MIS

Management Information System

Information Age to Knowledge Age

Alvin Toffler suggests that we are coming to

the end of the Information age and are
beginning a new age of information processing
and communication capabilities that is best
describe as KNOWLEDGE AGE
 KNOWLEDGE

 KNOWLEDGE is Further refined Information

Advanced Computing approaches such as Intelligent

DBMS and knowledge-based system (expert system and
artificial Intelligence) are making it possible to manipulate
and refine information into Knowledge more easily than
ever before.
 Business organizations and industries are
using information technologies to both
LOCK-IN their customers and LOCK-OUT
competitors.
 Global Environment
Many medium and large-sized organizations
now recognize that they are competing in a
global environment; aggressive market
players must be connected to virtually
everyone with whom they need to do business
no matter where they are located.
 Global Economy
 Global Financing
In which deals involving the currencies
and securities of several nations can be
pulled together quickly.
 Global Sourcing

Wherein firms shop worldwide for low-

priced raw material or labor.
 Joint Ventures

Joint Ventures plus research and

development (R&D) efforts that cross both
organizational and international boundaries.
 Information
 Information is a key organizational resource that
help you understand the technologies and other
forces that influence both HOW we obtain
information and WHY we need it.
 Many professions now a days depends heavily
upon the SKILLFUL use of information and
knowledge and that a sizeable portion of this
information will be COMPUTER-GENERATED.
 System
 A system is a set of interrelated elements
that collectively work together to achieve
some common purpose or goal.
What is an Information System?
 A set of interrelated components working
together to collect, retrieve, process, and
store information for the purpose of
facilitating planning, control, coordination,
analysis, and decision making in businesses
and other organizations.
Management Information System

 Management Information System (MIS) to

be any system that provides people with
either data or information relating to an
organization’s operations.
Management Information System is
the study of information systems
focusing on their use in business and
management.
A Management Information System is
a set of software tools that enables
managers to gather, organize, and
evaluate information about a
workgroup, department, or an entire
organization.
 Management Information System (MIS)

Transaction Management Decision Office

Processing Reporting Support Information
Systems Systems Systems Systems
(TPS) (MRS) (DSS) (OIS)
 Transaction Processing System
 Accounting Operations
 Accounts Receivable
 Inventory Control
 Accounts Payable
 Management Reporting System
 Printed Reports
 By-product of TPS
 Decision Support Systems
 Easy to use
modeling
retrieving and
reporting
 Office Information System
 Computer based office oriented technologies

Word Processing,
Desktop Publishing
Eelectronic Mail
Video Teleconferencing
 Knowledge-based System
 Expert System (rule-based)
 Artificial Intelligence
Information,Information Technology,
& People are three key role players
of MIS.
People, or Knowledge Workers
use Information Technology to
work with Information.

Information
Information People
Technology

Management
Information
System (MIS)
The sole focus of MIS is not
technology.

People and information are the

most important resources
within MIS, and not the
technology.
 Goals
of Information Systems.
 Goals of Information Systems

Operational Efficiency
 Doing routine tasks better, faster and/or cheaper.
 Transaction processing activities.
 Less office staff, better inventory reporting system, fast and accurate office
work using word-processors, spreadsheets, etc.
Functional Effectiveness
 Helping managers make better decisions.
 Improved efficiency.

Spotting and taking advantage of opportunities

Better Service
 Improved Customer Service

Product Creation and Enhancement

 Improved ‘information intensive jobs’ like insurance broker, portfolio
advisor, etc.
Goals of Information Systems Cont…

Client lock-In/Competitor Lock-Out

Investment in IT
• Sell MIS products – many banks sell their IT products to smaller
banks.
 Challenges
in the Study of MIS.
MIS is not a tidy discipline filled
with easy-to-articulate problems
and easy-to-find answers.
MIS proficiency is attained through:
• An understanding of people and behaviors.
• A feel for what management will accept.
• A current knowledge of technology-based disciplines.
• An understanding of planning and control matters.
• A solid grounding in accounting.
• A sense of perspective that enables you to see how all of
these things fit together and which are most important.
 Activities of an IS
Environment

Organization

Input Processing Output

Feedback
 Components of a System
 A system element can be a tangible object
(car or a person) an abstract concept (data
or Information) or an event ( 14 August)

 Tangible objects are those objects that we

can touch or measure. Abstract concepts
and events are intangible.
 System Environment
 All systems function within some sort of
environment. The environment, like the system, is
a collection of elements. These elements surround
the system and often interact with it.

 Systems are normally delimited by a boundary,

which separate them from their environment.
Anything within the boundary is part of the system
and anything outside is part of the environment.
 Open vs closed systems
 A Closed System is self-contained and does
not interact or make exchanges across its
boundaries with its environment. So a
closed system is one that has no interaction
with any element not contained in it.

 An Open System is one that interacts and

makes exchanges with its environment.
THE GENERAL SYSTEMS MODEL
OF THE FIRM
1. Minimum Qualification 1. Feed back
Standards
(BA / BSC or Equivalent) Information & Data
2. Minimum CGPA
Information
Information
3. Fulfill Market Management
Process
Requirements

Data
Human
Resources
Physical Physical
Resources Resources
Input Transformation Output
Resources Process Resources

1. Student 1. Teaching / Coaching 1. Possible

Placement
2. Fee 2. Exam / Evaluation
2. Graduates
3. Finances A- Final Written
4. Resource Persons B – Quizzes Practical
5. Staff Oral
Computer-based Information System
 A CBIS is a collection of people, hardware,
software, data and procedures that interact
to provide timely data and information both
internally and externally to authorized
people who need it.
Components of an CBIS
External Environment

People Organization

Information
System

Technology
Data Information Manager Decision

Computer
 Types of Types of
Transformations Information
Retrieval Reports
Data Analysis
New Files
Capture
Graphical
Presentation
Displays
 How IT can help reengineer
business processes
 Old Rule: Manager Makes all decision
Information Technology: Decision support tools ( database
access, modeling software)
New Rule: Decision making is part of everyone’s job

 Old Rule: Only Expert can perform complex work

Information Technology: Expert System
New Rule: A person can do the work of an expert
 Old Rule: Information can appear in only one place
at one time
Information Technology: Shared Database
( internet)
New Rule: Information can appear simultaneously
in as many places as needed

 Old Rule: Field Personnel need offices where

they can receive, store, retrieve and transmit
information
Information Technology: Internet / Websites /
Portable Computers
New Rule: Field personnel can send and receive
information wherever they are.