MANAGEMENT

INFORMATION SYSTEM

Unit 1 BBA 6 sem

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Overview
MANAGEMENT CHALLENGES
Why information systems?
Contemporary approaches to INFORMATION
SYSTEMS
New role of info systems in organizations
Learning to use info systems: new
opportunities with technology

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Content
An introduction to Information System
Meaning of Management Information System
Characteristic of MIS
Components of MIS
The aim of MIS
Types of MIS
Outputs of MIS
Benefits of MIS

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Meaning Of Information Systems
An information system is an organized combination of
people, hardware, software, communications Networks
and data resources that collects, transforms, and
disseminates information in an organization.

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Types Of Information System

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MIS A concept:
Management: Art of getting things done through
and with the people in formally organized
groups.

MIS is a general term for the computer systems

in an enterprise that provide information about
its business operations. It's also used to refer to
the people who manage these systems

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 MIS A concept:
Typically, in a large corporation, "MIS" or the
"MIS department" refers to a central or centrally-
co ordinate system of computer expertise
and management, often including mainframe
systems

The study of effective systems for the

development and use of information in an
organization.

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MIS
MIS isa formalized
A Definition
computer information system
which can integrate data from various sources to
provide the information necessary for decision-
making at the management level.
An organized assembly of resources
and procedures required to collect, process, and
distribute data for use in decision-making.

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 Management information systems are
distinct from regular information systems
in that they are used to analyze other
MANAGEMENT INFORMATION
information systems applied in
SYSTEM
operational activities in the
organization.
MIS involve three primary resources:
technology, information, and people.

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MANAGEMENT INFORMATION
SYSTEM(MIS)

Management information systems are

regarded to be a subset of the overall
internal controls procedures in a
business,
which cover the application of people,
documents, technologies, and procedures
used by management accountants to solve
business problems such as costing a
product, service or a business-wide strategy

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MIS: A Definition:
An MIS is
An integrated (computer-based) user-machine
system
For providing information
To support decision-making functions
In an organization

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MANAGEMENT INFORMATION
SYSTEM(MIS)
The MIS is defined as a system based on the
database of the evolved for the purpose of providing
information to the people in the organization.

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Managerial functions:
Planning

Organizing

Staffing

Directing

Control

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Planning
Process of foreseeing the future
What, when, who, how, where, why
Setting goals and objectives

Lay down policies, procedures, budgets,

strategies, programmes and schedules, to achieve
the plans

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Organizing

Process of identifying the entire job

Dividing the job into convenient subtasks
Allocating subtasks to persons/groups
Delegating authority, for effective operation and
achievement of goals

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Staffing
Right person at the right job
Define job requirements people perspective
Select suitable person/s for the positions
Training and development (?)
Organizing in respect of Staffing (?)
Job-orientation vs. person-orientation
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Directing
Issuing commands classical view
Modern philosophy
Communication
Motivation
Leadership

People have to be guided, motivated and led

by the MANAGER

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 Managerial functions:
Controlling

Controlling and planning two sides of the same coin

Ensures that activities are performed as per plans
Fixing standards of work measurements
Measurement of actual performance
Taking corrective measures
Decision-making is the essence of management.

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Management hierarchy:
Robert Anthony 3 levels of business activities
Strategic management (Top management)

Exploring different markets, formulating

policies, plans and budgets
Management control (Middle management)
Facilitator role; scheduling, monitoring
Operational control (Operating management)
Process and control the basic products and
services
Raw material procurement, selling of products,
physical recording and posting of cheques

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Interaction amongst the 3 levels:
Policies, plans, objectives and budgets of Top
management
Passed to middle mngt as Revenue, cost, profit
goals
Review and agreement
Middle mngt issues specific schedules and
operating goals along with yardsticks of
measurement
Operating mngt produce goods and services
to meet the revenue and profit goals

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 Processed data, presented in a form which
assists decision-makers
Information
May contain an element of surprise,
reduce uncertainty
May provoke a manager to initiate action
Data and Info relative concepts

Recent
Producer-consumer relationship
Often used interchangeably

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Info needs of different levels:
According to J. Kanter (1996)
Top Management

Unstructured
Non-programmed
Futuristic
Approximate
External

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Operating Management:
Structured
Programmed
Historical
Exact
Internal
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New perspective of Information:
MIS = MI + S
MIS must provide MI to managers for decision-
making
MI quality info
Timeliness
Accuracy
Completeness
Adequacy
Explicitness
MI a subset of the entire available info
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 System
A set of interconnected elements to achieve a common
objective

Elements are interrelated and interdependent

Composed of sub-systems, which in turn may be made

up of other subsystems

The set of elements may be: Input(s), Process(es), or

output(s)

Info system converts data into information

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 System
Cybernetic systems self-regulating, self-
monitoring (feedback and control elements
attached)
A system cannot exist in vacuum

It exists and functions in an environment, separated

by its boundary

Several systems may share the same environment

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 System
Some systems may be connected by a shared
boundary
Open system: interacts with its environment,
exchanges inputs and output

Closed systems: do not interact, or exchange

any inputs or outputs with its environment

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The system utilizes:
Computer hardware and software

Manual procedures

Models for decision-making, and

A database
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Characteristics of MIS
Management-oriented: The basic objective of MIS
is to provide information support to the management
in the organization for decision making.

Management directed: When MIS is management-

oriented, it should be directed by the management
because it is the management who tells their needs
and requirements more effectively than anybody
else.

Integrated: It means a comprehensive or complete

view of all the subsystems in the organization of a
company.

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Characteristics of MIS
Common data flows: The integration of different
subsystems will lead to a common data flow which
will further help in avoiding duplicacy and
redundancy in data collection, storage and
processing.

