Management Information

System
Credit Units: 3

Surbhi Tyagi
Ass. Prof. - IT
Module I: Information Technology in Management : 20%
Fundamentals of Information Technology in management ,Organizations, Environments, IT & IS, E-
business/Ecommerce in global scenario: Role in transforming business and management in organizations with
focus on IB, Use of communication systems in information management

Module II: Information Systems within Business Management : 20%

Introduction to commonly used system and models, Relationship between IS, organizations and business
processes, Types of IS(TPS, OAS, MIS, DSS, ESS and SIS), Information management and decision making,
Managing international Information systems

Module III: Knowledge based systems : 20%

Intelligent support systems & concepts of Artificial Intelligence, Data Mining & Data warehousing, Emerging
trends in Information management systems

Module IV: Managerial implications of IT/IS in Global business : 20%

Planning, Organizing and controlling, Information Security, Tools and techniques, Legal and Ethical issues,
Future of Information management

Module V: Practical aspects and applications of IT/IS: 20%

Introduction to MIS packages and tools , Web interface and techniques, Introduction to ERP & CRM solutions
INTERNAL ASSIGNMENT- 5 MARKS
ASSESSMENT:
30 MARKS Class Performance- 5 MARKS
BEHAVIOUR IN CLASS- 5 MARKS
ATTENDANCE – 5 MARKS

MID TERM -10 MARKS

EXTERNAL
ASSESSMENT:
70 MARKS
Module I : Modern Information Systems : Topics to be covered

Module I: Information Technology in

Management
• Fundamentals of Information Technology in management
• Organizations, Environments, IT & IS
• E-business/Ecommerce in global scenario
• Role in transforming business and management in organizations
with focus on IB
• Use of communication systems in information management
 WHAT IS MIS?

Management: Management is the process of planning, organizing, staffing,

leading, and controlling an organization or effort to achieve a goal. It can also
refer to the people who manage, or managers.

Information: Information is data that is processed and is presented in a form

which assists decision-making.

System: A system is a group of related things that work together as a whole.

These things can be real or imaginary. Systems can be man-made things like a
car engine or natural things like a star system. Systems can also be concepts
made by people to organize ideas.
• Management information systems (MIS) are an organized
method of collecting information from various sources,
compiling it, and presenting it in a readable format. It helps
business leaders and managers make strategic management
decisions.
“Management Information System (MIS) is an integrated man/machine system for
providing information to hold up the operations, management and decision-
making functions in an organization.”
G.B. Davis
A Management Information System is

An integrated user-machine system for providing information

To support the operations, management, analysis, and decision-making functions in

an organization

The system utilizes

Computer hardware & software

Manual procedures

Models for analysis, planning, control, and decision making, and a database
 Role of MIS in business organization

Coordination
Finding out
Decision making among the
Problems
department

Comparison of
Strategies for an
Business
Organization
Performance
Decision making: Management Information System (MIS) plays a significant
role in the decision-making process of any organization. In any organization, a
decision is made since relevant information which can be retrieved from the MIS.

Coordination among the department: Management Information System

satisfy multiple need of an organization across the different functional department.

Finding out Problems: As we know that MIS provides relevant information

about every aspect of activities. Hence, if any mistake is made by the management,
then MIS, information will help in finding out the solution to that problem.

Comparison of Business Performance: MIS store all past data and

information in its Database. That why the management information system is very
useful to compare business organization performance.

Strategies for an Organization: Today each business is running in a

competitive market. An MIS supports the organization to evolve appropriate
strategies for the business to assent in a competitive environment.
 Advantage of MIS
•It allows real-time performance reports. ...
•It generates analytical reports. ...
•It compares projections and performances. ...
•It aids the work allocation process. ...
•It improves internal communication. ...

There are three major challenges of MIS: high cost, training of

employees and maintenance cost. These are briefly discussed below:

• High Cost
• Training of Employee
• Maintenance Cost
• Customization is time consuming and in many cases implementation of an
MIS project is a long process
 Introduction to Information Technology in Management

• Information Technology covers a broad spectrum of

hardware and software solutions that enable
organizations to gather, process, store, manipulate
and analyze data which helps them achieve their
goals.
• In other words, Information technology (IT) is the
use of any computers, storage, networking and other
physical devices, infrastructure and methods to
create, process, store, secure and securely exchange
all forms of electronic data digitally.
• Management information system (MIS) refers to a
large infrastructure used by a business or
corporation, whereas information technology (IT) is
one component of that infrastructure that is used for
collecting and transmitting data.
 Major elements of IT

