Mis 1

MANAGEMENT INFORMATION SYSTEMS
CHAPTER I: FOUNDATION CONCEPTS OF INFORMATION SYSTEM
Information System
Many organizations work with large amounts of data. Data are basic values or facts and are
organized in a database. Many people think of data as synonymous with information; however,
information actually consists of data that has been organized to help answers questions and to
solve problems. An information system is defined as the software that helps organize and
analyze data. So, the purpose of an information system is to turn raw data into useful information
that can be used for decision making in an organization.
General Purpose vs. Specialized Information

Systems
There are some general types of information systems. For example, a database management
system (DBMS)is a combination of software and data that makes it possible to organize and
analyze data. DBMS software is typically not designed to work with a specific organization or a
specific type of analysis. Rather, it is a general-purpose information system. Another example is
an electronic spreadsheet. This is a tool for basic data analysis based on formulas that define
relationships among the data. For example, you can use a spreadsheet to calculate averages for
a set of values or to plot the trend of a value over time.
In contrast, there are a number of specialized information systems that have been specifically
designed to support a particular process within an organization or to carry out very specific
analysis tasks. For example, enterprise resource planning (ERP) is an information system
used to integrate the management of all internal and external information across an entire
organization. Another example is a geographic information system (GIS), which is used to
manage and analyze all types of geographical data. Expert systems are another example of
information systems. An experts system is designed to solve complex problems by following the
reasoning of an expert.
Typical Components of Information Systems

While information systems may differ in how they are used within an organization, they typically
contain the following components:
1. Hardware: Computer-based information systems use computer hardware, such as

processors, monitors, keyboard and printers.
2. Software: These are the programs used to organize, process and analyze data.
3. Databases: Information systems work with data, organized into tables and files.
4. Network: different elements need to be connected to each other, especially if many

different people in an organization use the same information system.
5. Procedures: These describe how specific data are processed and analyzed in order to
get the answers for which the information system is designed.
The first four components are part of the general information technology (IT) of an
organization. Procedures, the fifth component, are very specific to the information needed to
answer a specific question.
Different Types
The many different types of information system can be divided into categories based on the
where they are used in the hierarchy of an organization.
Information systems are a special class of systems whose main objective is to store, retrieve
and process, communicate and secure data. Information systems which help management at
different levels to take suitable decisions are called management information systems.
Typically information systems are housed in a computerized environment/platform to
enable users to get faster and accurate information.
Data: Data is defined as collection of facts.

Information: Information is defined as processed data and interpretation it in a meaningful
way. It refers to organizing data to create additional value beyond the value available data.
Data Processing Informatio

System: A system refers to a group of interacting units or
n elements that have a common
purpose. Systems are classified into Open Systems and Closed Systems.
Open Systems: Open systems refer to systems that interact with other systems or the outside
environment.
Closed System: Closed systems refer to systems having relatively little interaction with other
systems or the outside environment.
Information System: Information System is a combination of people, hardware, software,
communication devices, network and data resources that processes (can be storing,
retrieving, transforming and circulating information) data and information for a specific
purpose. An information system (IS) is typically considered to be a set of interrelated

elements or components that collect (input), manipulate (processes), and distribute (output)
data and information and provide a feedback mechanism to meet an objective.
The major Information Systems are:

1. Formal Information Systems and
2. Informal Information Systems
3. Computer-based Information Systems
Formal Information Systems: This system defines very clearly the work-flow
system, communication flow-down and the authority. The information flows in
terms of policies, goals, strategies, rules and regulations from the top level
management to the bottom level of management.. The information also flows
from the bottom level management to the top level in terms of feedback, results
of work done, etc...
Informal Information Systems: The informal information system is employee-

based and caters to their development and solves their work related problem.
Employee co-operation and the knowledge of the informal communication should
help one to get a good Informal Information Systems in place.
Computer Based Information System: This relies on the computer for

handling business applications. The business requires computer heavily to solve
their business problems. There are different levels of information required by
people at different level. People at Lower Level needs detailed information which
would allow them to carry out with their tasks. People at Higher Level needs
summarized information which would allow them to assess the overall progress,
goals etc. This system should ensure that people at lower level are not given
access to all the data shown at the higher level. However, people at the higher
level can drill down to the data at the lower when required.
Characteristics of Information System
The following are the characteristics of an Information System:
1. Ability to organize data into information

2. Ability to analyze information
Information Systems Framework
Management
Challenges
Information
Business Technologies
Applications Information
Systems
Development Foundation
Process Concepts
Information System Resources
People Resources
Specialists systems analysts, software developers, system operators

