Management Information

System
INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM
Management Information
Systems
 Management information systems (MIS) is the study and application of information systems
that organizations use for data access, management, and analytics.
 For MIS to be effective, we must understand and carefully map out business processes.
 Data must be accurate and timely, and hardware and software must be able to store and
manipulate it.
 A good MIS depends on the people who design, implement, and use it.
What is a
Management Information System?
 An MIS is a system that provides managers with the necessary information to make decisions
about an organization's operations.
 The MIS gathers data from various sources and processes it to provide information tailored
to the managers' and their staff's needs.
 While businesses use different types of systems, they all share one common goal: to provide
managers with the information to make better decisions.
 In today's fast-paced business environment, having access to accurate and timely
information is critical for success.
 MIS allows managers to track performance indicators, identify trends, and make informed
decisions about where to allocate resources.
Management Information
Systems vs. Computer Science
 While MIS and computer science share some similarities, they differ fundamentally in their
focus.
 Management information systems (MIS) examines how people use technology to manage
information, covering both the hardware and software involved in storing, processing, and
retrieving data.
 In contrast, computer science focuses on the inner workings of computers, including the
design and implementation of computer systems.
Importance of Management
Information Systems for Businesses
 MIS allow businesses to have access to accurate data and powerful analytical tools to
identify problems and opportunities quickly and make decisions accordingly.
 A management information system should do the following:
1. Provide information needed to make decisions
2. Can give a competitive edge by providing timely, accurate information
3. Can help to improve operational efficiency and productivity
4. Allows to keep track of customer activity and preferences
5. Enables to develop targeted marketing campaigns and improve customer service
Capabilities of a
Management Information System
 Data collection and storage.
 Data processing.
 Data management.
 Enhanced efficiency.
 Improved decision-making.
 Risk management.
 Management reporting systems.
 Sales and marketing systems.
The Needs of a
Management Information System
 Access to accurate and timely information has become critical for making business decisions
in every organization across industries.
 A management information system collects, stores and analyses business data to help
managers oversee the various operations in an organization.
 Management information systems help in managing data, analyzing trends, strategic
planning, problem-solving, and improving communication.
 Common types of MIS include:
 transaction processing systems,
 expert systems,
 decision support systems,
 enterprise collaboration systems, and
 executive information systems.
Batch Transactions, On-Line, Real-
Time Transaction Processing
 In a batch processing system, transactions are accumulated over a period of time and
processed as a single unit, or batch. For example, a store may update its sales records every
day after the store closes.
 Online Transaction Processing is a type of data processing that consists of executing a
number of transactions occurring concurrently—online banking, shopping, order entry, or
sending text messages, for example. These transactions traditionally are referred to as
economic or financial transactions, recorded and secured so that an enterprise can access
the information anytime for accounting or reporting purposes.
 Real-time transaction processing focuses on
 enforcing time constraints of transactions, i.e., meet time constraints on invocation and completion, and
 ensuring temporal consistency of data, i.e., data should be valid/fresh at the time of usage.
 The successful integration of time-cognizant behavior and transaction processing into a
database system is generally referred to as a real-time database system (RTDB).
The Difference Between Real-
Time, Near Real-Time, and Batch
Processing
Type of Data Processing When do you need it?

Real-time When you need information processed immediately (such as at a

bank ATM)

Near real-time When speed is important, but you don’t need it immediately (such
as producing operational intelligence)

Batch When you can wait for days (or longer) for processing (Payroll is a
good example.)
What is Real-Time Processing
 Real-time processing requires a continual input, constant processing, and steady output of
data.
 A great example of this processing is data streaming, radar systems, customer service
systems, and bank ATMs, where immediate processing is crucial to make the system work
properly.
 Spark is a great tool to use for this processing.

Data Stream Analytical Analytics &

Ingestion
Sources Processing Data Store Reporting
What is Near Real-Time
Processing
 This processing is when speed is important, but processing time in minutes is acceptable in
lieu of seconds.
 An example of this processing is the production of operational intelligence, which is a
combination of data processing and Complete Event Processing (CEP). CEP involves
combining data from multiple sources in order to detect patterns.
 It’s useful for identifying opportunities in the data sets (such as sales leads) as well as
threats (detecting an intruder in the network).
 Operational Intelligence, or OI, should not be confused with Operational Business
Intelligence(OBI), which involves the analysis of historical and archived data for strategic and
planning purposes. It is not necessary to process OBI in real time or near-real time.
 Examples of near real-time processing are processing sensor data, IT systems monitoring,
financial transaction processing
What is batch processing
 Batch processing is even less time-sensitive. In fact, batch processing jobs can take hours, or
perhaps even days.
 Batch processing involves three separate processes.
 First, data is collected, usually over a period of time.
 Second, the data is processed by a separate program.
 Thirdly, the data is output.
 Examples of data entered in for analysis can include operational data, historical and archived
data, data from social media, service data, etc.

