Management Information System

Module I – Introduction to MIS

Group I

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 Group - I
NAME ROLL NO.
Natasha Poddar 08D1677
Dayana Fernandis 08D1667
Akshat Sharma 08D1612
Aditya Gurwara 08D1607
Kaushal 08D1631
Preet Tyagi 08D1648
Aditya Kashyap 08D1609

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 CONTENTS
Sr No. Topic Page No.
1 Definition of MIS 4
2 Data Vs Information 5
3 Information Map 7
4 Systems 8
5 Classification of Information 10
6 Data life Cycle 11
7 Data processing methods 12
8 System Life cycle 14
9 Clasification of MIS 15
10 Bibliography 16

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DEFINITION OF MIS

Davis and Olson defines MIS as “ an integrated user-machine system designed for providing
information to support operational control, management control and decision-making
functions in an organization. The information systems make use of resources such as hardware,
software, men , procedures as well as supplies.

TYPES OF RESOURCES

 Personnel
 Material
 Machines
 Money
 Information

MONEY PEOPLE FACILITY MATERIAL METHOD

INFORMATION

INPUT PROCESSING OUTPUT

Raw material Finished goods

FEEDBACK CONTROL

Information as a Resource

PURPOSE OF MANAGING INFORMATION

 International economic influence

 Worldwide competition
 Increasing complexity of technology
 Shrinking time frames
 Social constraints

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DATA VS INFORMATION

Data

It is the collection of facts, which is unorganized but can be organized into useful
information. The term data and information come across in our daily life and are often
interchanged. Example : dates, weights, prices, costs, number of items sold, employees names,
product names etc.

 Data is the name or measure of an entity, thing or item

 Data may relate to reality, or to fiction
 Real data may be characters, numbers, or images;
 Unreal data may be a fictional movie
Characteristics of data

 Data are the raw materials of information

 Data is a distinct piece of information
 Data must be disorganized or unprocessed

Information
The data which has been converted into a useful and meaningful form is information. The
term data and information are used interchangeably; data are raw resources that are processed
into finished information products. Information can be defined as data that has been converted
into a meaningful and useful context fir specific end users.

Information is processed data, placed in a context that gives it values for specific end users

Characteristics of Information:

 Information is the resultant version of some data.

 Information always be processed or organized
 Information is the context in which data is taken.

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Data Vs Information by a Chart:
Data
Name or Measure Of a fact
Unprocessed or unorganized
Raw materials of Information
Meaningful or meaningless
Eg. : Marks , GP etc
Information
Resultant form of the fact
Processed or organized
Resultant version of some data
Must be meaningful
Eg. : GPA , CGPA etc
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Information Map
It is the description of data and information flow within an organization.

 Shows the network of information sub-systems exchange information with each other
and the world outside
 In an ideal organization , no human would need to retrieve information from one
Information system and transfer it to another .
Process

 Any manipulation of data, usually with the goal of producing information.

 Sometimes data us information
 Information may be accurate, but may be useless

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System

A system is a group of elements or components joined together to fulfill certain function. In a

larger context, a system is an assemblage of procedures, processes, methods, routine,
techniques, etc. united in some form of regulated interaction to form an organized whole.

An array of components that work together to achieve a common goal, or multiple goal by
accepting input , processing it and producing output in an organized manner.

Most systems share common characteristics, including:

 Systems have structure, defined by parts and their composition;

 Systems have behaviour, which involves inputs, processing and outputs of material, energy
or information;
 Systems have interconnectivity: the various parts of a system have functional as well as
structural relationships between each other.
 System(s) have by itself function(s) or group of functions

Sub-System

Sub-systems are components of a larger system with sub- goals. A sub-system can receive input
form , and transfer output to other systems .

Open Closed System

Systems interact with their environment to achieve their targets. Things that are not part of the
system are environmental elements for the system. Depending upon the interaction with the
environment, systems can be divided into two categories, open and closed.

Open systems: Systems that interact with their environment. Practically most of the systems
are open systems. An open system has many interfaces with its environment. It can also adapt
to changing environmental conditions. It can receive inputs from, and delivers output to the
outside of system. An information system is an example of this category.

Closed systems: Systems that don't interact with their environment. Closed systems exist in
concept only.

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VARIOUS TYPES OF SYSTEMS

SYSTEMS SUB SYSTEMS USEFULLNESS

Transport air transport, rail transport, To provide movement of

road transport, water goods and passengers
transport

Computer Physical components like Processing of data for

inputs, outputs, storage and information
connections

Business Various departments like Production of goods, services,

production, marketinf, fiance, earning of profit.
etc

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Classification of Information
(1) Action VS Non- Action: Information given where you are going to take action on that is
known as ACTION INFORMATION. Eg: For raw materials, prices may rise next week, so
action is taken to stock up the raw materials.
(2) Recurring VS Non- Recurring: when the information given is repeating, it is known as
Recurring Information. Eg: TV Ads.
Non- Recurring Information cane be like launching a new product, a viral advertisement, or
even a special training.
(3) Documentary VS Non-Documentary: Things that can be documented are known as
documentarty information. Eg: sick leaves; how many times an advertisement is shown
in the TV.
(4) Internal VS External: an example of internal information is Cost Accounting. And an
example of external information is Financial Accouting.
(5) Historical VS Future Projections: Financial is an example of historical information. And
an example of future projections is Cost,which shows the projected future
requirements.

