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Management Information Systems

Devkant Sharma

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Instructions

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Distribution Of Marks

• Attendance - 5 %
• Class Participation - 5 %
• Mid term test - 20 %
• Assignments - 10 %
• Tests - 10 %
• Final Exam - 50 %

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Session Plan

• First 5 Minutes – Attendance


• Next 10 Minutes – Problems &
Revision
• Next 40 Minutes – New Topics
• Last 5 Minutes – Conclusion

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Management Information Systems-
An Overview

Chapter 1
Management Information Systems

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Learning Objectives
• When you finish this chapter, you will
be able to :

– Understand why information systems are


essential to business
– Define data, information and information
system
– Know how companies process data into
useful information for problem solving and
decision making

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Learning Objectives

– Understand the functions of different types of


information systems and how levels within an
organization are served by different
information systems
– Clearly Understand the concept of MIS in
terms of its various components
– Describe the functions & importance of MIS

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Purpose of Information
Systems
• Why Do People Need Information?
– Individuals - Entertainment and
enlightenment
• Viewing television
• Watching movies
• Browsing the Internet

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Purpose of Information
Systems
– Business - Decision making and
problem solving
• An Organization or individual that finds
more than one way to solve a problem
must make a decision
• 2+2=?
• Which is the best way to promote
companies new car

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Purpose of Information
Systems

Gathering the right information, storing


it for future use, manipulating it , and
using it to help the organization to
achieve its business goals, are keys to
success in business.

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Data & Information
• Data vs. Information
– Data
• The raw materials in the production of
information
• Rarely meaningful

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Data & Information
– Information
• Data that have meaning within a
context
• Raw data or data that have been
manipulated through tabulation,
addition, subtraction or any other
operation that leads to greater
understanding of situation

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Data Manipulation
• 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.

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Information

DATA Processing Information

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Information
• Information in Context

Characteristics of useful information


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System
• A System is array of components
that work together to achieve a
common goal
• A system accepts input, process it and
produce output in an organized
manner

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System

Input Processing Output

Elements of a System

-A System is composed of subsystems


-A System may have one or multiple inputs or outputs
-All Systems have Boundaries i.e. No systems can exist in Vacuum

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Information System
• A System which consists of all the
components that work together to
process data and produce
information

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Information System
• A System which consists of all the
components that work together to
process data and produce
information

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Human-Computer Synergy

• The Benefits of Human-Computer


Synergy
– Synergy
• When combined resources produce output that
exceeds the sum of the outputs of the same
resources employed separately
– Allows human thought to be translated into
efficient processing of large amounts of data

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Data, Information,
and Systems

Figure 1.5 Qualities of humans and


computers that contribute to synergy
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Information System

• In an organization, an information
systems consists of:
– Data
– Hardware
– Software
– People
– Procedures

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Information System

Figure 1.6 Components of an information system

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Data, Information,
and Systems
• The Four Stages of Data Processing
– Input: Data are collected and entered into
computer.
– Data processing: Data are manipulated into
information using mathematical, statistical,
and other tools.
– Output: Information is displayed or presented.
– Storage: Data and information are maintained
for later use.

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Data, Information,
and Systems
• Computer Equipment for
Information System
– Input devices introduce data into the IS.
– The computer processes data through the
IS.
– Output devices display information.
– Storage devices store data and information.

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Data, Information,
and Systems

Figure 1.7 Input-process-output-storage devices

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Data & Information System
• Generating Information
– Computer-based IS take data as raw material, process
it, and produce information as output.

Input-process-output

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MIS – A Concept

MIS is an Acronym of three words

– Management

– Information

– System
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Management ???

• Management : It is the art of getting


things done through and with the people
in formally organized groups ( Def by
Koontz)

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Management ???
• Managerial functions :
– Planning : Foreseeing future in advance i.e. to
decide the future course of action
– Organizing : Identifying entire jobs and dividing the
jobs into tasks allocating those tasks to right perso
– Staffing : Putting right person to right job
– Directing
– Controlling

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Management Hierarchy
• Strategic management (Top
Management)
• Management Control ( Middle
Management)
• Operational Control (Operating
Management)

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Management Hierarchy

Strategic Management
Levels of Business
Activities by
B. Anthony Middle Management

Operating Management

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MIS - A Definition

• MIS is a system consisting of people ,


Machines , Procedures , databases & data
models as its elements
• The system gathers data from the inside or
outside of the organization processes it and
gives information as output
• The information is supplied to managers which
assists them in taking decisions.

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Importance of MIS
• All managerial functions are performed
through decision making
• For effective decision making
information is essential
• Information is procured through a
logical and well structured method of
information collecting , processing
and disseminating to decision makers

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Importance of MIS
• Such a method in Management is
widely known as MIS
• Every Organization must have properly
planned and designed MIS to grow

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Importance of MIS Cont…
Manager has to take decision under
two main challenges :
– Because of globalizations in which
organizations are required to compete
globally , a manager has to take quick
decisions which needs MIS
– Due to very rapid increase in information
a manager has to process a large data
failing which he may end up in wrong
decision
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MIS – Why?

• MIS plays three major roles for a business


organization :

– Support the business processes and operations of


an organization
– Support of decision making by employees and
managers of an organization
– Support the strategies of an organization for
competitive advantage
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MIS - Functions

• Data Capturing
• Processing of Data
• Storage of Information
• Retrieval of Information
• Dissemination of Information

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Thanks…..

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