Chapter One:

INTRODUCTION TO MIS

1
CHAPTER OBJECTIVES

Upon Successful Completion Of This

Chapter, You Will Be Able To:
• Definition And Importance Of MIS
• Subsystems Of MIS
• Contemporary Approaches To MIS
• The Evolution And Characteristics Of The Information Age
• What Is Information Technology?
1.1 DEFINITION AND IMPORTANCE OF MIS

Is the process or What managers 2. They analyze

do? 3. They control
activities that the tasks
the performance
describe what 1. They plan by necessary for the
of the work by
mangers do in the setting strategies operational plan,
setting
Management operation of their and goals and set, these tasks up
performance and
organization : selecting the best into homogenous
standards and
plan, organize, course of action groups and
avoid deviations
initiate and to achieve the assign authority
from standards.
control operation. plan delegation.
 CONTD…

In addition, they
were spending
another $650
5. They adopt online In 2012, world billion on business
4. Because decision businesses were and management
collaboration and
making is such a spending over $540 consulting and
social networking
fundamentals billion on information
prerequisites to each
software to improve
systems hardware,
services—much of
coordination, which involves
of the fore going software, and
collaboration, and telecommunications redesigning firms’
process.
knowledge sharing. equipment. business
operations to take
advantage of these
new technologies.
 Information
Information we mean data that have been shaped into a form that is meaningful and
useful to human beings.
information
 FIRST LET US LOOK AT DATA VS INFORMATION
Data Information
 Data Are raw (unprocessed) facts
about people, objects, events in an
 An Information Is data that have been
organization(ex. All the sales processed and presented in A form
orders for the year) suitable for human interpretation. (How
many of each product were ordered in
each month, may be shown on A graph)
 Information Is the lifeblood of any  The Characteristics Of Good Information
organization, commercial or non
Are Relevance, Timeliness, Accuracy,
profit , it is essential to sound
Cost-effectiveness, Reliability, Usability,
problem solving and decision
Exhaustiveness, And Aggregation Level.
making, upon which business
success is built.
First let us look at data vs information

Data, in contrast, are

streams of raw

Facts and figures that are not

currently being used in and
decision process and usually
take the form of historical
records that are recorded and
filed with out immediate intent
to retrieve for decision making.

Examples:
ledger
 CONTD…

Information Information is a major

Information consists of data
we mean driver of economic
that have been change restructuring Faster data
data that retrieved
Informatio
business, affecting skills communicati
have been processed or n Data and employment,
shaped into otherwise used placed in a ons are seen
contributing to growth
a form that for informative or as means of
meaningfu and facilitating the
increasing
is inference opening of markets
purposes, l and through the wider and productivity
meaningful arguments, or as useful
and useful to faster flow of and gaining
human
a basis context for information and comparative
forecasting or knowledge.
beings. decision making.
an end advantage.
user.
 2. A group of
System 3. A group of
1. a set of elements interrelated or interrelated
joined together for components working
a common interacting together toward a
objective. elements forming common goal by
accepting inputs and An assembly of
a unified whole. methods, procedures,
producing outputs in an
organized or techniques unified
transformation process. by regulated
interaction to form an
organized whole.

5. An organized
collection of people,
machines, and
methods required to
accomplish a set of
specific functions.
 MIS
• Is an integrated, computer
The based , user-machine
automating of system that provides
information for supporting
routine and operation and DM
functions
structured • MIS is the most common
tasks to form of management
support system
support a • Management information
systems (MIS) provide
decision information in the form of
reports and displays to
making managers and many
business professionals.
• For example, sales
CONTD…
managers may use their
networked computers and Web
browsers to receive
instantaneous displays about
the sales results of their
products and access their
corporate intranet for daily sales
analysis reports that evaluate
sales made by each salesperson
 OBJECTIVE OF MIS

• MIS capture data from various internal and

external sources of the organization. Data capturing
Data Capturing may be manual or through computer terminals.

• The captured data is processed to convert into the

Processing of required information. Processing of data is done by
such activities as calculating, sorting, classifying,
Data and summarizing.
 CONTD…
• MIS stores the processed or unprocessed data for future
Storage of use. If any information is not immediately required, it is
saved as an organization record, for later use.
Information
• MIS retrieves information from its stores as
Retrieval of and when required by various users.
Information
• Information, which is a finished product of MIS, is
Dissemination of disseminated to the users in the organization. It is
Information periodic or online through a computer terminal.
 Characteristics of MIS
• The information system follows a System’s approach. The
System system’s approach implies a holistic approach to the study of

Approach
system and its performance in the light for the objective for
which it has been constituted.

