The document provides an overview of management information systems (MIS). It defines MIS as a system for collecting, processing, storing, and disseminating data to support the information needs of management for decision making. The document discusses the components and types of information systems, outputs of MIS including scheduled reports and exception reports, and the impact of MIS in streamlining operations and monitoring performance. It also outlines considerations for MIS planning, development, and design.

1. Management Information
System (MIS)

2. Contents
 Data, Information and System
 Information – a critical resource
 Data and Information
 Types and Characteristics of useful Information
 System
 Information System (IS)
 Components of an IS
 Types of IS
 Interrelationship among systems
 Management Information System (MIS)
 Broader Definitions and concepts
 Output of MIS
 Functional View
 Impact of MIS
 MIS Planning and Development
 MIS Development outlook
 Pointers for MIS Design
 MIS Planning
 Software Development Life Cycle
 Software Development Methodologies: Approaches

3. Information is critical
The information we have
is not what we want,
The information we want
is not the information we need,
The information we need
is not available.

4. Information is a Resource
 It is scarce
 It has a cost
 It has alternative uses
 There is an opportunity cost factor
involved if one does not process
information

5. Why need Information?
To ensure effective and
efficient decision - leading
to prosperity of the
Organization.

6. Data and Information
Data vs. Information
 Data
 A “given,” or fact; a number, a statement, or an image
 Represents something (quantities, actions and objects) in the real
world
 The raw materials in the production of information
 Information
 Data that have meaning within a context
 Data that has been processed into a form that is meaningful to the
recipient and is of real or perceived value in the current or in the
prospective actions or decisions of the recipient.
Data Manipulation
Example: customer survey
 Reading through data collected from a customer survey with questions
in various categories would be time-consuming and not very helpful.
 When manipulated, the surveys may provide useful information.

7. Types and classification of Information
Information classification
Action v/s no-action
Recurring v/s non recurring
Internal v/s external
Planning Information: standards, norms, specifications
Control information – reporting the status of an activity thru feedback mechanism
Knowledge information – library reports, research studies

8. Characteristics of Useful Information

9. Information Presentation (An Art)
Data may be collected in the best possible way and processed
analytically, however, if not presented properly, it may
fail to communicate any value to recipient.
Communication of Information is affected by the methods
of transmission, the manner of information handling and
the limitations & constraints of recipients.
The methods used to improve communication are:
a) Summarization: Too much information causes noise and
distortion i.e confusion, misunderstanding and missing of
purpose. Summarization suppresses the noise and
distortion.
b) Message routing: The principal here is to distribute
information to all those who are accountable for the
subsequent actions in any manner. This is achieved by
sending the copies of the reports or documents to all the
concerned people or users.

10. System
System: A set of components that work together to
achieve a common goal. Computer-based Information
Systems take data as raw material, process it, and
produce information as output.

11. Components of an Information System

12. Corporate
Headquarters
Finance Production
Marketing
and Sales
Corporate
Databases
Mainframe
Divisional
Databases
Local Area Network:
PCs with Local Databases
Salesforce
Notebooks
Regional
Office
Work-
stations Plant Minicomputers
Telecommunications
Link
Divisional
Minicomputers
with Divisional
Databases
A Networked Information System:
Three-Tier Architecture

13. Types of Information Systems

14. Types of Information Systems
 Operational-level systems support operational managers
by keeping track of the elementary activities and
transactions of the organization, such as sales, receipts,
cash deposits, payroll, credit decisions, and the flow of
materials in a factory.
 Management-level systems serve the monitoring,
controlling, decision-making, and administrative activities
of middle managers. The principal question addressed by
such systems is this: Are things working well?
 Strategic-level systems help senior management tackle
and address strategic issues and long-term trends, both in
the firm and in the external environment.

15. Types of Information Systems

16. Transaction Processing System
Transaction Processing Systems (TPS):Transaction Processing Systems (TPS):
 Basic business systems that serve the operational levelBasic business systems that serve the operational level
 A computerized system that performs and records the dailyA computerized system that performs and records the daily
routine transactions necessary to the conduct of theroutine transactions necessary to the conduct of the
businessbusiness

17. Management Information System
 Serve middle management
 Structured and semi-structured decisions
 Provide reports on firm’s current performance, based
on data from TPS
 Past and Present Data
 Internal Orientation
 Provide answers to routine questions with predefined
procedure for answering them
 Typically have little analytic capability

18. Decision Support System
 Serve middle management
 Support non-routine decision making
 E.g. What is impact on production schedule if
December sales doubled?
 Often use external information as well as
information from TPS and MIS
 Processing is interactive in nature
 Output in form of Decision analysis
 Example: Contract Cost Analysis

19. Executive Support Systems
 Support senior management – Strategic Level
 Address non-routine decisions requiring judgment,
evaluation, and insight
 Incorporate data about external events (e.g. new tax laws
or competitors) as well as summarized information from
internal MIS and DSS
 User "seductive" interfaces; Users' time is a premium
 What if capabilities abound
 Input in form of Aggregate data
 Processing is interactive and output in form of projections
 Examples
 ESS that provides minute-to-minute view of firm’s financial
performance as measured by working capital, accounts receivable,
accounts payable, cash flow, and inventory.
 5-year operating plan

20. Interrelationship Among Systems
The various types of systems in the organization have interdependencies. TPS are major producers of information
that is required by many other systems in the firm, which, in turn, produce information for other systems. These
different types of systems are loosely coupled in most business firms, but increasingly firms are using new
technologies to integrate information that resides in many different systems.

