Mis ppt

1. Unit 1
Evolution of MIS: Concepts; framework for understanding and designing MIS in an
organization; MIS and other related disciplines, MIS and Management. Concept of
information; definition, features, types, process of generation and communication; quality
and value of information; System concept; definition, types and characteristics of system-
Input, process- output , control.

2. Carl Hayel says “Management Information System is planned and organised approaches to
supply executive with intelligence aids that facilitate the managerial process.”

3. Evolution of MIS

4. Evolution of MIS
1. Transaction Processing System: The first business application of computers (in the mid-
1950s) performed repetitive, high-volume, transaction-computing tasks. The computers
summarizing and organizing transactions and data in the accounting, finance, and human
resources areas. Such systems are generally called transaction processing systems (TPSs).
2. Management Information Systems (MISs): These systems access, organize, summarize
and display information for supporting routine decision making in the functional areas.
3. Office Automation Systems(OASs): Such as word processing systems were developed to
support office and clerical workers.
4. Decision Support Systems: It was developed to provide computer based support for
complex, nonroutine decision.
5. Intelligent Support System (ISSs): Include expert systems which provide the stored
knowledge of experts to nonexperts, and a new type of intelligent system with machine-
learning capabilities that can learn from historical cases.
6. Knowledge Management Systems: Support the creating, gathering, organizing, integrating
and disseminating of organizational knowledge.

5. 7. Mobile Computing: Information systems that support employees who are working with customers or
business partners outside the physical boundaries of their company; can be done over wire or wireless networks.
8. Business Analytics is the process by which businesses use statistical methods and technologies for analyzing
historical data in order to gain new insight and improve strategic decision-making.
9.Business intelligence (BI) combines business analytics, data mining, data visualization, data tools and
infrastructure, and best practices to help organizations to make more data-driven decisions
10. Big data is a term that describes the large volume of data – both structured and unstructured – that
inundates a business on a day-to-day basis. But it’s not the amount of data that’s important. It’s what
organizations do with the data that matters. Big data can be analyzed for insights that lead to better decisions
and strategic business moves.

6. FRAMEWORK FOR UNDERSTANDING MIS
There is too much data and information in an organization. In order to design a MIS successfully, we need a
framework to structure the information so that the data and information relevant for decision-making can
be separated from rest of the data
An organization must respond to market forces, competition, to environmental and technological changes Must do
long term planning
Different Methodologies for Strategic Planning are available
● Robert Anthony’s framework for Strategic Planning
● Simon’s framework
● Zani’s framework

7. According to the model suggested by Robert Anthony Strategic Planning plays an important role in planning and
control system
1) Strategic Planning is the process of deciding objectives of the organization, determining the
possible shift in objectives, deciding on the resources used to attain their objectives and the
policies that govern the acquisition, use and disposition of their resources.
2) Management Control is the process by which managers assure that the resources are obtained
and used effectively and efficiently to attain the objectives of the organization.
3) Operational Control is the process of assuming that specific tasks are carried out effectively and
efficiently.

10. Simon’s framework that has broken down the process of decision making into three stages:
1. Intelligence: This is the stage in which the decision maker recognizes that there is a problem
or opportunity that requires him to make a decision.
2. Design: The decision maker determines the alternatives that are available to him to resolve the
problem or exploit the opportunity.
3. Choice : In this stage, an alternative generated in stage-2 is singled out to be pursued. The
selection process may involve feasibility analysis or cost-benefit analysis.

11. With this framework, we can distinguish between three major classes of decisions.
a) Programmed Decisions are there in which all stages are handled by following a preset well-defined
procedure. The decisions are repetitive and routine which arise often and are capable of being modelled
mathematically in their entirety. The classic example would be inventory-ordering decisions.
b) Non-programmed decisions are difficult to structure in logical mathematical terms. These decisions cannot
be handled in well-defined and pre-specified procedures. These opportunities are not repetitive in nature and they
require fresh intelligence, design and choice phases to be executed. An example would be the decision to set up a
new factory or launch a new line of product.
c) Semi-programmed decisions are those in which at least one and no more than two of the above stages can
be handled by well-defined preset procedures. An example where the intelligence phase is well structured would
be the diverse kinds of variance analysis. A comparison with a budget or standard is undertaken in a well-defined
way to signal the need for a decision. Subsequent stages of design and choice, however, are not handled by a set
procedure. Recall that an MIS support problem-specific decision-making. Depending on the framework used by the
organization for decision-making and goal set for MIS, the designer should determine the information needs.

