Short Notes

of
Management Information System
(MIS)

Submitted By:- Submitted To:-

Era Mittal Mrs. Chhavi Krishna

BBA 3rd Year

Unit-1
Definition of Information System
An information system can be defined as a set of interrelated components that collect
(or retrieve), process, store and distribute information to support decision making,
coordination and control in an organization.

Example of information system

A business is an example of an organization system to an economic resource(input) is
transformed by various business processes into goods and services(output). It includes:-

1. Integration of department with the help of contemporary software’s like ERP.

2. Logistics management application to steam line the transportation system.

Strategic Information Systems Planning(SISP)

Introduction of SISP
SISP has been defined as the process of identifying a portfolio of computer-based
applications that will assist an organization in executing its business plans and realizing
its existing business goals.

Objectives of SISP
1. To improve communication with users.
2. To increase management support.
3. To improve resource requirements forecasting.
 4. To determine more opportunities for improving information system provision.
5. To identify new applications which provided a greater return on investment.
6. To develop an organizational information system architecture.
7. To identify strategic information system applications.

Why SISP is important?

1. Systematic approach in dealing with future uncertainties.
2. It focuses efforts and resources on long-term, general objectives and yet provides
a foundation for short-term activities.
3. It provides a framework for action.

SISP Process

Srategic Business Planning

Information System Assessment

Information Systems Vision

Information Systems Guidelines

Strategic Initiatives

Management Levels as a Framework for Information

System
While developing in information management strategy within an organization, it is
useful to consider information need at on 3 levels:-

1. Corporate (Top Level Information) – For Ex:- policies and procedures, HR

information, online forms, phone dictionary, etc.
2. Team, Division, Business Unit(Middle Level Information) – For Ex:- project
documentation, business unit specific content, meeting minutes, etc.
 3. Individual(Low Level Information) – For Ex:- correspondence, reports and
spreadsheet.

While managing them information at each of the 3 levels, the following aspects should
be considered:-

1. An information management solution must be provided for staff at each of the 3

levels.
2. A clear policy must be developed.
3. Processes must be put in place to promote information from lower level to higher
level.
4. As much as possible, a seamless information management environment should
be delivered that covers all the 3 levels.

Business Systems Planning(BSP)

Introduction of BSP
BSP is a method of analyzing, defining and designing the information architecture of
organizations. It is a complex method dealing with interconnected data, processes,
strategies, aims and organizational departments.

Objectives of BSP
1. To create and manage wealth.
2. To attracting new customers.
3. To multiplying sales result.
4. To implement effective business systems.

Critical Success Factors(CSF)

Introduction of CSF
CSF identifies key business goals and strategies that must be addressed with business
strategy. An effective way of spotting business problems is to develop key indicators of
the health of the business and ton focus on significant deviations from planned
performance.
Objectives of CSF
1. To help an individual manager determine his or her information needs.
2. To aid an organization in its information systems planning process.
3. To aid an organization in its organizational strategic planning process.

Ends/Means Analysis(E/M Analysis)

Introduction of E/M Analysis
E/M Analysis has been used in a wide range of organizational settings with positive
results. It focuses on improving the organization’s efficiency by means of information
systems suited to its processes, and also brings out effectiveness information
requirements as well.

Specification in E/M Analysis

End Specification – The output or end result, of the inventory management function is
an inventory kept as low as possible with an acceptable level of availability.

Means Specification – The inputs and processes to accomplish the ends.

Unit-2
System Concepts
Introduction of System
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.

The concept of a system are:-

1. Technology
2. Application
3. Development
4. Management

Components of System
There are 3 basic components of a system, they are:-

1. Input
2. Processing
3. Output

Types of System
1. Dynamic System
2. Cybernative System
3. Open System
4. Adoptive System

System Concepts in Business

Introduction of System Concepts in Business
A system concepts in business is a combination of policies, personnel, equipment and
computer facilities to coordinate the activities of an organization.
Objectives of System Concepts in Business
1. To meet the user and customer needs.
2. To cut down the operating costs and increase savings.
3. To smooth the flow data through various levels of the organization.
4. To speed up the execution of results with the reliable data available in a system.
5. To handle data efficiency and provide timely information of the management.

