UNIT-1

MANAGEMENT INFORMATION SYSTEM

CONTENT:
MIS importance, definition, nature and scope of MIS, Structure and Classification of MIS,
Information and Systems Concept, Types of Information, Information systems for competitive
advantage.

Definition:
MIS is a system consisting of people, machines, procedures, data bases and data models, and
its elements.
System gathers data from internal & external sources of an organization.
Process it, supplies it to assist manager in decision making
IMPORTENCE OF MIS:
Management Information System is formal method of collecting information in
summarized.
Timely & Reliable information is essential for taking Relational Decisions in managerial
functions.

MIS IS
MANAGEMEN
DECISION- T ORIENTED
MIS IS
MAKING
U INTEGRATED

PROVIDE
INFORMATI
ON USEFULL FOR
MIS IMPORTENCE
PLANNING

HIGHLY
COMPUTER PRE – SET
IZED TARGETS &
CONTROL
THINGS
UPDATED
INCREASING
RESULTS EFFICIENCY

o Process it, supplies it to assist manager in decision making

1.Taking Quick Decisions
2.Processing a large voluminous data
DEFINITION OF MIS:
Management Information System (MIS) refers to the processing of information through
computers and other intelligent devices to manage and support managerial decisions an
organization.
Management Information System, commonly referred to as MIS is a phrase consisting of
three words: Management, Information and Systems.

MANAGEMENT:
Koontz, 1972 “Management is the art of getting things done through and with the people
in formally organized groups.”
MANAGERIAL FUNCTIONS:
Planning, Organizing, Staffing, Directing, Controlling, Co-ordinating, Reporting &
Budgeting

INFORMATION:
Information is data that is processed and is presented in a form that assists decision makers.

DATA PROCESSING INFORMATION

SYSTEM:
A system is a set of interrelated and interdependent element which are joined together to
achieve a common objective.
 ELEMENTS OF A SYSTEM:

INPUT PROCESS OUT PUT

FEED BACK/ CONTROL

MIS AND IT:

IT is referred to the technological side of an information system, includes.

OTHER DEVICES HARD WARE

MIS AND IT

NETWORKS
AND SOFT WARE

DATA BASES

• Hardware
• Software
• Databases
• Networks and
• Other devices
NATURE AND SCOPE OF MIS:
The concept of MIS is interdisciplinary in nature, i.e. it has borrowed its concepts from a
large number of disciplines like Accounting, Computers, Organizations, Mnagement,
Operations Research and Behavioural Seciences, etc .

interdisci
plinary

caters
science &
informati
an art
on needs

Nature
of MIS
applicatio
n in all logical
functiona system
l areas
managem
ent –
oriented

NATURE OF MIS:
Inter disciplinary
Science and art
Logical system
Management oriented
Applications in all functional areas
Caters information needs
SCOPE OF MIS:

OPERATIA
COMPUTE
L
R SCIENCE
RESEARCH

MIS
BEHAVIOA
L SCIENCE
ACCOUNT
IG

MANAGE
MENT

• MIS is neither a pure science nor an art. It is recognized as a combination of both.

• An information system is a logical system.
• MIS is more management – oriented or computer – oriented, there are advocates of
both sides.

MIS CHARACTERISTICS:
✓ System approach (holistic/ comprehensive view)
✓ Management oriented (Top- down approach)
✓ Need based (information needs at all levels)
✓ Exception Based (abnormal situation min, mix etc.,
✓ Future oriented
✓ Integrated
✓ Common Data Flows
✓ Long term planning
✓ Sub system concept
✓ Central data base
MIS STRUCTURE BASED:

❖ Hardware
❖ Software
❖ Data base
❖ Procedures
❖ Operating Personnel
❖ Input & Output

MIS – CLASSIFICATION OF INFORMATION:

Information can be classified in number of ways:
1. Classification by characteristic
2. Classification by Application
1.CLASSIFICATION BY CHARACTERISTIC:
✓ Strategic Information
✓ Tactical Information
✓ Operational Information

CLASSIFICATION BY CHARACTERISTIC

STRATEGIC TACTICAL OPERATIONAL

INFORMATION INFORMATION INFORMATION

2.CLASSIFICATION BY APPLICATION:
 ✓ Planning Information
✓ Control Information
✓ Knowledge Information
✓ Organizational Information
✓ Functional/Operational Information
✓ Database Information

plannning
information

database control
information information

classification
by
appications

fuctional/ knowledge
operational information

organizational
information

INFORMATION SYSTEM CONCEPT:

An information system (IS) is an organized system for the collection, organizing, storage
and communication of information. More specifically, it is the study of complementary
networks that people and organizations use to collect, filters, and process, create and
distribute data.

