INFORMATION SYSTEMS

Outline
Information System Definition Management Information System (MIS) MIS Concept MIS Significance MIS Structure Types of Information System Functional Information System Support Information System

Information System - Definition

Information System is a combination of people, hardware, software, communication devices, network and data resources that processes (can be storing, retrieving, transforming information) data and information for a specific purpose.

Information System

Management Information System

Management: Planning Organizing Controlling Leading Communicating Information: Meaningful / Processed Data System: Set of elements arranged in an orderly manner to accomplish an objective. Management Information System: An integrated user-machine system for providing information to support the operations, management analysis, and decision making functions in an organization.

MIS as an evolving concept

Process large amount of data and present it in the form of reports at regular intervals. System must be individual oriented Information must be presented in such a form and format that it creates an impact on its user. Reporting and analysis must follow some norms Should be adaptive to the changing environment. Should work on a database System must be decentralised User of MIS must be independent of computer professionals MIS must be a decision making system

Present Concept of MIS

A system which handles the databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system

MIS Structure Conceptual View

MIS Structure Physical View

Academic Disciplines in MIS

Technical Approaches

Computer Science

Operations Research

Management Science

Sociology

Psychology

Economics Behavioral Approaches

Role of MIS in an organisation

Collection of Data Processing of Data

Dissemination of Information Fulfill the information needs of an individual, a group of individuals, managers and top management

Role of MIS
Systems used for role fulfillment Query Systems Analysis Systems Modeling Systems Decision Support System

Role of MIS
MIS helps in
Strategic Planning Management Control Operational Control Transaction Processing

Top Middle

Lower

Impact of MIS on organisation

Management of different departments becomes more efficient Better understanding of the business itself Systemisation of business operations Pull the entire organisation towards the corporate goals and objectives Managerial Efficiency Drudgery of clerical work transferred to the computer system

Types of Information Systems

Major Types of Systems in Organisation

Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS):

Management level Inputs: Daily Transactions (raw data) Processing: Simple Programs Outputs: Database / Summary Reports Users: Lower Level Managers

Example: Payroll

Transaction Processing Systems (TPS):

Basic business systems that serve the operational level

A computerized system that performs and records the daily routine transactions necessary to the conduct of the business

Management Information System (MIS):

Management level Inputs: High volume data Processing: Simple models Outputs: Summary reports Users: Middle managers

Example: Annual budgeting

Management Information System

Structured and semi-structured decisions Report control oriented Past and present data

Internal orientation
Lengthy design process

Decision Support System (DSS):

Management level Inputs: Low volume data Processing: Interactive Outputs: Decision analysis Users: Professionals, staff Example: Contract cost analysis

Executive Support System (ESS):

Strategic level Inputs: Aggregate data Processing: Interactive Outputs: Projections Users: Senior managers

Example: 5-year operating plan

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Executive Support System

Top level management Designed to the individual

Ties CEO to all levels

Very expensive to keep up Extensive support staff
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Subsystems of MIS
MIS is a federation of subsystems. Subsystems of MIS can be defined according to the organisational functions which they support and according to managerial activities for which they are used.

Organisational Function Subsystems

Marketing Manufacturing Logistics Personnel Finance and Accounting Information Processing Top Management

Functional Subsystems
Top Management

Information Processing

Personnel

Logistics

Production

Marketing

Database

Finance and Accounting

Database Management System

Activities Subsystems
Transaction Processing
Ex: Processing of orders, shipments and receipts

Operational Control
Ex: Scheduling of activities and performance reports

Management Control
Ex: Formulation of budgets and resource allocation

Strategic Planning
Ex: Formulation of objectives and strategic plans

Relation of activities to functional subsystems

Finance and Accounting Production Personnel Logistics Information Processing Marketing Top Management

Strategic Planning Management Control

Operational Control
Transaction Processing

Database Management System

Database