669_Management Information System

1. LECTURE TWO

2. What is MIS?
• The MIS is defined as a system which provides
information support for decision making in the
organization.
• The MIS is defined as a computer - based
Information System.

3. Goals of MIS
• Provide managers with information regular
• Routine operational control
• Organize and plan better

4. ROLE OF THE MANAGEMENT INFORMATION SYSTEM
• The role of the MIS in an organization can be compared to
the role of heart in the body.
• The information is the blood and MIS is the heart.
• In the body the heart plays the role of supplying pure blood
to all the elements of the body including the brain.
• The heart works faster and supplies more blood when
needed.
• It regulates and controls the incoming impure blood,
processes it and sends it to the destination in the quantity
needed.

5. continued
• The MIS plays exactly the same role in the organization.
• The system ensures that an appropriate data is collected from the
various sources, processed, and sent further to all the needy
destinations.
• The system is expected to fulfill the information needs of an individual,
a group of individuals, the management functionaries: the managers
and the top management.
• The MIS helps the clerical personnel in the transaction processing and
answers their queries on the data pertaining to the transaction, the
status of a particular record and references on a variety of documents.
• The MIS helps the junior management personnel by providing the
operational data for planning, scheduling and control, and helps them
further in decision making at the operations level to correct an out of
control situation.

6. continued
• The MIS helps the middle management in short them
planning, target setting and controlling the business
functions.
• The MIS helps the top management in goal setting,
strategic planning and evolving the business plans and
their implementation.
• The MIS plays the role of information generation,
communication, problem identification and helps in the
process of decision making.
• The MIS, therefore, plays a vita role in the management,
administration and operations of an organization.

7. IMPACT OF THE MANAGEMENT INFORMATION SYSTEM
• Since the MIS plays a very important role in the
organization, it creates an impact on the organization’s
functions, performance and productivity.
• The impact of MIS on the functions is in its management.
• With a good support, the management of marketing,
finance, production and personnel become more efficient.

8. continued
• The tracking and monitoring of the functional
targets becomes easy.
• The functional managers are informed about the
progress, achievements and shortfalls in the
probable trends in the various aspects of
business.
• This helps in forecasting and long- term
perspective planning.

9. What is management?
• Management as defined by Mary Follett is ‘the art of getting
things done through people’.
• A manger is defined as a person who achieves the
organization’s goals by motivating others to perform, not by
performing himself.
• Management for the purpose of management information
systems (MIS) is defined as the process of planning,
organizing, staffing, coordinating and controlling the efforts
of the members of the organization to achieve common
stated goals of the organization.

10. continued
• In the process of management, a manager uses human
skills, material resources and scientific methods to
perform all the activities leading to the achievement of
goals.
• In the management of any activity, a manager comes
across human conflict, conflict of goals, between
alternative resources, conflict of time, conflict of approach
or method and the conflict of choice.
• The manager uses a variety of tools, techniques and skills
while executing the management process of planning,
organizing, staffing, coordinating and controlling.
• An effective way of handling this process is to treat the
organization as a system.

11. Information Systems in Organizations
• An information system can be defined technically as a
set of interrelated components that collect, process,
store, and distribute information to support decision
making and control in an organization.
• Information system consists of data, hardware, software,
telecommunications, people, and procedures
• Computer-based Information system: system with one or
more computers at center
• Organizations lag behind and lose competitiveness if
they do not use information systems

12. continued
• Trends that have made information systems
important in business:
– Growing power and decreasing cost of computers
– Growing capacity and decreasing costs of data
storage devices
– Increasing variety and ingenuity of computer
programs
– Available, reliable, affordable, and fast
communications links to the Internet
– Growth of the Internet
– Increasing computer literacy of the workforce

13. Types of Information Systems
• Different types of information systems serve
different functions
• Capabilities of applications have been combined
and merged

14. Supply Chain Management Systems
• Supply chain: sequence of activities involved in
producing and selling products or services
– For products, activities include marketing,
purchasing raw materials, manufacturing and
assembly, packing and shipping, billing,
collection, and after-sale services
– For services, activities include marketing,
document management, and monitoring
customer portfolios

15. Supply Chain Management Systems
(continued)
• Supply chain management (SCM) systems:
systems that support these activities
• Also known as enterprise resource planning
systems
• SCM systems eliminate the need to reenter data
that was captured elsewhere in the organization

16. Customer Relationship
Management Systems
• Customer relationship management (CRM)
systems: systems for managing relations with
customers
– Used in combination with telephones to provide
customer service
– Often linked to Web applications that track online
transactions
• Retaining loyal customers is less expensive than
acquiring new ones

17. Decision Support Systems(DSS)
DSS are computer program applications used by
middle management to compile information from
a wide range of sources to support problem
solving and decision making.
– Relies on models to produce tables
– Extrapolates data to predict outcomes
– Helps answer “What if?” questions

18. Accounting
• Accounting information systems:
– Help record transactions
– Produce periodic statements
– Create required reports for law
– Create supplemental reports for managers
– Contain controls to guarantee adherence to
standards

19. Human Resources
• Human resource management systems aid
record-keeping
– Must keep accurate records
– Aids recruiting, selection, placement, benefits
analysis, requirement projections
• Performance evaluation systems provide
grading utilities

20. Web-Empowered Enterprises
• E-commerce: buying and selling goods and
services through Internet
• Internet is a vast network of computers
connected globally
• Web has a profound impact on information
systems
– An emerging advertising medium
– A place to conduct e-commerce

21. Chief Security Officer
• Chief security officer (CSO): supervises
security of information system
• Position exists due to growing threat to
information security
• Usually reports to chief information officer (CIO)

22. Chief Information Officer and
Chief Technology Officer
• Chief information officer (CIO): responsible for
all aspects of information system
– Often a corporate vice president
– Must have technical understanding of information
technologies as well as business knowledge
• Chief technology officer (CTO): has similar
duties as CIO