Management Information System: MIS

•System Concept: A Foundation

•What is a System
•Input / Process / Output / Feedback & Control
•Concept of interface / Environment / Sub – System
•Cybernetic System
•Component of Information System
•People / Hardware / Software / Data / Network Resources
•Data & Information
•The fundamental roles of IS applications in Business
•Trends in Information System
•Types of Information System
•Other Classification of System
•Managerial Challenges of Information Technology
•Challenges of Ethics & IT
•The IS Function
 System & Its Meaning

The term system has multiple meanings :……

A collection of organized things; as, a solar system.
A way of organizing or planning.
A whole composed of relationships among the members.

System: can be simply defined as a group of interrelated or

interacting elements forming a unified whole.
Like: Physical System of the Sun & Planets.
: Biological System of the human Body.
: Technological system of an oil refinery.
: Socioeconomic System of a business organization.

Generic System Concept: A system is a group of

interrelated component working together towards a
common goal by accepting inputs and producing outputs
in an organized transformation process.
Most systems share the same common
characteristics. These common characteristics
include the following:…….
Systems have a structure that is defined by its parts
and processes.
Systems are generalizations of reality.
Systems tend to function in the same way. This involves
the inputs and outputs of material (energy and/or
matter) that is then processed causing it to change in
some way.
The various parts of a system have functional as well as
structural relationships between each other.

Basically System has three basic interacting

components or functions….
Input…involves capturing and assembling elements.

Processing…involves transformation process.

Output…transferring elements that have been produced

by a transformation process to their ultimate destination.
Feed-back…data about performance of a system. (Like:
data about sales performance is a feedback to a sales
Manager )
Control…..involves monitoring and evaluating feedback
to determine whether a system is moving towards the
achievement of its goal or not & makes necessary
adjustments to a system’s input and processing
components.

Cybernetic System

A system with feedback and control components is

called a Cybernetic System.
i.e. Self-monitoring and self – regulating.
Like: Thermostat-controlled heating system.
: Human Body
: Sometimes a business also has many control
activities, like…accounting procedure, sales quotas and
sales bonuses etc.
 Other System Characteristics
Environment…..A system does not exit in vacuum, it , exists and
function in an environment.
Environment containing other systems.

Sub –System….If system is one of the component of a larger

system, it is a Sub –system & larger system is its…..
“Environment”

Interface….Several system may share the same

environment. Some of these system may be connected
to one another by means of shared boundary or
interface.

Open System:,…..The system that can exchanges inputs

and outputs with its environment. i.e. connected to its
environment by input and output interfaces.

Adaptive System…. System that has the ability to

change itself in order to survive is an adaptive system.
Components Of Information System: (The components are
to perform input, processing, output, storage, and control activities)

People Resources Software Resources

Control of system
Performance

Input of Processing Output of

data Data into Info Products
resources Information

Data Resources Storage of

Data resources Hardware Resources

Network Resource
Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)

IS model shows that info system consists of 05 major resources…..

People resources…..include
End User….people who use an info system / or info it produces.
IS Specialists……people who develop and operate info system. Like:
system analyst…..design info system.
software developers….,create computer programme.
system operator….. Help to monitor and operate large system and
network.

Hardware Resources…..include
Computer system…consists of CPU etc.
Computer Peripherals…devices like key-board, mouse, printer etc.
Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)
Software Resources…includes all sets of info processing
instruction. For example…
System Software…such as operating system programme which
control and supports the operations of a computer system.
Application Software….programs that direct processing for a
particular use of computers.
Procedure……which are the operating instructions for the
people who will use an info system. Like Instructions for filling
out a paper form or using a software package.

Data Resources….Like
Traditional alphanumeric data
Text Data
Image Data
Audio Data
The data resources of IS are typically organized, stored, and
accessed by a variety of data resource management technologies.
Components Of Information System: (The components
are to perform input, processing, output, storage, and control activities)
Network Resources…..Telecom technologies and
networks like the Internet, Intranet and Extranets.
Network Resources include…
Communication Media…Like Twisted pair cable, Coaxial cable etc
Network Support…generic category emphasizes that many
hardware, software and data technology. Like Modems, browser
packages etc.

DATA Versus INFORMATION

Data (plural of “datum” )are raw fact or observations typically about

physical phenomena or business transaction.
Objective measurements of the attributes and entities
Information……basically processed form of data / in the form of
product. / Data that have been converted into a meaningful and useful
context for specific end –user.
Concept of Internet / Intranet / Extranet
Internet….Global network of computers. There is no
one central computer.
Instead, the internet is comprised of a series of special
computer which hold data, called…..server.
through the internet one can upload and download files,
send and receive e-mail etc.
Intranets…. Are commonly used for internal communication
in corporations or educational institutions. An intranet does
not allow any access from the outside internet. Only
computers connected to the internal network can connect to
the intranet.

Extranets….. Once you allow authorized external users to

connect to an intranet, it becomes an extranet.
An extranet is still restricted, but allows access by certain
networks, computers or individual user.
Like between an enterprise and its trading partners.
Business today depend on the Internet, intranet and extranet to
implement and manage electronic business , operations, e-
commerce and enterprise collaboration………….

The Internet…. Suppliers & Partners

Extranet

Supply chain Mgt.

Engineering Accounting
& Research Manufacturing & Finance

Customer Relationship Mgt.

