669_Management Information System

1. What is MIS?
• Management Information Systems (MIS) is the
study of people, technology, organizations and the
relationships among them.
• MIS professionals help firms realize maximum
benefit from investment in personnel, equipment,
and business processes.
• MIS is a people-oriented field with an emphasis
on service through technology.
• Businesses use information systems at all levels
of operation to collect, process and store data.

2. continued
• Management aggregates and disseminates this data in the
form of information needed to carry out the daily operations
of business.
• Everyone who works in business, from someone who pays
the bills to the person who makes employment decisions,
uses information systems.
• A car dealership could use a computer database to keep
track of which products sell best.
• A retail store might use a computer-based information
system to sell products over the Internet
• In fact, many businesses concentrate on the alignment of
MIS with business goals to achieve competitive advantage
over other businesses.

3. continued
• MIS professionals create information systems for
data management (i.e., storing, searching and
analyzing data).
• In addition, they manage various information
systems to meet the needs of managers, staff
and customers.
• By working collaboratively with various members
of their work group, as well as with their
customers and clients, MIS professionals are
able to play a key role in areas such as
information security, integration and exchange.

4. continued
• MIS refers broadly to a computer-based system that provides
managers with the tools for organizing, evaluating and
efficiently running their departments.
• In order to provide past, present and prediction information, an
MIS can include software that helps in decision making, data
resources such as databases, the hardware resources of a
system, decision support systems, people management and
project management applications, and any computerized
processes that enable the department to run efficiently.
• Within companies and large organizations, the department
responsible for computer systems is sometimes called the MIS
department. Other names for MIS include IS (Information
Services) and IT (Information Technology).

5. continued
• A management information system (MIS) provides information that
organizations require to manage themselves efficiently and effectively.
• Management information systems are typically computer systems used for
managing five primary components:
1.) Hardware,
2.) Software,
3.) Data (information for decision making),
4.) Procedures (design,development and documentation), and
5.) People (individuals, groups, or organizations).
• Management information systems are distinct from other information systems,
in that they are used to analyze and facilitate strategic and operational
activities.
• Academically, the term is commonly used to refer to the study of how
individuals, groups, and organizations evaluate, design, implement, manage,
and utilize systems to generate information to improve efficiency and
effectiveness of decision making, including systems termed
decision support systems, expert systems, and executive information systems.

6. Overview
• A management information system gives the business managers the information that
they need to make decisions.
• Early business computers were used for simple operations such as tracking inventory,
billing, sales, or payroll data, with little detail or structure.
• Over time, these computer applications became more complex, hardware
storage capacities grew, and technologies improved for connecting previously
isolated applications .
• As more data was stored and linked, managers sought greater abstraction as well as
greater detail with the aim of creating significant management reports from the raw,
stored data.
• Originally, the term "MIS" described applications providing managers with information
about sales, inventories, and other data that would help in managing the enterprise.
• Over time, the term broadened to include: decision support systems,
resource management and human resource management,
enterprise resource planning (ERP), enterprise performance management (EPM),
supply chain management (SCM), customer relationship management (CRM),
project management and database retrieval applications.
• Management information systems provide a variety of information products to
managers.

7. The Purpose of Information Systems
• Businesses use information systems
– To make sound decisions
– To solve problems
• Problem: any undesirable situation
• Decision: arises when more than one solution to
problem exists
• Both problem solving and decision making
require information

8. The Purpose of Information Systems
(continued)
• Keys to success in business:
– Gathering correct information efficiently
– Storing information
– Using information
• Purpose of information systems is to support
these activities

9. Data, Information,
and Information Systems
• “Data,” “information,” and “system” are
commonly used terms
• Important to understand their similarities and
differences

10. Data vs. Information
• Data: a given or fact
– Can be number, statement, or picture
– Is the raw material in the production of
information
• Information: facts or conclusions that have
meaning within context
– Composed of data that has been manipulated

11. Data Manipulation
• Data is manipulated to make useful information
– New information can be generated from data,
such as averages, trends, etc.
• Survey is common method of collecting data
• Raw data is hard to read
• Information is more useful to business than data

12. Generating Information
• Process: the manipulation of data
– Usually produces information
– May produce more data
• A piece of information (output of a process) in
one context may be considered data (input to a
process) in another context

13. Generating Information (continued)

14. Information in Context
• Not all information is useful
• To be useful, information must be:
– Relevant
– Complete
– Accurate
• In business, information must also be:
– Current
– Obtained in a cost-effective manner

15. What Is a System?
• System: array of components that work together
to achieve goal or goals
• System
– Accepts input
– Processes input
– Produces output

16. What is a System? (continued)
• System may have multiple goals
• System may contain subsystems
• Subsystem: component of a larger system
• Subsystems have subgoals that contribute to
main goal
• Subsystems can receive input from and transfer
output to other subsystems

17. What is a System? (continued)