputer-based information
SubsystemSubsystem
 Electronic data processing (EDP) –Electronic data processing (EDP) –
produces some information as by productproduces some information as by product
of the accounting process calledof the accounting process called
Accounting Information System (AIS)Accounting Information System (AIS)
 Management information system (MIS) –Management information system (MIS) –
the computer application should bethe computer application should be
implemented for the primary purpose ofimplemented for the primary purpose of
producing management information.producing management information.

10. Computer-based informationComputer-based information
SubsystemSubsystem
 Decision support system (DDS) – an informationDecision support system (DDS) – an information
producing system aimed at a particular problemproducing system aimed at a particular problem
that a manager must solve and decision.that a manager must solve and decision.
 Office automation (OA) – facilities of computerOffice automation (OA) – facilities of computer
and communication that increase productivitiesand communication that increase productivities
for manager and office worker in conductingfor manager and office worker in conducting
their activitiestheir activities
 Expert System (ES) – computer application thatExpert System (ES) – computer application that
can be used by managers in problem solvingcan be used by managers in problem solving
and decision makingand decision making

11. Computer-based informationComputer-based information
SubsystemSubsystem

12. Functional InformationFunctional Information
SubsystemSubsystem
 Human Resources Information SystemHuman Resources Information System
 Manufacturing Information SystemManufacturing Information System
 Manufacturing Intelligence SubsystemManufacturing Intelligence Subsystem
 Industrial Engineering SubsystemIndustrial Engineering Subsystem
 Financial Information SystemFinancial Information System
 Marketing Information SystemMarketing Information System
 Marketing Research SubsystemMarketing Research Subsystem
 Marketing Intelligence SubsystemMarketing Intelligence Subsystem

13. Main Reason interest in MISMain Reason interest in MIS
1.1. Increasing Complexity of BusinessIncreasing Complexity of Business
Activities influenced by:Activities influenced by:
• International economicInternational economic
• Worldwide CompetitionWorldwide Competition
• Increasing complexity of TechnologyIncreasing complexity of Technology
• Shrinking time framesShrinking time frames
2.2. Improving rapidly Computer CapabilitiesImproving rapidly Computer Capabilities

14. Information SpecialistsInformation Specialists
 System analyst is an expert who worksSystem analyst is an expert who works
with user in developing system at definingwith user in developing system at defining
problems and in preparing writtenproblems and in preparing written
documentation of how the computer willdocumentation of how the computer will
assist in solving the problem.assist in solving the problem.
 Database administrator works with userDatabase administrator works with user
and system analyst in creating the dataand system analyst in creating the data
needed to produce the information neededneeded to produce the information needed
by usersby users

15. Information SpecialistsInformation Specialists
 Network specialist works with user and systemNetwork specialist works with user and system
analyst in establishing the data communicationanalyst in establishing the data communication
network that ties together widespread computingnetwork that ties together widespread computing
resourcesresources
 Programmers use the documentation preparedProgrammers use the documentation prepared
by the system analyst to create the softwareby the system analyst to create the software
program that lead the computer to transformprogram that lead the computer to transform
data into information needed by usersdata into information needed by users
 Operators operates the computing equipmentOperators operates the computing equipment
and using software programand using software program

16. Information SpecialistsInformation Specialists