Management Information System (MIS)

The Management Information System (MIS) is a concept of

the last decade or two. It has been understood and
described in a number ways. It is also known as the
Information System, the Information and Decision System,
the Computer- based information system. The MIS has more
than one definition, some of which are give below.
1. The MIS is defined as a system which provides
information support for decision making in the organization.
2. The MIS is defined as an integrated system of man and
machine for providing the information to support the
operations, the management and the decision making
function in the organization.
3. The MIS is defined as a system based on the database of
the organization evolved for the purpose of providing
information to the people in the organization.
4. The MIS is defined as a Computer based Information
System.

Contd..
Though

there are a number of definitions, all of them converge

on one single point, i.e., the MIS is a system to support the
decision making function in the organization. The difference lies
in defining the elements of the MIS. However, in todays world
MIS a computerized .business processing system generating
information for the people in the organization to meet the
information needs decision making to achieve the corporate
objective of the organization.
In order to get a better grip on the activity of information
processing, it is necessary to have a formal system which
should take care of the following points:
Handling of a voluminous data.
Confirmation of the validity of data and transaction.
Complex processing of data and multidimensional analysis.
Quick search and retrieval.
Mass storage.
Communication of the information system to the user on time.
Fulfilling the changing needs of the information.

ROLE OF MANAGEMENT
INFORMATION SYSTEM:
The

role of the MIS in an organization can be compared to

the role of heart in the body.

The

MIS plays exactly the same role in the organization. The

system ensures that an appropriate data is collected from
the various sources, processed, and sent further to all the
needy destinations. The system is expected to fulfill the
information needs of an individual, a group of individuals,
the management functionaries: the managers and the top
management.

The

MIS satisfies the diverse needs through a variety of

systems such as Query Systems, Analysis Systems,
Modeling Systems and Decision Support Systems the MIS
helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.

ADVANTAGES:
1. It

Facilitates planning : MIS improves the quality of plants by

providing relevant information for sound decision making .
Due to increase in the size and complexity of organizations,
managers have lost personal contact with the scene of
operations.

.2.

In Minimizes information overload : MIS change the larger

amount of data in to summarized form and there by avoids
the confusion which may arise when managers are flooded
with detailed facts.

.3.

MIS Encourages Decentralization : Decentralization of

authority is possibly when there is a system for monitoring
operations at lower levels. MIS is successfully used for
measuring performance and making necessary change in
the organizational plans and procedures.

Contd..
4.

It brings Co ordination : MIS facilities integration of

specialized activities by keeping each department aware
of the problem and requirements of other departments.
It connects all decision centers in the organization .

5.

It makes control easier : MIS serves as a link between

managerial planning and control. It improves the ability
of management to evaluate and improve performance .
The used computers has increased the data processing
and storage capabilities and reduced the cost .

6.

MIS assembles, process , stores , Retrieves ,

evaluates and Disseminates the information

Characteristics of MIS

It

should be based on a long-term planning.

It should provide a clearer view of the dynamics
and the structure of the organization.
It should work as a complete and comprehensive
system covering all interconnecting sub-systems
within the organization.
It should be planned in a top-down way, as the
decision makers or the management should
actively take part and provide clear direction at
the development stage of the MIS.
It should be based on need of strategic,
operational and tactical information of managers
of an organization.
It should also take care of exceptional situations
by reporting such situations.

Contd..
It

should be able to make forecasts and

estimates, and generate advanced
information, thus providing a competitive
advantage. Decision makers can take actions
on the basis of such predictions.
It should create linkage between all subsystems within the organization, so that the
decision makers can take the right decision
based on an integrated view.
It should allow easy flow of information
through various sub-systems, thus avoiding
redundancy and duplicity of data. It should
simplify the operations with as much
practicability as possible.
Although the MIS is an integrated, complete
system, it should be made in such a flexible

Transaction process system

A

transaction process system (TPS) is an

information processing system for business
transactions involving the collection,
modification and retrieval of all transaction
data. Characteristics of a TPS include
performance, reliability and consistency.
Features of TPS:
Performance:Fastperformancewith a
rapid response time is critical. Transaction
processing systems are usually measured
by the number of transactions they can
process in a given period of time.

Contd..
Continuous

availability
The system must be available during the time period when the users
are entering transactions. Many organizations rely heavily on their
TPS; a breakdown will disrupt operations or even stop the business.
Data integrity
The system must be able to handle hardware or software problems
without corrupting data. Multiple users must be protected from
attempting to change the same piece of data at the same time, for
example two operators cannot sell the same seat on an airplane.
Ease of use
Often users of transaction processing systems are casual users. The
system should be simple for them to understand, protect them from
data-entry errors as much as possible, and allow them to easily
correct their errors.
Modular growth
The system should be capable of growth at incremental costs, rather
than requiring a complete replacement. It should be possible to add,
replace, or update hardware and software components without
shutting down the system.

