MIS NOTES AS PER KANNUR UNIVERSITY SYLLABUS MODULE 1

7/25/2019 MIS NOTES AS PER KANNUR UNIVERSITY SYLLABUS MODULE 1

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MANAGEMENT

INFORMATION SYSTEMWhat is an information system? What activities does it perform?

An information system is a set of interrelated components that work toetherto collect! process! store! and disseminate information to s"pport decisionmakin! coordination! control! analysis! and #is"ali$ation in an orani$ation%In addition to s"pportin decision makin! coordination! and control!information systems may also help manaers and workers analy$e pro&lems!#is"ali$e comple' s"&(ects! and create new prod"cts%Defne an inormation systems rom both a technical and abusiness perspective.

From a technical perspecti#e! an information system collects! stores! anddisseminates information from an orani$ation)s en#ironment and internaloperations to s"pport orani$ational f"nctions and decision makin!comm"nication! coordination! control! analysis! and #is"ali$ation% Informationsystems transform raw data into "sef"l information thro"h three &asicacti#ities* inp"t! processin! and o"tp"t% From a &"siness perspecti#e! aninformation system pro#ides a sol"tion to a pro&lem or challene facin a+rm and pro#ides real economic #al"e to the &"siness%

Need for Information Systems

MIS is an information system that pro#ides information in the form of standardi$edreports and displays for the manaers% MIS is a &road class of information systemsdesined to pro#ide information needed for e,ecti#e decision makin%-ata and information created from an acco"ntin information system and thereports enerated thereon are "sed to pro#ide acc"rate! timely and rele#antinformation needed for e,ecti#e decision makin &y manaers%Manaement information systems pro#ide information to s"pport manaementdecision makin! with the followin oals*

.re/speci+ed and preplanned reportin to manaers%

Interacti#e and ad/hoc s"pport for decision makin%

0ritical information for top manaement%

MIS is of #ital importance to any orani$ation! &eca"se*It emphasi$es on the manaement decision making/not only &y processin of

data enerated &y &"siness operations &"t also collect and process e'ternalinformation thro"h knowlede processin and &"siness intellience%


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It emphasi$es on the systems framework that sho"ld &e "sed for organizinginformationsystems applications%Enterprise applications are speci+cally desined for the sole p"rpose of promotingthe needs and objectivesof the orani$ations%Enterprise applications provide business-oriented toolss"pportin electroniccommerce! enterprise comm"nication and colla&oration! and we&/ena&led &"siness

processes &oth within a networked enterprise and with its c"stomers and &"sinesspartners%Three dimensions o inormation systems.An information system represents a com&ination of manaement!orani$ation! and technoloy elements% The manaement dimension ofinformation systems in#ol#es leadership! stratey! and manaement&eha#ior% The technoloy dimensions consist of comp"ter hardware!software! data manaement technoloy! andnetworkin1telecomm"nications technoloy 2incl"din the Internet3% Theorani$ation dimension of information systems in#ol#es the orani$ation)shierarchy! f"nctional specialties! &"siness processes! c"lt"re! and political

interest ro"ps%

undamentals of Information System

System concept

The word systems refer to as the arranement or the way of orani$in some speci+c

thins in a partic"lar way% It is a set of interrelated elements 1components f"nctionin

toether on a re"lar &asis to prod"ce a common oal1o"tp"t% So now a system can &e

de+ned as the re"larly interactin interdependent ro"p of the items "ltimately

leadin to the formation of a "nited whole%

Each system is f"rther made of the s"& systems! which f"rther consist of the other

s"&systems and all of these s"&systems are de+ned speci+cally &y its &o"ndaries%

Each s"&system itself act"ally acts as the system% The Interconnections and the

#ario"s interactions that enerally take place &etween the #ario"s s"&systems are

referred to as the interfaces%

These interfaces are enerally known to occ"r at the &o"ndary and "s"ally take the

form of the inp"ts and the o"tp"ts% A system is not at all arraned randomly &"t is

arraned with the help of certain loic! which are o#erned &y the r"les! the

re"lations! the principles! the policies etc% S"ch an arranement of a system is

enerally in4"enced &y the o&(ecti#e which the system always desires to achie#e%


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What are the !haracteristics of the System

A System m"st &e ha#in or possessin the followin characteristics 5

6% System recei#es inp"ts with the help of the information! enery or the materials%

7% System processes inp"ts and also prod"ces o"tp"ts or the res"lts%

8% System has a partic"lar str"ct"re%

9% System is #ery m"ch interdependent in the nat"re%

:% System has an o&(ecti#e orientation%

"ypes of systems

!onceptual Systems

a% Are theoretical and e'planatory in the nat"re%

&% .ro#ide the m"ch needed clari+cation%

c% .ro#ide theoretical framework for which there may or may not &e any real life

co"nterpart%

d% E%% of s"ch systems can &e philosophy! theoloy etc%

#$ %mpirical Systems

a% Are #ery practical! speci+c and also #ery operational in the nat"re%

&% 0an &e &ased on the concept"al system%

c% E'amination system! s"rery act as #ery ood e'amples of the empirical systems%

&$ 'pen Systems

a% In#ol#e contin"o"s interaction with the en#ironment%

&% So e'chanes the information! material! enery with the en#ironment%

c% Is open and also self orani$in in the nat"re%

d% Is also adopti#e or adapti#e to the chanin en#ironment as it is 4e'i&le%

($ !losed Systems

a% Sh"ns any kind of the e'chane with the en#ironment%

&% Is riid in nat"re%

c% Is not at all amena&le to the chane%

d% Is also self contained%

e% Is somewhat isolated in the nat"re%


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f% Is ha#in a well de+ned &o"ndary%