• The top-down approach must be followed while designing the

MIS. The top-down approach suggests that the system
development starts from the determination of management
Management needs and overall business objectives.
• The MIS development plan should be derived from the overall
Oriented business plan.
• Management oriented characteristic of MIS also implies that the
management actively directs the system development efforts.
Forces contribute for the Existence of MIS

Two great categories

1. The increased complexity of Business
A. Technological Revolution
B. Research and Development
C. Product changes
D. The information explosion
 CONTD…

C. Operation
research or
A. The managerial
2. The theory of B. A better science D. The
increased techniques that
complexity of Information understanding permit an electronic
Management feed back of DM process experimental or computer
system simulation
approach to
complex problem
 Importance of MIS
It support decision
making in both
structured and
It intended to be
unstructured woven in the fabric
problem of the organization,
environment not standing alone

Support It is made of people,

decision computers,
making at all procedures,
levels of the databases, interactive
organization query facilities.
 CONTD…
Enables managers
to compare
Provides support results to
to managers as established
they work to company goals
achieve corporate and identify
goals problem areas
and opportunities
for improvement
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
 TECHNICAL APPROACH

The disciplines that

The technical contribute to the technical
approach to approach are computer
information systems science, management
science, and operations Operations research
emphasizes focuses on mathematical
research. Management science
mathematically techniques for optimizing
based models to emphasizes the
selected parameters of
Computer development of models
study information science is concerned for decision-making and
organizations, such as
systems, as well as transportation, inventory
with establishing management practices.
control, and transaction
the physical theories of costs.
technology and computability, methods
formal capabilities of of computation, and
these systems. methods of efficient data
storage and access.
 BEHAVIORAL APPROACH

For instance, sociologists

study information systems The behavioral approach
with an eye toward how does not ignore
Issues such as strategic groups and organizations technology. Indeed,
business integration, shape the development of information systems
An important part of design, implementation, systems and also how systems
affect individuals, groups, and technology is often the
the information utilization, and
organizations. Psychologists stimulus for a behavioral
systems field is management cannot be
study information systems problem or issue. But the
explored usefully with the
concerned with models used in the
with an interest in how human focus of this approach is
decision makers perceive and generally not on technical
behavioral issues that technical approach. Other use formal information.
arise in the solutions. Instead, it
behavioral disciplines Economists study information
concentrates on changes
development and long- contribute important systems with an interest in
in attitudes, management
concepts and methods. what impact systems have on
term maintenance of control and cost structures and organizational policy,
information systems. . within the firm and within and behavior.
markets.
• TECHNICAL APPROACH
The technical approach to information systems emphasizes
mathematically based models to study information systems, as
well as the physical technology and formal capabilities of
these systems.

• BEHAVIORAL APPROACH
Concerned with behavioral issues that arise in the
development and long-term maintenance of information
systems.
Ex how groups and organizations shape the development of
systems and also how systems affect individuals, groups,
and organizations
SUBSYSTEMS OF AN MIS
 SUBSYSTEMS OF AN MIS

TWO APPROACHES TO DEFINE SUBSYSTEM

1. Organizational Function Subsystem:
• Supports the various functions of an organization.
• Ex. Marketing, production, personnel etc.

2. Activity Subsystem:
Supports the activity for which they are used.
Ex. Transactions, operations etc.
 MIS SUBSYSTEMS
Organisational Functions

MANAGEMENT
PROCESSING
INFORMATION
MARKETING

PERSONNEL
PRODUCTION

LOGISTICS

FINANCE

TOP
STRATEGIC
PLANNING

ACTIVITIES
MANAGEMENT
CONTROL

OPERATIONAL
CONTROL

TRANSACTION
PROCESSING

M
 Organisational Function Subsystems
Major Functional Some Uses
Marketing Information System Sales forecasting, Sales planning, Sales analysis

Manufacturing Information System Production

Subsystems planning & scheduling, cost control analysis

Personnel Information System Salary Admn., Planning HR requirement, performance

analysis
Accounting Information System Financial Analysis, cost analysis, Capital planning, etc.

