MANAGEMENT

INFORMATION
SYSTEM
Meaning

Management Information System is a computer based information

system which is basically concerned with processing data into
information which is then communicated to the various departments in
an organization to support the operations, the management and the
decision making function in the organization.
Definitions
“Management information system, or MIS, broadly refers to a computer
based system that provides managers with the tools to organize, evaluate

and efficiently manage departments within an organization ”

- Subhalakshmi Joshi
Definition - Management
▪ The process of getting things done, effectively and efficiently,
through and with other people.
Efficiency
▪ Means doing the thing correctly; refers to the relationship between
inputs and outputs; seeks to minimize resource costs
Effectiveness
▪ Means doing the right things; goal attainment.

-
Definitions- Information
▪ Information, in MIS, means the processed data that helps the
management in planning, controlling and operations.

▪ Data means unstructured raw facts, observations or

unevaluated messages. Data involves facts and figures.
Information on the other hand is like a finished product
Example
Definitions- System
▪ A system is an orderly grouping of interdependent

components linked together according to a plan to achieve a

specific objective.

▪ Human body is a system composed of various parts, which

are working together towards a common objective , that is to

live
Different Eras of Information System
Organization Levels and Types of IS Used
Types of Information System
▪ Transaction Processing Systems (TPS) -
- handles and processes daily exchanges
(transactions)
▪ Office Automation Systems (OAS) -
- produces documents, plans, schedules
▪ Management Information Systems (MIS)
produces managerial reports

Operational Level
Types of Information System
• Decision Support Systems (DSS) -
Supports and assists in all problem-specific decision
making.

• Artificial Intelligence (AI) and Expert Systems (ES)

-- Knowledge Work Systems (KWS)
- is an information system that can make suggestions and
reach solutions in much the same way as a human
expert.

Operational Level Knowledge Level

Types of Information System
• Executive Support System (ESS)

• Group Support System (GSS)

✔ A computer-based system that serves the information needs of

top executives.

✔ Provides rapid access to timely information and direct access to

management reports.
Strategic Level
✔ Very user-friendly, supported by graphics.
Operational Level Knowledge Level
Tactical Level
NEEDS OF MIS
Need of MIS
• Business Driven • Distributed System
• Management • Heavy Planning
Oriented/Directed • Avoid redundancies in data
• Flexibility and Ease to use storage
• Common Database
• Integrated
Needs
Business Driven:

• The purpose of MIS the organization and its stakeholders.

Management Oriented/Directed:

• MIS is designed to meet the information needs of the management at all

levels so that the organizational objectives are achieved.
Flexibility and Ease to Use:

• The MIS is designed flexible enough to accommodate new

requirements. System is easy to operate so that not much computer
skills are required on the part of user to access databases.
Needs
Common Database:

• MIS stores transaction data for present and future uses. Applications access
this database for relevant data to process transaction or to generate
information. The system maintains general database so that any functional
subsystem can access database.
Integrated System:

• MIS views organization information needs from a system point of view.It

blends together database of all subsystems of the business system and
through information interchange integrates the organization
Avoids Redundancies in Data Storage:

• MIS is an integrated system. It avoids unnecessary duplication and

Needs

Distributed System:
• Most organization have their offices sales outlets.
Heavy Planning:
• Design and Implementation of MIS require detailed and
meticulous planning of such activities as acquisition and
deployment of hardware and software.
PURPOSE OF MIS
Purpose of MIS

• The purpose of MIS is reporting and is to provide the necessary

information to the managers and supervisors at various levels to
help them to discharge their functions of organizing, planning,
control and decision making.
• MIS is scientific way of collecting processing, storing and
communicating information relating to the various activities of an
organization to the various levels of management may be
facilitated in discharging its functions efficiently and run the
organization in an efficient manner for the betterment of all.
OBJECTIVE OF MIS
Objectives of MIS

• MIS is very useful for efficient and effective planning

and control functions of the management.
• Reports give and idea about the performance of men,
materials, machinery, money and management.
Reports throw light on utilization of resources
employed in the organization
Objectives of MIS

