Management Information technology

1. Management Information System
Unit: 1
Understanding MIS

2. Introduction to MIS
• MIS is an organized integration of hardware and software
technologies, data, processes, and human elements.
• It is a software system that focuses on the management of
information technology to provide efficient and effective
strategic decision making.
• MIS is the acronym for Management Information
Systems.
• MIS is a set of procedures which, when executed, provides
information to support decision making.

3. • It’s an integrated user-machine system for providing
information
• It is used to support the operations, management, analysis, and
decision-making functions in an organization
Introduction to MIS

4. • Management: Management is the art of getting things done through
and with the people in formally organised groups.
• Information: Information is data that is processed and is presented
in a form which assists decision-making. It may contain an element
of surprise, reduce uncertainty or provoke a manager to initiate an
action.
• System: A system is an orderly grouping of interdependent
components linked together according to a plan to achieve a specific
goal. The term system is the most loosely held term in management
literature because of its use in different contexts.
Introduction to MIS

5. Management Information System

6. Objectives of MIS
• Data Capturing
MIS capture data from various internal and external sources of the
organization. Data capturing may be manual or through computer
terminals.
• Processing of Data
The captured data is processed to convert into the required information.
Processing of data is done by such activities as calculating, sorting,
classifying, and summarizing.
• Storage of Information
MIS stores the processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organization
record, for later use.

7. Objectives of MIS
• Retrieval of Information
MIS retrieves information from its stores as and when required by
various users.
• Dissemination of Information
Information, which is a finished product of MIS, is disseminated to
the users in the organization. It is periodic or online through a
computer terminal.

8. Characteristics of MIS

9. • System Approach
The information system follows a System’s approach. The
system’s approach implies a holistic approach to the study of
system and its performance in the light for the objective for
which it has been constituted.
• Management Oriented
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
needs and overall business objectives.
Characteristics of MIS

10. • Need-Based
MIS design and development should be as per the information
needs of managers at different levels, strategic planning level,
management control level and operational control level. In
other words, MIS should cater to the specific needs of
managers in an organization’s hierarchy.
• Exception Based
MIS should be developed on the exception-based reporting
principle, which means an abnormal situation, i.e. the
maximum; minimum or expected values vary beyond
tolerance limits. In such situations, there should be exception
reporting to the decision-maker at the required level.
Characteristics of MIS (Continued)

11. • Future Oriented
Besides exception-based reporting, MIS should also look at
the future. In other words, MIS should not merely provide past
or historical information; rather it should provide information,
on the basis of projections based on which actions may be
initiated.
• Integrated
Integration is a necessary characteristic of a management
information system. Integration is significant because of its
ability to produce more meaningful information.
Characteristics of MIS

12. Management Information Systems –
purpose
• Decision Support
• Efficiency
• Productivity
• Customer Service
• Strategic Planning
• Communication
• Compliance: MIS helps organizations ensure
compliance with legal and regulatory
requirements

13. Information as a strategic resource
This information can be used to gain insights
into consumer behavior, market trends, and
competitive intelligence, among other things
1.Competitive Advantage
2. Better Decision Making
3. Risk Management
4. Improved Efficiency

14. Use of information for competitive
advantage
• Here are some ways in which organizations
can use information for competitive
advantage:
1. Market Research
2. Customer Relationship Management
3. Competitive Intelligence
4. Supply Chain Optimization
5. Predictive Analytics

15. MIS as an instrument for the
organizational change
• Process Improvement
• Data-Driven Decision Making
• Communication and Collaboration
• Strategic Planning
• Organizational Learning

16. CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS

17. 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. The disciplines that contribute to the
technical approach are computer science, management science, and operations
research.
• Computer science is concerned with establishing theories of computability,
methods of computation, and methods of efficient data storage and access.
• Management science emphasizes the development of models for decision-making
and management practices.
• Operations research focuses on mathematical techniques for optimizing selected
parameters of organizations, such as transportation, inventory control, and
transaction costs.

18. Behavioural Approach
a)Based on the impact of the behavior and also
on the response of the people in the
organization.
b) Motivational Feasibility forms a very
important and demanding part of such an
approach towards MIS development.

19. 3. The Socio Technical Approach
a)In the beginning, this approach was finding it hard
to survive – but now it is being accepted worldwide
and is also being implemented at a very large scale.
b) Involves key involvement of both of the above
explained approaches.
c) Improves the performance of the information
system as a whole.

20. Advantages/Impact of MIS
• Increased customer satisfaction
• Improved quantity and quality of information
• Improved quality and quantity management decisions
• Improved responsiveness number of the competitor’s
condition
• Improved operational efficiency and flexibility
• Improved quality of internal and external communications
• Improved quality of planning
• Improved quality control and supervision

21. ROLE OF MIS
• Decision making Management Information System (MIS)
plays a significant role in the decision-making process of any
organization. In any organization, a decision is made on the
basis of relevant information which can be retrieved from the
MIS.
• Coordination among the department: Management
Information System satisfy multiple need of an organization
across the different functional department.
• Finding out Problems As we know that MIS provides
relevant information about every aspect of activities.

