MANAGEMENT

INFORMATION SYSTEM

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Content
 An introduction to Information System
 Meaning of Management Information System
 Characteristic of MIS
 Components of MIS
 The aim of MIS
 Types of MIS
 Outputs of MIS
 Benefits of MIS

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 Management Information System is a collection of data
processing equipment, procedures, software and people
that integrates the sub-systems of the organization and
provides information for decision making on planning and
control the operations.
 Management Information System is an integrated system
that monitors and retrieves data from the environment,
captures data from transactions and operations within the
firm, filters, organizes and selects data and presents them
as information to managers, and also provides for
managers to generate information as desired.

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 MIS

 Management information system is a system

consisting of people, machines, procedures,
databases and data models. The system gathers
data from the internal and external sources of an
organization.
 MIS is an Integrated user-machine system for
providing information to support the operations,
Management, Analysis and decision making
functions in an organization.

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 Management Information System, commonly referred to
as MIS is a phrase consisting of three words:

 management, information and systems. Looking at

these three words, it’s easy to define Management
Information Systems as systems that provide
information to management.

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 MIS

Management Information System

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 Management information system refers to such
system which provides accurate information to the
entire level of management for decision making
process.

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 The MIS is a system which provides information for decision
making in the organization.
 MIS is an integrated system of men and machines for providing
the information to support the operations, the management and
decision making functions in the organization.
 MIS is database system which stores data in standard format or
retrieved whenever is needed.

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 MIS is a collection of systems, hardware, procedures and people that
all work together to process, store, and produce information that is
useful to the organization
 MIS is an information system which is associated with man, machine,
marketing and methods for collecting information’s from the various
sources (internal and external) for providing information to the
management and decision-making.
 It is a computer-based system which produces regular reports on
various operations for each and every level of management in an
organization or businesses that decision makers can use to make day
to day decisions
 It basically helps to the company managers to make a proper planning
about the business and also to control decision.
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 A management information system (MIS) is a set of systems
and procedures that gather data from various sources,
compile it and present it in a readable format.
 MIS is used to create reports with a comprehensive
overview of all the information which is needed to make
decisions.

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 Evolution of Management Information
Systems (MIS)

1950-1960: Electronic Data Processing

1960-1970: Management Information Systems (MIS)

1970-1980: Decision Support Systems

1980-1990: Executive Information Systems (EIS)

1990-2000: Enterprise Resource Management Systems

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 Application of MIS

 1. Personnel management
 2. Production management
 3. Financial management
 4. Material management
 5. Marketing management

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 Role Of MIS

 The role of 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 MIS plays exactly the same role in the organization.
 The system ensures that an appropriate data is collected from
the various sources, processed, and sent further to all the needy
destinations.

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 Decision making : MIS plays an important role in the decision making
process of any organization. In any organization, decisions are made
based on relevant information that can be retrieved from MIS.

 Coordination among the department : Management information

systems coordinate across with different functional departments.
 Finding out Problems : MIS provides relevant information about each
aspect of the activity. if there is any mistake it also helps to find the
solution to that problem.
 Comparison of Business Performance : MIS stores all
historical data and information in its database. Therefore MIS is very
useful to compare business organization performance.
 Strategies for an Organization : Today, every business is
operating in a competitive market. so MIS supports the organization to
develop appropriate business strategies in a competitive environment
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 Data Capturing : MIS capture data from various internal
and external sources of the organization. Data capturing
may be manual or through computer terminals.
 Processing of Data : The captured data is processed to
convert into the required information. Processing of data is
done by such activities as calculating, sorting, classifying,
and summarizing.
 Storage of Information : MIS stores the processed or
unprocessed data for future use.
 Retrieval of Information : MIS retrieves information from
its storage or databases.
 Dissemination of Information : Information is
disseminated to the users in the organization.

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Challenges of MIS
 High Cost
 Training of Employee
 Maintenance Cost

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 System Approach:-. The word system which means a set of rules. A
system is a combination of sub-systems. The system is composed of a
number of subsystems and all the subsystems are related to each other.
Systems approach is based on the generalization that everything is
interrelated and interdependent.
 The system approach is a management perspective that advocates the
business problem of the holistic system . rather than seeing the problem
in parts it defines system as a whole but it keeps focus on the
subsystems and components.
 Many administrators and designers use the system approach to solve
the complex problem.
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 Characteristics of MIS

 Management-oriented: system is designed from top to bottom approach

it means that system is not necessarily for top management only. It may
also meet the information requirements of middle level or operating level
of management as well.
 Management directed: Directing refers to a process or technique of
instructing, guiding, inspiring, counseling and leading people towards the
accomplishment of organizational goals. It is a continuous managerial
process that goes on throughout the life of the organization.
 Integrated: MIS is an integrated system. It is integrated with all
operational and functional activities of management. The reason for
having an integrated system is that information in the managerial context
for decision-making may be required from different areas from within the
organization.
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 It means a comprehensive or complete view of all the sub systems in
the organization of a company.

