MANAGEMENT INFORMATION
SYSTEM
ABHILASH KK
ASST.PROF.-M.E DEPT.

BASIC CONCEPTS
Management Information System (MIS) provides
information for the managerial activities in an
organization. The main purpose of this research is,
MIS provides accurate and timely information
necessary to facilitate the decision-making process
and enable the organizations planning, control, and
operational functions to be carried out effectively.
Management Information System (MIS) is basically
concerned with processing data into information and
is then communicated to the various Departments in
an organization for appropriate decision-making.

• The term "MIS" arose to describe such
applications providing managers with
information about sales, inventories, and other
data that would help in managing the
enterprise. Today, the term is used broadly in a
number of contexts and includes decision
support systems, resource and people
management..

DEFINITION
• The MIS is defined as an integrated system of
man and machine for providing the
information to support the operations, the
management and the decision making function
in the organization.

1) Right Information
2) To the right person
3) At the right place
4) At the right time
5) In the right form
6) At the right cost

EXAMPLE

DATA
• Data is a collection of facts, such as numbers,
words, measurements, observations or even
just descriptions of things
• Types of data
1.Qualitative data
2.Quantitative data

INFORMATION
• It is processed data
• Data  processing  information

DECISION MAKING
• Decision making is the study of identifying and
choosing alternatives to a problem based on
values and preferences of the decision maker.
• Decision making is one of the central activities
of the management and is the part of any
process of implementation
• Three phases- 1. Intelligence 2. design
3.choice

FRAME WORK FOR INFORMATION
SYSTEM
• Activities of organization are of three kinds
1.Operational
2. Tactical
3.Strategic
these activities need different information so
frame work for information system also
designed based on these activities

• A frame work

1.Operational systems –its primary concern is to collect,
validate, and record transactional data describing the acquisition or
disbursement of corporate records
• Financial data on accounts receivable, account payable, payroll,
must be recorded as they occur
• Characteristics of such information are
• Repetitiveness
• Predictability
• Emphasis on the past
• Detailed in nature
• Internal in origin
• Structured form
• Great accuracy

2.Tactical systems- second level in the frame work
• Tactical level system provide data for middle level managers
• It helps to control and monitor the operations
• Data are analyzed and summarized
• It provide different records like summary reports, exception reports and ad-
hoc reports
A. Summary reports-provide management with important totals, average, key
data and abstracts on the activities of the organization . eg- sale reports of a
week
B. exception reports- which warns the managers when results from a particular
operation exceeded or do not meet the expected standard for the
organization . Eg- reports on over time hours
C. Ad hoc-reports which need, usually quickly, that may never needed again .
it contains the information for a problem solving( eg. Production report of a
particular week )

• Characteristics of tactical information systems are
1. Periodic in nature
2. Un expected findings
3. Comparative in nature
4. both external and internal sources

3. Strategic planning system- it is designed to provide top
managers with information that assist them in making long range
planning decision for the organization
• Both tactical and strategic information systems may using the
same information but needs are different
• Top management uses strategic planning information system for
setting the long term organizational goals
Characteristics are
a. Ad hoc basis
b. Un expected information
c. Summary form
d. External data
e. Un structured

SYSTEMS
• System is an integrated set of components, or
entities, that interact to achieve a particular
function or goal
• Every system have boundaries and defines its
scope
• Every system have sub- systems
example- business system have sub systems like
manufacturing, sales, finance ..etc
In general two types- open and closed

System concept in business
• The system approach is a way of analyzing the
business problems
• This approach views the business organization as
a system of interrelated parts designed to
accomplish goals
• Each sub system is both a self contained unit and
the part of a larger system
• manager must understand the goals of the total
system and design the function of the sub system
to achieve that goal

Information system as a system
• In many ways information system have the same
characteristics as system in general
• The major purpose of n information system is to convert
data in to information
• In a business context , an information system is a sub
system of business system of an organization
• An information system consist of components that interact
to achieve the objective of providing information about
day-to-day activities that managers can use to control
business operations
• It contains elements like soft ware ,hard ware, personnel,
database, procedures to accomplish its objectives

Value of information
• Value of information is the amount a decision
maker would be willing to pay for information
prior to making a decision