End Users Any user of information systems
Hardware Resources
Machines computers, video monitors, magnetic disk drives, printers,

optical scanners
Media floppy disks, magnetic tapes, special disks, plastic cards, paper
forms
People
Hardware
Software
Information
Systems
Resources
Data Networks
People Resources
Specialists systems analysts, software developers, system operators

End Users Any user of information systems
Hardware Resources
Machines computers, video monitors, magnetic disk drives, printers,

optical scanners
Media floppy disks, magnetic tapes, special disks, plastic cards, paper
forms
Software Resources
Programs operating system programs, spreadsheet programs, word

processing programs, payroll programs
Procedures data entry procedures, error correction procedures, pay
check distribution procedures
Data Resources
Product descriptions, customer records, employee files, inventory

databases
Network Resources
Communication media, communication processors, network access and

control software
Information Products
Management reports and business documents using text and graphics

displays, audio responses, and paper forms
Information System can be divided into 2 major categories, which are:
1. Management Support Systems (MSS)

2. Operations Support Systems (OSS)
3. Management Support System A generic term used to describe software
which provides help to a manager in carrying out his or her tasks. These
are IT systems which support managers in making management decisions.
4. Management Support Systems can be classified into Management
Information Systems, Decision Support Systems and Executive Information
Systems.
5. Operational Support System A generic term for a suite of programs
that enable an enterprise to monitor, analyze and manage a network
system. This enables a smooth workflow, and better coordination of
different departments like HR, Accounting, shop floor, etc...
6. Operational Support Systems can be classified as Transaction Processing
Systems, Process Control Systems and Enterprise Collaboration Systems.
7. Decisions at this level are highly structured.
Management Information System
Management information systems provide information in the form of reports and

displays to managers.MIS refers broadly to a computer-based system that
provides managers with the tools for organizing, evaluating and efficiently
running their departments.
MIS can be termed as:
Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost
The following are the characteristics of MIS:
1. Management oriented
2. Management directed
3. Integrated
4. Common data flows
5. Heavy element
6. Flexibility and ease of use
The following are the advantages of MIS:
1. It facilitates planning
2. In Minimizes information overload
3. MIS Encourages Decentralization
4. It brings Co-ordination
5. It makes control easier
6. MIS assembles, process, stores, retrieves, evaluates and disseminates the

information
The following are its disadvantages:
1. Highly sensitive requires constant monitoring.

2. Budgeting of MIS extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update itself.
5. Effectiveness decreases due to frequent changes in top management
6. Considers account only qualitative factors and ignores non-qualitative
factors like morale of worker, attitude of worker etc...
Management Information Systems
What is a Management Information System?

For historical reasons, many of the different types of Information Systems
found in commercial organizations are referred to as "Management
Information Systems". However, within our pyramid model, Management
Information Systems are management-level systems that are used by
middle managers to help ensure the smooth running of the organization in
the short to medium term. The highly structured information provided by
these systems allows managers to evaluate an organization's performance
by comparing current with previous outputs.
Functions of a MIS
MIS are built on the data provided by the TPS
Functions of a MIS in terms of data processing requirements
Inputs Processing Outputs
Internal Transactions Sorting Summary reports

Internal Files Merging Action reports
Structured data Summarizing Detailed reports
Some examples of MIS
Sales management systems
Inventory control systems
Budgeting systems
Management Reporting Systems (MRS)

Personnel (HRM) systems
The role of MIS
Based on internal information flows
Support relatively structured decisions
Inflexible and have little analytical capacity
Used by lower and middle managerial levels
Deals with the past and present rather than the future
Efficiency oriented?
What are the most common types of information

system in an organization?
While there are several different versions of the pyramid model, the most
common is probably a four level model based on the people who use the
systems. Basing the classification on the people who use the information
system means that many of the other characteristics such as the nature of
the task and informational requirements, are taken into account more or
less automatically.
Four level pyramid model based on the different levels of hierarchy in the
organization
A comparison of different kinds of Information

Systems
Using the four level pyramid model above, we can now compare how the
information systems in our model differ from each other.
1. Transaction Processing Systems
What is a Transaction Processing System?