DATA CALCUL
ATION

COLLECT PROCESS & PRODUCE

INPUTS TRANSFORMS OUTPUTS
REPOR
INSTRUCTIO
TS
NS
STORE
TYPES OF INFORMATION SYSTEMS:

OAS-OFFICE TPS-
AUTOMATION TRANSACTION
SYSTEM PROCESSING
SYSTEM

MIS-
MANAGEMENT
TYPES OF INFORMATION SYSTEM
INFORMATION
SYSTEM
ESS- EXECUTIVE
SUPPORT SYSTEM

DSS- DECISION
SUPPORT SYSTEM

1. TPS Transaction Processing System

2. MIS Management Information System
3. DSS Decision Support System
4. ESS Executive Support System
5. OAS-Office Automation System.
PYRAMID DIAGRAM OF ORGANIZATIONAL LEVELS AND INFORMATION REQUIREMENTS:
Understanding the various levels of an organization is essential to understand the
information required by the users who operate at their respective levels.

strategic
management

Tactical
management
Operational
management
1.Operational Management Level
2.Tactical Management Level
3.Strategic Management Level
TRANSACTION PROCESSING SYSTEM(TPS):
Transaction processing systems are used to record day to day business transactions of the
organization. They are used by users at the operational management level. The main
objectives of a transaction processing system to answer routine questions such as
TRANSACTION SYSTEM INCLUDES:

• Point of Sales systems- records daily sales

• Payroll systems-processing employees salary, loans management, etc.
• Stock Control systems-keeping track of inventory levels
• Airline booking systems-flights booking management

MANAGEMENT INFORMATION SYSTEM:

information system (MIS) are used by tactical managers to monitor the organization’s
current performance status. The output from a transaction processing system is used as
input to a management information system.
EXAMPLES O

DECISION SUPPORT SYSTEM (DSS):

Decision support system are used by senior management to make non-routine decisions.
Decision support systems use input from internal systems (Transaction processing systems
and Management information systems) and external systems.
EXAMPLES OF DECISION SUPPORT SYSTEM:
▪ Financial planning systems
▪ Bank loan management systems

ARTIFICIAL INTELLIGENCE TECHNIQUES IN BUSINESS:

Artificial intelligence systems mimic human expertise to identify patterns in large data
sets. Companies such amazon, Facebook, and Google, etc. use Artificial intelligence
techniques to identify data that is most relevant to you.

ONLINE ANALYTICAL PROCESSING (OLAP):

Online analytical processing (OLAP) is used to query and analyze multi-dimensional data
and produce information that can be viewed in different ways using multiple dimensions.

INFORMATION SYSTEMS FOR COMPETITIVE ADVANTAGES:

➢ In management Information Systems by Effy Oz (2008), there are eight ways to
gain competitive advantage
➢ Reducing cost, rising barriers to market entrants, establishing high switching costs,
creating new products or services, differentiating products or services, enhancing
products or services, establishing alliances.
➢ According to the authors W.R. King, V.Grove, and E.H. Hufnagel (1989),
information technology is used as a strategic tool for companies to increase their
competitive advantage at a time when uncertainty is growing.
➢ Modification, differentiation or charges that make the company stand out with its
products and services or weaken competition and reduce the competitive advtg.
➢ Adopting and adjusting supply costing costs, reducing consumer spending and
increasing competitive expenses;
➢ Company being introduced innovative products or services that results in changes
in the way business is passed then in the industry.
➢ Improving growth and development by increasing volume, expending
geographically and being harmonized with suppliers and customers:
➢ Forms of mergers and alliances through various agreements in marketing etc.