Hardware

Information Technology
Software

Data

Communication
Network

People
Area of applications of Information Technology

Business and
Industry
Data Education
management and Training

Cloud Entertainme
storage nt
IT

Security Banking

E-commerce Healthcare
FUNCTIONS OF MANAGEMENT
Planning : “Planning is selecting information and making assumptions concerning the future
to put together the activities necessary to achieve organizational objectives.”
Organizing : Organizing is the classification and categorization of requisite objectives, the
grouping of activities needed to accomplish objectives, the assignment of each grouping to
a manager with the authority necessary to supervise it.
Directing : Direction is telling people what to accomplish and seeing that they do it to the
finest of their capability. It includes making assignments, corresponding procedures, seeing
that mistakes are corrected, providing on the job Instruction and, of course, issuing Orders.
Controlling : “Control is the course of action that measures present performance and guides
it towards
some predetermined goal.
Staffing : Staffing requires recognition of human resource needs, filling the organizational
structure and
keeping it filled with competent people. Recruiting, hiring, training, evaluating and
compensating are the
specific activities included in the function.
Data, Information, Knowledge:
1. Data:
Data are raw facts, figures, or symbols with no context or meaning.
Examples: Numbers, words, images, measurements.
Data must be processed to become meaningful.
2. Information:
Information is processed data that has context and relevance.
It provides answers to who, what, where, and when.
Example: Sales figures for the past month.
3. Knowledge:
Knowledge is derived from information through analysis, interpretation, and understanding.
It answers the "how" and "why" questions.
Example: Understanding trends in sales data and predicting future sales patterns.
Role of IT in Organizations:

Automation: IT automates routine tasks,

increasing efficiency and reducing human
error.
Decision Support: IT provides tools for data
analysis, helping managers make informed
decisions.
Communication: IT facilitates
communication through emails, video
conferencing, etc.
Collaboration: IT tools promote teamwork
and collaboration among employees.
Innovation: IT can drive innovation through
new products, services, or processes.
 Various Levels of Management:

There are three main levels of management within an organization: top

management, middle management, and lower management.

1.Top Management: This includes roles such as the Board of Directors, Managing
Director, Chairman, and Chief Executive Officer (CEO). They are responsible for
setting the overall direction and strategy of the organization.

2.Middle Management: This level includes department heads and managers who
implement the policies and plans set by top management, acting as a bridge between
top and lower management.

3.Lower Management: Also known as first-line or supervisory management, this

level includes supervisors and team leaders who oversee the day-to-day operations
and directly manage employees.
 Various Levels of Management:
They make routine
1. Front-line managers Focus is on short-
Various Levels of decisions and ensure
Operational oversee day-to-day term goals and
Management: tasks are carried out
Level: operations. immediate tasks.
efficiently.

Middle managers focus They make decisions Emphasis is on

Examples: on implementing
2. Tactical that bridge the gap coordination
Supervisors, team strategies set by top
Level: between strategic and between different
leaders. management. operational decisions. departments.

Top-level executives Focus is on long-

They set the
Examples: make high-level decisions term planning and
3. Strategic overall direction
Department heads, that define the achieving
Level: and allocate
branch managers. organization's vision, and competitive
resources.
long-term goals. advantage.

Examples: CEOs,
Presidents, Vice
Presidents.
 TYPES OF INFORMATION SYSTEM/ TYPES OF MIS

1. Transaction Processing Systems: is an information system that captures and

processes data generated during an organization’s day to‐ day transactions. A
transaction is a business activity such as a deposit, payment, order or
reservation.
2. Decision Support Systems: Transaction processing and management
information systems provide information on a regular basis. Frequently,
however, users need information not provided in these reports to help them
make decisions. A sales manager, for example, might need to determine how
high to set yearly sales quotas based on increased sales and lowered product
costs.
3. Office Automation Systems: is an information system that uses hardware,
software and networks to enhance work flow and facilitate communications
among employees. An office information system supports a range of business
office activities such as creating and distributing graphics and/or documents,
sending messages, scheduling, and accounting.
 TYPES OF INFORMATION SYSTEM/ TYPES OF MIS

4. Managements reporting system is an information system that generates

accurate, timely and organized information so managers and other users can
make decisions, solve problems, supervise activities, track progress & it
generates reports on a regular basis

5. Knowledge Work Systems (KWS) Or Expert System: An expert system is

an information system that captures and stores the knowledge of human
experts and then imitates human reasoning and decision making processes for
those who have less expertise. Expert systems are composed of two main
components: a knowledge base and inference rules. A knowledge base is the
combined subject knowledge and experiences of the human experts. The
inference rules are a set of logical judgments applied to the knowledge base
each time a user describes a situation to the expert system.
 IS – Business Information System in Functional Business Areas :

1. Finance & Accounting

a. IS help record business transactions, produce periodic financial statements and create legal
reports such as balance sheets and P&L statements.
b. They help organize budgets, manage cash flow, analyze investments, and make decisions that
could reduce interest payments and increase revenues from financial transactions.

2. Production efficiency
a. Increase your corporation's profit margins & market shares.
b. Reduce your corporation's labor and related expense & Reduce your corporation's selling and
general administrative expenses.

