Term Paper on

Foundation of Business Intelligence (Data bases and information management)

Prepared for:
Md. Nasim Chowdhury
Lecturer
University of Information Technology and Sciences
Prepared by:
NO Name ID
01 Arrafe Tabassum Rose 0432310004061014
02 Mahadi Hasan Rimu 0432310004061020
03 Sadia Islam Mou 0432310004061027
04 Kutub Uddin Nahid 0432310004061035
05 Unaiza Rahman 0432310004061030
06 Ummay Habiba Monira 0432310004061007

Course Title: Computer Application in Business

Course Code: MIS 216
Section: A
Batch: 55
Date of Submission: April 29, 2024

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Letter of Transmittal

29th April, 2024

Md. Nasim chawdhury

Lecturer of business studies

University of information technology and sciences

Subject: submission of term paper

Dear sir,

We are presenting a report named "foundation of business intelligence (data bases and informal
management)." As an aspect of the prerequisite of the course. Your role has been continued in each part
of setting up this task. We have truly delighted in taking a slot at this task and we trust that our work
would meet the degree of your desire. Any inquiry on this task is valued.

We are grateful for your guidance, supervision, and inspiration in doing this report.

We would look forward to your valuable feedback.

Thank you

Sincerely

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 Table of content

No Name of contents Page No

1. Introduction 4

2. Organised data in a traditional file environment 5

3. The database approach to data management 8

4. Data Warehouses 10

5. Tools of business intelligence 12

6. Managing data resources 15

7. Hands-on MIS projects 18

8. Conclusion 21

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Name ID No:
Arrafe Tabassum Rose 0432310004061014

Business Intelligence
In today's data-driven world, organizations are increasingly turning to business intelligence to transform
information into actionable knowledge. This encompasses a variety of methodologies and tools that empower
companies to glean valuable insights from their data. By harnessing these insights, businesses can make
informed decisions that optimize performance, identify new opportunities, and gain a competitive edge.

Here's a breakdown of key aspects of Business Intelligence:

• Data Collection and Integration: Business Intelligence involves gathering data from various sources
within an organization, such as sales figures, customer information, marketing campaigns, and
operational data. This data is then integrated and stored in a centralized location for easier access and
analysis.
• Data Analysis and Reporting: Business Intelligence tools and techniques are used to analyze the
collected data. This can involve tasks like:
• Identifying trends and patterns.
• Comparing performance metrics.
• Calculating key performance indicators (KPIs).
• Creating reports and dashboards to visualize the data in an easy-to-understand way.
• Data Visualization: Business Intelligence tools often include features for data visualization, which
helps translate complex data sets into charts, graphs, and other visual formats that are easier to interpret
and communicate insights to stakeholders.
• Decision-Making Support: The ultimate goal of Business Intelligence is to provide valuable insights
that can inform business decisions. By analyzing data, companies can identify areas for improvement,
optimize processes, make informed investments, and gain a deeper understanding of their customers and
market trends.

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Benefits of Business Intelligence:

1. Improved decision-making.
2. Increased efficiency and productivity.
3. Reduced costs.
4. Better customer understanding.
5. Enhanced competitive advantage.
6. Improved risk management.

Common Business Intelligence Tools:

➢ Data Warehousing: Centralized repository for storing large amounts of data from various sources.
➢ Online Analytical Processing (OLAP): Allows users to analyze data from multiple dimensions
(e.g., time, product, region).
➢ Data Mining: Techniques for extracting hidden patterns and trends from large datasets.
➢ Business Analytics: Focuses on advanced statistical analysis and predictive modeling to support
strategic decision-making.
➢ Data Visualization Tools: Software for creating interactive dashboards and reports.

In conclusion, Business Intelligence is a powerful tool for organizations to leverage the power of data. By
analyzing information effectively, businesses can gain valuable insights that drive better decision-making and
improve overall performance.

Organizing Data in a Traditional File Environment

An effective information system provides users with accurate, timely, and relevant information. Accurate
information is free of errors. Information is timely when it is available to decision-makers when it is needed.
Information is relevant when it is useful and appropriate for the types of work and decisions that require it.