UNIT-2
BUSINESS APPLICATIONS OF INFORMATION SYSTEMS
E-COMMERCE: E-Commerce features & Business Models
 • Decision Support Systems
• Business Process Reengineering
• Business Intelligence and Knowledge Management System.
ECOMMERCE REFERS TO THE PAPERLESS EXCHANGE OF BUSINESS
INFORMATION USING THE FOLLOWING WAYS :-

ELECTRONIC ELECTRONIC
E-COMMERCE
MAIL(E-MAIL) DATA
FOLLOWING WAYS
EXCHANGE
(EDI)

ELECTRONIC ELECTRONIC OTHER

BULLETIN FUND NETWORK-
BOARDS TRANSFER BASED
(EFT) TECHNOLOGY

E-COMMERCE:
E-commerce or Electronics Commerce is a Methodology of modern business, which
addresses the requirements of business organizations. It can be broadly defined as the
process of buying or selling of goods or services using an electronic medium such as the
Internet.
E-Commerce refers to the paperless exchange of business information using the following
Ways-

E-COMMERCE

1. ELECTRONIC 2. ELECTRONIC 3. ELECTRONIC 4. OTHER

NETWORK-BASED
DATA EXCHANGE MAIL BULLETIN BOARD
TECHNOLOGIES
(EDI) (E-MAIL) (EFT)

FEATURES OF E-COMMERCE:
 NON-CASH
PAYMENT

24X7
COMMUNIC
SERVICE
ATION
IMPROVEME AVAILABILIT
NT FEATURES OF E- COMMERCE
Y

INVENTORY
ADVERTISIN
MANAGEME
G/MARKETIN
NT IMPROVED G
SALES
SUPPORT

1. Non-Cash Payment
2. 24x7 Service availability
3. Advertising / marketing
4. Improved Sales Support
5. Inventory Management
6. Communication improvement

E-COMMERCE Business Models Can generally be categorized into to

following categories.
❖ Business – To – Business (B2B)
❖ Business – To – Consumer (B2C)
❖ Consumer – To- Consumer (C2C)
❖ Consumer – To – Business (C2B)
❖ Business – To – Government (B2G)
❖ Government – To – Business (G2B)
❖ Government – To – Citizen (G2C)

BUSINESS – TO – BUSINESS (B2B):

BUSINESS – TO CONSUMER:

CONSUMER – TO – CONSUMER:

CONSUMER – TO – BUSINESS:
BUSINESS – TO – GOVERNMENT:

GOVERNMENT – TO – BUSINESS:

GOVERNMENT – TO – CITIZEN:

E-COMMERCE ADVANTAGES CAN BE BROADLY CLASSIFIED IN THREE

MAJOR CATEGORIES-

E-COMMERCE
ADVANTAGES

ADVANTAGES TO ADVANTAGES TO ADVANTAGES

ORGANIZATION CONSUMERS TO SOCIETY

THE DIS- ADVANTAGES OF E-COMMERCE CAN BE BROADLY CLASSIFIED INTO
TWO MAJOR CATEGORIES-

E-COMMERCE

DIS-ADVANTAGES

1.TECHNICAL 2.NON-
DIS- TECHNICAL
ADVANTAGE DIS-
S ADVANTAGE
S

DECISION SUPPORT SYSTEM (DSS)-

A DSS is an organized collection of people, procedures, software, databases, and
devices used to support problem- specific decision making.
EXAMPLES:
• How will a labor strike affect our production schedule?
• What are the potential affects of cap- and- trade on our profits?
• Should we introduce a new line of clothing?

DSS

AI/ES

DSS

MIS

TPS
CHARACTERISTICS OF DSS-
✓ Support for decision-makers in semi-structured and unstructured problems.
✓ Support for managers at various managerial levels, ranging from top executive to
line managers.
✓ Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organizational
level.
✓ Support for interdependent or sequential decisions.
✓ Support for intelligence, design, choice, and implementation.
✓ Support for variety of decision processes and styles.
✓ DSS are adaptive over time.