Role of System Concepts in Business

A system supports the business in the following ways:-

1. Support the Business Process

2. Support Operation of a Business Process
3. Support Operation of a Business Organization
4. Support Decision Making
5. Strategies for an Organization

Functions of System in various Business Departments

1. Marketing Department
• Customer relationship management
• Interactive marketing
• Sales force automation
2. Production/Operation Department
• Manufacturing resource planning
 • Manufacturing execution system
• Process control
3. Human Resource Department
• Compensation analysis
• Employee skills inventory
• Personnel requirements forecasting
4. Accounting Department
• Order processing
• Inventory control
• Accounts receivable
• Accounts payable
• Payroll
• General ledger
5. Finance Department
• Cash and Credit management
• Investment management
• Capital budgeting
• Financial forecasting

Information System as a System

Introduction of Information System
Information System is the study of complementary networks that people and
organizations use to collect, filter, process, create and distribution data.

An integration view of an Information System:-

Types of Information System
1. Operational-Level Information System
2. Tactical-Level Information System
3. Strategic-Level Information System

Importance of Information System

1. It is necessary for decision-making.
2. For taking rational, timely and accurate decisions.
3. For taking decisions in complex decision situation.
4. Globalization and Liberalization have added various dimensions that necessitate
use of information system.
5. Information system is regarded as the fifth important resource besides:- Money,
Material, Men and Machine.

Components of Information System

1. People Resource
• End-Users
• Information System Specialist
2. Data Resource
• Data Base
• Knowledge Base
3. Software Resource
• Program
• Procedure
4. Hardware Resource
• Computer System
• Computer Peripherals
5. Network Resource
• Communication Media
• Network Support

Advantages of Information System

1. It make people easily do their work.
 2. Real time updating
3. Improvement of quality care of organization.
4. It help the user to store large amount of information.
5. It has made possible for business to open 24x7 all over the globe.
6. It is the creation of new and interesting jobs.

Disadvantages of Information System

1. It accured high cost.
2. Budgeting of information system extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update itself.
5. Effectiveness decreases sue to frequent changes in top management.
Unit-3
Management Information System(MIS)
Introduction of MIS
MIS is a study of people, technology, organizations, and the relationships among them
in a broader sense. It is a software system that focuses on the management of
information technology to provide efficiency and effectiveness or strategy decision
making.

MIS is an accumulation of 3 different terms as:-

Management – It comprises the process and activity that a manger does in the
operation of their organization, i.e., to plan, organize, direct and control operations.

Information – Information simply means processed data or in the specialized language,

data which can be converted into meaningful and useful form for a specific user.

System – System can be defined as a set of elements joined together for a common
objectives. For Ex:- Business Organization as Systems.

Definition of MIS
According to Subhalakshmi Joshi, Management Information System(MIS) broadly refers
to, “ a computer based system that provides managers with the tools to organize,
evaluate and efficiently manage departments within an organization.”
Elements of MIS

Objectives of MIS
1. Data Capturing
2. Processing of Data
3. Storage of Information
4. Retrieval of Information
5. Dissemination of Information
Structure of MIS
Structure of MIS is difficult concept to understood because there is no standard or
universally accepted framework for describing MIS. It may be understood by looking
various points of structure making:-

Hardware
Physical Components
Software

Process Transactions

Information System
Maintain Master Files
Processing Functions
Structure of MIS
Produce Reports

Decision Support Managemnet Control

Level

Levels of Management
Activities
Operational Control
Level
Organizational
Fuctions
Types of MIS
1. Executive Support System
2. Decision Support System
3. Knowledge Support System
4. Transaction Processing System
5. Office Automation System

Process of MIS
The process of MIS starts by knowing MIS objectives. The objectives of should be
compatible with the company objectives.

MIS comprises process or activities they are as follows:-

1. Recognition of a problem and an opportunity.

2. Define problem or opportunity.
3. Develop alternative course of action.
4. Decision.
5. Implementation of plan.
6. Control performance against plan.

Making MIS Efficient and Effective

The performance of the MIS can be measured by two factors, i.e., the efficiency and
effectiveness. A MIS has to be effective and efficient for the highest utility to the user of
the information system.

The following points should be considered for making MIS efficient and effective:-

1. Qualified System and Management Staff

• System and Computer Experts
• Management Experts
2. Futuristic Perspective
3. Support of Top Management
4. Common Data Base
5. Control and Maintenance of MIS

Limitations of MIS
1. MIS incorporates a wide variety of knowledge areas.
2. Both technology and technology-related products are evolving at a extremely
fast and unpredictable pace.
3. Many of the terms in MIS environment ate imprecise and controversial.
4. MIS problems often are not easy to define or structuring.
5. The body of knowledge in MIS is relatively recent and scarce.
6. A lack of rapport often exists between MIS personnel and management and
also between MIS personnel and users.