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TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75


Affiliated to Institution of G.G.S.IP.U, Delhi

MIS - Management Information Systems


Code: BBA (307)

Ridhi Bajaj
Assistant Professor
Syllabus
Unit I
Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization with particular reference to
Management Levels. MIS Growth and Development, Location of MIS in the Organization – concept and design.
Transaction Processing System, Decision Support System, Executive Information system, Expert System, and the
recent developments in the field of MIS.

Unit II
System Development: Concept of System, Types of Systems – Open, Closed, Deterministic, Probabilistic, etc. Relevance
of choice of System in MIS, Integration of Organization Systems and Information Systems, System Development
Life Cycle, System Analysis, Design and Implementation, MIS Applications in Business.

Unit III
Information Concepts: Data and Information – meaning and importance, Relevance of Information in Decision Making,
Sources and Types of Information, Cost Benefit Analysis – Quantitative and Qualitative Aspects, Assessing
Information needs of the Organization.

Unit IV
Information Technology: Recent Developments in the Field of Information Technology: Multimedia Approach to
Information Processing. Decision of Appropriate Information Technology for proper MIS.
Choice of appropriate IT Systems – Database, Data warehousing & Datamining Concepts.

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Relevant Books
Name: Management Information System
Author: W. S. Javadekar
Publication: Tata Mc Graw Hill
Course Coverage: 60%
Availability in the Library: 50 Books

Name: Management Information System


Author: L. M. Prasad, Usha Prasad
Publication: Sultan Chand & Sons
Course Coverage: 90%
Availability in the Library: 168 Books

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Objective of the Study
The Objective of this paper is to:

 Understand the basic concept of MIS

 The components which form a part of MIS

 How do the different components work together

 Why does a company need MIS

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
UNIT - I
MANAGEMENT INFORMATION SYSTEM
A SYSTEM/ set of systems, which MANAGES the INFORMATION in an
organization.
Technically, A management information system provides information that
organizations require to manage themselves efficiently and effectively. They
are used to analyze and facilitate strategic and operational activities.
Importance of MIS (What does it do?)
Collect Data  Process it  Disseminate Transaction Processing

Problem Identification Operational Control

Information Generation
Strategic Planning
Communication
Management Control

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
WHY DO WE NEED MIS?
WHAT
HOW DO THE
DOES MANAGERS
MIS HELP? DO?
• Goal setting,
• Strategic planning and
• Evolving the business plans and
Top
• Their implementation
Level

• Short term planning,


• target setting and
• controlling the business functions. Middle Level

• Transaction Processing
• Answers queries on the data pertaining to:
> the transaction,
> the status of a particular record and Lower Level
> references on a variety of documents.
• provides the operational data for planning,
scheduling and control, and
• decision making at the lower level

Fig.: Functions of MIS systems at different levels of management in an organization


Classification of MIS
TPS (Transaction Processing Systems)
 Processes transactions & produces reports
 Used at lowest level
 Provides NO information for decision making

DSS (Decision Support Systems)


 Assist in decision making
 Useful in planning and assessing the alternatives
 Each DSS is distinct & Tailor-Made for its manager
 Contains:
 Database (combination of internal & external data)
 Model Base (Includes models to analyse data like PERT, CPM)
 User Interface (provide interactive dialogue between machine & user)

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Classification of MIS
Expert Systems
 Knowledge based IS.
 Based on Artificial Intelligence – acts as an expert on specific
application areas
 Contains:
 Knowledge Base – contains facts about a specific expert area with
reasoning
 Inference Engine – contains the logic of reaching an inference
 User Interface – Interactive platform between user & machine

EIS (Executive Information Systems)


 Specially tailored for the use by Chief Executive of an
organization to support his decision making
 Uses the concepts of Database, Data warehouse, & Data mining

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
UNIT - II
CONCEPT OF SYSTEM

• A system is a set of interacting or interdependent components forming an


integrated whole.
• A system has
– Structure,
Environment
– Behavior, &
– Interconnectivity
Input/Output
Elements of a system: – Processor
• Inputs and outputs
• Processor
• Control Control Feedback
• Environment/surroundings
• Feedback
• Boundaries and interface
Boundary

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of Systems
Open System Probabilistic Deterministic
An open system A closed system A probabilistic system A deterministic system
is one in which the
exchanges matter exchanges is one in which the occurrence of all
energy, occurrence of events events is known with
and energy with certainty. If the
cannot be perfectly
its surroundings. but not matter, predicted. Though the
description of the
system state at a
Most systems are with its behavior of such a particular point of time
open systems. environment. system can be is given, the next state
can be perfectly
described in terms of predicted.
Like: A Car, or a probability, a certain
Computer. Like: Earth,
degree of error is Like: A Calculator.
Black Hole.
always attached to it.