CLASSSOFOCATION OF DSS-

TEXT
ORIENTED
DSS

DATA BASE
COMPOUND
ORIENTED
DSS
DSS

CLASSIFICATION
OF DSS

RULES SPREADSHEET
ORIENTED ORIENTED
DSS DSS

SOLVER
ORIENTED
DSS
TYPES OF DSS-

INFORMATION
STATUS INQUIRY DATA ANALYSIS
ANALYSIS
SYSTEM SYSTEM
SYSTEM

ACCOUNTING MODEL BASED

SYSTEM SYSTEM

MODEL OF DECISION SUPPORT SYSTEM-

BUSINESS INTELLIGENCE SYSTEM:

❖ The term ‘Business Intelligence’ has evolved from the decision support systems and
gained strength with the technology and applications like data warehouses,
Executive information systems and Online Analytical Processing (OLAP)
 ❖ Business Intelligence system is basically a system is basically a system used for
finding patterns from existing data from operations.

CHARACTERISTICS OF BIS-
▪ It is created by procuring data and information for use in decision-
making
▪ It is a combination of skills, processes, technologies, applications and
practices.
▪ It contains background data along with the reporting tools.
▪ It is a combination of a set of concepts and methods strengthened by
fact-based support systems.
▪ It is an extension of extension of executive support system or executive
information system.
▪ It collects, integrates, stores, analyzes, and provides access to business
information
▪ It is an environment in which business users get reliable, secure,
consistent, comprehensible, easily manipulated and timely information.
▪ It provides business insights that lead to better, faster, more relevant
decisions.
BENEFITS OF BIS-
➢ Improved management processes.
➢ Planning, controlling, measuring, and / applying changes that results in increased
revenues and reduced costs.
➢ Improved business operations.
➢ Fraud detection, order processing, purchases that results in increased revenue and
reduced costs.
➢ Intelligence prediction of future.

KNOWLEDGE MANAGEMENT SYSTEM:

A knowledge management system comprises a range of practices used in an
organization to identify, create, represent, distribute, and enable adoption to insight
and experience. Such insights and experience comprise knowledge, either embodied
in individual or embedded in organizational processes and practices.
 PURPOSE OF

PURPOSE OF KMS- MIS

IMPROVED COMPETITIVE INNOVATION

PERFORMENCE ADVANTAGE

SHARING OF INTEGRATION CONTINUOUS

KNOWLEDGE IMPROVEMENT BY

DRIVING STARTING NEW

STRATEGY LINES OF BUSINESS

SOLVING PROBLEM DEVELOPING PROFESSIONAL RECRUIT AND RETAIN

FASTER SKILLS TALENT

ACTIVITIES IN KNOWLEDGE MANAGEMENT-

START WITH
BUSINESS
PROBLEMS

THINK ABOUT
IDENTIFY THE
THE SYSTEM
WHAT KIND OF
REQUIRED
STRATEGY
FROM PEOPLE

FINALLY, THINK IMPROVE

ABOUT WHAT
MENT OF
KIND OF
TECHNICAL SYSTEM
INFRASTRUCTE PROCESSES

UNIT-3
MANAGEMENT OF INFORMATION RESOURCES
INFORMATION SYSTEM PLANNING –
 ▪ Planning is vital to success
▪ Organization that plans there IS rend to achieve better results than organizations
that do not.
▪ Organizations that do not plan do it unsystematically.
▪ The IS plan is comprehensive one which is derived from the organizational strategic
plan.

STAGE MODEL OF INFORMATION SYSTEM PLANNING:

NOLAN STAGE MODEL-

1. INITIATION

2. CONTAGION

3.CONTROL

4.INTEGRATION

5.DATA
ADMINISTRATION

6.MATURITY
THE FOUR – STATGE MODEL OF IS PLANNING-

SYSTEM ACQUISITION-
Developing a IS in house o engaging software development company may be
a most expensive way to acquire IS