Extranet Consumer
Information System Activities
Input of data resource.....

Processing of data into information.…

Output of information products…..

Storage of data Resources….

Control of System Performance…..

The Fundamental Role of IS applications in Business…..
SBP…like In retail format to record customer
purchase, keep track of inventory, pay employees.
SDM….. Like what lines of merchandise need to be
added or discounted.
SCA….. Innovative use of info tech.

Support strategies for competitive Advantage

Support Business Decision Making

Support Business Processes & operations

Trends in Information Systems

90 – 00, networked e-business and e-commerce systems

(internet based)

80-90’s End-user computing system / EIS /ES / SIS

70 -80’s DSS / Inactive ad-hoc support for managerial decision

making process

60 – 70’s Mgt. reporting i.e. MIS/ reports on pre-specified info to

support decision Making.

Until 60’s transaction processing / record keeping / other EDP

operations
Types of Information Systems

Information System

OSS MSS

TPS PCS ECS MIS

DSS

Operational and managerial classification of EIS

Information systems. This conceptual overview
emphasizes The main purpose of information system
that support business operations and managerial
decision making.
Types of Information Systems
The applications of info systems can be classified in
different ways.
Operational Support System…..there role is to
efficiently process business transactions, control
industrial process, support enterprise communication
and collaboration and update corporate database.
Such OSS produce a variety of info products for
internal / external user, but they do not emphasize
producing the specific information products that can
best be used by manager. Like…
TPS…….Transaction processing systems.
PCS……. Process control systems.
ECS……..Enterprise collaboration systems.
Operational Support Systems
TPS…….Transaction processing systems……..that records and
process the data resulting from business transaction.
There are two basic ways..
– Batch Processing…..transaction data are accumulated over
a period of time and processed periodically.
– Real time Processing…..data are processed immediately
after a transaction occurs. (POS)

PCS…Process Control System…..that monitor and control

physical process. Like Petro refinery uses electronic sensors linked
to computer to monitor chemical process and make instant (real –
time) adjustments that control the refinery process.

ECS….Enterprise Collaboration System…..enhance team and work

–group communication and productivity, sometimes called as OAS.
Management Support Systems
MSS….it focus on providing information and support for
effective decision making by managers.
But providing support for all types of managers is a complex
task. So major types of info – system support a variety of
decision-making responsibilities.

MIS….Management information system….provide info in the form

of reports and displays to managers.

DSS….Decision Support System…..give direct computer support to

managers during the decision making process. Like Ad manager
may use an electronic spreadsheet programme to do what – if
analysis as they test the impact of alternative advertising budgets on
the forecasted sales of new products.

EIS…..Executive information system…provide critical info from a

wide variety of internal and external sources in easy to –use &
displays to executives and managers.
Other Classifications of Information Systems
Several other categories of info – system can support either
operations or management applications. Like….

Expert System….
Basically intelligence is the ability to acquire and apply knowledge
and drawing systematic conclusions.
can provide expert advice for operational chores like equipment
diagnostics, portfolio management.
Like.. MACSYMA(1969)..solver of complex mathematical problem
….MYCIN (1973)..system for the diagnosis of bacterial diseases.
Knowledge Management System….are knowledge based info system
that support the creation, organization, and dissemination of
business knowledge to employees and managers throughout a
company.

Strategic Information System…..apply information technology to a

firm’s products, services or business processes to help it gain a
strategic advantage over its competitors.
Points as Notes…..
Applications of info systems in real world are typically
integrated combinations of the several types of info systems.
That’s becoz conceptual classification of info systems are
designed to emphasize the many roles of info systems.

So whenever you analyze an info system, you will probably

see that it provides info for a variety of managerial levels and
business functions.

Shipment tracking , eCommerce web systems are examples of

SIS, however credit application advisor is example of Expert
system, similarly intranet access to best business practices, or
sales proposal strategies are the part of KMS.

MIS…is an integrated user-machine system for providing

info to support ; Operational / Management / & Decision –
making functions in an organization.
Managerial Challenges of Information Technology…

Info system must be managed to support the b-strategies;

B – Process & OS. Therefore success of IS should not be
measured by the efficiency but also be measured by
effectiveness in supporting process, structure, etc.

Business - Enterprise

Internet worked Customer

B – Strategies Info system Value
B – Process Business
IT Infrastructure Value
Structure & Culture

Global B - Environment
From failure to success with IT

The Boeing Company…

Business Failure
Costly delay in obtaining 6 million parts to build each craft with
unintegrated IT system
New IT solution
Integrate entire supply chain into internal production systems.
Business – Success
Output capacity up 100% in 4years. Craft lead times reduced by 60%.

Thomson Consumer Electronics…

Business Failure
Retailers not getting quick replenishment of core products.
New IT solution
Integrate entire supply chain into internal production systems.
Business – Success
Out of stock scenario reduced to 1% with forecast accuracy now
above 95%
 Challenges of Ethics & IT
Examples of some of the ethical challenges that must be
faced by business managers who implement major
application of info – technology.

Potential Hams
How likely are customer
Employees, b-partners to
Be affected by….
•Infringement on privacy
•Inaccurate Info
Applications of IT
•CRM •Exclusion from essential
•HRM b -resource
Potential Risk
•BIS ( Intelligence)
•ECS(E-Com) How likely are
legal actions,
Possible Response boycott, work
stoppages &
other threats to
occur?