Logistics Information System Planning & control of Purchasing, inventories,

distribution.
Information Processing System Planning of Information System, cost – effectiveness
analysis
Top Management System Strategic Planning, resource allocation
 Activities Subsystems
Activity Subsystems Some Uses

Transaction Processing System Processing of orders, shipments, & receipts

Operational Control System Scheduling of activities and performance

reports

Management Control System Formulation of Budgets & resource allocation

Strategic Planning System Formulation of Objectives & strategic plan

 SUB SYSTEMS OF MIS

Transaction Processing System:

•A transaction processing system
(TPS) is A type of information system
that collects, stores, modifies and
retrieves the data transactions of an
organization.
SUB SYSTEMS OF MIS

• Management Reporting System:

•A management reporting system
is essentially A mechanism for
monitoring the mission of an
organization.
 Decision Support System (DSS) :
• that support your decision- making activities.
• analyzes business data and provide interactive
information support to managers and business professionals
during the decision-making process, from problem
recognition to implementing your decision.

• is information systems at the organization’s management level that

combine data and sophisticated analytical models or data analysis tools
to support semi-structured and unstructured decision making.

• Dss- focus on problems that are unique and rapidly changing,

for which the procedure for arriving at a solution may not be fully
predefined in advance.

• A well-designed DSS aids decision makers in compiling a variety of

data from many sources: raw data, documents, personal knowledge
from employees, management, executives and business models.
 SUB SYSTEMS OF MIS
Office Information System:
• An advanced word processing system in data
preparation division that processes and stores large
volumes of census documents.
An office information system, or is, is an information system that
uses hardware, software and networks to enhance work flow and
facilitate communications among employees.
.These systems include a wide range of support facilities, which
include word processing, electronic filing, electronic mail,
message switching, data storage, data and voice communication
etc.
• With an office information system, for example, a registration
department might post the class schedule on the internet and e-
mail students when the schedule is updated.
 Information Age
The increasing importance of information through time both to
society and economies has been used to suggest that we are now in
the ‘information age’.

When did the information age begin? (Read

and try to justify, share ideas and discuss on it)

The ‘information age’ takes over from the ‘industrial age’

which in turn follows the ‘agricultural age’.
The Information Age (also known as the Computer
Age, Digital Age, or New Media Age) is a
historical period that began in the mid-20th century,
characterized by a rapid epochal(Significant) shift from
the traditional industry established by the
Industrial Revolution to an economy primarily based
upon information technology.

The onset of the Information Age can be associated

with the development of transistor technology.
 CONTD…
In the agricultural age, the key resources were the land and the people who
worked on it and defended it.
When products were first produced, it was usually one person who produced the
whole product.

In the industrial age, mass-production of products became common place with

different people working on different aspects of the product, supported by machinery.

Capital became a key strategic resource in addition to people.

In the information age, information and knowledge are critical to organizational

success and information becomes a key strategic resource also.
 CONTD…
Information is used to understand the needs of markets, support the development of
products and govern and control the direction of businesses.

Furthermore, in the information age,

A. pure information services, ranging from online newspaper subscriptions to analysts’

B. reports and alerts about particular industries

C. marketing databases to promote products to potential customers.

 Information in today’s organization
Organizational
The greatest performance can be
contribution that improved by utilizing
information makes information resources to
help deliver better-
to organizations is quality products or
as services more profitably.

a resource it Individual performance

improve the can be improved by
providing employees
performance of with more relevant,
organizations and timely information to
the individuals that support their
work within them. decisions.
 CONTD…

In this global information society—where

Critically important to the survival and success information travels through cyberspace without
of an organization is effective management of the constraints of time, distance and speed—this
information and related Information Technology criticality arises from the:
(IT). Increasing dependence on information and the
systems that deliver this information.
 CONTD…
■ Increasing vulnerabilities and a wide spectrum of
threats, such as cyber threats and information warfare

■ Scale and cost of the current and future

investments in information and information systems in
critically increased

■ Potential for technologies to dramatically change

organizations and business practices, create new
opportunities and reduce costs.
Circular irrigation system in the
desert. Dubai, UAE.
 Information Technology

Information technology
This benefit occurs
can help all kinds of
businesses improve the
irrespective of whether Information
the information technologies and
Information efficiency and
technology is used to systems are, quite
technologies, effectiveness of their
support product simply, an
including Internet- business processes,
development teams,
based information managerial decision
customer support essential
systems, are playing making, and workgroup ingredient for
processes, e-
vital and expanding collaboration, which business success in
commerce
roles in business. strengthens their today’s dynamic
transactions, or any
competitive positions in
rapidly changing
other business global environment.
activity.
marketplaces.
…learning never ends
the journey of excellence
continues…