Steps in Processing a Transaction:

Data

Entry: To be processed, transaction data must first entered

into the system.
Data Validation: It ensures the accuracy and reliability of data
by comparing actual data with predetermined standards or
known results. There are two steps in validation: error detection
and error correction. Error detection is performed by12 one set
of control mechanism; error correction is performed by another.
Data processing and Revalidation: Once the accuracy and
reliability of the data are validated, the data are ready for
processing. (online processing and batch processing)
Data Storage: Processed data must be carefully and properly
stored for future use. Data storage is a critical consideration for
many organizations because the value and usefulness of data
diminish if data is not properly stored.
Output generation: Once data has been input, validated,
processed, revalidated and stored, the output can be
communicated to decision makers in two ways. (a) Documents
and reports (b) Forms: screens and panels.
Query Support: Query facilities allow users to access data and
information that may otherwise not be readily available.

TYPES OF TPS

Real-time

transaction processing
Real-time transaction processing is the
immediate processing of data. It provides instant
confirmation of a transaction but does require
access to an online database.
Real-time processing involves using a terminal or
workstation to enter data and display the results
of the TPS.
It uses a computer network to link the terminals
to the mainframe computer and to access the
online database.
Real-time processing involves a large number of
users who are simultaneously performing
transactions to change data. Even though each
individual user is processing a relatively small
number of records, their requests are being made

The two main concerns with real-time processing are:

1.

Concurrency ensures that two

users cannot change the same data
at the same time. That is, one user
cannot change a piece of data before
another user has finished with it.
2. Atomicity ensures that all of the
steps involved in a transaction are
completed successfully as a group. If
any step fails, no other step should
be completed.

contd..
Batch
Batch

transaction processing:

transaction processing collects the transaction data as a group,

or batch, and processes it later. It has a time delay.
Transactions are collected and held for processing until it is convenient
or economical to process them.
Waiting for a large volume of data generally results in lower processing
costs per transaction. The transactions
are collected and stored offline on a magnetic tape or on paper. The
time delay before processing or completing a batch run could be
several minutes, hours or even days. Batch processing is used when a
time delay will not decrease the usefulness of the results.
A batch approach is used for generating pay cheques and other forms
of paper output.
Batch processing is carried out by large organizations using a
mainframe or mid-range computer.
It involves a large batch of an identical data type, such as payroll or
stock information.
For example, a payroll application collects data for each employee, such
as the hours worked and overtime earned. This data is processed in
batches by updating a payroll master file. After the master file is
updated, the pay slips are created for all employees in the organization.
Batch programs are often run at night when there is less demand for
the information system.

Decision Support System (DSS)

Decision

Support Systems(DSS) are a specific class of

computerized information system that supports business
and organizational decision-making activities. A properly
designed Decision Support System is an interactive
software-based system intended to help decision makers
compile useful information from raw data, documents,
personal knowledge, and/or business models to identify
and solve problems and make decisions.
Typical information that a decision support application
might gather and present would be:
Accessing all of your current information assets, including
legacy and relational data sources, cubes, data
warehouses, and data marts
Comparative sales figures between one week and the
next
Projected revenue figures based on new product sales
assumptions
The consequences of different decision alternatives, given
past experience in a context that is described

Characteristics of a DSS

Support

for decision-makers in semi-structured and

unstructured problems.
Support for managers at various managerial levels,
ranging from top executive to line managers.
Support for individuals and groups. Less structured
problems often requires the involvement of several
individuals from different departments and
organization level.
Support for interdependent or sequential decisions.
Support for intelligence, design, choice, and
implementation.
Support for variety of decision processes and styles.
DSSs are adaptive over time.

Benefits of DSS

Improves

efficiency and speed of

decision-making activities.
Increases the control, competitiveness
and capability of futuristic decisionmaking of the organization.
Facilitates interpersonal communication.
Encourages learning or training.
Since it is mostly used in nonprogrammed decisions, it reveals new
approaches and sets up new evidences
for an unusual decision.
Helps automate managerial processes.

Office Automation System

Officeautomationreferstothevariedcomputer

machineryandsoftwareusedtodigitallycreate,collect,
store,manipulate,andrelayofficeinformationneeded
foraccomplishingbasictasksandgoals.Rawdata
storage,electronictransfer,andthemanagementof
electronicbusinessinformationcomprisethebasic
activitiesofanofficeautomationsystem.Initsbasic
form,informationexistsasletters,memos,graphs,
records,messages,andsoon.Whenthatinformationis
electronicallytransferred,rawdataisexchanged
betweentwoormoreofficeemployees,eitheratthe
sameordifferentlocations.

THE BASICS OF OFFICE AUTOMATION

Generally,

there are three basic activities of an office

automation system: storage of raw data, data exchange,
and data management. Within each broad application area,
hardware and software combine to fulfill basic functions:

DATA

STORAGE AND MANIPULATION.

Data storage usually includes office records and other
primary office forms and documents. Data applications
involve the capture and editing of a file, image, or
spreadsheet. Word processing and desktop presentation
packages accommodate raw textual and graphical data,
while spreadsheet applications enable the easy
manipulation and output of numbers. Image applications
allow the capture and editing of visual images.

Contd..