Transaction Processing System are operational-level systems at the
bottom of the pyramid. They are usually operated directly by shop
floor workers or front line staff, which provide the key data required to
support the management of operations. This data is usually obtained
through the automated or semi-automated tracking of low-level
activities and basic transactions.
Functions of a TPS
TPS are ultimately little more than simple data processing systems.
Functions of a TPS in terms of data processing requirements
Validation
Sorting Lists
Transactions Listing Detail reports
Events Merging Action reports
Updating Summary reports?
Calculation
Some examples of TPS
o Payroll systems
o Order processing systems
o Reservation systems
o Stock control systems
o Systems for payments and funds transfers
The role of TPS
o Produce information for other systems
o Cross boundaries (internal and external)
o Used by operational personnel + supervisory levels
o Efficiency oriented
2. Management Information Systems
What is a Management Information System?

For historical reasons, many of the different types of Information
Systems found in commercial organizations are referred to as
"Management Information Systems". However, within our pyramid
model, Management Information Systems are management-level
systems that are used by middle managers to help ensure the

smooth running of the organization in the short to medium term. The
highly structured information provided by these systems allows
managers to evaluate an organization's performance by comparing
current with previous outputs.
Functions of a MIS
MIS are built on the data provided by the TPS
Functions of a MIS in terms of data processing requirements
Internal Transactions Sorting Summary reports

Internal Files Merging Action reports
Structured data Summarizing Detailed reports
Some examples of MIS
o Sales management systems
o Inventory control systems
o Budgeting systems
o Management Reporting Systems (MRS)
o Personnel (HRM) systems
The role of MIS
o Based on internal information flows
o Support relatively structured decisions
o Inflexible and have little analytical capacity
o Used by lower and middle managerial levels
o Deals with the past and present rather than the future
o Efficiency oriented?
3. Decision Support Systems
What is a Decision Support System?

A Decision Support System can be seen as a knowledge based
system, used by senior managers, which facilitates the creation of
knowledge and allow its integration into the organization. These
systems are often used to analyze existing structured information and
allow managers to project the potential effects of their decisions into
the future. Such systems are usually interactive and are used to
solve ill structured problems. They offer access to databases,
analytical tools, allow "what if" simulations, and may support the
exchange of information within the organization.
Functions of a DSS
DSS manipulate and build upon the information from a MIS and/or
TPS to generate insights and new information.
Functions of a DSS in terms of data processing requirements
Modelling
Internal Transactions Summary reports
Simulation
Internal Files Forecasts
Analysis
External Information? Graphs / Plots
Summarizing
Some examples of DSS
o Group Decision Support Systems (GDSS)
o Computer Supported Co-operative work (CSCW)
o Logistics systems
o Financial Planning systems
o Spreadsheet Models?
The role of DSS
o Support ill- structured or semi-structured decisions
o Have analytical and/or modelling capacity

o Used by more senior managerial levels
o Are concerned with predicting the future
o Are effectiveness oriented?
4. Executive Information Systems
What is an EIS?
Executive Information Systems are strategic-level information
systems that are found at the top of the Pyramid. They help
executives and senior managers analyze the environment in which
the organization operates, to identify long-term trends, and to plan
appropriate courses of action. The information in such systems is
often weakly structured and comes from both internal and external
sources. Executive Information System are designed to be operated
directly by executives without the need for intermediaries and easily
tailored to the preferences of the individual using them.
Functions of an EIS
EIS organizes and presents data and information from both external
data sources and internal MIS or TPS in order to support and extend
the inherent capabilities of senior executives.
Functions of a EIS in terms of data processing requirements
External Data Summarizing Summary reports

Internal Files Simulation Forecasts
Pre-defined models "Drilling Down" Graphs / Plots
Some examples of EIS

Executive Information Systems tend to be highly individualized and
are often custom made for a particular client group; however, a
number of off-the-shelf EIS packages do exist and many enterprise
level systems offer a customizable EIS module.
The role of EIS
o Are concerned with ease of use

o Are concerned with predicting the future
o Are effectiveness oriented
o Are highly flexible
o Support unstructured decisions
o Use internal and external data sources
o Used only at the most senior management levels
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Components of MIS and their relationship