Heavy planning-element: The preparation of MIS is

not a one or two day exercise. It usually takes 3 to 5
years and sometimes a much longer period.

Subsystem concept: When a problem is seen in 2

sub parts, then the better solution to the problem is
possible.

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Characteristics of MIS
Common database: This is the basic feature of MIS
to achieve the objective of using MIS in business
organizations.

Computerized: MIS can be used without a

computer. But the use of computers increases the
effectiveness and the efficiency of the system.

User friendly/Flexibility: An MIS should be flexible.

Information as a resource: Information is the major

ingredient of any MIS.

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MIS Functions:
Data capturing
Processing of data

Storage

Retrieval

Dissemination of MI finished product of

MIS

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 Role Of MIS
The role of MIS in an organization can be compared to the role of
heart in the body.

1.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 MIS plays exactly the same role in the organization.

2.The system ensures that an appropriate data is collected from

the various sources, processed, and sent further to all the needy
destinations.

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Role Of MIS
3. 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.

4.The MIS satisfies the diverse needs through a variety of

systems such as Query Systems, Analysis Systems,
Modeling Systems and Decision Support Systems.

5. The MIS helps in Strategic Planning, Management

Control, Operational Control and Transaction Processing.

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Role Of MIS
6.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.

7.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.

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Role Of MIS
8.The MIS helps the middle management in short term
planning, target setting and controlling the business
functions.

9.It is supported by the use of the management tools of

planning and control.

10.The MIS helps the top management in goal setting,

strategic planning and evolving the business plans and their
implementation.

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 Role Of MIS

11.The MIS plays the role of information generation,

communication problems and helps in the process
of decision making.

12.The MIS, therefore, plays a vital role in the

management, administration and operations of an
organization.

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Features of MIS
Timeliness
Accuracy

Consistency

Completeness

Relevance

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 Components of MIS
1) Marketing Research System (MRS)
Marketing research can be seen as the systematic and
objective search for and analysis of data and information
relevant to the identification and solution of any problem in
the field of marketing.

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Components of MIS
2) Marketing Intelligence System (MIS)
The process of acquiring and analyzing information in order
to understand the market (both existing and potential
customers);
to determine the current and future needs and preferences,
attitudes and behavior of the market;
and to assess changes in the business environment that

may affect the size and nature of the market in the future.

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Components of MIS

3) Internal Record System (IRS)

Marketing managers rely on internal reports on orders, sales,
prices, costs, inventory levels, receivables, payables, and
so on. By analyzing this information, they can spot
important opportunities and problems.

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Components of MIS

4) Decision Support System(DSS)

A decision support system (DSS) is a computer-based
information system that supports business or
organizational decision-making activities. DSSs serve the
management, operations, and planning levels of an
organization and help to make decisions, which may be
rapidly changing and not easily specified in advance.

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Aim of Management
Information System

The main aim of MIS is to

inform management and help
them make informed
decisions about management
and the way the business is
run.

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Elements of MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications and Networks

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Outputs Of a MIS
Key-indicator report
which summarizes the
previous days critical
activities and also it is
typically available at
the beginning of each
day.

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Outputs Of a MIS

Scheduled reports
which are produced
periodically, or on a
Schedule (daily,
weekly, monthly).

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Outputs Of a MIS

Demand report
which gives
certain
information at a
managers
request.

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 Outputs Of a MIS

Exception report which

is automatically produced
when a situation is
unusual or requires
management action.

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Benefits of MIS
1.It improves personal efficiency.

2.It expedites problem solving(speed up the progress

of problems solving in an organization).

3.It facilitates interpersonal communication

4.It promotes learning or training.

5.It increases organizational control.

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Benefits of MIS
6.It generates new evidence in support of a decision.

7.It creates a competitive advantage over competition.

8.It encourages exploration and discovery on the part

of the decision maker.

9.It reveals new approaches to thinking about the

problem space.

10.It helps automate the Managerial processes.

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MANAGEMENT INFORMATION SYSTEM AND
COMPUTER

Translating the real concept of the MIS

into reality is technically, an infeasible
proposition unless computers are used.
The variety of the hardware having
distinct capabilities makes it possible to
design the MIS for a specific situation.

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MANAGEMENT INFORMATION
SYSTEM AND COMPUTER
The ability of the hardware to store data and process it
at a very fast rate helps to deal with the data volumes, its
storage and access effectively.
The ability of the computer to sort and merge helps to
organize the data in a particular manner and process it
for complex lengthy computations.

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MANAGEMENT INFORMATION SYSTEM
AND COMPUTER

Since the computer is capable of digital, graphic,

word image, voice and text processing, it is
exploited to generate information and present it in
the form which is easy to understand for the
information user.
The computer system provides the facilities such
as READ ONLY where you cannot delete to
UPDATE.

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Types Of MIS
Transaction processing systems: These systems
process a large volume of routine, recurring
transactions.
Operations information systems: These systems
gather comprehensive data, organize it and
summarize it in a form that is useful for managers.
Decision support systems: These systems help
mangers with the necessary information to make
intelligent decisions.
Expert systems: They are meant to mimic humans
in making decisions in a specific field.

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MIS Characteristics:
1.System approach
Takes Comprehensive view in the light
of its objective
2.Management oriented
Top down approach followed
Derived from the overall business
objectives

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MIS Characteristics:
3.Need based
Caters to info needs at different levels
4.Exception based
Exception based reporting principle
5.Futuristic
On the basis of projections
6.Integrated
Blends info from several operational areas

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 MIS Characteristics:
7.Common data flows
Should avoid data duplication and redundancy
8.Long term basis
Strive to be futuristic
9.Divide and conquer
Use partitioning into subsystems
10.Central database
Let subsystems access the master data

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