management information systems

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Affiliated to Institution of G.G.S.IP.U, Delhi

MIS - Management Information Systems

Code: BBA (307)

Ridhi BajajAssistant Professor


Syllabus

Unit I Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization with particular reference to

Management Levels. MIS Growth and Development, Location of MIS in the Organization – concept and design. Transaction Processing System, Decision Support System, Executive Information system, Expert System, and the recent developments in the field of MIS.

Unit II System Development: Concept of System, Types of Systems – Open, Closed, Deterministic, Probabilistic, etc. Relevance

of choice of System in MIS, Integration of Organization Systems and Information Systems, System Development Life Cycle, System Analysis, Design and Implementation, MIS Applications in Business.

Unit III Information Concepts: Data and Information – meaning and importance, Relevance of Information in Decision Making,

Sources and Types of Information, Cost Benefit Analysis – Quantitative and Qualitative Aspects, Assessing Information needs of the Organization.

Unit IVInformation Technology: Recent Developments in the Field of Information Technology: Multimedia Approach to

Information Processing. Decision of Appropriate Information Technology for proper MIS.Choice of appropriate IT Systems – Database, Data warehousing & Datamining Concepts.


Relevant Books

Name: Management Information System

Author: W. S. Javadekar

Publication: Tata Mc Graw Hill

Course Coverage: 60%

Availability in the Library: 50 Books

Name: Management Information System

Author: L. M. Prasad, Usha Prasad

Publication: Sultan Chand & Sons

Course Coverage: 90%

Availability in the Library: 168 Books


Objective of the Study

The Objective of this paper is to:

Understand the basic concept of MIS

The components which form a part of MIS

How do the different components work together

Why does a company need MIS


UNIT - I

MANAGEMENT INFORMATION SYSTEM

A SYSTEM/ set of systems, which MANAGES the INFORMATION in an organization.

Technically, A management information system provides information that organizations require to manage themselves efficiently and effectively. They are used to analyze and facilitate strategic and operational activities.

Importance of MIS (What does it do?)

Collect Data Process it Disseminate

Strategic PlanningInformation Generation

Communication

Problem Identification Operational Control

Management Control

Transaction Processing

• Transaction Processing • Answers queries on the data pertaining to:

> the transaction,> the status of a particular record and> references on a variety of documents.

• provides the operational data for planning, scheduling and control, and

• decision making at the lower level

Top

Level

Middle Level

Lower Level

HOW DOES MIS HELP?

• Short term planning,

• target setting and

• controlling the business functions.

• Goal setting,

• Strategic planning and

• Evolving the business plans and

• Their implementation

Fig.: Functions of MIS systems at different levels of management in an organization

WHAT DO THE MANAGERS DO?

WHY DO WE NEED MIS?


Classification of MIS

TPS (Transaction Processing Systems) Processes transactions & produces reports Used at lowest level Provides NO information for decision making

DSS (Decision Support Systems) Assist in decision making Useful in planning and assessing the alternatives Each DSS is distinct & Tailor-Made for its manager Contains: Database (combination of internal & external data) Model Base (Includes models to analyse data like PERT, CPM) User Interface (provide interactive dialogue between machine & user)


Classification of MIS

Expert Systems Knowledge based IS. Based on Artificial Intelligence – acts as an expert on specific

application areas Contains:

Knowledge Base – contains facts about a specific expert area with reasoning

Inference Engine – contains the logic of reaching an inference User Interface – Interactive platform between user & machine

EIS (Executive Information Systems) Specially tailored for the use by Chief Executive of an

organization to support his decision making Uses the concepts of Database, Data warehouse, & Data mining


UNIT - II

• A system is a set of interacting or interdependent components forming an integrated whole.

• A system has– Structure,– Behavior, & – Interconnectivity

Elements of a system: –• Inputs and outputs• Processor• Control• Environment/surroundings• Feedback• Boundaries and interface

CONCEPT OF SYSTEM

Input/Output

Control

Processor

Feedback

Environment

Boundary


Types of Systems

Open SystemA deterministic system is one in which the occurrence of all events is known with certainty. If the description of the system state at a particular point of time is given, the next state can be perfectly predicted.

Like: A Calculator.

A probabilistic system is one in which the occurrence of events cannot be perfectly predicted. Though the behavior of such a system can be described in terms of probability, a certain degree of error is always attached to it.

An open system exchanges matter and energy with its surroundings.