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 Common data flows: Common data flow concepts avoids repetition
and overlapping in data collection and storage.
 Heavy planning-element: The preparation of MIS is not a one or
two day exercise. It usually takes 3 to 5 years and sometimes a much
longer period.
 Computerized: MIS can be used without a computer. But the use of
computers increases the effectiveness and the efficiency of the
system.
 User friendly/Flexibility: An MIS should be flexible.
 Information as a resource: Information is the major ingredient of
any MIS.
 Economy: The MIS should be cost effective. There are many hidden
costs in the design, development and operation of the systems.
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 Exception based : MIS should be developed on the exception
based also, which means that in an abnormal situation,
there should be immediate reporting about the exceptional
situation to the decision–makers at the required level

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 Benefits of MIS
 MIS increases productivity
 MIS enhances the quality of decision-making
 MIS improves communication and helps to develop team work
 Improves the quality of decisions
 Helps to achieve a higher level of efficiency
 It Promotes better communications between departments.
 Improves employee productivity

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 Increased customer satisfaction
 Improved quantity and quality of information
 Improved quality and quantity management
decisions
 Improved operational efficiency and flexibility
 Improved quality of internal and external
communications
 Improved quality of planning
 Improved quality control and supervision

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IMPORTANCE OF MIS
1) It helps in minimizing risk in decision-making
2) It processes the data and derives information out of them
3) It provides information about the various aspects of
business
4) It helps the executives to avail the information regarding
the functional areas quickly
5) It helps the HRD manager in finding out the requirement of
the human resource, their wages and salary, performance
appraisal, training, promotion, absenteeism and
employees, turnover.

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 Challenges of MIS

 High Cost: Development of new computerized based

information system is a problem for the organization due to the
cost factor and it creates problems because with the change of
time there is need of up-to-date of the information system.
 Training of Employee: Employees should have the capacity of
learning of the information system with the changing
competitive and business environment; otherwise it will be
difficult for the organization to stay in the market.
 Maintenance Cost: Sometimes a problem arises due to server
crash and website crash. Sometimes it leads to the loss of
information. So, maintenance cost is needed to tackle the
above problem.

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 Output of MIS /
Documents & Reports by Management
information System

 MIS can produce output either Hardcopy or soft copy. hard

copy reports are the most common form of output produced
by an MIS .
Reports produced by MIS usually fall.
 Scheduled Reports

 Exception Reports

 Demand Reports

 Summary Reports

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Scheduled Reports

 Scheduled reports also called periodic reports because those

reports are issued periodically ex hourly, daily, weekly,
monthly, quarterly or annually.
 Exception Reports are issued something unusual takes place
that require the attention of management.
 Demand Report are generated on the users request, manager
need .
 Summary Report show the total activities of transaction.

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Outputs Of a MIS

 Scheduled reports which are

produced periodically, or on a
Schedule (daily, weekly, monthly).

 Key-indicator report which

summarizes the previous day’s
critical activities and also it is
typically available at the beginning
of each day.

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 Demand report which
gives certain information
at a manager’s request.

 Exception report which

is automatically produced
when a situation is
unusual or requires
management action.

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Features of MIS
 Timeliness
 Accuracy

 Consistency

 Completeness

 Relevance

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Elements of MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications and Networks

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 What is decision support system

 A decision support system (DSS) is an

interactive computer based
information system that analyzes
large volumes of data for business
decisions.

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 Decision Support System

 DSS helps in decision making but does not

necessarily give a decision itself. The decision
makers compile useful information from raw
data, document, personal knowledge and or
business model to identify and solve problems and
make decision.
 DSS is an interactive, flexible and adaptable
CBIS. Specially developed for supporting the
solution of a Non structured Management
Problem for improved decision making

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 Decision Support Systems (DSS) are a class of computerized
information systems that support decision-making activities or
DSS are interactive computer-based systems and subsystems
intended to help decision makers.

