Management Information System (MIS)

CHAPTER ONE
Introduction to Management
Information System

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Information Systems

⚫ How information systems are transforming

business
⚫ Increase in wireless technology use, Web sites
⚫ Shifts in media and advertising
⚫ New security and accounting laws

⚫ Globalization opportunities
⚫ Internet has drastically reduced costs of operating on
global scale
⚫ Presents both challenges and opportunities

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 MIS An Overview
⚫ Since it emerged as a field of study in 1970s, MIS has
been defined by different authors in different ways
⚫ 'A computer system or related group of systems which
collects and presents management information to a
business in order to facilitate its control.’
⚫ 'A system to convert data from internal and external
sources into information and to communicate that
information, in an appropriate form, to managers at all
levels in all functions to enable them to make timely
and effective decisions for planning, directing and
controlling.
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Continued…
⚫ MIS provides several benefits to the business
organization:
⚫ Effective & efficient coordination b/n departments;
⚫ Quick and reliable referencing;
⚫ Access to relevant data and documents;
⚫ Use of less labor;
⚫ Improvement in organizational and departmental
techniques;
⚫ Management of day-to-day activities;
⚫ Day-to-day assistance in a department and
⚫ Closer contact with the rest of the world.
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Continued…
⚫ MIS provides a valuable time-saving benefit to the
workforce.
⚫ That is information can be entered quickly and easily into a
computer program.
⚫ Managers have to assimilate masses of data, convert that
data into information, form conclusions about that
information and make decisions leading to the
achievement of business objectives.
⚫ For an organization, information is as important
resource as money, machinery and manpower.
⚫ It is essential for the survival of the enterprise.
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 Definition of MIS
⚫ Management information systems (MIS) is an
integrated, user-machine system for providing
information to support operations, management, and
decision-making functions in an organization.
⚫ MIS is basically concerned with the process of
collecting, processing, storing and transmitting relevant
information to support the management operations in any
organizations.
⚫ MIS is one of the major computer based information systems.
⚫ Its purpose is to meet the general information need of all the
managers in the firm or in some organizational subunit.

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 Definition of MIS…..
⚫ MIS is a collection of people, tools, procedures,
computer hardware and software; manual procedures;
models for analysis, planning, control and decision-
making; and a database to perform various business tasks
at various levels in the organization.
⚫ To the managers, MIS is an implementation of the
organizational systems and procedures.
⚫ To a programmer it is nothing but file structures and
file processing.
⚫ However, it involves much more complexity.

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Definition of MIS…..
⚫ The three components of MIS provide a more
complete and focused definition:
⚫ System suggests integration and holistic view,

⚫ Information stands for processed data, and

⚫ Management is the ultimate user, the decision

makers.

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 Importance of MIS
⚫ Managerial functions are performed through
decision-making for 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:
⚫First, liberalization and globalization
⚫ Second, information age

⚫ Tools or a system assist managers in challenging role of

decision-making is MIS.

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What Is a System?
⚫ A system is an array of components that work together
to achieve a common goal, or multiple goals, by
accepting input, processing it, and producing output in
an organized manner.

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Subsystems of MIS

⚫ Not every system has a single goal.

⚫ A system consists of several subsystems:
components of a larger system—with sub goals,
all contributing to meeting the main goal.
Subsystems can receive input from, and transfer
output to, other systems or subsystems.

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Subsystems of MIS…

⚫ MIS has been introduced as a broad concept

referring to a federation of subsystems.
⚫ Two approaches to defining the subsystems of
an MIS are according to the
⚫ Organizational functions (marketing, engineering, finance,
inventory control, production control, assembly control)
which they support and
⚫ Managerial activities for which they are used.

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 Continued…
⚫ The database is the primary means of integration of the
various subsystems.
⚫ A data item that is stored or updated by one subsystem is
then available to the other subsystems.
⚫ For instance, the sales and inventory information used by
the marketing subsystem is supplied through the
logistical subsystem;
⚫ The same data is used by the manufacturing subsystem
for production planning and scheduling.

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Open vs. Closed Systems
⚫ Closed System
⚫ Stands alone
⚫ No connection to other systems

⚫ Open System
⚫ Interfaces and interacts with other systems
⚫ Gets information from and provides information to
other systems
 Contemporary Approaches to MIS
⚫ Multiple perspectives on MIS show that the study of
MIS is a multidisciplinary field.
⚫ No singe theory or perspective dominates.

⚫ In general, the field can be divided into technical and

behavioral approaches.