Data Pre- Staged Operational

Sources validation Documents Validation Data
Principles of Reporting
 In this new era of emerging technologies, management information systems have become a
vital part of successfully running a company.
 Under Management Information System, information is provided in the form of reports.
 An MIS report is used to highlight the day to day business activities, which enables you to
monitor your organization’s progress.
 These reports provide critical insights during decision making. It serves as a reference point
to monitor your business and communication.
 Reporting system should be such that the information contained in the reports should
conform to the requirements of the decision makers.
 Reports are prepared for every level of management from top to bottom.
 So that mangers can get timely information about the performance of their subordinates.
Principles of Reporting
 There are three levels of management in every organization – top level, middle level and lower level.
 At top level of management, the executives and managers need information relating to external
environment which depicts the opportunities available in the market, the probable threats coming
from external environment in the form of changing government policies or competitors strategies.
They also need internal information relating to strengths and weaknesses of the company so that the
strengths can be utilized properly and more opportunities can be created and weaknesses can be
converted into strengths.
 Middle level managers need information relating to execution and implementation of various policies
and plans of the organization.
 Lower level managers are in direct contact with employees they need to know performance of
employees. They also get directions from the superiors and executives in the form of news, circulars,
notices, etc. and need to send reports of performance of various resources to the top level.
 The information to be presented and the method of reporting should be in accordance with specific
requirements of these levels of management.
 Principles of Reporting
Following are some guiding principles regarding reporting:
a. More detailed reports should be prepared for lower level of management while more
summarized reports should be prepared for top level management.
b. More frequent reports are required for lower level of management while less frequent
should be the period of reporting for top level management.
c. Lesser number of reports is required for lower level of management, while large number of
reports is required for top level of management.
Types of Reports
 Scheduled reports
 Produced periodically or on a schedule (daily, weekly, monthly, yearly)
 Key-indicator report
 Summarizes the previous day’s critical activities
 Typically available at the beginning of each day
 Demand report
 Give certain information at a manager’s request
 Exception report
 Automatically produced when a situation is unusual or requires management action
Types of Reports
1. The Summary Reports 11. Fund Flow Statement
2. The Trend Reports 12. Budgeted & Actual Profit Report
3. The Exception Reports 13. Machine Utilization Report
4. On-Demand Reports 14. Predictive Reports
5. Financial Reports 15. Report on The Idle Time
6. Inventory Reports 16. Abnormal Losses Report
7. Sales Reports 17. Cost Reports
8. Budget Reports 18. Statistical Publications
9. Production Reports 19. Orders in Hand Report
10. Cash Flow Statements 20. Other Reports
What is Information Resources
Management (IRM)
 Information Resources Management (IRM) is the planning, budgeting, organizing, directing,
training, and control associated with an organization’s information.
 The term encompasses both information itself and the related resources, such as personnel,
equipment, funds, and technology.
 Information Resource Management planning is critical to businesses long-term success and
viability.
 There are three classes of information resources:
1. Business Resources: Enterprises, Business Functions, Positions (Jobs), Human/Machine Resources,
Skills, Business Objectives, Projects, and Information Requirements.
2. System Resources: Systems, Sub-Systems (business processes), Administrative Procedures (manual
procedures and office automation-related), Computer Procedures, Programs, Operational Steps,
Modules, and Subroutines.
3. Data Resources: Data Elements, Storage Records, Files (computer and manual), Views, Objects,
Inputs, Outputs, Panels, Maps, Call Parameters, and Data Bases.
Information Resources
Management (IRM)
Resource
Management

Technology Distributed
Management Information Management
Resource
Management

Functional Strategic
Management Management
The Ingredients of IRM
 Comparing the IRM program to a three-legged stool, the risk leaders opined that the people,
processes, and technology are the three core elements, adding that the stool is as strong as
the weakest leg.
 For an IRM program to be successful, particularly in the current fast-paced and complex
operational environment, it is imperative to transition to a more mature framework—one
that strikes the right balance between these three pillars.
 It is important to note here that organizations often do not realize that they have become
over-dependent on technology while ignoring the importance of skilled and experienced
people and well-designed processes.
 The best practice is to find the right mix—to try and achieve consistency across all three
layers at all different risk categories