DATA

EXCHANGE.
The exchange of stored and manipulated information is an equally important
component of an office automation system. Electronic transfer is a general
application area that highlights the exchange of information between more
than one user or participant. Electronic mail, voice mail, and facsimile are
examples of electronic transfer applications. Systems that allow instantaneous
or "real time" transfer of information (i.e. online conversations via computer or
audio exchange with video capture) are considered electronic sharing systems.
Electronic sharing software illustrates the collaborative nature of many office
automation systems. The distinction between electronic transfer and electronic
sharing is subtle but recognizable.
DATA MANAGEMENT.
The last major component of an office automation system offers planning and
strategic advantages by simplifying the management of stored information.
Task management, tickler systems or reminder systems, and scheduling
programs monitor and control various projects and activities within the office.
Electronic management systems monitor and control office activities and tasks
through timelines, resource equations, and electronic scheduling. As in data
exchange, groupware is gaining in popularity for data management. Each
member of the work group or larger group may share access to necessary
information via the automated office system and groupware.

Executive information system

Anexecutive

information system(EIS) is a type

ofmanagement information systemthat facilitates
and supports senior executive information and
decision-makingneeds. It provides easy access to
internal and external information relevant to
organizationalgoals. It is commonly considered a
specialized form ofdecision support system(DSS).[1]
EIS emphasizes graphical displays and easy-to-use
user interfaces. They offer strong reporting and
drill-downcapabilities. In general, EIS are
enterprise-wide DSS that help top-level executives
analyze, compare, and highlight trends in
importantvariablesso that they can monitor
performance and identify opportunities and
problems. EIS anddata warehousingtechnologies
are converging in the marketplace.

Components

EIS

components can typically be classified as:

Hardware
Software
User interface
Telecommunications
Hardware
When talking aboutcomputer hardwarefor an EIS environment, we
should focus on the hardware that meet the executives needs. The
executive must be put first and the executives needs must be defined
before the hardware can be selected. The basic hardware needed for a
typical EIS includes four components:
Input data-entry devices. These devices allow the executive to enter,
verify, and update data immediately
The central processing unit (CPU), which is the important because it
controls the other computersystemcomponents
Data storage files. The executive can use this part to save useful
business information, and this part also help the executive to search
historical business information easily
Output devices, which provide a visual or permanent record for the
executive to save or read. This device refers to the visual output
device such as monitor or printer

Contd..

Software
Choosing the appropriate software is vital to an effective EIS. Therefore,
the software components and how they integrate the data into one
system are important. A typical EIS includes four software components:

Text-handling softwaredocuments are typically text-based

Databaseheterogeneous databases on a range of vendor-specific and

open computer platforms help executives access both internal and
external data

Graphic basegraphics can turn volumes of text and statistics into visual
information for executives. Typical graphic types are: time series charts,
scatter diagrams,maps, motion graphics, sequence charts, and
comparison-oriented graphs (i.e.,bar charts)

Model baseEIS models contain routine and special statistical, financial,

and other quantitative analysis

User interface
An EIS must be efficient to retrieve relevant data for decision makers, so
theuser interfaceis very important. Several types of interfaces can be
available to the EIS structure, such as scheduled reports,
questions/answers, menu driven, command language, natural language,
and input/output.

Telecommunication
As decentralizing is becoming the current trend in companies,
telecommunications will play a pivotal role in networked information

Advantages and disadvantages

Advantages

of EIS

Easyforupper-levelexecutivestouse,extensivecomputerexperienceis

notrequiredinoperations
Providestimelydeliveryofcompanysummaryinformation
Informationthatisprovidedisbetterunderstood
EISprovidestimelydeliveryofinformation.Managementcanmake
decisionspromptly.
Improvestrackinginformation
Offersefficiencytodecisionmakers
Disadvantages

of EIS

Systemdependent
Limitedfunctionality,bydesign
Informationoverloadforsomemanagers
Benefitshardtoquantify
Highimplementationcosts
Systemmaybecomeslow,large,andhardtomanage
Needgoodinternalprocessesfordatamanagement
Mayleadtolessreliableandlesssecuredata

Difference

Dimension

DSS

MIS

EIS

Focus

Analysis, decision Support

Information
processing

Status Access

Typical Users
Served

Analysts, professions,
managers (via
intermediaries)

Middle, lower levels,

sometime senior
executives

Senior Executives

Application

Diversified Areas where

Managerial Decisions are
made

Production control,
sales forecasts,
financial analysis,
human resource
management

Environmental scanning,
performance
evaluation, identifying
problems and
opportunities

Decision
Support
Capabilities

Repetitive decisions

Research and other

models

Indirect support, mainly

high level and
unstructured decisions
and policies

Type of
Information

Information to support
specific situations

Scheduled and
demand reports;
structured flow,
exception reporting
mainly internal
operations

News items, external

information on
customers, competitors
and the environment

Principal Use

Planning, Organizing,
staffing and control

Control

Tracking and control

Construction

By users, either alone or

with specialists from IS
department

By vendors or IS
specialists

By Vendors or IS
Specialists