A management information system is made up of five major components
namely people, business processes, data, hardware, and software. All of
these components must work together to achieve business objects.
People these are the users who use the information system to record the
day to day business transactions. The users are usually qualified
professionals such as accountants, human resource managers, etc. The ICT
department usually has the support staff who ensure that the system is
running properly.
Business Procedures these are agreed upon best practices that guide the
users and all other components on how to work efficiently. Business
procedures are developed by the people i.e. users, consultants, etc.
Data the recorded day to day business transactions. For a bank, data is
collected from activities such as deposits, withdrawals, etc.
Hardware hardware is made up of the computers, printers, networking

devices, etc. The hardware provides the computing power for processing
data. It also provides networking and printing capabilities. The hardware
speeds up the processing of data into information.
Software these are programs that run on the hardware. The software is
broken down into two major categories namely system software and
applications software. System software refers to the operating system i.e.
Windows, Mac OS, and Ubuntu, etc. Applications software refers to
specialized software for accomplishing business tasks such as a payroll

program, banking system, point of sale system, etc.
Role of MIS in organizations

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 work faster and supplies more
blood when needed. It regulates and controls the incoming impure blood, processed it and sends it to
the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal
course and also in crisis.
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 send 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 top management.
Here are some of the important roles of the MIS:
i) The MIS satisfies the diverse needs through variety of systems such as query system, analysis
system, modeling system and decision support system.
ii) The MIS helps in strategic planning, management control, operational control and transaction
processing. The MIS helps in the clerical personal in the transaction processing and answers the
queries on the data pertaining to the transaction, the status of a particular record and reference on a
variety of documents.
iii) 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 operation level to correct an
out of control situation.
iv) The MIS helps the middle management in short term planning, target setting and controlling the
business functions. It is supported by the use of the management tools of planning and control.
v) The MIS helps the top level management in goal setting, strategic planning and evolving the
business plans and their implementation.
vi) The MIS plays the role of information generation, communication, problem identification and helps
in the process of decision-making. The MIS, therefore, plays a vital role in the management,
administration and operation of an organization.
Trends in MIS
ERP and Networking.
As of 2015, some of the new trends in management information systems include increased
focus on areas such as data mining, cloud computing, networking and digital preservation.
The fields of analytic and mobile computing have also gained increased significance.
A key emerging trend is the emphasis of cloud computing. It allows computers to cut down
on the amount of storage infrastructure, enables easy maintenance and promotes a more
centralized management structure. Mobile computing is also a key trend. The ability to
create special applications designed to run on smartphones and tablets, provides companies
with a greater degree of flexibility. It allows for communication with employees and
customers, beyond the workplace.
However, perhaps the biggest trend is the increased reliance on analytics. Companies turn
to data analytic solutions to better access their overall performance. Managers are also able
to plan better strategies based on the records of existing market trends.
Business Process
Management Information Systems (MIS) not only include software systems, but the entire set of
business processes and resources that are used to pull together information from functional or tactical
systems. Data is then presented in a user-friendly and timely manner so that mid and upper-level
managers can use it to take the right actions. The entire system is designed so that the company will
meet its strategic and tactical goals.
Functional perspective
1. 3. Types of Systems from a Functional Perspective 1. Sales and Marketing Systems 2.
Manufacturing and Production System 3. Finance and Accounting Systems 4. Human
Resources Systems
2. 4. 1. Sales and Marketing Systems The sales and marketing function is responsible for
selling the organizations product or service. Marketing is concerned with identifying
the customers for the firms products or services, determining what they need or want,
planning and developing products and services to meet their needs and wants.
Systems that help the firm identify customers for the firms products or services, develop
products and services to meet customers needs and wants.
3. 5. Information systems are used in sales and marketing in a number of ways.
STRATEGIC LEVEL : Sales and marketing systems monitor trends affecting new
products and sales opportunities, support planning for new products and services, and
monitor the performance of competitors. MANAGEMENT LEVEL : sales and marketing
systems support market research, advertising and promotional campaigns, and pricing
decisions. They analyze sales performance and the performance of the sales staff.
4. 6. KNOWLEDGE-LEVEL : At this, sales and marketing systems support marketing
analysis workstations. OPERATIONAL LEVEL : Sales and marketing systems assist in
locating and contacting prospective customers, tracking sales, processing orders, and
providing customer service support.
5. 7. 2. Manufacturing and Production Systems The manufacturing and production
function is responsible for actually producing the firms goods and services.
Manufacturing and production systems deal with the planning, development, and
maintenance of production facilities Systems that deal with the planning, development,
and production of products and services, and with controlling the flow of production
6. 8. STRATEGIC-LEVEL : manufacturing systems deal with the firms long-term
manufacturing goals, such as where to locate new plants or whether to invest in new
manufacturing technology MANAGEMENT LEVEL : manufacturing and production
systems analyze and monitor manufacturing and production costs and resources.
KNOWLEDGE LEVEL : manufacturing and production systems create and distribute
design knowledge or expertise to drive the production process, OPERATIONAL
LEVEL : manufacturing and production systems deal with the status of production tasks.
7. 9. 3. Finance and Accounting Systems The finance function is responsible for
managing the firms financial assets, such as cash, stocks, bonds, and other investments
in order to maximize the return on these financial assets. The accounting function is
responsible for maintaining and managing the firms financial records receipts,
disbursements, depreciation, payrollto account for the flow of funds in a firm The
accounting function is responsible for maintaining and managing the firms financial
records receipts, disbursements, depreciation, payrollto account for the flow of funds
in a firm
8. 10. STRATEGIC-LEVEL : Systems for the finance and accounting function establish
long-term investment goals for the firm MANAGEMENT LEVEL : Information systems
help managers oversee and control the firms financial resource KNOWLEDGE LEVEL
: Systems support finance and accounting by providing analytical tools and workstations
for designing the right mix of investments to maximize returns for the firm.
OPERATIONAL LEVEL : Systems in finance and accounting track the flow of funds in the
firm through transactions such as paycheques, payments to vendors, securities reports,
and receipts.
9. 11. 4. Human Resources Systems The human resources function is responsible for
attracting, developing, and maintaining the firms work force. Human resources
information systems support activities such as identifying potential employees,
maintaining complete records on existing employees, and creating programs to develop
employees talents and skills. Systems that maintain employee records; track
employee skills, job performance, and training; and support planning for employee
compensation and career development.
10. 12. STRATEGIC-LEVEL : Human resources systems identify the manpower
requirements (skills, educational level, types of positions, number of positions, and cost)
for meeting the firms long-term business plans MANAGEMENT LEVEL : Human
resources systems help managers monitor and analyze the recruitment, allocation, and
compensation of employees. KNOWLEDGE LEVEL : Systems for human resources
support analysis activities related to job design, training, and the modelling of employee
career paths and reporting relationships. OPERATIONAL LEVEL : The recruitment
and placement of the firms employees.
Strategic advantage of MIS