File Organization Terms and Concepts

A computer system organizes data in a hierarchy that starts with bits and bytes and progresses to fields, records,
files, and databases. A bit represents the smallest unit of data a computer can handle. A group of bits called a
byte, represents a single character, which can be a letter, a number, or another symbol. A grouping of characters
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into a word, a group of words, or a complete number (such as a person’s name or age) is called a field. A group
of related fields, such as the student’s name, the course taken, the date, and the grade comprises a record; a
group of records of the same type is called a file. A group of related files makes up a database. A record
describes an entity. An entity is a person, place, thing, or event on which we store and maintain information.
Each characteristic or quality describing a particular entity is called an attribute. For example, Student ID,
Course, Date, and Grade are attributes of the entity COURSE.

Problems with the Traditional File Environment

In most organizations, systems tend to grow independently without a company-wide plan. Accounting, finance,
manufacturing, human resources, and sales and marketing all developed their own systems and data files. Each
application, of course, required its own files and its own computer program to operate. For example, the human
resources functional area might have a personnel master file, a payroll file, a medical insurance file, a pension
file, a mailing list file, and so forth until tens, perhaps hundreds, of files and programs existed. In the company
as a whole, this process led to multiple master files created, maintained, and operated by separate divisions or
departments. As this process goes on for 5 or 10 years, the organization is saddled with hundreds of programs
and applications that are very difficult to maintain and manage. The resulting problems are data redundancy and
inconsistency, program-data dependence, inflexibility, poor data security, and an inability to share data among
applications.

1. Data Redundancy and Inconsistency

Data redundancy is the presence of duplicate data in multiple data files so that the same data is stored in more
than one place or location. Data redundancy occurs when different groups in an organization independently
collect the same piece of data and store it independently of each other. Data redundancy wastes storage
resources and also leads to data inconsistency, where the same attribute may have different values.

2. Program-Data Dependence

Program-data dependence refers to the coupling of data stored in files and the specific programs required to
update and maintain those files such that changes in programs require changes to the data. Every traditional
computer program has to describe the location and nature of the data with which it works. In a traditional file
environment, any change in a software program could require a change in the data accessed by that program.
One program might be modified from a five-digit to a nine-digit ZIP code. If the original data file were changed

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from five-digit to nine-digit ZIP codes, then other programs that required the five-digit ZIP code would no
longer work properly. Such changes could cost millions of dollars to implement properly.

3. Lack of Flexibility

A traditional file system can deliver routine scheduled reports after extensive programming efforts, but it cannot
offer ad hoc reports or respond to unanticipated information requirements in a timely fashion. The information
required by ad hoc requests is somewhere in the system but may be too expensive to retrieve. Several
programmers might have to work for weeks to put together the required data items in a new file.

4. Poor Security

Because there is little control or management of data, access to and dissemination of information may be out of
control. Management may have no way of knowing who is accessing or even making changes to the
organization’s data.

5. Lack of Data Sharing and Availability

Because pieces of information in different files and different parts of the organization cannot be related to one
another, it is virtually impossible for information to be shared or accessed in a timely manner. Information
cannot flow freely across different functional areas or different parts of the organization. If users find different
values of the same piece of information in two different systems, they may not want to use these systems
because they cannot trust the accuracy of their data.

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Name ID No:
Mahadi Hasan Rimu 0432310004061020

The Database Approach to Data Management

The database approach is a structured method for organizing, storing, and managing data electronically. It offers
a significant improvement over traditional file-based systems by leveraging a central repository called a
database and a specialized software program known as a Database Management System (DBMS).

Here's a breakdown of the core aspects of the database approach:

Components:

Database: a grouping of linked data arranged according to a predetermined structure. Relational (tables with
rows and columns), hierarchical (parent-child relationships), or NoSQL (flexible schema for various data)
structures can be used for this.

Database Management System (DBMS): Software that facilitates creating, managing, and interacting with the
database. The DBMS offers functionalities like:

• Data Definition: Defining the structure of the database, including tables, columns, data types, and
relationships.
• Data Manipulation: Inserting, updating, and deleting data within the database.
• Data Querying: Retrieving specific information from the database using a query language like SQL
(Structured Query Language).
• Data Security and Access Control: Enforcing user permissions and restricting access to sensitive data.
• Data Integrity: Maintaining data consistency and accuracy through rules and constraints.
• Data Backup and Recovery: Ensuring data is protected and can be restored in case of system failures.