22. ROLE OF MIS
Hence, if any mistake is made by the management then MIS,
information will help in finding out the solution to that problem.
• Comparison of Business Performance MIS store all past data
and information in its Database. That why the management
information system is very useful to compare business
organization performance.
• Strategies for an Organization Today each business is running
in a competitive market. An MIS supports the organization to
evolve appropriate strategies for the business to assent in a
competitive environment.

23. Information Technology –
Characteristics
Information Technology (IT) refers to the use of computers, software, and
telecommunications equipment to store, retrieve, transmit and manipulate
data. IT is a rapidly evolving field that has transformed the way organizations
operate and communicate.
1. Digital
It processes and stores data in binary form (1s and 0s). This makes it easier to
store, manipulate, and transmit large amounts of data quickly and efficiently.
2. Networked
IT relies heavily on computer networks to connect devices and systems
across different locations.
3. Dynamic
New technologies, applications, and platforms are introduced regularly, and
IT professionals need to keep up with these changes to remain relevant.

24. 4. Scalable
They can handle increasing amounts of data and traffic
without sacrificing performance.
5. Interdisciplinary
6. Ubiquitous
IT is ubiquitous, meaning that it is present in all aspects of
modern society. It is used in business, education, healthcare,
government, and entertainment, among other fields.
7. Innovative

25. Information Technology emerging
trends
• Cloud Computing
Cloud computing is a technology that allows users to access
computing resources over the internet, rather than through
local servers or personal devices.
• Artificial Intelligence (AI) and Machine Learning (ML)-
AI and ML are technologies that enable machines to learn
from data and make decisions based on that learning
• Internet of Things (IoT)
Network of connected devices and sensors that collect and
transmit data over the internet. E.g. smart homes,
wearables, and industrial automation

26. • Cybersecurity
• Blockchain
Blockchain is a distributed ledger technology that enables secure and
transparent transactions between parties. E.g. used in industries, including
finance, healthcare, and supply chain management.
• Edge Computing
Enables data processing and analysis to be done at the edge of the network,
rather than in the cloud or data center. E.g. autonomous vehicles and smart
cities
• Quantum Computing
Quantum computing is a new computing technology that uses quantum bits,
or qubits, to perform calculations. Quantum computing has the potential to
solve complex problems that are beyond the capabilities of classical
computers, such as drug discovery and climate modelling.

27. IT Capabilities and their
organizational impact
• Enterprise Resource Planning (ERP)
ERP systems integrate all of an organization's business functions into a single
system
• Customer Relationship Management (CRM)
Can use it to track customer interactions, provide personalized service, and
identify opportunities for cross-selling or up-selling.
• Business Intelligence (BI):
BI systems enable organizations to analyze and interpret their data to make
better-informed decisions.
• Collaboration Tools
A company that implements collaboration tools such as video conferencing,
instant messaging, and document sharing can improve communication and
collaboration between teams, reduce travel costs, and enable remote work.
• Data Analytics

28. IT enabled services
• IT-enabled services (ITES) refer to the use of information technology (IT) to deliver
services to customers.
1. Business Process Outsourcing (BPO)
Involves outsourcing business processes to third-party providers. These providers use
IT systems to perform tasks such as data entry, customer service, and accounting.
2. Knowledge Process Outsourcing (KPO)
These providers use IT systems to perform tasks such as research, analysis, and
consulting.
3. Customer Service
This can include services such as live chat, email support, and social media
management.
4. E-commerce
Include online marketplaces, online shopping carts, and payment gateways.
5. Telemedicine
To provide medical services remotely, such as consultations, diagnosis, and treatment.

29. Transaction Processing System
• Transaction Processing System (TPS) is a type of information system
that is designed to process and manage transactions within an
organization
1. Point-of-Sale (POS) System
It is used to process sales transactions, manage inventory, and
generate reports.
2. Order Processing System
It is used to process orders, manage inventory, and track shipments.
3. Inventory Management System
It is used to track inventory levels, reorder products, and generate
reports.

30. 4. Banking System
A banking system is a type of TPS that is used to
manage banking transactions such as deposits,
withdrawals, and transfers.
5. Healthcare System
It is used to record patient data, manage
appointments, and generate reports. When a
patient visits a healthcare provider, the healthcare
system records the patient's data, updates the
medical history, and generates a report.

31. Transaction Processing System –
Characteristics
• Speed
• Accuracy
• Security
• Consistency
• Scalability-
The system must be able to handle an increasing
number of transactions without compromising its
performance.
• Availability- TPS must be available 24/7

32. • Data Integrity
The system must have data validation and
verification protocols to ensure that the data
entered into the system is accurate and
complete.
• Recovery
TPS must have a recovery mechanism to ensure
that the system can recover from any failures or
errors.

33. Transaction Processing System –
importance
• Improves Efficiency
Eliminates manual processing, reduces errors, and
speeds up the transaction process.
• Supports Decision Making
Information can be used to identify trends, track
performance, and monitor inventory levels
• Enhances Customer Service

34. • Ensures Data Accuracy
• Facilitates Integration
Integration allows organizations to share data
across different systems, which improves efficiency
and reduces duplication of effort.
• Supports Regulatory Compliance