12. According to Zani, the important determinants of MIS design are:
1) Opportunities and risks
2) Company strategy
3) Company structure
4) Management and decision-making process
5) Available technology
6) Available information sources.

13. MIS and other related disciplines
1. MIS and Management
2. MIS and mathematics
3. MIS and Computer science
4. MIS and Operational Research
5. MIS and Accounting
6. MIS and Database management
7. MIS and Psychology
8. MIS and communication theory

14. ● Computer science is related with instituting speculations of
computability, methods of computation, and techniques of efficient
data storage and access.
● Management science highlights the expansion of models for
decision-making and management practices.
● Operations research concentrates on mathematical techniques for
optimizing chosen parameters of organizations like transportation,
inventory control, and transaction costs.
● Mathematical models are used to study information systems and to
elucidate how they can be applied.

15. ● It considers the human mind as a processor of information. While designing
the report format and forming communication channels, MIS takes into
account the behavior of the manager as an individual and in a group. It gives
due regard to the personal factors such as bias, thinking with a fixed frame
of reference, risk aversion, strengths and weaknesses.
● In the area of, it uses the accounting principles to ensure that the
daccounting applicationata is correct and valid. It uses the accounting
methodology for generating a trial balance, balance sheet and other books
of accounts.
● The MIS is based on database and uses the
database for generating information. The three
types of data structures, viz., – Hierarchical, –
Network and – Relational database have roots in
the mathematics and the set theory.
● The MIS uses the communication theory in a
significant manner. The principle of feedback is
used while designing analysis and reporting
systems. While designing the report format,
attention is paid to avoid noise and distortions in
the communication process.

16. MIS and Management

23. ● Understandable: Since information is lready in a summarized form, it must be understood by
the receiver so that he will interpret it correctly. He must be able to decode any abbreviations,
shorthand notations or any other acronyms contained in the information.
● Relevant: • Information is good only if it is relevant. This means that it should be pertinent and
meaningful to the decision maker and should be in his area of responsibility.
● Complete: It should contain all the facts that are necessary for the decision maker to
satisfactorily solve the problem at hand using such information. Nothing important should be
left out. Although information cannot always be complete, every reasonable effort should be
made to obtain it.

24. ● Available: Information may be useless if it is not readily accessible ‘ in the desired form, when it is
needed. Advances in technology have made information more accessible today than ever before.
● Reliable: The information should be counted on to be trustworthy. It should be accurate, consistent
with facts and verifiable. Inadequate or incorrect information generally leads to decisions of poor
quality. For example, sales figures that have not been adjusted for returns and refunds are not
reliable.
● Concise: Too much information is a big burden on management and cannot be processed in time
and accurately due to “bounded rationality”. Bounded rationality determines the limits of the
thinking process which cannot sort out and process large amounts of information. Accordingly,
information should be to the point and just enough – no more, no less.

25. ● Timely: • Information must be delivered at the right time and the right place to the right person.
Premature information can become obsolete or be forgotten by the time it is actually needed. •
Similarly, some crucial decisions can be delayed because proper and necessary information is not
available in time, resulting in missed opportunities. Accordingly the time gap between collection of
data and the presentation of the proper information to the decision maker must be reduced as much
as possible.
● Cost-effective: The information is not desirable if the solution is more costly than the problem. The
cost of gathering data and processing it into information must be weighed against the benefits
derived from using such information.
● Flexibility: The business and economic environment is highly dynamic in nature. Technological
changes occur very fast. A rigid control system would not be suitable for a changing environment.
These changes highlight the need for flexibility in planning as well as in control.

26. Types of Information
The information can be classified in multiple ways for a better understanding. As per John Dearden
of Harvard University information can be segregated as:
- Action vs. No-Action Information: The information which prompts an action is called action
information. E.g., “non reconciliation of accounts” reports call for an action to be initiated and thus,
called as action information. While the information which communicates only the status is No-
Action Information. The monthly statement is an example of no-action information.
- Internal and External Information: The information compiled from internal sources of the
organization is termed as internal information while the information generated from secondary data
sources and government reports, the industry survey etc. are termed as external information.
- Recurring vs. Non-Recurring Information: The information compiled at periodical intervals is
recurring information. The sales funnel the quarter revenues, profits, stockstatements etc and are
recurring information. While, the financial analysis or the report on the market research study are
the good examples of non- recurring information.