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 • Application Programs: These programs interact with the database through the DBMS to access,
manipulate, and analyze data.

Key Characteristics:

Data Independence: The structure of the data is separate from the application programs that use it. This allows
changes to the database structure without affecting existing applications, promoting flexibility and
maintainability.

Data Integrity: The DBMS enforces data accuracy and consistency through rules, constraints, and data
validation. This minimizes the risk of errors and inconsistencies in the data.

Data Sharing and Redundancy Control: Multiple users and applications can access and share data from a
central location. The DBMS minimizes data redundancy by storing data in a single location, eliminating the
need for duplicate copies across different applications.

Data Security: The DBMS provides mechanisms for user authentication and authorization, restricting access to
sensitive data and ensuring data privacy.

Backup and Recovery: The DBMS offers tools for data backup and recovery, protecting valuable information
from hardware failures or accidental data loss.

Scalability: The database approach can accommodate growing data volumes by adding additional storage or
scaling the DBMS software.

Advantages of the Database Approach:

Improved Data Accuracy and Consistency: Ensures data integrity and minimizes redundancy.

Efficient Data Sharing and Accessibility: Enables multiple users and applications to access shared data.

Enhanced Data Security: Provides user access control and data protection mechanisms.

Simplified Data Management: DBMS facilitates data manipulation, querying, and reporting.

Scalability and Flexibility: Adapts to growing data volumes and evolving business needs.

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Considerations for the Database Approach:

Initial Investment: Setting up and maintaining a database system can involve initial costs for software,
hardware, and expertise.

Complexity: Database design and administration require specialized knowledge and skills.

Performance Optimization: For large databases, optimizing queries and data retrieval can be crucial for
efficient performance.

By adopting the database approach, organizations can gain a structured, secure, and efficient way to manage
their data, fostering better decision-making, improved operational efficiency, and a competitive advantage in the
data-driven world.

Name ID No:
Sadia Islam Mou 0432310004061027

Data Warehouses

We want concise, reliable information about current operations, trends, and changes across the entire company
if we worked in a large company, obtaining this might be difficult because data are often maintained in separate
systems, such as sales, manufacturing, or accounting. Some of the data we need might be found in the sales
system, and other pieces in the manufacturing system. Many of these systems are older legacy systems that use
outdated data management technologies or file systems where information is difficult for users to access.

We might have to spend an inordinate amount of time locating and gathering the data we need, or we would be
forced to make our decision based on incomplete knowledge. If we want information about trends, we might
also have trouble finding data about past events because most firms only make their current data immediately
available. Data warehousing addresses these problems.

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What Is a Data Warehouse?

A data warehouse is a database that stores current and historical data of potential interest to decision makers
throughout the company. The data originate in many core operational transaction systems, such as systems for
sales, customer accounts, and manufacturing, and may include data from Web site transactions. The data
warehouse consolidates and standardizes information from different operational databases so that the
information can be used across the enterprise for management analysis and decision making.

The data warehouse makes the data available for anyone to access as needed, but it cannot be altered. A data
warehouse system also provides a range of ad hoc and standardized query tools, analytical tools, and graphical
reporting facilities. Many firms use intranet portals to make the data warehouse information widely available
throughout the firm.

Catalina Marketing, a global marketing firm for major consumer packaged goods companies and retailers,
operates a gigantic data warehouse that includes three years of purchase history for 195 million U.S. customer
loyalty program members at supermarkets, pharmacies, and other retailers. It is the largest loyalty database in
the world. Catalina’s retail store customers analyze this database of customer purchase histories to determine
individual customers’ buying preferences. When a shopper checks out at the cash register of one of the data
warehouse extracts current and historical data from multiple operational systems inside the organization. These
data are combined with data from external sources and reorganized into a central database designed for
management reporting and analysis. The information directory provides users with information about the data
available in the ware house we might have to spend an inordinate amount of time locating and gathering the
data we need, or we would be forced to make our decision based on incomplete knowledge. Catalina’s retail
customers, the purchase is instantly analyzed along with that customer’s buying history in the data warehouse to
determine what coupons that customer will receive at checkout along with a receipt.

