1) Data is raw facts that become useful information when processed. Information reduces uncertainty and aids decision making. 2) There are various types of data and information like internal/external, strategic/tactical/operational. Quality information is timely, accurate, relevant, and impartial with no bias. 3) MIS aims to provide high quality information to managers by processing data from various sources using principles of classification, summarization, and recognizing human decision making capabilities.

1. INFORMATION CONCEPTS
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2. Data
 A stream of raw facts about anything
 Examples:.
 Record of all the players in one day cricket
matches.
 Detailed Marks of all students in a class.
 Business data as obtained from various
business houses.
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3. Information
 processed data, which is useful to the
recipient.
 Examples:
 Profit of the company in the current year
 The highest ever score in one day cricket
 First ten toppers in a class
 The top 50 business houses of India.
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4. Then Information is……
WHICH
 Tells something the receiver did not know
 Reduces uncertainty
 Has a surprise value
 Has a real / perceived value in current / prospective
decision.
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5. INFORMATION CONCEPT:-
 Information differs from data.
 Information has a value in decision making – while
data
does not have.
Information Characteristics:-
• Improves representation of an entity.
• Updates knowledge level (Ex: Sales Data)
• Reduces uncertainty
• Aids in decision making.
Ex: Sales Data progressively become information
when processed with other data such as target.
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6. Conceptual model of communication:-
Transmitter Receiver
Source Channel Destination
Encoder De-coder
(Data / (MIS) (Reports) (Interprete) (MGMT.)
Information)
Noise
Distortion
Poor Quality of Creates
Information
Confusion
(ABOVE MODEL OF COMMUNICATION USED
IN MIS)
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7.  Information Presentation:-
 Improve communication through summarization.
 Improve by message routing copies of circular.
 Curb misuse of information by exercising control on
the content & distribution.
 Information BIAS:
 Should not be biased while classifying & filtering /
Communicating information.
 BIAS enters because people try to block sensitive
information.
 To overcome this, a formal organization structure &
top management decides information type / received.
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8.  Way information is presented, may create BIAS. Ex: If
information is presented in alphabetic order & it is
lengthy.
 INFORMATION : A QUALITY PRODUCT
 Information is a product of data processing.
 Quality of information can be measured on four
dimensions: (1) Utility (2) Satisfaction (3) BIAS (4)
Error.
1. UTILITY: Has four facets : (1) Form (2) Time (3)
Access (4) Possession.
2. SATISFACTION OF USER: Is a common key of
measuring utility.
3. ERROR: Error creeps in due to
 Incorrect data & collection method.
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9.  Incorrect data processing.
 Loss or Incomplete data.
 Poor data validation or control.
 Deliberate falsification.
 Processing or data to information should be
allowed only
after thorough validation.
4. BIAS: If the information is processed out of biased
data, it will have BIAS.
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10. Information Quality
 Refers to the fitness for use, or its reliability. Some of the attributes, which
influence the quality of information, are:
 Timeliness
 Accuracy
 Relevance
 Adequacy
 Completeness
 Explicitness
 Exception-based, etc
 Impartiality - no bias
 Validity
 Reliability
 Consistency
 Age-old data is of no use
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11. 3. Reliability
4. Consistency : Data should have consistent
5. Age : If the information is old, it is not useful today.
 CLASSIFICATION OF INFORMATION:
1. Action vs. No. of action information:-
Ex: “No stock” report calls for purchase action.
2. Recurring vs. non Recurring information:-
Ex: Monthly sales report vs. market study information.
3. Internal vs. External information:-
Ex:-Information generated through internal resources vs.
information generated through govt. report.
4. Planning information:
Ex: Needs norms/ standards / specs.
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12. 5. Control Information:-
Ex:Reports giving status of activity with feed back
mechanism.
6. Knowledge information:-
Ex: Collection of information through library reports /
research studies to build up a knowledge base for decision
making.
 Information can also be classified
BASED ON USAGE:-
 Organization information:- Used by all in organization.
 Database information :- When multiple use & apply.
 Operational / Functional information:- When the
information is used for operations.
