LINGAYA’S LALITA DEVI INSTITUTE OF MANAGEMENT & SCIENCES

Affiliated to GGSIP University & Govt. of NCT of Delhi

‘A’ grade NAAC Accredited Institution

Management

Information

System File

BBA 307 Semester 5th 2019

Submitted By: ASHUTOSH RANA

Roll NO:

Section: B

Branch: BBA

S U B M I T T E D T O : M R .AT U L RATH O R E
 DECLARATION

I hereby declare that the project report, entitled “MANAGEMENT INFORMATION

SYSTEM”, submitted to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, New

Delhi, is a record of an original work done by me under the guidance of MR ATUL

RATHORE, Faculty Member, LINGAYA’S LALITA DEVI INSTITUE OF MANAGEMENT

AND SCIENCES, MANDI ROAD, NEW DELHI- 110047 and this project work has not

performed the basis for the award of any Degree to my best knowledge.

Place: New Delhi Candidate’s signature

Date: Name:ASHUTOSH RANA

Enroll. No.:XXXXXXXXXXX

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CERTIFICATE

This is to certify that ASHUTOSH RANA, BBA V – B Enrollment has

successfully completed the MIS project.This project has been done in partial
fulfillment for BACHELOR IN BUSINESS ADMINISTRATION (BBA)
course. The student has also made his project to my entire satisfaction and as per
requirement of the course.

The work has not been anywhere else for the award of degree. All source of
information have been duly mentioned.

SIGNATURE
Mr. ATUL RATHORE
(Project Guide)

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ACKNOWLEDGEMENT

“Accomplishment of any task necessarily depends upon the willingness and

enthusiastic contribution of time and energy of many people”. From the starting till
the completion of this project, there are many people without those assistance all
my efforts would have been fruitless.

I, therefore, acknowledge all who generously helped me by sharing their time,

experience and knowledge with me without which this project would have never
been accomplished. I acknowledge that we are thankful to our respected professor
MR. ATUL RATHORE for guiding me to complete the project with honest
attention without her kind help; the project completion would not have been
possible.

I am thankful to my classmates who gave their support and commitment to make

this project successful.

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TABLE OF CONTENT

No TITLE Page No

1 Declaration 2

2 Certificate 3

3 Acknowledgement 4

4 Meaning and Concept of MIS 6

5 Characteristics of MIS 10

6 Role of MIS 11

7 Objectives of MIS. 12

8 Types of Information System 13

9 Types of Information System 19

10 Companies example of TPS, ERP,DSS,EIS,ES,MIS 23

11 33

12 35

13 42

14 47

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MANGEMENT INFORMATION SYSTEM

CONCEPT

The MIS is an idea which is associated with man, machine, marketing and methods
for collecting information’s from the internal and external source and processing
this information for the purpose of facilitating the process of decision-making of
the business.
MIS is not new, only the computerization is new , before computers MIS
techniques existed to supply managers with the information that would permit
them to plan and control business operations. The computer has added on more
dimensions such as speed, accuracy and increased volume of data that permit the
consideration of more alternatives in decision-making process

The Management information system (MIS) is a concept of the last two decade or
two. It has been understood and described in a number of ways. It is also known as
the Information System, the Information and Decision System, the computer based
Decision System.
Information is the life blood of an organization, particularly in the case of system
approach management. The MIS or Information system can be define as the
knowledge communicated by others or obtained from investigation or study. It is a
system providing needed information to each manager at the right time in the right
form and relevant one which aids understanding and stimulates the action. MIS is
an organized method of providing past, present and projection information relating
to internal operations and externals intelligence. It supports the planning, control
and operational functions of an organization by furnishing uniform information in
proper time frame to help the process of decision-making.
Management Information System is generally defined as an integrated user-machine
system for providing information to support operations, management and decision-
making functions in an organization. The system utilizes computer hardware and
software, manual procedure, models for analysis. Information is viewed as a resource
much like land, labor and capital. It must be obtained processed, stored, manipulated
and analyzed, distributed etc.