3. Supplier relations
a. Help your corporation gain leverage over its suppliers & Reduce your suppliers' transaction
costs by making it easier for them to handle orders.
b. Enhance the ability of your corporation to monitor the quality of products and services received
from suppliers
4. Economies of production
a. Reduce the cost of designing new products/ services.
b. Improve levels of production or throughput.
c. Improve the productivity of production labor through automation & utilization of machinery.

5. New business innovation

a. Make new areas of business technologically feasible for your corporation.
b. Make new areas of business economically feasible for your corporation, as a result of
improved economies of scale.

6. Customer relations
a. Allow your corporation to provide administrative support (such as billing, collection, inventory,
management, etc.) to customers.
b. Provide on-line access of your corporation's products/services database to customers.
c. Position customers to rely increasingly on your corporations' electronic support
systems (e.g., order entry terminals, order tracking)
7. Marketing support
a. Play an important role in identifying market trends & Enhance sales forecast accuracy.
c. Track market response to discounts, promotional or introductory pricing.

8. Human Resource
a. Human Resource Management Systems helps in record keeping and employee
evaluation. These systems maintain records of the employees including pictures, employee
status, tax information and other data which could be linked to the
payroll and other systems.

9. Competitive dynamics
a. Delay competitor entry into new products/ services because of the investments now
required in complex software and hardware in your industry.
b. Help your corporation to provide substitute products/services for your competitor's
products/services,
 E-Business and E-Commerce:

E-Business: E-business refers to the use of electronic platforms and technologies to conduct business
operations, including buying and selling products and services, managing customer relationships, and
collaborating with business partners.
E-commerce: E-commerce is a subset of e-business that specifically involves the online buying and
selling of goods and services over the internet.

Key Components of E-Commerce:

1.Online Retail (B2C): Businesses sell products directly to consumers through online platforms.
Example: Amazon, Walmart Online.
2.Online Marketplaces: Third-party platforms where various sellers offer products to consumers.
Example: eBay, Etsy.
3.Business-to-Business (B2B): Businesses sell products or services to other businesses online.
Involves bulk orders, negotiations, and procurement processes.
4.Consumer-to-Consumer (C2C): Individuals sell products or services to other individuals online.
Example: Craigslist, eBay (for personal selling).
5.Mobile Commerce (M-Commerce): Buying and selling using mobile devices, such as
smartphones and tablets. Mobile apps and mobile-optimized websites play a key role.
 E-Commerce in the Global Scenario:
1.Cross-Border E-Commerce: Businesses can easily expand into international
markets, reaching diverse consumers.
2.Cultural and Legal Considerations: Adapting to cultural norms and complying
with international laws and regulations.
3.Localization and Internationalization: Tailoring products, services, and marketing
to different regions.
4.Payment Methods and Currency Exchange: Offering various payment options
and dealing with currency conversions.
5.Logistics and Shipping Challenges: Efficient cross-border shipping and customs
regulations.
 Role of Information Technology (IT) in Business Transformation:

1.Efficiency and Automation: 5. Supply Chain Management:

• IT streamlines operations by automating routine • IT optimizes supply chain processes,
tasks and processes. reducing costs and increasing
• Business process management (BPM) software transparency.
optimizes workflows. • RFID, GPS, and IoT track goods
2.Data-Driven Decision Making: throughout the supply chain.
• IT enables data collection, analysis, and 6.Customer Relationship Management
visualization for informed decisions. (CRM):
• Business Intelligence (BI) tools provide insights • IT systems manage customer
from data. interactions and improve customer
3.Global Connectivity: experiences.
• IT facilitates communication and collaboration • Personalization and targeted marketing
across international offices. enhance international customer
• Virtual meetings, video conferencing, and cloud- relations.
based tools enhance global teamwork. 7.Innovation and Product Development:
4.Market Expansion: • IT accelerates innovation through digital
• E-commerce platforms enable businesses to enter prototyping and simulations.
international markets. • Collaborative platforms enable global
• Online presence breaks geographical barriers, teams to work on product development.
reaching global customers.
 Information Management Processes:

1. Data Collection: Gathering information from various sources, both internal and external.

2. Data Transmission: Sharing collected data across departments or with external stakeholders.

3. Data Storage and Retrieval: Storing information in accessible databases for future use.

4. Data Analysis: Communication of insights and findings from data analysis.

5. Decision Making: Sharing relevant information for informed decision-making.

6. Reporting: Compiling and presenting data in comprehensible formats for reporting.

Key Communication Channels:
1.Email: Common for formal communication, documentation, and
information sharing.
2.Intranet: Internal website for sharing news, documents, and resources.
3.Instant Messaging: Real-time text communication for quick
interactions.
4.Video Conferencing: Virtual meetings with audio and video for remote
collaboration.
5.Social Media: External communication for marketing, customer
engagement, and branding.
6.Collaboration Tools: Shared platforms for project management,
document collaboration, and workflow tracking.
Role of Communication Systems in Information Management:

1.Facilitate the flow of information across different levels of an

organization.
2.Ensure timely and accurate exchange of data and knowledge.
3.Enhance collaboration and coordination among teams.
THANK YOU!