Characteristics of Information:

 Information is the resultant version of some data.

 Information always be processed or organized
 Information is the context in which data is taken.
Information from data

 Data life cycle

 Data processing methods

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Data Life cycle

In the transaction processing world, data archiving is a system design feature. When you move
the same data to your data warehouse, rarely do you have a compelling need to have an
archival strategy. How much of the data in your data warehouse do you (or does your business)
really use every day? I bet it is less than 1%. Then, why do you need to keep all this data online
in a data warehouse? Single version of truth, compliance, audit, fraud detection or business
needs – whatever your driver, the value of old data should be evaluated.

Old data is a boat anchor, whether you are a wholesale member’s only club with a high volume
of transactions or a wireless company with call detail record (CDR) data. The quality of
information stored in the data warehouse is valuable only for a period of time in its current
state, and for a future period in a summarized state.

Most data warehouses that are in use today were built to satisfy certain data and reporting
requirements. If those requirements are no longer valid, how do you really understand the
business value of this data, and how do you manage the life cycle of this data?

Data life cycle value determination:

1. Conduct a survey of your business users to determine the percentage of the data in the
data warehouse they are using.

2. Develop and publish a data usage report and educate the business users on the issues
being caused by the extra data, including:
o Storage costs – the extra data is using extra storage.
o Service level agreement (SLA) issues – the extra data is affecting loading data and
running reports, causing SLA issues.
o Metadata management issues.
o Master data maintenance issues.

3. Ascertain organizational alignment on the business value of the legacy data.

Store Retrieve
Sort

Manipulate Utilise
Generate Evaluate

Destroy Synthesise

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 Data Processing methods

 Manual
 Electro mechanical
 Computer
 EDP (electronic data processing system)

Output

Sales Profit Quality Service

 Qualitative Techniques
Management
Techniques  Decision Techniques

 Experience and Intution

Feedback
Information

Functions of management

Planning Organizing Directing Staffing Controlling

Resources flow (input)

Man Machine Method Money Material

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Reasons for systems approach

 Increased complexity of business

 Increased complexity of management

Classification of systems

The various types of systems are:

 Conceptual and empirical system: the conceptual system is concerned with the
theoretical structures which may or may not have any counterpart in the real worlds.
Examples of such are: economic theory, organization theory, general system of relativity.
Empirical systems are concrete operational systems made up of people, materials,
machines, energy and other physical things. Since such systems may be derived from or
based upon a conceptual input, therefore it represents the conversion of concepts into
practice.
 Natural and man-made systems: the examples of natural systems are human body,
solar system.
The examples of man-made system are transportation systems, education system
 Social system: a system made up of people may be taken as a social system, such as
business organizations, government agencies.
 Man machine system: most empirical systems fall into this category. An example being
the aero plane
 Open and closed system

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System Life Cycle

The system lifecycle in systems engineering is an examination of a system or proposed system

that addresses all phases of its existence to include system design and development,
production and/or construction, distribution, operation, maintenance and support, retirement,
phase-out and disposal.

Study Phase

 Identification of the problem

 Study of present system and its effectiveness
 Identification and evaluation of various alternatives
 Selection of best alternatives
Design Phase

 Identification of functions
 Study of input output
 Defining basic parameters
Development phase

Implementation phase

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Categories of MIS

Transaction Processing Systems

These systems are designed to handle a large volume of routine, recurring transactions. They
were first introduced in the 1960s with the advent of mainframe computers. Transaction
processing systems are used widely today. Banks use them to record deposits and payments
into accounts. Supermarkets use them to record sales and track inventory. Most managers use
these systems to deal with tasks such as payroll, customer billing and payments to suppliers.

Operations Information Systems

These systems were introduced after transaction processing systems. An operations

information system gathers comprehensive data, organizes it and summarizes it in a form that
is useful for managers. Most of these systems access data from a transaction processing system
and organize it into a form usable by managers. Managers use operations information systems
to obtain sales, inventory, accounting and other performance-related information.

Decision Support Systems (DSS)

A DSS is an interactive computer system that can be used by managers without help from
computer specialists. A DSS provides managers with the necessary information to make
intelligent decisions. A DSS has three fundamental components:
1. Database management system (DBMS): Stores large amounts of data relevant to problems
the DSS has been designed to tackle.
2. Model-based management system (MBMS): Transforms data from the DBMS into
information that is useful in decision making.
3. Dialog generation and management system (DGMS): Provides a user-friendly interface
between the system and the managers who do not have extensive computer training.

Expert Systems and Artificial Intelligence

These systems use human knowledge captured in a computer to solve problems that ordinarily
need human expertise. Mimicking human expertise

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 Bibliography
 Management information system – A.K. Gupta
 Management information system- Ashok Arora , Akshaya Bhatia
 Management information system (conceptual foundations, structure and
development) (second edition )- Gordon B. Davis
 Margrethe H. Olson
 Management information system(second edition)- W S Jawadekar

 MIS -C.S.V Murthi

 Walsham. G. (1993), Interpreting Information Systems in Organisations, Wiley,
Chichester.

 http://www.bettscomputers.com/characteristicsofinformationsystems.htm
 http://www.thefreedictionary.com/business+data+processing
 http://www.blurtit.com/q594022.htmlz
 http://www.free-computer-tips.info/tutorials/general-computer/data-processing-
cycle.html

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