Information system

 Combination of hardware, software,

infrastructure and trained personnel organized
to facilitate planning, control, coordination,
and decision making.
 planned system of the collecting, processing,
storing and disseminating data in the form of
information needed to carry out the functions
of management.
 Information systems include systems that are
not intended for decision making..
MIS is mainly designed to take care of the needs of the
managers in the organization.

MIS aids in integrating the information generated by

various departments of the organization.

MIS helps in identifying a proper mechanism of storage

of data.

MIS also helps in establishing mechanism to eliminate

redundancies in data.
Information Systems in Organizations

Information Systems are important to the success of an organization at all managerial

levels. Earlier Technology was considered, too technical for the rest of us to
understand. The use of computers was limited. It was a different world As the time
moves, technology and its associated Information Systems are now integrated
throughout the organization. Everyone is concerned about technology’s role and impact
on their work activities.
 Information is a business resource.
 Information is vital to the survival of business
organization.
 In every business vast quantities of information
flow to decision makers and other stake
holders to meet variety of needs.
 Stakeholder

Customers

Suppliers
 Information flow in two directions within the
organization.
 Horizontally
 Vertically
 This flow supports operational level tasks with
highly detailed information about the may
business transactions affecting the
organization. this include such as sale &
shipment of goods, use of labor and material in
production process.
 The vertical flow distributes summarized
information about operation and other
activities upward to managers at all levels.
 Management use this information to support
its various planning and control functions.
 A third flow of information exchange between
the organization and user in external
environment.
 IS create an impact on the organization
functions. With good information support
management of finance,production,marketing
and personnel become more efficient.
 IS create a database which save managers
precious time.
 IS helps in improving administration of
business .
 The tools & techniques of IS enable managers
to do task more efficently.
 A business Information System is a collection
of components that interact to fulfill some
business information processing need. they are
used to satisfy information needs in the process
of decision making in business.
 The basic components of IS are:
 Hardware
 Software
 Data, procedure and people.
 Business information system can be classified
into two categories:
 Shared business information system
 Personal business information system
 They are large expensive and more complex in
the sense that they are more complicated .
 They have multiple users.

The advantage of shared IS are that multiple users

can:
Shared hardware
Shared software
Access to data
Shared systems such as email.
 Development & use of business IS enable share
ability of information in these systems. sharing
of resources by large number of users results in
low per user cost of resources.
 TPS
MIS
DSS
ESS
OAS
Figure 2-2
Types of information system

Organizations and individuals use different types of systems for different purposes.
Here are some of the main types of information systems and their uses.

Components of information system: people, equipment, procedures, data.

 
Transaction Processing Systems (TPS) record daily routine transactions such as
sales orders from customers, or bank deposits and withdrawals. TPS are vital for the
organization, as they gather all the input necessary for other types of systems. Think
about how one could generate a monthly sales report for middle management or
critical marketing information to senior managers without TPS. TPS provide the basic
input to the company's database. A failure in the TPS often means disaster for the
organization. Imagine what happens when the reservation system at Turkish Airlines
fails: all operations stop, no transactions can be carried out until the system is up
again. Long queues form in front of ATMs and tellers when a bank's TPS crashes.
A TPS is a basic business system.
It serves the most elementary day-to-day activities of an organization;
supports the operational level of the business.
supplies data for higher-level management decisions.
is often critical to survival of the organization .
Figure 2-5
Management information system (MIS) :
converts TPS data into information for monitoring performance and managing an
organization. Transactions recorded in a TPS are analyzed and reported by an MIS.
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.

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 Each MIS is an integrated collection of
subsystems, which are typically organized along functional lines within an
organization.

Outputs of a Management Information System

•Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
•Key-indicator report
Summarizes the previous day’s critical activities
Typically available at the beginning of each day
•Demand report
Gives certain information at a manager’s request
•Exception report
Automatically produced when a situation is unusual or requires
Figure 2-3
Characteristics of MIS

•Provides reports with fixed and standard formats

•Hard-copy and soft-copy reports
•Uses internal data stored in the computer system
•End users can develop custom reports
•Requires formal requests from users
Decision support system (DSS):

helps strategic management staff (often senior managers) make decisions by providing
information, models, or analysis tools.

Figure 2-6
Executive Support Systems (ESS) or Executive Information Systems
ESS provide a generalized computing and communication environment to senior
managers to support strategic decisions. They draw data from the MIS and allow
communication with external sources of information. But unlike DSS, they are not
designed to use for specific problem solving. ESS are designed to facilitate senior
managers' access to information quickly and effectively.

Figure 2-8
Office automation system (OAS) :

OAS provides individuals effective ways to process personal and organizational data,
perform calculations, and create documents.
e.g. word processing, spreadsheets, file managers, personal calendars, presentation
packages
For are used for increasing personal productivity.
Figure 2-9
 They are used by single user. they are used by
the individuals to help them to do their job
more efficiently.
 Being personal in nature these systems are
under the direct control of user.
 They are less expensive & less flexible.
 They are easy to design & develop because
single person takes up the responsibility of
defining the requirements.
 They have limited capacity to handle complex
problem.
 Personal business IS can process only that data
to which an individual has an access.
 They are less secured.
 A management information system (MIS) is an
organized combination of people, hardware,
communication networks and data sources that
collects, transforms and distributes information in an
organization.
 An MIS helps decision making by providing timely,
relevant and accurate information to managers. The
physical components of an MIS include hardware,
software, database, personnel and procedures.

Hardware
 All physical components of a computer system

compose the computer hardware. Important

components include the central processing
unit, input/output devices, storage units and
communication devices. Communication can
be over fiber-optic cables or wireless networks.
Software
 Software provides the interface between users

and the information system. Software can be

divided into two generic types: system software
and applications. The system software comprises
of the operating system, utility programs and
special purpose programs. Applications are
developed to accomplish a specific task
 Database
 A database is a centrally controlled collection
of organized data. Central control reduces
redundancy and duplication of data. Data is
stored in an organized and structured way to
facilitate sharing and improve availability to
those who need it.
 Procedures
 Three types of procedures are required for an
MIS to operate effectively: user instructions,
instructions for input preparation and
operating instructions for MIS personnel who
maintain the MIS.
 Personnel
 The personnel in the MIS function include computer
operators, programmers, systems analysts and
managers. Human resource requirements should be
assessed by considering both the present system
needs and the future system growth. The quality of
MIS personnel is a key factor in its effectiveness. An
MIS manager needs a combination of both
managerial and technical skills
 Today's business environment contains
copious amounts of information, both internal
and external to a company's operations.
Businesses often look to capture this
information for making decisions and
improving operations based on different
factors gleaned from data
 Identification
 Management information systems represent
classic concepts for gathering information from
a variety of business processes for the purpose
of management review. The structure and
scope of this theory relates that some
information or data exists that can improve
business decisions
 Features
 Companies often attempt to design and
implement an information gathering system
that will encompass their organization's entire
operations.
 Considerations
 For maximum effectiveness, management
information systems should not be static.
Companies will often need a system that will
expand or adjust to changes in operations. This
allows business owners and managers access to
the most up-to-date information when making
business decisions
 The importance of an organizational structure
involves assisting business owners, CEOs, and
entrepreneurs to conceptualize, visualize, and
construct a hierarchical system to be
implemented into their organization. For
example, the building blocks of an organizational
structure include: a chain of command,
distribution of authority etc.