The U.S. Internal Revenue Service (IRS) maintains a Compliance Data Warehouse that consolidates taxpayer
data that had been fragmented among many different legacy systems, including personal information about
taxpayers and archived tax returns. These systems had been designed to process tax return forms efficiently but
their data were very difficult to query and analyze. The Compliance Data Warehouse integrates taxpayer data
from many disparate sources into a relational structure, which makes querying and analysis much easier. With a
complete and comprehensive picture of taxpayers, the warehouse helps IRS analysts and staff identify people
who are most likely to cheat on their income tax payments and respond rapidly to taxpayer return forms
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efficiently but their data were very difficult to query analysis. The Compliance Data Warehouse integrates
taxpayer data from many disparate sources into a relational structure, which makes querying and analysis much
easier. With a complete and comprehensive picture of taxpayers, the warehouse helps IRS analysts and staff
identify people who are most likely to cheat on their income tax payments and respond rapidly to taxpayer
queries.

Name ID No:
Kutub Uddin Nahid 0432310004061035

Multidimensional Data Analysis (MDX)

Business Intelligence Tools: Multidimensional Analysis and Data Mining

MDX focuses on analyzing data from a multidimensional perspective. Imagine a data warehouse storing sales
information. MDX allows you to analyze this data across various dimensions, such as product category, region,
and time.

• Key Concept: Data Cubes

MDX utilizes data cubes, multidimensional structures built from the data warehouse. These cubes store
aggregated data points at the intersection of different dimensions. Think of a data cube as a giant spreadsheet
with rows and columns representing various dimensions. Each cell holds the summarized data for that specific
combination of dimensions.

• Benefits of MDX

➢ Drill Down and Roll Up: MDX facilitates drilling down into specific details within a data cube. For
instance, you can analyze overall sales and then drill down to see sales performance for a particular
product category in a specific region. Conversely, you can roll up data, summarizing sales across
broader categories.

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 ➢ Complex Analysis: MDX enables complex calculations and comparisons within the data cube.
Imagine comparing sales growth across different product categories or regions.
➢ Faster Analysis: By pre-calculating aggregations in the data cube, MDX offers faster analysis of
large datasets compared to traditional relational databases.

Data Mining

Data mining delves deeper, searching for hidden patterns and relationships within vast datasets. It employs
statistical techniques and algorithms to extract knowledge that might not be readily apparent through traditional
analysis.

• Applications of Data Mining

➢ Market Segmentation: Data mining can identify customer segments with similar characteristics and
buying behavior, allowing for targeted marketing campaigns.
➢ Fraud Detection: Data mining algorithms can analyze transaction patterns to identify anomalies and
potential fraudulent activities.
➢ Customer Churn Prediction: Data mining can help predict which customers are at risk of
churning, enabling companies to take proactive measures to retain them.

Relationship Between MDX and Data Mining

MDX and data mining are complementary tools. MDX provides a framework for analyzing pre-aggregated data
within the data cube, while data mining can uncover hidden patterns within the detailed data used to populate
the cube. MDX and data mining are powerful BI tools that equip businesses to unlock valuable insights from
their data. By understanding how these tools work and their distinct functionalities, organizations can leverage
them to gain a competitive edge through data-driven decision-making.

Topic: Leveraging Databases and the Web for Enhanced Business Performance and
Decision-Making

Abstract: In today's data-driven business landscape, organizations rely heavily on effective information
management to gain a competitive edge. This paper explores the critical roles of databases and the web in
facilitating superior business performance and data-driven decision-making. It examines how databases

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centralize and organize information, enabling efficient retrieval and analysis. The paper further discusses how
the web acts as a vast data source and platform for communication and collaboration, fostering better decision-
making processes. Finally, the paper explores the integration of databases and web technologies, highlighting
the potential for advanced business intelligence and analytics.

