A management information system (MIS) is a tool that collects, transforms, and distributes information to managers to help with decision making. It consists of hardware, software, databases, procedures, and personnel. The physical components include central processing units, storage devices, input/output devices, and communication networks. Software includes operating systems and applications. Databases centrally store and organize data to reduce redundancy. Procedures provide instructions for users. Personnel such as programmers, analysts, and managers implement the MIS. The document then describes several types of systems and subsystems within an MIS like transaction processing, management reporting, and decision support systems.

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Management Information System
M.Sc. Computer Science
III Semester
Ms. Arati Singh
Department of Computer Science
Shri Shankaracharya Mahavidyalaya Junwani

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Unit- II
Physical Structure of Management Information Systems
A MIS is an organized system which consists of people, hardware, and communication networks
and data sources that collects, transforms and distributes information in an organization. It is a tool
which helps mangers in making decisions by providing regular flow of accurate information in an
organization. (Sarkissian, 2009)
The physical components of an MIS include hardware, software, database, personnel and
procedures.
Hardware
Hardware consists of all physical components of a computer system like central processing unit
(CPU), input devices, output devices, storage and communication devices. (Sarkissian, 2009)
Software
Software is an interface between the information system and users of information system. Software
can be of two types’ system software and applications. The system software includes the operating
system and special purposes programs. Application is developed to achieve a specific task.
Software plays an important part in MIS. (Sarkissian, 2009)
Database
A database is a centrally managed and organized collection of data. Database helps to store data in
an organized manner and to make available to those who need that data. Database helps to reduce
duplication of data as it is centrally managed data one data can be store at one place avoiding
redundancy and duplication of data. (Sarkissian, 2009)
Procedures
Procedures are essential for effective use of information system. Procedures consist of various
instructions like user instructions, instructions for input preparation and operating instructions.
These instructions help in using information system effectively. (Sarkissian, 2009)
Personnel
Number of personnel is required for implementation of MIS like computer operators, programmers,
systems analysts and managers. Human beings are key requirements for implementation of MIS.
In MIS both technical and managerial level people are required for proper implementation of MIS.
(Sarkissian, 2009)
Types of the System in the Management Information Systems
1. Conceptual Systems
a. Are theoretical and explanatory in the nature.
b. Provide the much needed clarification.
c. Provide theoretical framework for which there may or may not be any real life counterpart.
d. E.g. of such systems can be philosophy, theology etc.
2. Empirical Systems

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a. Are very practical, specific and also very operational in the nature.
b.Can be based on the conceptual system.
c. Examination system, surgery act as very good examples of the empirical systems.
3. Open Systems
a. Involve continuous interaction with the environment.
b. So exchanges the information, material, energy with the environment.
c. Is open and also self-organizing in the nature.
d. Is also adoptive or adaptive to the changing environment as it is flexible.
4. Closed Systems
a. Shuns any kind of the exchange with the environment.
b. Is rigid in nature.
c. Is not at all amenable to the change.
d. Is also self-contained.
e. Is somewhat isolated in the nature.
f. Is having a well-defined boundary.
g. Is not at all adaptive in the nature.
5. Natural Systems
a. Such Systems exist and also abound in the nature.
b. Are also not at all the results of the human endeavors.
c. Rivers, mountains, minerals etc. are the major examples of the natural Systems.
6. Artificial Systems
a. Are manufactured (manmade).
b. Examples of such Systems are dams, canals, roads, machines, factories etc.
7. Probabilistic Systems
a. Based on the predictability of the behavior or the outcome.
8. Deterministic Systems
a. In such Systems, the interaction of the elements is known.