OUTSOURCIN
OPEN G
SOURCE

SOFTWARE
SOFTWARE-
AS-A- SYSTEM ACQUISITION

INTERNET OFF
SHORTING

CLOUD
COMPUTING
 OUT SOURCING-

OUT SOURCING

OUT SOURCING IS OUT SOURCING IT

APPLICATIONS APPLICATIONS

ADVANTAGES-

STRATEGIC ADVANTAGES FIT TO BUSINESS

ADVANTAGE
NEEDS

AVAILABILITY OF DESIRED FIT TO ORGANIZATIONAL

SECURITY MEASURES CULTURE

INTERFACES WITH OTHER AVAILABILITY OF TRAINED

INFORMATION SYSTEMS MANPOWER FOR
MAINTENANCE

DISADVANTAGES-

DIS ADVANTAGES

HISH PRICE LOSS OF

EXPERIENCE
D
EMPLOYESS

RISK OF
LOSS OF
LOSING A
CONTROL
COMPETOT
OVE
 SOFTWARE LICENSING-
The purchaser actually purchases a license to use the software itself. Thus, the term
“licensing” means purchasing a license to use.

SOFTWARE LICENSING BENIFIT

Immediate system High quality Low price (license fee) After-sales support
availability

SOFTWARE LICENSING RISKS-

Inadequate
High turnover fit between
of vendor needs
personnel &features

Different in
modifications

SOFTWARE AS A SERVICE (SAAS)-

NOT REQUIRED TO APPLICATIONS IS NO NEED TO HIRE

COMMIT LARGE IMMEDIATELY EXPERTS FOR
SUMS AVAILABLE INSTALLATION

NEED TO WORRY OF
NO NEED TO
MAINTENANCE OF
ACQUIRE HARDWARE
APPLICATION, ASP IS
FOR INSTALLATION
AVAILABLE
 SOFTWARE AS A SERVICE (SAAS)-

RISKS

High security risk

May be a long
as it is controlled
transaction response
by vendor
time on the internet

PRECAUTIONS:

Check the
history

financial
Srvice
precautions strenght of
contract
asp

Understand
the proce
scheme

ACQUISITION OF AND SOFTWARE:

Post installation interview ACQUISITION OF HW AND SW Requirement analysis

Preparation of tender
Delivery & installation
specification

Negotiation & procurement Inviting tenders

decision

Detailed evaluation of shorts Technical scrutiny and short list

THE MAJOR IMPLEMENTATION TASKS CONSISTS OF-

1. PLANNING THE IMPLEMENTATION ACTIVITIES

2. ACQUIRING AND LAYING OUT FACILITIES FOR IMPLEMENTATION

3.ORGANIZING THE PERSONNEL FOR IMPLEMENTATION

4.DEVELOPING PROCEDURES FOR INSTALLATION&TESTING

5.DEVELOPING THE TRAINING PROGRAM FOR OPERATING PERSONNE

6.COMPLETING THE SYSTEM”S SOFTWARE

7. ACQUIRING REQUIRED HARDWARE

8. GENERATING FILES

9.DESIGNING FORMS

10. TESTING THE ENTIRE SYSTEM

11.COMPLETING CUTOVER TO THE NEW SYSTEM

12.DOCUMENTING THE SYSTEM

13.EVALUATING THE MIS

14.PROVIDING SYSTEM MAINTENANCE

EVALUATION:
Evaluation of MIS is an integral part of the management control process, in which the
organizations determine or appraise the quality or worth of their information system.in
other words, evaluation of MIS is a process of measuring performance or organizational
information systems.

UNIT-4
INTRODUCTION TO ENTERPRICE RESOURCE PLANNING(ERP)
INRODUCTION:
Enterprise resource planning (ERP) is a software that is built to organizations belonging to
different industrial sectors, regardless of their size and strength.
FUCTIONAL AREAS:
❖ Financial accounting
❖ Human resource
❖ Customer relationship management
❖ Sales and distribution
❖ Logistics and warehouse management
❖ Manufacturing and material management
❖ Supply change management
❖ Business intelligence
 BUSINESS BENEFITS OF ERP:

8.streamlin
ed process
15.security

9.mobility
1.competit
ion

7.cost
saving
2.Efficiency

15.custom
er service Benefits of
ERP
6.integrate 10.reportin
d inf 3.Forecasti g
ng