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Management Information System File

Characteristics of useful information:

 Timeliness: to simplify prompt decision making, the MIS must be able to

provide and distribute current information to appropriate users. The system
should be able to quickly collect, edit data, summarize results and be able to
adjust and correct errors promptly.
 Accuracy: a sound automated and manual internal control system must exist
throughout all information system processing activities.
 Consistency: because data collection and reporting processes will change
overtime, to be reliable the data should be processed and complied to verify it
authenticity.
 Completeness: MIS plays an important role in decision making, that decision
makers need complete and pertinent information in a summarized report.
Reports should be designed to eliminate clutter and voluminous details thereby
avoiding ‘information overload’.
 Relevance: information provided to managers must be relevant (must deal with
the matter at hand). MIS must be appropriate to support the management level
using it.

The characteristics of useful information, is made useful due to 3 main characteristics:

1. Time. Information should be readily available.

2. Content. It must be error proof.
3. Form. Information should be easily understood
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ROLE of MIS

The role of the MIS in an organization can be compared to the role of heart in the
body. The information is the blood and MIS is the heart. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the brain.
The heart work faster and supplies more blood when needed. It regulates and
controls the incoming impure blood, processed it and sends it to the destination in
the quantity needed. It fulfills the needs of blood supply to human body in normal
course and also in crisis.
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 send
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 top management.
Here are some of the important roles of the MIS:
i. The MIS satisfies the diverse needs through variety of systems
such as query system, analysis system, modeling system and decision support
system.
ii. The MIS helps in strategic planning, management control,
operational control and transaction processing. The MIS helps in the clerical
personal in the transaction processing and answers the queries on the data
pertaining to the transaction, the status of a particular record and reference on a
variety of documents.
iii. The MIS helps the junior management personnel by providing
the operational data for planning, scheduling and control , and helps them further
in decision-making at the operation level to correct an out of control situation.
iv. The MIS helps the middle management in short term planning,
target setting and controlling the business functions. It is supported by the use of
the management tools of planning and control.
v. The MIS helps the top level management in goal setting,
strategic planning and evolving the business plans and their implementation.
vi. The MIS plays the role of information generation,
communication, problem identification and helps in the process of decision-
making. The MIS, therefore, plays a vital role in the management, administration
and operation of an organization.

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OBJECTIVE OF MIS

The goals of an MIS are to implement the organizational structure and dynamics of
the enterprise for the purpose of managing the organization in a better way and
capturing the potential of the information system for competitive advantage.

Following are the basic objectives of an MIS:

 Capturing Data: Capturing contextual data, or operational information that

will contribute in decision making from various internal and external
sources of organization.
 Processing Data: The captured data is processed into information needed
for planning, organizing, coordinating, directing and controlling
functionalities at strategic, tactical and operational level. Processing data
means:
o making calculations with the data
o sorting data
o classifying data and
o summarizing data
 Information Storage: Information or processed data need to be stored for
future use.
 Information Retrieval: The system should be able to retrieve this
information from the storage as and when required by various users.
 Information Propagation: Information or the finished product of the
MIS should be circulated to its users periodically using the organizational
network.

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Fundamental types of Information System


Transaction Processing System (TPS)

Management Information Systems (MIS)

Decision Support Systems (DSS)

Office Automation Systems (OAS)

Executive Support Systems (ESS

1. Transaction Processing System

Transaction Processing System is a type of information processing system,

software and hardware combination, which supports Transaction processing.
Transaction processing is a type of computer processing in which each
individual indivisible task, called a transaction, is worked upon and executed
as and when it comes. The response to requests is immediate. In contrast to
this is batch processing in which a batch of requests are stored and then
executed all at once. A transaction Processing System is also used to collect,
store, retrieve and modify transactions executed by an organization.

In transaction processing, user or customer interaction is required, unlike batch

processing. It allows only certain predefined, typically short duration, tasks and
transactions to be erformed by the user and provides a predictable request execution
time, which is pre- programmed. This gives it the following characteristics:

 Predictability
 Reliability
 Consistency

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Transaction processing systems are helpful in three areas:

 System runtime functions - An execution environment with high response

time, reliability of execution and security of data
 System administration functions - Administrative support required for
managing transactions

2. Management Information System

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 given 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.