Keywords: Databases, Web, Business Performance, Decision-Making, Data Analysis, Business Intelligence

1. Introduction

Businesses generate vast amounts of data daily, encompassing customer information, sales figures, market
trends, and operational metrics. Effectively managing and utilizing this data is crucial for gaining insights,
optimizing business processes, and making informed decisions. This paper sheds light on the significance of
databases and the web in empowering businesses to achieve superior performance and data-driven decision-
making.

2. Databases: The Foundation of Information Management

Databases serve as the cornerstone of information management within organizations. They are structured
collections of data organized into tables, allowing for efficient storage, retrieval, and manipulation. Relational
databases, the most common type, establish relationships between data points, facilitating comprehensive
analysis. Here's how databases contribute to business performance and decision-making:

• Centralized Data: Databases eliminate data silos, ensuring all relevant information is stored in a single
location. This eliminates inconsistencies and facilitates a holistic view of the business.
• Improved Data Quality: Databases enforce data integrity by defining data types and constraints,
minimizing errors and ensuring data accuracy. This fosters trust in the information used for decision-
making.
• Efficient Data Retrieval: Databases allow for rapid retrieval of specific data using queries. This
streamlines access to critical information required for informed decisions.
• Advanced Analytics: Databases provide a platform for business intelligence tools to analyze data,
identify trends, and generate reports. This empowers businesses to uncover hidden insights and make
data-driven decisions.

3. The Web: A Gateway to Data and Collaboration

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The web has revolutionized how businesses access and utilize information. It serves as a vast data repository,
encompassing market research reports, industry trends, competitor analysis, and customer reviews. Here's how
the web contributes to business performance and decision-making:

• Market Research: The web facilitates efficient market research by providing access to industry reports,
competitor analysis, and customer sentiment on social media platforms.
• Customer Insights: Businesses can leverage web analytics tools to understand customer behavior,
website traffic patterns, and online preferences. This allows for targeted marketing campaigns and
improved customer service.
• Collaboration and Communication: Web-based collaboration tools enable teams to share data,
documents, and insights across geographical boundaries, fostering improved decision-making processes.

4. Integration: Databases and the Web Working Together

By integrating databases and web technologies, businesses unlock a new level of data-driven decision-making.
Here are some potential applications:

• Real-Time Data Analysis: Web applications can be designed to capture real-time data and feed it
directly into databases. This allows for immediate analysis and informed decision-making based on the
latest information.
• Interactive Dashboards: Web-based dashboards can be created to visualize data stored in databases,
presenting key metrics and trends in an easily digestible format for decision-makers.

Customer Relationship Management (CRM): Integrating web forms and customer interaction data with a
CRM database allows for personalized marketing campaigns and improved customer service experiences.

Name ID No:
Unaiza Rahman 0432310004061030

MANAGING DATA RESOURCES

Setting up a database is only a start. In order to make sure that the data for our business remain accurate,
reliable, and readily available to those who need it, our business will need special policies and
procedures for data management.

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Establishing an Information Policy-

Information systems division that is responsible for defining and organizing the structure and content of the
database, and maintaining the database. In close cooperation with users, the design group establishes the
physical database, the logical relations among elements, and the access rules and security procedures. The
functions it performs are every business, large and small, needs an information policy. Our firm’s data are an
important resource, and we don’t want people doing whatever they want with them. We need to have rules on
how the data are to be organized and maintained, and who is allowed to view the data or change them.

An information policy specifies the organization’s rules for sharing, disseminating, acquiring, standardizing,
classifying, and inventorying information. Information policy lays out specific procedures and accountabilities,
identifying which users and organizational units can share information, where information can be distributed,
and who is responsible for updating and maintaining the information. For example, a typical information policy
would specify that only selected members of the payroll and human resources department would have the right
to change and view sensitive employee data, such as an employee’s salary or social security number, and that
these departments are responsible for making sure that such employee data are accurate.

If we are in a small business, the information policy would be established and implemented by the owners or
managers. In a large organization, managing and planning for information as a corporate resource often requires
a formal data administration function. Data administration is responsible for the specific policies and procedures
through which data can be managed as an organizational resource.