13.flexibilit 5.scalabilit
y y 4.collabora
tion
11.product
ivity

12.regulat
ory

➢ Competition
➢ Efficiency
➢ Forecasting
➢ Collaboration
➢ Scalability
➢ Integrated information
➢ Cost savings
➢ Streamlined processes
➢ Mobility
➢ Reporting
➢ Productivity
➢ Regulatory compliance
➢ Flexibility
➢ Customer services
➢ Security

VENDOR ANALYSIS:
The challenges of implementing erp
system
✓

1.ERP Vendor

2.commitment from the top

management

3.Adequate training

4.Implementation time

5.proper project management

6.implementation cost

7.Employee Retention

8.sufficient testing

9.maintenance cost

10.investment in internal
hardware
✓ ERP vendors
✓ Commitment from the top management
✓ Adequate training
✓ Implementation time
✓ Proper project management
✓ Implementation cost
✓ Employee retention
✓ Sufficient testing
✓ Maintenance cost
✓ Investment in internal hardware
 ERP MODULE AND HISTORICAL DEVELOPMENT:

8.SUPPLY CHAIN 1.HUMAN

MANAGEMENT(SC RESOURCE
2.INVENTORY
M)

7.ENGINEERING
/PRODUCTION 3.SALES &
MARKETING
ERP modules &
historical develop

6.CUSTOMER
RELATIONSHIP 4.PURCHASE
MANAGEMENT(C
RM)
5.FINANCE &
ACCOUNTING

• Human resource
• Inventory
• Sales and marketing
• Purchase
• Finance and accounting
• Customer relationship management (CRM)
• Engineering /production
• Supply chain management (SCM)

UNIT-5
ERP MODULES
BUSINESS MODULES IN AN ERP PACKAGE-

ERP BUSINESS MODULES

Manufacturing HR plant maintenance materials mgt data warehouse data mining quality mgt sales& distribution case study in
 Manufacturing
Human resources
Plant maintenance
Materials management
Data warehousing
Data mining
Quality management
Sales and distribution
Case study in banking sector
HUMAN RESOURCES:

✓ Inventory
✓ Sales and marketing
✓ Purchase
✓ Finance and accounting
✓ Customer relationship management (crm)
✓ Engineering / production
✓ Supplu chain management (scm)
MANUFACTURING MODULES:
 Material and capacity planning
Quality floor control
Quality management
Jit /repetitive manufacturing
Cost management
Engineering data management
Engineering change control
Configuration management
Serialization / lot control, tooling, etc.
HUMAN RESOURCE MODULE:
 ❖ Personnel management
❖ Organizational management
❖ Payroll accounting
❖ Time management
❖ Personnel development
PLANT MANAGEMENT:
Plant maintenance provides technical and business reports and various presentation
options, according to criteria used.
 Preventing maintenance control
Equipment tracking
Component tracking
Plant maintenance calibration tracking , plant maintenance warranty claims
tracking etc.
MATERIALS MANAGEMENT MODULES:
This module facilitates the process of maintaining the appropriate level of stock in the
warehouse.

✓ The main modules are

✓ Pre-purchasing activities
✓ Purchasing
✓ Vendor evaluation
✓ Inventory management
✓ Invoice verification and material inspection, etc
SALES MODULE:
Typical sales process includes processes like sales queries and enquiry analysis and
handling, quotation drafting, accepting sales orders, drafting sales invoices with proper
taxation, dispatch/shipment of material or service, tracking pending sales order.
SUPPLY CHAIN MANAGEMENT (SCM)
Supply chain management (SCM) involves planning, execution, control, and
monitoring of supply activities. An ERP solution takes care of physical aspects
of supply that includes storage and transportation and the market aspect of
effectively managing demand and supply to meet customer demands.

SALES AND DISTRIBUTION:

 An ERP system can improve the sales order process in several ways, as they use common
database thus minimizing data entry use common data thus minimizing data entry errors
and provides accurate information in real time to all users.

PRE SALES
PAYMENT ACTIVITES
SALES AND DISTRIBUTION
MODULE

SALES ORDER
BILLING PROCESSING

INVENTORY
DELIVERY
SOURCING