 Decision Support Systems (DSS) help executives make better

decisions by using historical and current data from internal
Information Systems and external sources. By combining massive
amounts of data with sophisticated analytical models and tools, and
by making the system easy to use, they provide a much better
source of information to use in the decision-making process.

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 Decision support system produces detailed
information reports by gathering and
analyzing data. Hence a DSS is different from
a normal operations application, whose goal
is to collect data and not analyze it.

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 There are two types of Decisions
 Programmed Decision
 Non- Programmed Decision.

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 Programmed Decision
 Programmed decisions are basically automated process,
general Routine works.
 These decision follow same guidelines or rules.

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 Non Programmed Decision
 Non programmed decisions occur in unusual and Non
addressed situations.
 It would be a new decision.
 There will not be any rules to follow.
 These decision are made based on the available
information.
 These decision are based on manager’s discretion,
perception and judgment.

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Decision Support System
Decision support systems are
computer based information
systems that provide interactive
information support to
managers and business
professionals during the
decision making process.
Objective of DSS
 increase the effectiveness in decision
making process
 Support the managers

 To develop strong knowledge

(decision)
 To provide accurate information

Effective

Sustainable

Higher decision quality

Improved communication

Cost Reduction

Time saving

 Improved customer and employee

satisfaction.
DSS Characteristics

DSS has ability to present knowledge.

DSS can interact direct with decision maker.

DSS offers flexibility, adaptability and quick response .

 Support managers at all levels

Support individual and groups

DSS helps the decision maker in the decision making process

DSS is designed to solve semi structured and unstructured

problems.
Why use DSS
Higher decision quality

Improved communication

Cost reduction

Increased productivity

Time savings

Improved customer and

employee satisfaction.
Function of DSS

Model Building
What if Analysis
Goal seeking
Risk Analysis
Graphical Analysis
 Model Building
 This allows decision makers to identify the most
appropriate model for solving the problem on hand.
 For example : A television manufacturing company has
given the responsibility to its marketing manager to
develop a sales forecasting model is for colour TV sets.

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 What if Analysis
 What if Analysis or sensitivity is a powerful decision-making
Tool. It is a technique used to determine how changes in
estimates affect predictive performance..
 What –if-analysis is used to compare different scenarios an their
potential outcomes based on fluctuation conditions.
 Different methods of sensitivity analysis are available are
scenario management tool, brainstorming techniques and
modeling and simulation techniques.
 For example : If advertising cost is cut by 10% what
would be the corresponding impact on sales ?

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 Goal Seeking Analysis
 It compiles all the given data and determines what
inputs are required to reach specific Goals.
 It is the process of determining the input values
necessary to achieve a certain goal.
 For example : While deciding to buy a house, a person
first calculate the equated monthly installments that she
or he can afford and for how long.

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 Risk Analysis
 It is a function of DSS that allows managers to assess the risks
associated with various alternatives. Decisions can be classified as
low risk, medium risk and high risk. A DSS is particularly useful in
medium risk and high risk environments.
 DSS especially helpful while taking medium or high risks
decision. Decision can be low, medium or high risks.
 Graphical Analysis:
 It provides large volume of data in graphical format to visualize it
easily and quickly. Managers can also view the impact of various
courses of action. The use of graph is recommended when :
Forecasting, A quick summary of data is required.

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Types of DSS
Model Driven

Data driven

Communication driven

Document driven

Knowledge driven
communications-driven This is also called group decision support
systems (GDSS). Communication driven DSS includes more than one
person working to solve complex problems. It helps executives and
managers work together to come to the final solution to solve problems.
Technology can be used for Communication driven DSS like Microsoft’s
NetMeeting, Groove, etc..

Data-driven DSS: These systems include file drawer and management

reporting systems, executive information systems, and geographic
information systems (GIS). They emphasize access to and manipulation of
large databases of structured data,
.

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Model-driven DSS: These DSS include systems that use
accounting and financial models, representational models,
and optimization models. They emphasize access to and
manipulation of a model

Knowledge-driven DSS:
This Knowledge-driven focuses on knowledge and advise to
take action on the basis of a certain knowledge base
analysis. Predefined facts, Stored procedures, rules, and
limitations are also referred to solve problems. It also has
special expertise in problem-solving and is closely associated
with data mining.
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Document-driven DSS: These systems integrate storage
and processing technologies for document retrieval and
analysis. A search engine is an example.