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
System Development Life Cycle
The Phases in the SDLC are:

Feasibility Study

Post Implementation/ System Analysis


Maintenance

Implementation System Design

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
System Analysis:
Feasibility Study:
• Define project goals into defined System Design:
• Conduct a preliminary analysis,
functions and operation of the • Describe desired features and
• Propose alternative solutions,
intended application. operations in detail,
• Describe costs and benefits and
• Analyzes end-user information • Includes project layouts, business
• Submit a preliminary plan with needs. rules, process diagrams, and other
recommendations. documentation.

SYSTEM DEVELOPMENT LIFE CYCLE

Post – Implementation/ Maintenance: Implementation:

• Changes, • Bring all the pieces together into a special

• Correction, testing environment,

• Additions • Check for errors

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
UNIT- III
Data & Information
Data : The raw facts and figures.

Information: The processed data.


Attributes of Information

ACCURACY CORRECTNESS

TIMELINESS IMPARTIALITY

FREQUENCY RELIABILITY

VALIDITY
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of Information
1. Action & Non-Action Information:

The information which induces action is called action information.


Ex.: Low Battery!

The information which communicates only the status of a situation is non-action information.
Ex.: The stock ledger showing the store transactions and the stock balances.

2. Recurring & Non-Recurring Information

The information which repeats itself after a certain interval of time is recurring information.
Ex.: The monthly sales reports.

The information which may occur only once or after a long gap is non-recurring information.
Ex.: The report on the market research study.

3. Internal & External Information


The information generated through the internal sources of the organization is termed as internal information.
Ex.: Employee Information.

The information generated through the sources of data that are outside the organization is external information.
Ex.: Government reports, industry surveys.
TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
COST – BENEFIT ANAYLSIS

• Cost benefit analysis (CBA), sometimes


called benefit–cost analysis (BCA), is a
systematic process for calculating and
comparing benefits and costs of a project.

• A project should be considered only if:


– Benefits > Costs, or
– Benefits/ Costs ratio > 1

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of C & B
• Tangible & Intangible Costs & Benefits

– TC: An outlay of cash for a specific item or activity.


• examples: Purchase of hardware or software, employees’ salary.

– IC: Costs that exist but their financial value cannot be


measured. Easy to identify, but difficult to quantify.
• Examples: Cost of System Breakdown.

– TB: Decreased Transaction Processing Time

– IB: Higher Customer Satisfaction

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
• Fixed and variable costs & benefits
– FC: Remain the same irrespective of volume
of activities of a system.
• Examples: Cost of physical assets, rental charges

– VC: Vary in proportion to the volume of activities of the


system.
• Examples: printer paper, supplies, telephone line charges

– FB: benefits from reduced number of errors due


To automation of processes.

– VB: Time saved in online counselling

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
• Direct and Indirect costs & benefits
– DC: are associated directly to an operation.
• Examples: Cost of a box of CDs.

– IC: are not directly associated with an operation. Also


called as ‘Overheads’.
• Examples: Insurance Cost, Maintenance Costs

– DB: A new system handling 30% more transactions

– IB: are realized as a by-product of another operation


(PPF – Cash + Tax)

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
UNIT- IV
IT SYSTEMS – Database, Data Warehouse, Data Mining
• Database: An integrated collection of logically related data
elements.
• Data Warehouse: A collection of subjectively selected
operational data which can successfully answer any ad hoc,
complex, or statistical queries.
– It contains integrated historical data which is common to
the whole organization.
• Data Mining: Non-Trivial extraction of previously unknown &
potentially useful information from the data.

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Multimedia
• It is a form of communication that combines two or
more types of media together, such as: text,
graphics, sound, still video, full motion video, or
animation into a computer based application.

• Software Requirements:
– Painting & Drawing tools
– Computer aided design tools
– Sound editing programs
– Digital video movies

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Applications of Multimedia

• Better information presentation for decision


making

• Advertising & Sales Promotion

• After sales service

• Employee training

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75
Recent Developments in MIS

E-Commerce (Transacting through World Wide


Web)

Networking (Remote Logins)

Mobile Commerce (Mobile Apps.)

TRINITY INSTITUTE OF PROFESSIONAL STUDIES


Sector – 9, Dwarka Institutional Area, New Delhi-75