• MIS is helpful in controlling cost by giving information

about idle time, labor turnover, wastages and losses
and surplus capacity .
• By making comparison of actual performance with the
standard and budgeted performance, variances are
bought to the notice of the management by MIS which
can be corrected by taking remedial steps.
Objectives of MIS

• MIS brings to the notice of the management

strength of the organization, to take advantage of
the opportunities available.
• MIS reports on production statistics regarding
rejection, defective and spoilage and effect on cost
and quality of the products.
CONTEMPORARY
APPROACHES TO
MIS
Contemporary Approaches to MIS
Technical Approach.
Emphasizes mathematically based, normative models to study information systems, as well as the
physical technology and formal capabilities of these system.- FACT BASED
Behavioral Approach.
Behavioral Approach is an important part of the information system field is concerned with behavioral
issues that arise in the development and long term maintenance of information system. Issue such as
strategic business integration, design , implementation, utilization and management cannot be explored
usefully the models used in the technical approach.-MAN,MONEY,MATERIAL
Sociotechnical System.
It helps to avoid a purely technological approach to information system. It emphasizes on both technical
and behavioral components of information system i.e. technology must be changed and designed in such
a way as to fit organizational & individual needs.
Contemporary Approaches to MIS
INFORMATION AS A
STRATEGIC
RESOURCE
Information as a Strategic Resource

• Information helps in taking Strategic, Tactical and

operational decisions. It is one of the critical and
important resource.
Information as a Strategic Resource
✔ It helps us to understand Cost, Quality, price, technology,
productivity and product.
✔ It helps to smooth following of business process and there
by smooth managing of business operation.
✔ It helps to be ahead in the competition.
✔ It helps company in analyzing their own profitability.
✔ It will help in taking new business decisions like new plant,
new product, new business etc.
✔ It helps company in analyzing their own SWOT
✔ It protects company from business cycles.
USE OF INFORMATION
FOR COMPETITIVE
ADVANTAGE
Use of MIS for competitive advantage

1. Automating: doing things faster

2. Organizational learning: doing things better
3. Supporting Strategy: doing things smarter.
Use of MIS for competitive advantage
Automating: doing things faster.
Technology is used to automate a manual process for
doing things faster, better, cheaper with greater
accuracy and consistency.
Example :- Insurance Policy
▫ Manual Processing
▫ Technology-supported process
▫ Completely Automated
Use of MIS for competitive advantage
Organizational Learning : Doing Things Better.

Going beyond automation, Involves learning to

improve the day-to-day activities within the process,
Looking at patterns and trends.

Example :- One Minute Check in Hotels

Use of MIS for competitive advantage
Supporting Strategy : Doing Things Smarter.

Strategic Planning
Create a vision: Setting the direction
Create a standard: Performance targets
Create a strategy: Reaching the goal

Example :- One Minute Check in Hotels

 Types of Competitive Advantage
✔ Low Cost Leadership :- Best prices on goods and services
Example :- Dell

✔ Differentiation :- Best product or services.

Example:- Porsche, IBM Watson Assistant, Big Bazar Vs Flipkart

✔ Best Cost Provider (middle-of-the-road):- Reasonable quality,

competitive prices.
Example : Wal- Mart
Information System for Competitive Advantage

✔ A clear strategy is essential

✔ Sources of competitive advantage:
▪ Best-Made product
▪ Superior customer service
▪ Lower costs
▪ Superior manufacturing technology
▪ Shorter lead times
▪ Well known brand name
Information System for Competitive Advantage

✔ The Role of Information System in Value Chain Analysis

✔ IS competitive advantage in VCA:
Internet link with suppliers, dealers.
Extranets: using the Internet for B2B interactions.
Deploying new technology in Innovative ways
 MIS AS AN
INSTRUMENT FOR
ORGANIZATIONAL
CHANGE
STEPS

✔ Identify the core activities in the systems development

process.
✔ Evaluate the alternative methods for building MIS.
✔ Compare alternative methodologies.
✔ Identify and describe new approaches for system
building in the digital firm era
EXAMPLE :- A New Ordering System
Problem:- Inefficient manual procedures, High error rate.
Solutions:-
✔ Eliminate manual procedures
✔ Track order automatically
✔ Design new ordering processes.
✔ Illustrates digital technology as the focus of designing
and building new information systems.