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13. EXTERNAL LOW
Top
SOURCE OF Management STRUCTURED
INFO INFORMATION
Middle Management
Operational Management
HIGH
INTERNAL
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14. Types of Information
 Strategic Information
required by the managers at Strategic level
managers
 Tactical Information
required by the managers at Management control
level managers
 Operational Information
required by the managers at Operational control
level managers
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15. Dimension of Information
 Economic dimension
 Cost of information
 Value of information
 Business dimension
 Technical dimension
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16. METHODS OF DATA & INFORMATION COLLECTION:-
 Choice of methods have an impact on quality of
information.
 Methods of data collection & processing is part of MIS.
 Methods of Data & Information Collection
• Observation:
= This methods are chosen for data & information
collection & specific problem.
= Remaining are routine methods particularly
irrespective of a problem.
Ex:Visit customer to assess complaint.
• Experiment: Ex:Assess market response to new
packaging. (Thru test marketing)
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17. • Survey: Ex: Market survey, opinion poll.
• Subjective Estimation:Ex: Data pertaining to future
like life style in 21st Century/ Future of alternative
energy source.
• Transaction Processing: Ex:Ledgers, Payroll, sales
report etc.
• Purchased from outside: Ex:Database on specific
subject, research study etc.
• Publication: Ex: Corporate publication, industry
publication, NCAER report.
• Government Agencies: Ex: RBI, tax publications
etc.
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18.  Human Being as Information Processor :
 An experienced Manager is a skillful information
processor & able to decide.
 While processing, manager also uses knowledge from his
memory.
 Filtering is a process whereby manager selectively accepts
input.
BRAIN
Use of Stored
Knowledge & Experience
APPLICATION OUT PUT
INPUT FILTERING
MENTAL SELECTION DECISION
FROM &
PROCESSING MANI ACTION
EYES, EARS BLOCKING
PULATION REGISTRATION
GENERALISED MODEL OF INFORMATION PROCESSOR
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19.  Filtering process blocks the unwanted or inconsistent Data
which does not match the requirement.
 An inexperienced Manager may Omit Data, Distort Data.
 The information processor establishes filter based on
experience.
 MIS & THE INFORMATION CONCEPT:
 Goal of MIS : should be a provide information which has
a surprise value & reduces uncertainty.
 Build knowledge base in the organisation by processing
various Data from different source.
 Design of MIS should take care of DATA PROB
Knowing that it may contain BIAS & ERROR., with help
of validation, checking, controlling procedure in the
manual & computerised system. 19

20.  While designing MIS, due regard should be given to the
Communication Theory of transmission.
 Special care is needed to handle noise & distortion
 Principles of summarisation & classification should be
carefully applied giving regard to management levels.
 Care should be taken in the process that no information is
suppressed or over emphasised.
 MIS should provide specific attention to quality
parameters.
 MIS should make a distinction between different kind of
information. (Action vs No-Action etc.)
 MIS needs to give due regard to the information used for
planning, controlling etc.
 MIS should recognize some aspects of Human Capabilities
since decision makers are human.
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21.  MIS design should meet the needs of the total organisation
- For design consideration, it is divided into top, middle,
supervisory & operational.
 MIS design should ensure input data quality by controlling
data for validation, reliability, consistency etc.
 Recognizing information may be misused, if falls in wrong
hands, MIS design should have feature of filtering,
blocking, suppression, delayed delivered etc.
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22. Use of MIS Value of Information
Top Goal Setting Policy Making Very High, Meeting High
Chief Strategic Planning Accur Risk & Uncertainty
Executi ate Situation Un-
ve & Futuri struct
Board stic ured
Exception,
Middle Decision Making Precise, Adhoc, Unform
Division, Depar Problems Solving Analytical atted, Regular
Monitoring & Decision High, Meeting Risky
tment , Product But Modified
Achieving Business Oriented, Situation
Managers Frequent, Displ
Planning & Schedule Related to Past, ay & Print
Current Future
Supervisory Jr. Problem Processed & Low, Meeting Given at Fixed
Managers, Supervisors, Solving & Summarized and Near Certainty Interval Display &
Officers Meeting Classified for the Situation Print
Targets Current Period
To Know Lowest
the Status
Facts
Operational Assistants, Detailed Relating To Large Volume Print
Clerks Current Period
Levels of Management Nature of Information Reporting Media and
Structure
Organisational Pyramid Information Concept 22