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Management information system can thus be analyzed as-:

Management

Management covers the planning, control, and administration of the operations

of a concern. The top management handles planning; the middle management
concentrates on controlling; and the lower management is concerned with
actual administration.

Information

Information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of the
operations of the concern. Data is processed i.e. recorded, summarized,
compared and finally presented to the management in the form of MIS report.

System

Data is processed into information with the help of a system. A system is made
up of inputs, processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper
information to the management for performing its functions

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3. Decision Support System

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

5. Office Automation System

Office automation system refers to the use of equipment’s and processes to facilitate efficient and effective
communication within an organization. The modern technologies applied in business operation are geared
towards improving productivity by eliminating redundancies. Automation systems ensure that the required
processes run smoothly and are replicated with the same level of accuracy all the time.

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Office automation refers to the type of computer machinery and software used to digitally create, collect,
store, manipulate, and relay office information needed for accomplishing basic tasks and goals. Raw data
storage, electronic transfer, and the management of electronic business information comprise the basic
activities of an office automation system.

6. Executive Support System

Executive Support System (ESS) is a software reporting tool that provides

the executive level officers the critical organization’s data in a useful
concise format so that the executives make quick decisions.

ESS mainly deals with data related to key departments like billing, accounting,
scheduling, staffing etc. In addition to providing quick access to the data, ESS
also acts as an analysis tool and provides good understanding of the various
possible outcomes depending upon the changes in input data.

ESS thus saves valuable time of the executives in digging the huge pile of
information to identify the critical data and helps them spend more time on
brainstorming and decision making by providing only the required data.
ESS can be used to view and analyze both the present data and predicted
future data.

ESS can be customized to suite the user requirements and its functioning is
solely dependent on the skills of the developer.

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Some of the advantages of ESS are:

1. Improved personal efficiency

2. Increased organizational control
3. Competitive advantage over competitors
4. Automation of the managerial processes.

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Concept of Information

Definition-:

Information is stimuli that have meaning in some context for its receiver. When
information is entered into and stored in a computer, it is generally referred to
as data after processing (such as formatting and printing), output data can again
be perceived as information.

Types of Information

Strategic Information-:

Strategic information is required by the manager at the strategic levels of

management for the formulation of organizational strategies. This relates to
long term planning policies of the organization as a whole.

Tactical Information-:

Information in this category is used in short term planning and is of use at

management control level.

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Operational Information-:

Operation information applies to short period which may vary from an hour to a
few day.

Concept of System

Definition-:

A system is a collection of elements or components that are organized for a

common purpose.

A computer system consists of hardware components that have been carefully

chosen so that they work well together and software components or programs
that run in the computer.

Kind of Systems

Abstract and physical systems

An abstract or conceptual system is an orderly arrangement of interdependent ideas

or constructs, which may or may not have any counterpart in the real world.

On the other hand, physical systems are generally concrete operational systems
made up of people, materials, machines, energy and other physical things; Physical
systems are more than conceptual constructs.

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Deterministic and Probabilistic Systems

A deterministic system is one in which the occurrence of all events is known with
certainty. A probabilistic system is one in which the occurrence of events cannot be
perfectly predicted. Though the behavior of such a system can be described in
terms of probability, a certain degree of error is always attached to the prediction of
the behavior of the system.

Open and Closed Systems

An open system is one that interacts with its environment and thus exchanges
information, material, or energy with the environment, including random and
undefined inputs. Open systems are adaptive in nature, as they tend to react with
the environment in such a way, so as to favor their continued existence. Such
systems are ‘self-organizing’, in the sense that they change their organisation in
response to changing conditions.

A closed system is one, which does not interact with its environment. Such systems
in business world, are rare, but relatively closed systems are common. Thus, the
systems that are relatively isolated from the environment but not completely
closed, are termed closed system.

User Machine Systems

Most of the physical systems are user-machine (or human –machines) systems It is
difficult to think of a system composed only of people who do not utilize equipment
of some kind to achieve their goals. In user-machine systems, both, i.e. human as well
as machine perform some activities in the accomplishment of a goal (e.g.

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decision-making). The machine elements (may be computer hardware and

software) are relatively closed and deterministic, whereas the human elements of
the system are open and probabilistic.
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