These responsibilities include developing information policy, planning for data, overseeing logical database
design and data dictionary development, and monitoring how information systems specialists and end-user
groups use data. We may hear the term data governance used to describe many of these activities. Promoted by
IBM, data governance deals with the policies and processes for managing the availability, usability, integrity,
and security of the data employed in an enterprise, with special emphasis on promoting privacy, security, data
quality, and compliance with government regulations.

A large organization will also have a database design and management group within the corporate called
database administration.

ENSURING DATA QUALITY-

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A well-designed database and information policy will go a long way toward ensuring that the business has the
information it needs. However, additional steps must be taken to ensure that the data in organizational databases are
accurate and remain reliable.

What would happen if a customer’s telephone number or account balance were incorrect? What would be the impact if the
database had the wrong price for the product we sold or our sales system and inventory system showed different
prices for the same product? Data that are inaccurate, untimely, or inconsistent with other sources of
information lead to incorrect decisions, product recalls, and financial losses.

Inaccurate data in criminal justice and national security databases might even subject to unnecessarily
surveillance or detention, as described in the chapter-ending case study according to Forrester Research, 20
percent of U.S. mail and commercial package deliveries were returned because of incorrect names or addresses.
Gartner Inc. reported that more than 25 percent of the critical data in large Fortune 1000 companies’ databases
is inaccurate or incomplete, including bad product codes and product descriptions, faulty inventory descriptions,
erroneous financial data, incorrect supplier information, and incorrect employee data.

Think of all the times we’ve received several pieces of the same direct mail advertising on the same day. This is
very likely the result of having our name maintained multiple times in a database. Our name may have been
misspelled or we used our middle initial on one occasion and not on another or the information was initially
entered onto a paper form and not scanned properly into the system. Because of these inconsistencies, the
database would treat us as different people! We often receive redundant mail addressed to Laudon,
Lavdon,Lauden, or Landon.

If a database is properly designed and enterprise-wide data standards established, duplicate or inconsistent data elements
should be minimal. Most data quality problems, however, such as misspelled names, transposed numbers, or incorrect or
missing codes, stem from errors during data input. The incidence of such errors is rising as companies move their
businesses to the Web and allow customers and suppliers to enter data into their Web sites that directly update internal
systems.

Before a new database is in place, organizations need to identify and correct their faulty data and establish better routines
for editing data once their database is in operation. Analysis of data quality often begins with a data quality audit, which is
a structured survey of the accuracy and level of completeness of the data in an information system. Data quality audits can
be performed by surveying entire data files, surveying samples from data files, or surveying end users for their
perceptions of data quality. Data cleansing, also known as data scrubbing, consists of activities for detecting and
correcting data in a database that are incorrect, incomplete, improperly formatted, or redundant.

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Data cleansing not only corrects errors but also enforces consistency among different sets of data that originated in
separate information systems. Specialized data-cleansing software is available to automatically survey data files, correct
errors in the data, and integrate the data in a consistent company-wide format.

Data quality problems are not just business problems. They also pose serious problems for individuals, affecting their
financial condition and even their jobs. The Interactive Session on Organizations describes some of these impacts, as it
details the data quality problems found in the companies that collect and report consumer credit data.

As we read this case, look for the management, organization, and technology factors behind this problem, and whether
existing solutions are adequate.

Name ID No:
Ummay Habiba Monira 0432310004061007

HANDS-ON MIS PROJECTS

The projects in this section give you hands-on experience in:

• analyzing data quality problems

• establishing company-wide data standards
• creating a database for inventory management
• using the Web to search online databases for overseas business resources.

Basic concept of MIS

Management Information Systems (MIS) is the study of people, technology, organizations, and the relationships
among them. MIS professionals help firms realize maximum benefit from investment in personnel, equipment,
and business processes. MIS is a people-oriented field with an emphasis on service through technology.

Here are some of the important roles of the MIS:

➢ The MIS satisfies the diverse needs through variety of systems such as query system, analysis system,
modeling system and decision support system.
➢ 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
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 on the data pertaining to the transaction, the status of a particular record and reference on a variety of
documents.
➢ 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.
➢ 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.
➢ The MIS helps the top level management in goal setting, strategic planning and evolving the business
plans and their implementation.
➢ 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.