21. Contents
 Data, Information and System
 Information – a critical resource
 Data and Information
 Types and Characteristics of useful Information
 System
 Information System (IS)
 Components of an IS
 Types of IS
 Interrelationship among systems
 Management Information System (MIS)
 Broader Definitions and concepts
 Output of MIS
 Functional View
 Impact of MIS
 MIS Planning and Development
 MIS Development outlook
 Pointers for MIS Design
 MIS Planning
 Software Development Life Cycle
 Software Development Methodologies: Approaches

22. MIS - Definition and Concept
Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost
The three sub-components
Management, Information and System
- together bring out the focus clearly & effectively.
System emphasizing a fair degree of integration and a holistic view;
Information stressing on processed data in the context in which it is
used by end users;
Management focusing on the ultimate use of such information
systems for managerial decision making.

23. MIS – Definition and Concept
A management information system (MIS) is system of
collecting, processing, storing, disseminating and utilizing
data in the form of information needed to carry out the
functions of management.
Today, the term is used broadly in a number of contexts and
includes (but is not limited to):
 Decision support systems,
 Resource and people management applications,
 Enterprise Resource Planning (ERP),
 Supply Chain Management (SCM),
 Customer Relationship Management (CRM),
 project management and database retrieval applications.

24. Difference between management information
systems and information systems
The terms MIS and IS are often confused. IS may include systems
that are not intended for decision making. In effect, MIS must
not only indicate how things are going, but why they are not
going as well as planned where that is the case
 Information system applied to management context is called MIS.
IS can be applied to any area of business while MIS is applicable
for managerial decision-making.
 IS means use of hardware and software for any business. MIS can
be used in any form - even manual reports, which aid decision-
making
 MIS is used to analyze other information systems applied in
operational activities in the organization.
 MIS summarize and report on the company’s basic operations.
The basic transaction data from TPS are compressed and reported

25. Outputs of MIS
 Scheduled reports
 Produced periodically, or on schedule (daily,
weekly, monthly)
 Key Indicator Report
 Summarizes the previous day’s critical
activities
 Demand Report
 Gives certain report at manager's request
 Exception Report
 Automatically produced when a situation is
unusual or requires management action

26. MIS – Functional View

27. How MIS Obtain Data from TPS:How MIS Obtain Data from TPS:
How MIS Obtain their Data from the Organization’s TPS:
In the system illustrated by this diagram, three TPS supply
summarized transaction data to the MIS reporting system at the
end of the time period. Managers gain access to the organizational
data through the MIS, which provides them with the appropriate
reports.

28. Sample MIS Report
This report, showing summarized annual sales data, was produced by the MIS in previous slide

29. Impact of MIS
 Management of marketing, finance, production and personnel becomes
more efficient, the tracking and monitoring becomes easy
 Helps in understanding of business itself, MIS begins with definition of data
and its attributes – uses data dictionary and brings common understanding
of terms and terminology in organization
 MIS calls for systemization of business operations – leads to streamlining
of operations, brings discipline in its operations everyone is required to
follow
 Since the goals of MIS are driven from organization goals, it helps
indirectly pulling everyone in organization towards corporate goals by
providing relevant information to the people in organization
 MIS helps to monitor results and performances
 MIS provides alerts, in some cases daily, to managers at each level of the
organization, on all deviations between results and pre-established
objectives and budgets.
 IT enabled MIS is partly responsible for the PARADIGM shift (A change, a
new model,) from support to contributing to an organizations profitability

30. Contents
 Data, Information and System
 Information – a critical resource
 Data and Information
 Types and Characteristics of useful Information
 System
 Information System (IS)
 Components of an IS
 Types of IS
 Interrelationship among systems
 Management Information System (MIS)
 Broader Definitions and concepts
 Output of MIS
 Functional View
 Impact of MIS
 MIS Planning and Development
 MIS Development outlook
 Pointers for MIS design
 MIS Planning
 Software Development Life Cycle
 Software Development Methodologies: Approaches

31. MIS Development Outlook
Corporate
Strategy
Ethics/
Privacy
MIS
Strategy
and Plan
Internal
Systems
Development
Outsourced
Systems
Development
Implementation
Internal
Systems
Operations
Outsourced
Systems
Operations
Infrastructure
Security
Corporate
Strategy
Ethics/
Privacy

32. Pointers for MIS Design
 To take care for data problems (bias and error) by high level validations,
checking and controlling the procedures.
 Due regard to the communication theory of transmitting the information
from the source to the destination.
 Handling of noise and distortion by summarization and message routing
 Ensuring that no information is suppressed or over emphasized
 To provide specific attention to quality parameters – Utility, Satisfaction,
Error and Bias
 By controlling inputs to the MIS on the factors of impartiality, validity, reliability,
consistency and age
 Should make a distinction between the different kinds of information for
the purpose of communication. Say an action, a decision oriented
information should be distinguished from a non action/knowledge-oriented
information.
 To recognize some aspects of human capabilities as a decision maker.
Capabilities differ from manager to manager and the designer should
skillfully deal with them.
 It should meet the needs of the total organization.
 Recognizing that the information may be misused if it falls into wrong
hands, the MIS design should have the features of filtering, blocking,
suppressions, and delayed delivery.