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Basics of Information Systems

CONTENTS
Information Concepts
Characteristics of Information
What is Information System?
What is MIS?
Functional Aspects of MIS
Outputs of MIS
Characteristics of MIS

Information Concepts:
Data, Information, and Knowledge
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Data: raw facts
Alphanumeric, image, audio, and video
Information: collection of facts organized in such a way
that they have additional value beyond the value of the
facts themselves
Value of Information is directly linked to how it
helps decision makers achieve their organizations goals
and can be measured
in time required to make a decision
Increased profits to the company






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Figure 1.2: The Process of Transforming Data into Information
Data, Information, and Knowledge
The Characteristics of Valuable
Information
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Table 1.2: Characteristics of Valuable Information
The Characteristics of Valuable
Information (continued)
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Table 1.2: Characteristics of Valuable Information (continued)
What Is an Information System?
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Figure 1.3: The Components of any Information System
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Management Information System

MIS is a communication process which enables flow of information to be
recorded, stored and retrieved for decisions on planning, operating the
Organization.

















Input Processor
Output
Reports
Decisions
Information
Recorded
Stored
Retrieved
Processed
Summarised
Classified
Information
To plan,
Operate
& control
systems
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Management information system (MIS)

An MIS provides managers with information and support for effective
decision making, and provides feedback on daily operations.

Output or reports, are usually generated through accumulation of
transaction processing data.

Used for generating reports including inventory status reports,
financial statements, performance reports etc.

Reports are essential for analyzing different aspects of business.

Help to answer 'what-if' questions like what would be the effect on
cash flows of a company if the credit term is changed for its customers
etc.

Each MIS is an integrated collection of subsystems, which are typically
organized along functional lines within an organization.
Functional Aspects of MIS
MIS is an integrated collection of functional information systems, each
supporting particular functional areas.
An Organizations
MIS
Marketing
MIS
Human
Resources
MIS
Accounting
MIS
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databases
of
external
data
Databases
of
valid
transactions
Transaction
processing
systems
Business
transactions
Business
transactions
Production
& operation
MIS
Outputs of a Management Information System
Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Key-indicator report
Summarizes the previous days critical activities
Typically available at the beginning of each day
Demand report
Gives certain information at a managers request
Exception report
Automatically produced when a situation is unusual or requires
management action.
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Functional
Business
System
Customer relationship
management
Interactive marketing
Sales force automation

Manufacturing
resource planning
Manufacturing
execution systems
Process control

Compensation analysis
Employee skills
inventory
Personnel
requirements
forecasting

Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger

Cash management
Credit management
Investment management
Capital budgeting
Financial forecasting
Marketing
Human Resource
Management
Production Operations
Accounting
Finance
Characteristics of MIS
1. Comprehensive
2. Integrated
3. Co-ordinated
4. Transformation of Data into Information
5. Relevant Information
6. Conforming with Managers
Styles/Characteristics
7. Selective Sharing of Data
8. Feedback
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