Strategic advantage refers to obtaining a sustainable competitive edge over
competitors. The ability to obtain a greater than normal return on investment.
A strategic necessity is a system that must be installed to remain competitive and
stay in business.
Strategic Roles for Information Systems
Improving business operations
Promoting business innovation
Locking in customers and suppliers
Interorganizational IS, EDI, automatic inventory replenishment system
Creating switching costs
make customers dependent on the continued use of innovative IS.
Raising barriers to entry
discourage competitors from entering a market
The Value Chain and Strategic IS
It views a firm as a series, or chain, or network of basic activities that add value to its
products and services, and thus add a margin of value to the firm.
Margin is the value of the firms products and services less their costs, as
perceived by the firms customers.
Support activities:
Administration, human resource management ,etc.
Primary activities:
Inbound logistics, operations, outbound logistics, marketing, etc.
Strategic Usage of IT
Information technology plays an important role in delivering value for a business and supporting
organizational transformation. To achieve that, chief information officers have become key members
of board teams developing and delivering strategic solutions for the business. The aim is to make an
organization more competitive by aligning business strategy with IT strategy.
Support Innovation
Organizations that want to improve their innovation capabilities and develop new
products or services for the market can use cloud computing to speed up the process.
Cloud computing enables organizations to rent additional IT resources during the
development project on a pay-as-you-go basis, rather than investing in fixed resources.
Organizations can use the additional resources to run pilot programs or speed up
development. This provides an important strategic advantage by enabling the
organization to get new products to market quickly, ahead of the competition.
Improve Responsiveness
Cloud computing enables organizations to scale up their IT resources quickly in response

to changing market conditions. Organizations that offer products and services online may
find it difficult to handle a surge in traffic, which could result in lost business. Adding
resources from the cloud provides a strategic advantage by enabling them to respond to
changes in demand, increase revenue and maintain customer satisfaction.
Increase Collaboration
IT solutions that improve collaboration in an organization can provide an important

competitive advantage. Issuing field service teams with smartphones, for example,
enables service engineers to provide a faster, more efficient service to customers.
Engineers working on a customer site can set up voice or video conference calls with
product or technical experts at headquarters to discuss and resolve a complex issue,
rather than delaying a repair. Offering customer superior service provides a strategic
advantage by differentiating an organization from competitors.
Enhance Customer Insight
Collecting and analyzing data to gain greater insight into customers needs and
preferences provides a strategic advantage. By using powerful analytics software,
organizations can develop customized offers and personalized communications that help
to increase customer satisfaction and foster loyalty.
Introduce New Business Models
Organizations can use IT to make strategic changes to their business models. A company
that traditionally sold products through retail outlets might use IT to develop an e-
commerce model that enables it to reach a wider market, reduce its distribution costs
and offer a more convenient service to customers.
Organizational Change and BPR