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

MIS plays a very important role in the organization; it creates an impact on the organization’s functions,
performance and productivity. The impact of MIS on the functions is in its management with a good MIS
supports the management of marketing, finance, production and personnel becomes more efficient. The tracking
and monitoring of the functional targets becomes easy. The functional managers are informed about the
progress, achievements and shortfalls in the activity and the targets.

Disciplined information reporting system creates structure database and a knowledge base for all the people
in the organization. The information is available in such a form that it can be used straight away by blending
and analysis, saving the manager’s valuable time.

The MIS creates another impact in the organization which relates to the understanding of the business itself.
The MIS begins with the definition of data, entity and its attributes. It uses a dictionary of data, entity and
attributes, respectively, designed for information generation in the organization. Since all the information
systems use the dictionary, there is common understanding of terms and terminology in the organization
bringing clarity in the communication and a similar understanding of an event in the organization.

The MIS calls for a systematization of the business operations for an effective system design. This leads to
streaming of the operations which complicates the system design. It improves the administration of the business

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by bringing a discipline in its operations as everybody is required to follow and use systems and procedures.
This process brings a high degree of professionalism in the business operations.

The goals and objectives of the MIS are the products of business goals and objectives. It helps indirectly to pull
the entire organization in one direction towards the corporate goals and objectives by providing the relevant
information to the organization.

A well-designed system with a focus on the manager makes an impact on the managerial efficiency. The fund
of information motivates an enlightened manager to use a variety of tools of the management. It helps him to
resort to such exercises as experimentation and modeling.

The use of computers enables him to use the tools and techniques which are impossible to use manually. The
ready-made packages make this task simple. The impact is on the managerial ability to perform. It improves
decision-making ability considerably high.

Since, the MIS work on the basic system such as transaction processing and database, the drudgery of the
clerical work is transferred to the computerized system, relieving the human mind for better work. It will be
observed that lot of manpower is engaged in this activity in the organization. Seventy (70) percent of the time is
spent in recording, searching, processing and communicating. This MIS has a direct impact on this overhead. It
creates information –based working culture in the organization.

IMPORTANCE OF MIS

It goes without saying that all managerial functions are performed through decision-making; for taking rational
decision, timely and reliable information is essential and is procured through a logical and well structured
method of information collecting, processing and disseminating to decision makers. Such a method in the field
of management is widely known as MIS.

In today’s world of ever-increasing complexities of business as well as business organization, in order to service
and grow, must have a properly planned, analyzed, designed and maintained MIS so that it provides timely,
reliable and useful information to enable the management to take speedy and rational decisions.

MIS has assumed all the more important role in today’s environment because a manager
has to take decisions under two main challenges:
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First, because of the liberalization and globalization, in which organizations are required to compete not locally
but globally, a manager has to take quick decisions, otherwise his business will be taken away by his
competitors. This has further enhanced the necessity for such a system.

Second, in this information age wherein information is doubling up every two or three years, a manager has to
process a large voluminous data; failing which he may end up taking a strong decision that may prove to be
very costly to the company.

In such a situation managers must be equipped with some tools or a system, which can assist them in their
challenging role of decision-making. It is because of the above cited reasons, that today MIS is considered to be
of permanent importance, sometimes regarded as the name centre of an organization. Such system assist
decision makers in organizations by providing information at various stages of decision making and thus greatly
help the organizations to achieve their predetermined goals and objectives.

On the other hand, the MIS which is not adequately planned for analyzed, designed, implemented or is poorly
maintained may provide developed inaccurate, irrelevant or obsolete information which may prove fatal for the
organization.

In other words, organizations today just cannot survive and grow without properly planned, designed,
implemented and maintained MIS. It has been well understood that MIS enables even small organizations to
more than offset the economies of scale enjoyed by their bigger competitors and thus helps in providing a
competitive edge over other organizations.

Conclusion

Management Information Systems is sets of inter-related procedures using information system infrastructure in
a business enterprise to generate and disseminate the desired information. Such systems are designed to support
decision-making by the people associated with the enterprise in the process of attainment of its objectives.

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