(MIS)

Management Information
System
Teacher: Mohammad Naweed Niazi
Introduction: MIS

 Management
 Information
 System
MIS: Exploring Management

 Management
• Involves all aspect of
• Planning: Selecting Missions and objectives as well as the action to achieve them.
• Organizing: Establishing an intentional structure of roles for people to fill in a
Organization
• Staffing: Filling and keeping filled the positions in the organization structure.
• Leading: Influencing people so that they will contribute to organization and
groups goals.
• Controlling: Measuring and correcting individual and organization performance to
ensure that events conform to plan
Information:

 Information in MIS means the processed data that help the management in planning ,
controlling and operation. Data means all the facts arising out of the operations of the
concern.
MIS: Exploring Information
 Information coming from both External & Internal Source as a result of processing
huge amount of rapidly changing data with respect to
• Human Resource: Capabilities , Experience , Challenges , Morale Engagement with job
, pay & perks
• Operation: Inventory status , production rate present , expected & future , state of
equipment , quality assurance.
• Technology: Present , future , new products , future needs , changing customer needs
and technology possibilities.
• Finance and Accounts: Revenue , sales , profits , receivables , Amount payable , cash
flow market capital equity price etc.
• Environment – External & internal , Political condition , Economic state , social need ,
technological influence
• Market: Customer preference , competitor’s , moves , vender’s moods and responses
 Information

 When we define data correctly is information

 Processed data is information

MIS: Exploring System
 System: Data is processed into information with the help of a system.
A system is made up of input , processing , output and feedback of control.

 Computer
 Software
 Networking
 Holistic , logical and also Creative approach
 Fast , Responsive , Analytical , always available to support decision making.
 UNIT -1
Management Information System
 Thus MIS means a system for processing data in order to give proper information to the
management for performing its function.
Technically , A management information system provides information that organization
require to manage themselves efficiently and effectively. They are used to analyze and
facilitate strategic and operation activities.
Importance of MIS (What does it do)
Collect Process Disseminate Transaction Processing
Problem Identification Operational Control

Information Generation Strategic Planning

Communication Management Control

 Essential Requirements of an Effective MIS

1: Qualified System and Management Staff: The prerequisite of an effective MIS is that it
should be managed by qualified officers. These officers should have a mutual understanding about the
role and responsibilities of each other.
clearly the view of their fellow officers. For this , each organization should have two categories of
officers.

a) System and computer experts: who in additional to their expertise in their subject area they
Should also be capable of understanding management concept to facilitate the understanding of
problems asked by concern. They should also be clear about the process of decision making and
information requirements for planning.

b) Management experts: who should also understand quite – clearly the concept and operation of a
computer. This basic knowledge of computer will be useful will place them in a comfortable
positon , while working with system , technicians in designing or otherwise of the information
system.
 Essential Requirements of and effective MIS

2: Futuristic perspective: An effective MIS should be capable of meeting the future requirements
of its executives as well. This capability can be achieved by regular monitoring and updating the MIS.

3: Support of Top Management : For a management information system to be effective, it must

receive the full support of top management. The reason for this are.
a) Subordinate managers are usually lethargic about activities which do not receive the support their
superiors.
b) The resources involved in computer based information system are larger and are growing larger
and larger in view of importance gained by management information system.
Essential Requirements of and effective MIS

 4: Common database: It is an integrated collection of data and information which is utilized

by several information subsystem of an organization. A common database may be defined as s
super file which consolidates and integrates data records formerly stored in a separate data file.
Such a database can be organized as an integrated collection of data records into a single super file
or it can be organized as an integrate collection of several data file.

 5: Control and maintenance of MIS: Control of the MIS means the operation of the system
as it was designed to operate. Sometimes , users develop their own procedures or short cut
methods to use the system which reduce its effectiveness.
 Benefits of MIS

MIS when developed and implement in an organization can offer the following benefits to
any organization.
1. MIS increasing the productivity
MIS reduce time , errors and costs associated with processing information.
 To increase the productivity MIS uses online transaction processing (OL TP) OLTP
gathers the data as input , processes that input data and update the data to disseminate
the valuable information for an organization.
 MIS also improves the productivity by allowing customers to process their own
individual transaction through the use of a customer- integrated system ( CIS)
 Benefits of MIS

2. MIS an aid in decision- making

 MIS helps top management to find solutions to problems in a better way or help them
in decision – making by providing at correct time the relevant information
3. MIS helps in developing team work.
 MIS facilitates communication and information sharing between different team of an
organization.
 Electronic funds transfer (EFT) allows transfer of payment online without physical
sending money
4. MIS can helps in organization transformation.
 MIS helps organization to enter new markets at global level even and transfer the way
in which they do business.
 Role of MIS in Business organization

 MIS units are company wide.

 MIS must be integrated at all levels of company to facilitate the management in
decision making.