Most systems are open systems.

Like: A Car, or a Computer.

A closed system

exchanges energy,

but not matter, with its environment.

Like: Earth, Black Hole.

Probabilistic Deterministic


System Development Life Cycle

The Phases in the SDLC are:

Feasibility Study

Post Implementation/ Maintenance

Implementation System Design

System Analysis


Feasibility Study:

• Conduct a preliminary analysis,

• Propose alternative solutions,

• Describe costs and benefits and

• Submit a preliminary plan with

recommendations.

System Analysis:

• Define project goals into defined

functions and operation of the

intended application.

• Analyzes end-user information

needs.

Implementation:

• Bring all the pieces together into a special

testing environment,

• Check for errors

System Design:

• Describe desired features and

operations in detail,

• Includes project layouts, business

rules, process diagrams, and other

documentation.

Post – Implementation/ Maintenance:

• Changes,

• Correction,

• Additions

SYSTEM DEVELOPMENT LIFE CYCLE


UNIT- III

Data & InformationData : The raw facts and figures.

Information: The processed data.

Attributes of Information

ACCURACY

VALIDITY

TIMELINESS

FREQUENCY RELIABILITY

IMPARTIALITY

CORRECTNESS


Types of Information1. Action & Non-Action Information:

The information which induces action is called action information.

Ex.: Low Battery!

The information which communicates only the status of a situation is non-action information.

Ex.: The stock ledger showing the store transactions and the stock balances.

2. Recurring & Non-Recurring Information

The information which repeats itself after a certain interval of time is recurring information.

Ex.: The monthly sales reports.

The information which may occur only once or after a long gap is non-recurring information.

Ex.: The report on the market research study.

3. Internal & External Information

The information generated through the internal sources of the organization is termed as internal information.

Ex.: Employee Information.

The information generated through the sources of data that are outside the organization is external information.

Ex.: Government reports, industry surveys.


COST – BENEFIT ANAYLSIS

• Cost benefit analysis (CBA), sometimes called benefit–cost analysis (BCA), is a systematic process for calculating and comparing benefits and costs of a project.

• A project should be considered only if:

– Benefits > Costs, or

– Benefits/ Costs ratio > 1


Types of C & B

• Tangible & Intangible Costs & Benefits

– TC: An outlay of cash for a specific item or activity.• examples: Purchase of hardware or software, employees’ salary.

– IC: Costs that exist but their financial value cannot be measured. Easy to identify, but difficult to quantify. • Examples: Cost of System Breakdown.

– TB: Decreased Transaction Processing Time

– IB: Higher Customer Satisfaction


• Fixed and variable costs & benefits

– FC: Remain the same irrespective of volume

of activities of a system.• Examples: Cost of physical assets, rental charges

– VC: Vary in proportion to the volume of activities of the system.• Examples: printer paper, supplies, telephone line charges

– FB: benefits from reduced number of errors due

To automation of processes.

– VB: Time saved in online counselling


• Direct and Indirect costs & benefits

– DC: are associated directly to an operation.• Examples: Cost of a box of CDs.

– IC: are not directly associated with an operation. Also called as ‘Overheads’.• Examples: Insurance Cost, Maintenance Costs

– DB: A new system handling 30% more transactions

– IB: are realized as a by-product of another operation

(PPF – Cash + Tax)


UNIT- IV

• Database: An integrated collection of logically related data elements.

• Data Warehouse: A collection of subjectively selected operational data which can successfully answer any ad hoc, complex, or statistical queries.

– It contains integrated historical data which is common to the whole organization.

• Data Mining: Non-Trivial extraction of previously unknown & potentially useful information from the data.

IT SYSTEMS – Database, Data Warehouse, Data Mining


Multimedia

• It is a form of communication that combines two or more types of media together, such as: text, graphics, sound, still video, full motion video, or animation into a computer based application.

• Software Requirements:– Painting & Drawing tools

– Computer aided design tools

– Sound editing programs

– Digital video movies


Applications of Multimedia

• Better information presentation for decision

making

• Advertising & Sales Promotion

• After sales service

• Employee training


Recent Developments in MIS

E-Commerce (Transacting through World Wide

Web)

Networking (Remote Logins)

Mobile Commerce (Mobile Apps.)

management information systems

Leadership & Management

information processing

executive information

types of information

relevance of information

information concepts

information needs

concept of system

system analysis