Business process reengineering (BPR) is the analysis and redesign of workflows within and
between enterprises in order to optimize end-to-end processes and automate non-value-
added tasks.
What are some of your ERP goals? Are you striving for lower labor costs? Improved
customer service? How about overall growth?
Whatever your companys destination, well-designed business processes are the key to
driving organizational strategy and achieving business goals during an ERP implementation.
If ERP success and improved organizational performance is your desired destination, then
business process reengineering is the path to take. Business process reengineering involves
translating business goals and strategies into tangible processes and value-driven process
improvements. Your organizations chosen ERP system should accommodate these future
state business processes and bring your organization closer to achieving its goals.
To align business process reengineering with organizational strategy, organizations should

begin by documenting and prioritizing their current state business processes. The level of
importance of each process should be determined by evaluating its current level of efficiency
and its potential degree of business impact. Beginning with the highest priority process or
functional area, organizations should identify process inefficiencies, look for opportunities for
improvement and, finally, decide what particular improvements support their business goals.
During this stage, the focus is not on redesigning processes but on identifying high-level
improvement targets that can help achieve business goals.
These improvement targets then guide the definition of future state business processes.
During this stage, the implementation team should work with employees and executives to
redesign processes that have the highest impact on business goals. Bringing the right mix of
resources to the process definition team ensures that process changes are not only driven
by business goals but also based on end-users experiential knowledge of what works and
what doesnt.
While focusing on high-level business goals is important, listening to end-users and

employees creates value in itself and is a stepping stone to achieving overall business goals.
This is why organizational change management and business process reengineering cannot
be separated if your organization hopes to achieve business benefits and ERP success.
Business process reengineering should be value-driven. If your organization is not asking
questions like, What is our destination? and What business processes will help us get
there? then it will probably end up asking questions like, Why is our ERP system not
achieving business benefits? and, worst of all, Why did our ERP implementation fail?

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MANAGEMENT INFORMATION SYSTEMS

CHAPTER I: FOUNDATION CONCEPTS OF INFORMATION SYSTEM

General Purpose vs. Specialized Information

Typical Components of Information Systems

1. Hardware: Computer-based information systems use computer hardware, such as

4. Network: different elements need to be connected to each other, especially if many

Data: Data is defined as collection of facts.

Data Processing Informatio

purpose. An information system (IS) is typically considered to be a set of interrelated

The major Information Systems are:

Informal Information Systems: The informal information system is employee-

Computer Based Information System: This relies on the computer for

Characteristics of Information System

The following are the characteristics of an Information System:

1. Ability to organize data into information

Information Systems Framework

Information System Resources

Specialists systems analysts, software developers, system operators

Machines computers, video monitors, magnetic disk drives, printers,

Specialists systems analysts, software developers, system operators

Machines computers, video monitors, magnetic disk drives, printers,

Programs operating system programs, spreadsheet programs, word

Product descriptions, customer records, employee files, inventory

Communication media, communication processors, network access and

Management reports and business documents using text and graphics

Information System can be divided into 2 major categories, which are:

1. Management Support Systems (MSS)

Management Information System

Management information systems provide information in the form of reports and

MIS can be termed as:

The following are the characteristics of MIS:

The following are the advantages of MIS:

6. MIS assembles, process, stores, retrieves, evaluates and disseminates the

The following are its disadvantages:

1. Highly sensitive requires constant monitoring.

Management Information Systems

What is a Management Information System?

Functions of a MIS in terms of data processing requirements

Inputs Processing Outputs

Internal Transactions Sorting Summary reports

Some examples of MIS

Sales management systems

Inventory control systems

Management Reporting Systems (MRS)

Personnel (HRM) systems

The role of MIS

Based on internal information flows

Support relatively structured decisions

Inflexible and have little analytical capacity

Used by lower and middle managerial levels

What are the most common types of information

A comparison of different kinds of Information

1. Transaction Processing Systems

What is a Transaction Processing System?

Functions of a TPS in terms of data processing requirements

Inputs Processing Outputs

Some examples of TPS

o Order processing systems

o Stock control systems

o Systems for payments and funds transfers

The role of TPS

o Produce information for other systems

o Cross boundaries (internal and external)