Effect of system approach on
information system design
• We can explain with an example, an automobile seller
who have an objective of better profit
• The enterprise has been organized into sub systems,
including the marketing, administrative, service
subsystems
• Each sub system have their own duties and head of the
department
• For example sales manager(HOD) need an information
system to provide feed back on how the system is
working ,a data base of sales personnel, day –to-today
activity register and other relevant information

• Now we can see that information the sales
manager uses to monitor and control the
activities of marketing system to achieving the
objectives of the business

PROBLEM SOLVING WITH
INFORMATION SYSTEM
• The problem is defined as the failure to be in
the desired state

• Developing Information Systems Solutions
1.The Systems Development Cycle - Systems
Analysis and Design - is a substantial part of the
systems development life cycle (SDLC).
SDLC - includes the following steps:
• i. Investigation.
• ii. Analysis.
• iii. Design.
• iv. Implementation.
• v. Maintenance.

2. Systems Investigation-In this step a business problem or
opportunity is identified. Systems investigation includes: (1)
systems planning and investigation, (2) feasibility study.
1.Information Systems Planning - needs to be part of the regular
business planning process. IS planning helps generate, screen, and
select potential IS problems for further development.
2. Feasibility Studies - are preliminary studies that investigate the
information needs, objectives, constraints, resource requirements,
costs, benefits, and feasibility of a proposed project. Usually a
formal feasibility report is given to management for approval before
the systems analysis stage can begin

3.Systems Analysis- If management approves the recommendations of
the feasibility study produced by the systems investigation stage,
then the systems analysis stage can begin.
(A)organizational analysis-which involves an understanding of the
following:
Organizational management structure, Business personnel ,Firm
personnel ,External business environment, Current IS.
(B)analysis of the present system-input,output ,processin
,controlling,storage
(C)functional requirements analysis-The information system
capabilities required to meet the information needs of end users
(nput,output ,processin ,controlling,storage)

3.Systems Design-
user interface design
Data design
Process design

4.Implementation and Maintenance

Tools in MIS
• A Data Flow Diagram (DFD) is a graphical
representation of the "flow" of data through
an information system. A DFD is often used as a
preliminary step to create an overview of the system,
which can later be elaborated. DFDs can also be used
for the visualization of data processing (structured
design).
• A DFD shows what kind of information will be input to
and output from the system, where the data will come
from and go to, and where the data will be stored. It
does not show information about the timing of process
or information about whether processes will operate in
sequence or in parallel

Flow charts
• A flowchart is a type of diagram that represents
an algorithm, workflow or process, showing the
steps as boxes of various kinds, and their order by
connecting them with arrows. This diagrammatic
representation illustrates a solution model to a
given problem. Flowcharts are used in analyzing,
designing, documenting or managing a process or
program in various fields

BALANCED MIS
• Balanced mis is an approach to performance
measurement that combines the traditional
financial measures with non-financial
measures to provide managers with richer and
more relevant information about activities
they are managing

EFFECTIVENESS AND EFFICIENCY IN
BUSSINESS
• Effectiveness defines the degree to which a
goal is achieved.
• Thus a system is more or less effective
depending upon
(a) how much of its goal it achieves and
(b) the degree to which it achieves better
outcomes than other system do
I

• Efficiency is determined by the relationship
between resources expended and the benefits
gained in achieving a goal. Expressed
mathematically
• efficiency= benefits
cost
Productivity- refers to efficiency of human
being

• Profitability –it is the ability of a business to
earn a profit. A profit is what is left of the
revenue a business generates after it pays all
expenses directly related to the generation of
the revenue, such as producing a product, and
other expenses related to the conduct of the
business' activities.

• It doesn’t means if effectiveness increases
with increase of efficiency
• Both factors are affected profitability and also
it is most important factor among them

REASON FOR IMPLEMENTING
NETWORKS
• Sharing peripherals-we can share peripherals like
printers , scanners and other and avoid over cost
• Sharing the data files-different data files can be
access at a time
• Application sharing
• Capturing the data at its source
• Increasing timely communication
• Reducing the cost of acquiring, installing, and
maintaining soft wares

REMOTE ACCESS