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b. As the behavior of the elements is pre-determined, it becomes possible to work upon the reaction
well in the advance.
Subsystems of MIS
Systems may consist of numerous sub-systems, each of which has elements, interactions, and
objectives. Subsystems perform specialized tasks related to the overall objectives of the total
system.
A system exists on more than one level and can be composed of subsystems or element parts.
Following are the subsystems of Management Information System:
1. Transaction Processing System
2. Management Reporting System
3. Decision Support System
4. Office Information System
5. Business Expert System
Transaction Processing System - A transaction is defined as an exchange between two or more
business entities. Overall transaction processing, also known as data processing, reflects the
principal business activities of a firm like - sales, production, inventory, shipping, receiving, billing,
accounts payable, accounts receivables, payroll, general ledger, etc. Transactions are important
events for an organization, and collecting data about them is called transaction processing.
Transaction Processing System's primary purpose is to record, process, validate, and store
transactions that take place in the various functional areas of a business for future retrieval and use.
Transaction processing systems are cross-functional information systems that process data resulting
from the occurrence of business transactions.
• A TPS records internal and external transactions for a company.
• A TPS performs routine and repetitive tasks. It is mostly used by lower level managers to make
operational decisions.
• Transactions can be recorded in batch mode or online. In batch mode files are updated periodically;
and in online mode, each transaction is recorded as it occurs.
• TPS is a six step process - Data entry, Data capture, Data validation, Processing and re-validation,
Storage, Output generation, and Query support
•
Management Reporting System - Management Reporting Systems are the most elaborate of
management oriented MIS components. Its main objective is to provide lower and middle
management with printed reports and inquiry capabilities to help maintain operational and
management control of enterprise.
• MRSs are usually developed by information system professionals, rather than by end users.
• MRSs are oriented towards reporting on the past and the present, rather than projecting the future.
• MRSs largely report on internal company operations.
• MRSs generally have limited analytical capabilities.
• MRSs do not directly support the decision-making process
• MRSs provide Scheduled or Periodic Reports, Exception Reports, and Demand or Ad-hoc Report.
Decision Support System - Decision Support Systems are a class of computerized information
systems that support decision-making activities. DSS are interactive computer-based systems and
subsystems intended to help decision makers. A DSS may present information graphically and may

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include an expert system or artificial intelligence. DSS tend to be designed primarily to serve
management control level and strategic planning level managers.
• DSSs support for decision-makers in semi-structured and unstructured problems.
• DSSs are more focused on specific decision rather than routine flows of information.
• DSS present information graphically and may include an expert system or artificial intelligence.
• DSSs are adaptive over time.
Office Information System - Office Information System is an information system that uses
hardware, software, and networks to enhance work flow and better communication between
employees. Office automation refers to the application of computer and communication technology
to office functions. Office automation systems are meant to improve the productivity of managers
at various level of management by providing secretarial assistance and better communication
facilities. Office automation systems are the combination of hardware, software and people in
information systems, that process office transactions and support office activities at all levels of the
organization. These systems include a wide range of support facilities, which include word
processing, electronic filing, electronic mail, message switching, data storage, data and voice
communication etc.
Business Expert System - Business expert system is a knowledge based information system that
uses its knowledge about a specific, complex application area to act as an expert. This system is
one of the knowledge based information system. Expert system provides decision support to
managers in the form of advice from an expert in a specific problem area. Expert systems find
application in diverse areas, ranging from medical, engineering and business.
Integrated systems: Integrated systems, or systems integration, is the process of bringing
together component sub-systems into one functional system. It provides a system with coherence
by making the parts or components work together, or ‘building or creating a whole from parts’
(Langford, 2013).
It has particular relevance to information technology – where different pieces of hardware
and software act together as a coordinated system – but also civil engineering and infrastructure
projects, where it can be viewed as a distinct phase of the delivery process. The interactions between
subsystems enable the integration of sometimes apparently disparate systems, adding value to
the system as a whole in terms of increased efficiency, accuracy or cost-effectiveness.
System View Of Business
Businesses use information systems at all levels of operation to collect, process, and store data.
Management aggregates and disseminates this data in the form of information needed to carry out
the daily operations of business. Everyone who works in business, from someone who pays the
bills to the person who makes employment decisions, uses information systems. A car dealership
could use a computer database to keep track of which products sell best. A retail store might use a
computer-based information system to sell products over the Internet. In fact, many (if not most)
businesses concentrate on the alignment of MIS with business goals to achieve competitive
advantage over other businesses.

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MIS professionals create information systems for data management (i.e., storing, searching, and
analysing data). In addition, they manage various information systems to meet the needs of
managers, staff and customers. By working collaboratively with various members of their work
group, as well as with their customers and clients, MIS professionals are able to play a key role in
areas such as information security, integration, and exchange. As an MIS major, you will learn to
design, implement, and use business information systems in innovative ways to increase the
effectiveness and efficiency of your company.
References
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2C%20or%20systems%20integration,'%20(Langford%2C%202013).
https://www.designingbuildings.co.uk/wiki/Integrated_systems#
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