 MIS is used by the Top management

 The Top management of company must play an active role in designing , modifying
and maintaining management information system which is used at all levels in an
organization.
 Role of MIS in Business organization

Information system and information technology have become nowadays an important

component of any successful business and are considered as major function areas as other
functional area of any business organization like marketing , finance , production and HR.
Thus it is essential to understand that MIS is important because all business generate new
data on everyday basis and have a need for information about the various tasks which are
to be performed . Information and technology provide making leads to increase
productivity and quality work.
 Role of MIS in Business organization
 Supports the business process.
Treats input as a request from the customer and outputs as services to customer. Supports current
operations and use the system to influence further way of working.
 Supports Operation of a Business Organization.
MIS supports operations of a business organization by giving timely information , maintenance and
enhancement which provides flexibility in the operations of an organization.
 To support Decision Making.
MIS supports the decision making by employee in their daily operations. MIS also supports managers
in decision making to meet goals and objectives of the organization. Different mathematical models
and IT tools are used fro the purpose evolving strategies to meet competitive needs.
 Strategies for an organization.
Today each business is running in a competitive market. MIS supports the
organization to evolve appropriate strategies for the business to assented in a
competitive environment.
 Transaction Processing System(TPS)

Transaction: a piece of business that is done between people

 Sale
 Purchase
 Withdrawal
 Deposit
 Refund
 Transfer etc.
 Transaction Processing System(TPS)

 An information processing system for business transactions involving the collection ,

modification and retrieval of all transaction data.

 A type of information system that collects , stores , modifies and retrieves the data
transaction of an enterprise.

 Allows business to handle and manage transactions across the globe.

 Captures and processes every single transaction that takes place within the
organization.
 Transaction Processing System(TPS)

 Hotel reservation
 Railway ticket booking
 Chaque Clearance:
all the cheques are collected in drop box and processed together as a batch with a certain
delay (batch processing)
 Types of TPS

 Batch processing
 The processing of transaction takes place over batches.
 There is generally a time delay in this types of processing.
 No user Interaction
Real – time Processing
 Under real –time processing , every single transaction is processed with immediate
effect.
 There is no time delay in the real – time processing system.
 User interaction required
 Features / characteristics of TPS

 Reliability
 Fast Response
 Similar structure and Integrity
 Authorized Control
 User – friendliness
 Inflexible
Importance – Transaction Processing System

(TPS)
 Handling and Managing Operations
 Fast Response ( quick processing )
 Real time backup
 Information Technology (IT)

 The use of any computers , storage . Networking and other physical devices ,
infrastructures and processes.
 to create , process , store , secure and exchange all forms of electronic data.
 Example: Mobile phones , PCs , Radio , Apps , MS office etc.
 characteristics of Information Technology
(IT)
 Acquisition , storage , manipulation , management , transmission of data or information
 Real time access to information
 The development of information technology has made education system simpler , easer
and widespread. Now people of remote areas can also use technology for their
children’s education
 Effective and fast communication
 Easy availability of data
 Connect geographically dispersed area
 Helps police to nabbing criminals
 IT Enabled Services (ITeS)

 Are those services that have been transformed by information and communication
technology
 Enabling them to be digitized , codified and fragmented and
 Therefore able to be undertaken at any distance from the core business and final
customer.
 Are also known as remote services or web – enabled services.
 IT Enabled Services (ITeS)

 Educational Services (Online education)

 OTT(Entertainment Services)
 Digital Medical Equipment
 Online shopping
 Online Banking
Some other ITES services are
 KOP (Knowledge Process Outsourcing) (accounting , research web design)
 BPO (Business Process Outsourcing) (customer care , technical support)
 LPO (Legal Process Outsourcing)
 Call Centers
 Logistics Management.
 Management Support System

 Are computer – based System that provide information to manage for planning and
decision making.

 Are supposed to be used by managers or at least to support managers.

 Focus on managerial uses of information resources.

 The information provided by these systems is based on both the internal and external
data using various data analysis tools.
 Management Support System

 Are of three types

 Decision Support System

 Executive Information Support system \

 Expert System
 Decision Support System

 A computer program application used to improve a company’s decision – making

capabilities.
 It analysis large amount of data and presents an organization with the best possible
options available.
comparative sales figures between one week and next.
projected revenue figures based on new product sales assumptions
the consequences of different decision
 Decision Support System

 A typical DSS consists of three different parts:

 Knowledge database: containing information from both internal and external
sources.
It is a library of information related to particular subjects.
 The software system: is composed of models management system. Organization use
models to predict how outcomes will change with different adjustments to the system.
 User interface:
 Executive Information Support System

 A type of management support system that facilitates and supports senior executive
information and decision – making needs.

 It provide easy access to important data needed to achieve strategic goals in an

organization.

 It provides easy access to internal and external information relevant to organization

goals.
 Example: easy access to actions of competitors
 Executive Information Support System

 Provide critical information from MIS and DSS

 Features
 Drill – Down Capabilities: This helps the executive to get the details from particular
information. Eg. Drop in corporate sales in a particular region.
 Status Access , Trend Analysis and Exception Reporting:
 Personalized Analysis:
 Present Graphical , Tabular and / or Textual Information:
 Navigation of Information:
 Group Decision Support System

 An interactive computer – based system that facilitates a number of decision – makers

(working together in a group) in finding solutions to problems that are unstructured in
nature.

 Are designed in such a way that they take input from multiple users interacting
simultaneously with the system to arrive at a decision as a group.
 Expert System

 Chatbot , Voice Recognition:

 A computer program that uses artificial intelligence(AI) technologies to simulate the
judgment and behavior of a human or an organization that has expert knowledge and
experience in a particular field.
 Draws Expert Knowledge
 Stores in Knowledge base
 What is Expert System?

 The expert system are the computer applications developed to solve complex problems
in a particular domain at the level of extra – ordinary human intelligence and expertise.
Characteristics of Expert System:
 High performance
 Understandable
 Reliable
 High responsive
Capabilities of Expert System:
 Advising
 Instructing and assisting human in decision making
 Demonstrating