Marketing Management

Unit No. 3 – Management Information System

Faculty Name : Dr.Shalaka.

1. Understanding the term MIS
2. MIS structure based on Physical components
3. Classification of IS
4. System Concepts of MIS
5. Difference between MIS & Data Processing
6. Overview of IS
MIS

MIS is a computer based Information System. It is a system which provides

information support for decision making in the organisation.

3
MIS Structure based on physical components

Hardware
Hardware refers to the physical data processing equipment and peripheral devices. E.g.
CPU, monitor, printers etc.

Software
Software is the instructions or programs that direct the operation of the hardware.

Database:
All data utilised by application software. Data is stored in files.

Procedures:
Formal operating procedures which are required to operate a system.

Operating Personnel:
People like computer operators, programmers, system analyst, system managerare
operating personnel of information system.

4
Classification of IS

Information System is divided into :

1. Operations Support Systems
2. Management Support Systems
3. General Support Systems

5
1. Operations Support Systems:
As and when any transaction takes place in an organization, data, which is a by-
product of a transaction is generated. In order to process such data, information
systems are required which are called operations support systems.

Operations Support Systems is divided into

a) Transaction Processing Systems
b) Process Control Systems
c) Office Automation Systems

6
a) Transaction Processing Systems :

-Transaction processing system records and processes data and produces reports.
Transactions could be externally generated
-It represents the automation of the fundamental, routine processing used to
support business operations.
-They do not provide any information for decision making.
- Its domain(area of application) is lowest level of management hierarchy.
- Example : transferring work in process from one stage of production to the next,
recording depreciation on equipment, making routine file changes such as adding or
deleting records or changing an employee’s address, and correcting errors in
previous input data are all examples of internal transactions handled by TPS.

7
b) Process Control Systems :

-The systems which monitor and control physical processes are known as Process
Control Systems.

-Example: pharmaceutical manufacturing company uses electronic sensors linked to

computers to monitor chemical processes and make the required adjustments.

8
c) Office Automation Systems :

-Refers to the application of computer and communication technology to office

functions.
- Improve the productivity of managers at various levels of management by
providing secretarial assistance and better communication facilities.
- Examples : word processing,
- Electronic filing, electronic mail, message switching, data storage, data and voice
communications etc.

9
2. Management Support Systems:
Management Support Systems are the information systems that focus on providing
information and decision support for effective decision making by the managers.

Management Support Systems is divided into

i. Management Information Systems
ii. Decision Support System (DSS)
iii. Executive Support System (ESS)
iv. Enterprise System

10
 i. Management Information Systems :
- Management Information System(MIS) is an information system which processes
data and converts it into information.
- MIS uses TPS for its data inputs.
- Information generated by MIS is used for long & short term planning, control of
operations, management control and other managerial problem solving.
- The domain of MIS is mainly management control level of management hierarchy.
- MIS is capable of providing analysis, planning and decision-making support.

11
 ii. Decision Support System (DSS) :
-Assists the manager in decision making. DSS is used in planning, analysing and
decision making.
- DSS is tailor made for every manager. DSS is tailored to a specific managerial task
or special problem, its use is limited to that task or problem.
- DSS is to designed primarily to serve the management control level and strategic
planning level.
- Elements of DSS include:
- i. Databases
- Ii. Model base
- Iii. Interface

12
 iii. Executive Support System (ESS) :
-ESS is an extension of MIS and is a special kind of DSS and provides critical
information from various inter and intra-sources in easy to use displays.
-Specially tailored for use of Chief Executive of an organization to support his
decision making.
-It is more specific and person oriented.
-ESS is designed to cater to the needs of chief executive keeping in view his
requirements, his personality and style of functioning etc.

13
iv. Enterprise System :
-Enterprise system integrates all facets of an organisation like planning,
manufacturing, sales, human resource, customer relations, inventory control,
financial management, marketing etc.
-Enterprise system is a common structure useful to each of the business functions.
-All business functions are linked together by means of information .
Integration of the information may be :
1. Hierarchical
2. Horizontal
3. Cross functional

14
3. General Support System :
General Support System have their role in operations and management of a
business.
i. Business Expert Systems
ii. Knowledge Management Systems
iii. Strategic Information Systems
iv. Functional Business Systems

15
i. Business Expert Systems :
- Business Expert Systems are based on artificial intelligence and are advanced
information systems.
- Expert systems provide decision support to managers in the form of advice from
an expert in a specific area.
- Components of an expert system include :
i. Knowledge base
ii. Inference engine
iii. User interface

16
ii. Knowledge Management System :
- Knowledge Management System are knowledge based information system.
- Support in creation, organisation and dissemination of business knowledge to
managers and other employees of the organisation.
- Ensures that the right knowledge is provided to the right person at the right time.

17
iii. Strategic Information Systems :

- Strategic Information Systems apply information technology to the products,

services or business processes of an organisation to help the organisation gain a
strategic advantage over its competitor.
- Strategic Information Systems is any kind of information system like MIS, DSS,
ESS etc. that applies Information technology to gain competitive advantage for
the organisation.

18
iv. Functional Business Systems :
-Business activities are grouped around functions such as production, marketing,
finance and personnel etc. resulting in the respective department or an area of the
business organisation.
-Each of these functional areas have unique information needs and requires
information system support designed specifically for it.
-Within each sub-systems there will be applications for transaction processing,
operational control, management control and strategic planning.
Eg. Financial Information system developed for finance dep.
Marketing Information system developed for Marketing dep.
HR information system for HR etc.

19
System Concepts of MIS

Boundary :
-The boundary is a feature of the system which defines and delineates it.
-The system is inside the boundary and its environment is outside the boundary.
- It is often difficult to specify in detail the boundaries of a system. In such case the
person who studies a system arbitrarily defines the boundaries for the system.
- For eg. While studying production system, one may include raw material and
finished goods as within the boundaries of a system; whereas another similar
study may exclude either raw material or finished goods; or both from such a
study of the production system.
- The use of boundary concept enables a systems analyst to define any on-going
process as a system.

20
Interface :
Each system can have sub-systems which in turn are made up of units. The
interconnections and interactions among the sub-systems are called interfaces.

Black Box :
The transformation process in certain sub-systems, especially at the lowest level
may not be defined. However the inputs and outputs are known.
Such a sub-system whose processes are not defined is called a black box system.

System Decomposition :
A system is divided into smaller systems known as sub-systems and sub-systems can
further be divided into still smaller systems called sub-sub-systems which can
further be divided into still smaller systems. This process continues until the
smallest sub-systems are of manageable size.

21
22
Thank You