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 Classification Of DSS
Text Oriented DSS: it contains information in text form allowing
documents to be electronically created, revised and viewed as needed.
Database Oriented DSS: it contains information in a database of
organized and highly structured data.
Spreadsheet Oriented DSS: it contains information in spread sheets. A
spread sheet makes it easy to create, view, or modify .
Solver Oriented DSS: it is based on an algorithm or procedure written for
performing certain calculations and executing.
Rules Oriented DSS: it follows certain procedures or rules.

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Why use DSS
Higher decision quality

Improved communication

Cost reduction

Increased productivity

Time savings

Improved customer and

employee satisfaction.
Data can be divided into 3

 Structured Data
 Unstructured Data
 Semi-structured Data
 Structured Data

 The data that has a structure and is well organized either in the
form of tables or in some other way and can be easily operated
is known as structured data. Searching and accessing
informationfromsuchtypeof dataisveryeasy.
 For example, data stored in the relational database in the form
of tables having multiple rows and columns. The spreadsheet is
ananother goodexampleof structureddata.
This Diagram using a spreadsheet as an example of structured data. The tabular form
structure make this type of data analysis-ready, e.g. we could use a computer to filter the
table for customers living in the USA (the data is machine-readable).

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 UnStructured

 The data that is unstructured or unorganized Operating such type

of data becomes difficult and requires advance tools and
softwarestoaccessinformation.
 For Example, images and graphics, pdf files, word document,
audio, video, emails, powerpoint presentations, webpages and
webcontentsetc.
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 Semi Structured

 Semi-structured data is basically a structured data that is

unorganised. Web data such JSON(JavaScript Object Notation) files,
BibTex files, .csv files, tab-delimited text files, XMLand other markup
languages are the examples of Semi-structured data found on the
web.
 Due to unorganized information, the semi-structured is difficult to
retrieve, analyze and store as compared to structured data. It
requiressoftwareframeworklikeApacheHadooptoperformall this.
HTML is one example of semi-structured data, in which a text and
other data is organized with tags. For example, all headers you see
in here have a header tag

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 Executive Information and support
system

 An Executive information system is a specialized

information system used to support senior-level decision
making. It is also known as Executive support system it is a
type of management support system. That facilitates and
supports senior executive information and decision making
needs.
 Executive Information Systems are strategic-level
information systems . They help executives and senior
managers to non-programmed decisions in strategic
management.


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 EIS is defined as a system that helps the high level
executives to take policy decisions. This system uses
high level data, analytical decisions. It is a structured
automated tracking system that operates continuously to
keep everything managed.

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 Executive Support system
 Executive Support System (ESS) is a reporting tool
(software) that allows us to turn our organization's data
into useful summarized reports.
 These reports are generally used by executive level
managers for quick access reports coming from all
company levels and departments such as billing, cost
accounting , staffing, scheduling, and more.
 Executive Support System (ESS) is a software used by
companies which has information related to business, which
enables the top management to take better decisions in
favor of the company.

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 EIS system is very fast.
 It is capable of accessing both internal as well as external data.
 EIS provides its users with drill down facility and reporting tools.
 EIS can also be used to make decision just like Decision Support
System.
 EIS helps management to monitor performance of the organization
and thus helps organization to achieve its goals and objectives.

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 It is also known as Executive Information system.
 It addresses strategic issues and uses a web portal
interfaces to present the content.
 It is commonly considered a specialized form of
decision support system.

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 Advantage of ESS

It provides timely delivery of organizations summary

information.
It provides better understanding of information
It filters data for management
It provides system for improvement in information tracking
It offers efficiency to decision makers.
EIS is easy for use and saves time of the top level
management of the organization.
EIS provide access to timely information in a rapid manner.
EIS provides extensive online analysis tools.
EIS can easily be given a DSS support.
 COMPONENTS OF EIS

USER INTERFACE: User Interface allows the users to communicate with

the EIS.
HARDWARE: Hardware refers to devices by which users give input, data
processing and the output is received. Users may give input via keyboard
and mouse and CPU may be used for processing and output may be
received on monitor or from printer.
SOFTWARE: Software is required for various calculations, providing
graphical view to the management, storing data in the form of Information,
etc. Software allows user to get information in the form it is actually
required.
TELECOMMUNICATION: In today’s world the most important thing is
communication. Users may require transferring information from one point
to another point.
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 GIS
 It is an Information system that captures, stores,
analyzes, manages and presents data linked to
geography. It is a combination of cartography, statistics
and database technologies and can be integrated to
any enterprise applications. GIS is used in geography
remote sensing, archaeology land surveying, urban
planning and many more.