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Understanding MIS

Information System
An Information System is a combination of work practices,
information, people and information technologies organized to
accomplish goals in an organization.

Management Information Systems -

- Those systems that support all management levels in the
conduct of their functions, such as operations, administration,
or planning and programming.

Roles of information systems in organizations-

Information systems are organizational subsystems that perform

work related to processing information. Information systems can
play the following roles:
(1) Participating in the execution of tasks
(2) Linking planning, execution and control within a subsystem
(3) Coordinating and integrating subsystems.
Difference between data, information and knowledge-

Data are facts, images or sounds that may or may not be pertinent
to a particular task. Information is data whose form and content
are appropriate for a particular use. Knowledge is a combination
of instincts, ideas, rules and procedures that guide actions and
decisions. Knowledge is used to transform data into information
that is useful in a situation.

Factors affecting the value of information in organizations ;

• Completeness
• Accuracy, correctness
• Timeliness - i.e. is it available when it's needed?
• Consistency
• Validity – unbiased, representative, verifiable
• Appropriateness – meaningful and relevant, formatted to suit
the user’s needs
• Uniqueness - no competitor has it
• Relevance
• Usability
• Accessibility
MIS Classification-

MIS is classified in to various activities-

1. Functionality
2. Utility
3. Area of application
4. Processing type
5. Frequency of usage
View of Structure of MIS-

- Operational level system

- Knowledge level system
- Management level system
- Strategic level system

Type of computers-

a. Desktop personal computers

b. Notebook computers
c. Palmtop computers

Advantage of computers-

a. Speed
b. Storage
c. Communication
d. Accuracy
e. Conferencing
MIS Concept

Transaction processing system (TPS):

A TPS collects and stores information about transactions, and
controls some aspects of transactions. A transaction is an event of
interest to the organization. e.g. a sale at a store.
A TPS is a basic business system. It:
• is often tied to other systems such as the inventory system
which tracks stock supplies and triggers reordering when
stocks get low;
• serves the most elementary day-to-day activities of an
• supports the operational level of the business;
• supplies data for higher-level management decisions (e.g.
Decision support system (DSS):
Helps strategic management staff (often senior managers) make
decisions by providing information, models, or analysis tools. For
support of semi structured and unstructured decisions (structured
decisions can be automated) used for analytical work, rather than
general office supports.
Management information system (MIS):
Condenses and converts TPS data into information for monitoring
performance and managing an organization.
Transactions recorded in a TPS are analyzed and reported by an
They have large quantities of input data and they produce
summary reports as output. Used by middle managers. An
example is an annual budgeting system.
Executive information system (EIS):
Also known as an Executive Support System (ESS), it provides
executives information in a readily accessible, interactive format.
They are a form of MIS intended for top-level executive use. An
EIS/ESS usually allows summary over the entire organization and
also allows drilling down to specific levels of detail.
Expert Systems:
Expert system: a computer system or program that uses artificial
intelligence techniques to solve problems that ordinarily require a
knowledgeable human.
Knowledge Based System-
KBS are the systems based on knowledge base. Knowledge base
is the database maintained for knowledge management which
provides the means of data collections, organization and retrieval
of knowledge.
Online Analytical Processing (OLAP)-
OLAP refers to a system in which there are predefined multiple
instances of various modules used in business application. Any
input in such a system results in verification opf the facts with
respect to the available instances.
Business Process System-
A business process system is basically spread over various level of
management starting from the top to bottom. The processes at the
top level are basically mean to handle strategic problems. At the
middle level towards generating the information for planning,
scheduling. And at the bottom level processes are highly
structured and are mainly meant for routine transactions.

Technical Implementation Issues-

1. level of complexity (must be low)

2. System Response Time and reliability
3. Inadequate function (function are needed)
4. Lack of equipment(hardware and software can help)

Behavioral Factors-

1. Change in job content

2. Loss of status
3. Change in interpersonal relationships
4. Loss of power
5. Change in decision making
6. Job security
Strategic Management Information System

Strategic Information System-

- A support system to the existing system and helps in

achieving competitive advantages over the organizations and
competitors in term of its objectives.

Competitive Strategy-

- An enterprise plan for achieving sustainable competitive

advantages over, or reducing the edge of its adversaries.

Porter’s Classic Diagram-

Scott Morton Five Levels-

1. Localized exploitation
2. Internal integration
3. Business process redesign
4. Business network redesign
5. Business scope redefinition

Product Differentiation and value chain representation-

Scott Morton’s Five Forces –
Unit 4