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MIS

Management Information System (MIS) is a system that provides information to support operations, management and decision-making. It has 5 components: input, output, processor, feedback, and control. The two main approaches to MIS are technical, which uses models and technology, and behavioral, which considers human factors. A sociotechnical system combines these approaches. Information systems can impact business by changing costs of capital/information and substituting for labor. This allows firms to contract in size and reduce transaction costs.

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Nishat Tasnim
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41 views2 pages

MIS

Management Information System (MIS) is a system that provides information to support operations, management and decision-making. It has 5 components: input, output, processor, feedback, and control. The two main approaches to MIS are technical, which uses models and technology, and behavioral, which considers human factors. A sociotechnical system combines these approaches. Information systems can impact business by changing costs of capital/information and substituting for labor. This allows firms to contract in size and reduce transaction costs.

Uploaded by

Nishat Tasnim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q.1. a. Clearly define Management Information Systems and its 5 components with necessary diagram(s).

Management Information System is an integrated, user machine system for providing information to support
operations, management and decision-making functions in an organization.

5 components of MIS: 1)Input : Inputs are the elements that enter the system for processing. (Human resources,
material,information) 2) Output : Output is the outcome of processing. 3)Processor :The element if a system that
involves actual transformation of input into output. 4)Feedback : Feedback is data about the performance of a
system. 5)Control : Control involves monitoring and evaluating the feedback to determine whether the system is
achieving its goals. 6)Environment : The suprasystem within which an organization operates. The organization's
environment consisting of vendors, competitors.

b. Discuss the current approaches of MIS.

1)Technical approach : The technical approach to information systems emphasizes mathematically based models
to study information systems, as well as physical technology and formal capabilities of these systems. The
disciplines that contribute to the technical approach are computer science, management science and operations
research.

2)Behavioral approach : Behavioral issues arise in the development and long term maintenance of information
systems. Issues such as strategic business integration, design, implementation and management cannot be explored
usefully with the modes used in technical approach. The disciplines that contribute to the behavioral approach are
sociology, psychology and economics.

3)Sociotechnical systems: A combination of two approaches. Everyone has to work together to ensure that
information systems serve the entire organization.

c.How can information system impact business organizations in terms of economic theories? Discuss with
example.

From the point of view of economics, IT changes both the relative costs of capital and the costs of information.
Information systems technology can be viewed as a factor of production that can be substituted for traditional capital
and labor. As the cost of information technology decreases, it is substituted for labor, which historically has been a
rising cost. Hence, information technology should result in a relative decline in the number of middle managers and
clerical workers as information technology substitutes for their labor. IT also obviously affects the cost and quality
of information and changes the economics of information. Information technology helps firms contract in size
because it can reduce transaction costs.

Q.2. a. What is business processes? Write some example of functional business process.

Business processes refer to the manner in which work is organized, coordinated, and focused to produce a valuable
product or service.

Functional area: 1)Manufacturing and production : Assembling the product, Checking for quality, Producing
bills of materials. 2)Sales and marketing : Identifying customers, Making customers aware of the product, Selling
the product. 3)Finance and accounting : Paying creditors, Creating financial statements, Managing cash accounts
4)Human Resources : Hiring employees, Evaluating employees job performance, Enrolling employees in benefits
plants.

b. Discuss the competitive force model with appropriate strategies to face the forces.

Porter's competitive force model contends that much of the success or failure of a business depends on its ability to
respond to its external environment.

Strategies for dealing with competitive forces: 1)Low-cost leadership :Use information systems to produce
products and services at a lower price than competitors while enhancing quality and level of service. (Ex: Dell
Computer,Wal-Mart)2)Product differentiation : A very effective use of strategic information systems is to create
products or services that are so different that they create barriers for the competition.(Ex:Google, Apple) 3)Focus
on market niche: Using information systems to enable a focused strategy on a single market niche.(Ex: Hilton
Hotels, Harrah's). 4)Strengthen customer and supplier intimacy : Supply Chain Management systems increase
supplier intimacy while customer relationship management systems increase customer intimacy. (Ex: Amazon.com)

c. What is the importance of KMS in business firm?

Knowledge Management System (KMS) enable organizations to better manage processes for capturing and applying
knowledge and expertise. These systems collect all relevant knowledge and experience in the firm, and make it
available wherever and whenever it is needed to improve business processes and management decisions. They also
link the firm to external sources of knowledge.

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