27. Further, on basis of application, information can be categorized as:
● - Planning Information: The information that becomes the part or forms the
foundation for strategic or operational planning of any activity is termed as the
Planning Information e g. specification sheet, product manual, time standards
etc.
● - Control Information: Control as a management function means setting
standards, measuring the actual performance and taking corrective measures
accordingly. Hence, when the status of an activity is reported through a
feedback mechanism it is called control information. When such information
shows a deviation from the goal or the objective, it will induce a decision or an
action leading to control. e.g., security, tracking control systems, severs logs
etc.
● - Knowledge Information: A collection of information through the library
records and the research studies to build up a knowledge base as information
is known as Knowledge Information.

28. Organization Information: When the information is for wide circulation and is used by
everybody in the organization, it is called Organization Information. Product manuals,
notifications, work orders are used by a number of people in an organization.
- Functional/ Operational Information: When the information is used by specific
business departments is called Functional/Operational Information. E.g., logistics
information, delivery schedules. This information is mostly internal to the
organization.
- Database Information: When the information has multiple use and application, it is
called as database information. Such as, address directories, supplier information.

29. On basis of management hierarchy, information can be categorized as:-
- Supervisory Level – The supervisory level of information relates to operational tasks and is
required at each level of the organization. E.g., business correspondence, circulars, reports and
spreadsheets. To ensure smooth flow of information from bottom to top level, a clear and easy to
use management information system should be provided so as to fulfill operational, business and
decision making goals.
- Middle Level - Such information sharing occurs within teams, divisions, business units, etc. This
information may be critical to the day-to-day activities of the group. E.g., project documentation,
business unit specific content, meeting minutes, etc.
- Top Level Information - At the top level, corporate information is useful for whole of the
organization as it defines the direction of business. This information is generally well addressed by
the corporate intranet. Examples of corporate information include policies and procedures, HR
information, online forms, phone directory, etc.

31. Sources of Management Information

41. Good quality information − Quality is a value that would vary according to the users and
uses of the information. Most essential characteristic features for information quality
Reliability − It should be verifiable and dependable.
Timely − It must be current and it must reach the users well in time, so that important
decisions can be made in time.
Relevant − It should be current and valid information and it should reduce uncertainties.
Accurate − It should be free of errors and mistakes, true, and not deceptive.
Sufficient − It should be adequate in quantity, so that decisions can be made on its basis
Quality And Value Of Information

42. Unambiguous − It should be expressed in clear terms. In other words, in should
be comprehensive.
Complete − It should meet all the needs in the current context.
Unbiased − It should be impartial, free from any bias. In other words, it should
have integrity.
Explicit − It should not need any further explanation.
Comparable − It should be of uniform collection, analysis, content, and format.
Reproducible − It could be used by documented methods on the same data set
to achieve a consistent result.

43. Quality And Value Of Information
From a managerial context the value of information is judged on the basis of
the following parameters:
● Timeliness
● Presentation
● Accuracy
● Context
● Expectation

44. Timeliness
Information is only valuable to management when it can result in some timely
intervention/decision. The time aspect of decision is very vital for any value to be
attributed to it in management. Information of an event will only be valuable to
managers if they have time to react to it. If the reaction time is not there then the
information loses its managerial value.
Presentation
Managerial information is valuable when presented in a way that facilitates decision-
making. Information should not only be given but presented in such a way that the
decision-making aspect becomes obvious.
Accuracy
Any information to management is valueless unless accurate.

45. Context
Information for management is highly contextual. Information is valuable to a manger
only if it has a decision-making connotation to it. For example, for a finance manager
any information about the competitor’s product is valueless.
Expectation
Information is generally more valuable to management when the information breaks an
expected view or an expected result or an expected’ reaction. Any information that is
unexpected carries a higher value. For example, if a manager has made a marketing
strategy expecting his competitor to launch a product A and before the launch he gets
information that the product to be launched by his competitor is not product A but
product S, then this information has got greater value for him as it is contrary to his
expectation.

46. System
The word System is derived from Greek word Systema, which means an
organized relationship between any set of components to achieve some
common cause or objective.
A system is “an orderly grouping of interdependent components linked
together according to a plan to achieve a specific goal.”

47. A System is a group of interrelated components working together toward a
common goal by accepting inputs and producing outputs in an organized
transformation process.

48. System Concepts
The concepts of a system are Technology, Application, Development and
Management.
a. Technology. - Computer networks are systems of information processing
components that are a variety of hardware, software and telecommunication
technology.
b. Application.- That electronic business and commerce application involves
interconnected business information system
c. Development.- That developing way to use IT in business includes designing
the basic component of information system.
d. Management. -Managing IT emphasize the quality, strategic business value
and security of an organization in information system.