⚫ IS are socio-technical systems. Though they comprise

machines, devices and “hard” physical technology, they
still require substantial social, organizational, and
intellectual investments to make them work properly.

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 Continued…
Contemporary views to MIS

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 Technical Approach
⚫ The technical approach to MIS emphasizes
mathematical based models to study information systems
as well as the physical technology and formal
capabilities of these systems.
⚫ The disciplines that contribute to technical approach are:
⚫ Computer science is concerned with establishing theories of
computability, and methods of efficient data storage and
access.
⚫ Management science emphasizes the development of models
for decision making and management practice.
⚫ Operations research focuses on mathematical techniques for
optimizing selected parameters of organization, inventory
control and transaction costs.

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Behavioral/Social Aspect

⚫ An important part of the IS field is concerned

with behavioral issues that arise in the
development and long-term maintenance of IS.
⚫ Issues such as strategic business integration,
design, implementation, utilization, and
management cannot be explored usefully with
the models used in the technical approach.
⚫ Other behavioral disciplines contribute
important concepts and methods.
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Continued…
⚫ Sociologists study how groups and organizations
shape the development of systems and also how
systems affect individuals, groups, and
organizations.
⚫ Psychologists study how human decision makers
perceive and use formal information; they also
study how people deal with the changes brought
about by new technology.
⚫ Economists study the impact systems have on
control and cost structures within the firm and
within the markets.

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Sociotechnical Systems

⚫ Adopting a socio-technical systems perspective

helps to avoid a purely technological approach to
IS.
⚫ For instance, the fact IT is rapidly declining in
cost and growing in power does not necessarily or
easily translate into productivity enhancement or
bottom-line profits.

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The Evolution and Characteristics
of the Information Age

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The Evolution of the Information Age
⚫ Agricultural Age: The period up to the 1800s,
when the majority of workers were farmers
whose lives revolved around agriculture.

⚫ Industrial Age: The period from the 1800s to

1957, when work processes were simplified
through mechanization and automation.

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The Evolution of the Information Age…….

⚫ Information Age: The period that began in

1957, in which the majority of workers are
involved in the creation, distribution, and
application of information.
⚫ Knowledge Workers: Workers involved in the
creation, distribution, and application of information.

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The Characteristics of the Information Age

⚫ An information-based society has arisen.

⚫ Information Society: A society in which
more people work at handling information
than at agriculture and manufacturing
combined.
⚫ Businesses depend on information
technology to get their work done.

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The Characteristics of the Information Age…..

⚫ Work processes are being transformed to increase

productivity.
⚫ Work Processes: The combination of activities that
workers perform, the way they perform those
activities, and the tools they use.
⚫ Productivity: The relationship between the results of
an activity (output) and the resources used to create
those results (inputs).
⚫ Effectiveness: The extent to which desirable results
are achieved.

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The Characteristics of the Information Age…..

⚫ IT provides the means to rethink/recreate/reengineer

conventional business processes.
⚫ Reengineering: The reshaping of business processes
to remove barriers that prohibit an organization from
providing better products and services and to help the
organization capitalize on its strengths.
⚫ Business Processes: Collections of activities, often
spanning several departments, that take one or more
kinds of input and create a result that is of value to a
company’s customers.

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The Characteristics of the Information Age…..

⚫ Success in business is largely determined by the

effectiveness with which IT is used.
⚫ IT is embedded in many products and services.
⚫ Reengineering efforts to attain greater
productivity:
⚫ Industrial Age - Division of Labor: Separation of
work process into component task, with different
workers specializing in each of the tasks.
⚫ Information Age – Teamwork, Interconnection, and
Shared Information.
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What is Information Technology?
⚫ A term used to refer to a wide variety of items
and abilities used in the creation, storage, and
dispersal of data and information.
⚫ IT configured to collect, manipulate, store, and
process data into information.
⚫ The technology infrastructure is a set of shared IS
resources that form the foundation of each
computer-based information system(CBIS).

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What is Information Technology?...

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What is Information Technology?
⚫ Hardware
⚫ Software

⚫ Database

⚫ Telecommunication

⚫ Networks

⚫internet
⚫intranets
⚫extranet
⚫ People

⚫ Procedures
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 World Wide Web

THE END

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 Quiz
⚫ Explain how information systems are
transforming business?

⚫ Identify and Explain the Contemporary

Approaches to MIS

⚫ What is System and Sub-system?

Explain briefly.
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