49. Properties of a System
A system has the following properties −
Organization- Organization implies structure and order. It is the arrangement of components that
helps to achieve predetermined objectives.
Interaction - It is defined by the manner in which the components operate with each other. For
example, in an organization, purchasing department must interact with production department and
payroll with personnel department.
Interdependence - Interdependence means how the components of a system depend on one
another. For proper functioning, the components are coordinated and linked together according to a
specified plan. The output of one subsystem is the required by other subsystem as input.
Integration- Integration is concerned with how a system components are connected together. It
means that the parts of the system work together within the system even if each part performs a
unique function.
Central Objective - The objective of system must be central. It may be real or stated. It is not
uncommon for an organization to state an objective and operate to achieve another.

50. Types of Systems
The systems can be divided into the following types −
Physical or Abstract Systems
Physical systems are tangible entities. We can touch and feel them.
Physical System may be static or dynamic in nature. For example, desks and chairs are the physical parts of
computer center which are static. A programmed computer is a dynamic system in which programs, data, and
applications can change according to the user's needs.
Abstract systems are non-physical entities or conceptual that may be formulas, representation or model of a
real system.
Open or Closed Systems
An open system must interact with its environment. It receives inputs from and delivers outputs to the outside
of the system. For example, an information system which must adapt to the changing environmental
conditions.
A closed system does not interact with its environment. It is isolated from environmental influences. A
completely closed system is rare in reality.

52. Adaptive and Non Adaptive System
Adaptive System responds to the change in the environment in a way to improve their performance
and to survive. For example, human beings, animals.
Non Adaptive System is the system which does not respond to the environment. For example,
machines.
Permanent or Temporary System
Permanent System persists for long time. For example, business policies
Temporary System is made for specified time and after that they are demolished. For example, A DJ
system is set up for a program and it is dissembled after the program.
Natural and Manufactured System
Natural systems are created by the nature. For example, Solar system, seasonal system.
Manufactured System is the man-made system. For example, Rockets, dams, trains.

53. Deterministic or Probabilistic System
Deterministic system operates in a predictable manner and the interaction between system
components is known with certainty. For example, two molecules of hydrogen and one molecule of
oxygen makes water.
Probabilistic System shows uncertain behavior. The exact output is not known. For example, Weather
forecasting, mail delivery.
Social, Human-Machine, Machine System
Social System is made up of people. For example, social clubs, societies.
In Human-Machine System, both human and machines are involved to perform a particular task. For
example, Computer programming.
Machine System is where human interference is neglected. All the tasks are performed by the
machine. For example, an autonomous robot.

54. Man–Made Information Systems
It is an interconnected set of information resources to manage data for particular organization,
under Direct Management Control (DMC).
This system includes hardware, software, communication, data, and application for producing
information according to the need of an organization.
Man-made information systems are divided into three types −
Formal Information System − It is based on the flow of information in the form of memos,
instructions, etc., from top level to lower levels of management.
Informal Information System − This is employee based system which solves the day to day work
related problems.
Computer Based System − This system is directly dependent on the computer for managing
business applications. For example, automatic library system, railway reservation system, banking
system, etc.

55. Elements of a System
The following diagram shows the elements of a system −

56. Outputs and Inputs
The main aim of a system is to produce an output which is useful for its user.
Inputs are the information that enters into the system for processing.Some of the inputs are raw materials, energy, data etc.
Output is the outcome of processing.It involves transforming element that has been produced by a transformation process to their
ultimate destination.
Processor(s)
The processor is the element of a system that involves the actual transformation of input into output.
It is the operational component of a system. Processors may modify the input either totally or partially, depending on the output
specification.
As the output specifications change, so does the processing. In some cases, input is also modified to enable the processor for handling
the transformation.

57. Feedback
Feedback provides the control in a dynamic system.
Positive feedback is routine in nature that encourages the performance of the system.
Negative feedback is informational in nature that provides the controller with information for
action.
Control
The control element guides the system.
It is the decision–making subsystem that controls the pattern of activities governing input,
processing, and output.
The behavior of a computer System is controlled by the Operating System and software. In
order to keep system in balance, what and how much input is needed is determined by
Output Specifications.

58. Environment
The environment is the “supersystem” within which an organization operates.
It is the source of external elements that strike on the system.
It determines how a system must function. For example, vendors and competitors of
organization’s environment, may provide constraints that affect the actual performance of the
business.
Boundaries and Interface
A system should be defined by its boundaries. Boundaries are the limits that identify its
components, processes, and interrelationship when it interfaces with another system.
Each system has boundaries that determine its sphere of influence and control.
The knowledge of the boundaries of a given system is crucial in determining the nature of its
interface with other systems for successful design.