% Is not at all adapti#e in the nat"re%

)$ Natural Systems

a% S"ch Systems e'ist and also a&o"nd in the nat"re%

&% Are also not at all the res"lts of the h"man endea#ors%

c% Ri#ers! mo"ntains! minerals etc% are the ma(or e'amples of the nat"ral Systems%

*$ +rti,cial Systems

a% Are man"fact"red 2man made3%

&% E'amples of s"ch Systems are dams! canals! roads! machines! factories etc%

$ .robabilistic Systems

a% ;ased on the predicta&ility of the &eha#ior or the o"tcome%

/$ 0eterministic Systems

a% In s"ch Systems! the interaction of the elements is known%

&% As the &eha#ior of the elements is pre determined! it &ecomes possi&le to work

"pon the reaction well in the ad#ance%

STRUCTURE OF IS

1.Physical Components

2.Information System Processing Functions

3. Decision Support

4. Levels of Management Activities

5. rgani!ational Functions

1.Based on Physical Components

"ar#$are% &.g. 'P() Monitor) *ey+oar#) Printer etc.

Soft$are% &.g. System an# Application S,-.

Data+ase% &.g. Data store# in files.

Proce#ures% &.g. Manuals etc.

perating Personnel% &.g. 'omputer perators)

Programmers) System Analysts) System Manager etc.

Input utput% &.g. Printouts) /eports etc.


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2.Based on Processing Fnctions

a!To Process Transactions% &.g. Ma0ing a purc1ase or a sale of a pro#uct.

"!To #aintain #aster Files% &.g. For preparing an

employees salary) reuire# #ata items are asic Pay)

Allo$ances) De#uctions etc.

c!To Prodce Reports% For e.g. Specific or A#1oc reports

d!To Process En$iries% For e.g. /egular or A#1oc

enuiry.

e!To Process interacti%e Spport &pplications% &.g.

Applications #esigne# for planning) analysis an# #ecision

ma0ing.

'!Based on Otpt For Users

a6ransaction Documents or Screens

+Preplanne# /eports

cPreplanne# Inuiry /esponses#A#1oc /eports Inuiry /esponses

e(ser7mac1ine Dialog /esults

(!#IS Spport )or *ecision #a+ing

a!Strctred , Programma"le *ecisions-

Decisions t1at are repetitive) routine an# 1ave a #efinite

proce#ure for 1an#ling t1em.

For e.g. Inventory reor#er formula) /ules for granting

're#it.

"!Unstrctred , on/Programma"le *ecisions-8on7routine #ecision in $1ic1 t1e #ecision ma0er must

provi#e 9u#gment) evaluation) an# insig1ts into t1e

pro+lem #efinition.

For e.g.

c!Semi/Strctred *ecisions-

Decision $1ere only part of t1e pro+lem 1as a clear cut

ans$er provi#e# +y an accepte# proce#ure.

0!organiation )nctions

a. Financial information system

+. Mar0eting information system

c. "/ information system

#. Pro#uction an# operation information system


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System !ontrol

Since the systems are desined to achie#e speci+c o&(ecti#es! ens"rin the

achie#ement of the o&(ecti#es thro"h system control! &ecomes the interalpart of the system desin% The control calls for! in the +rst place! ameas"rement of the o"tp"t in some terms% The de#ice that meas"res theo"tp"t is called a sensor% The ne't step is to set the standard or norm of theo"tp"t as an inde' of the system performance% The sensor meas"res theo"tp"t the compares it with the standard% If the meas"red o"tp"t compareswell with the standard! the system pro#ides a feed&ack to contin"e theoperations%

If the meas"red o"tp"t does not compare well with the standard! then afeed&ack is pro#ided to the system to stop the operations% The process of

comparison of a meas"red o"tp"t with the standard is done &y a "nit calledas comparison "nit%

The mechanism! which pro#ides a sinal to the system! a&o"t the


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system> Most of the modern systems ha#e in/&"ilt a"tomatic controlsystems%

The information system can &e "nderstood in terms of system concepts% Theinformation system recei#es the inp"ts of the data and the instr"ctions 2a set

of the 0omp"ter .rorammes3! processes the data accordin to the i#einstr"ction! and i#es the o"tp"t of the processed res"lts%

The information systems are desined in a partic"lar en#ironment of&"siness! ind"stry and manaement% ?hen the en#ironmental factors or theinp"ts chane! the system process is "nder a stress% Stress &eyond a limita,ects the other system elements which in t"rn a,ects the achie#ements ofthe oal% A system may ha#e the a&ility to manae the stress and still &e in acondition to achie#e the desired oal% @nmanaea&le stress leads to asystem fail"re%

The concept of control is &ased on the condition of a feed&ack% If thefeed&ack is positi#e! i%e%! the meas"re of the o"tp"t compares fa#ora&ly withthe standard or norm! the control will keep the system operatin in the samecondition% owe#er! if the feed&ack is neati#e! i%e%! the meas"re of theo"tp"t is "nfa#ora&le when compared to the standard or norm! the controlwill act on the inp"t or process to &rin &ack the system to the state ofe


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MIS and System !oncepts

The MIS is an arranement of data processin and information systems inan orderly manner to s"pport the manaement in achie#in the &"sinesso&(ecti#es% The MIS &o"ndaries cross the limits of the orani$ation and

draw the data from the so"rce e'ternal to the orani$ation% MIS follows aenerali$ed model of a system as stip"lated into the theory and performson the principle of feed&ack and control% It works on the principle ofcontrol &y e'ception%

MIS is desined to pro#ide the information which is e'ceptionalin nat"re form the point of #iew of &"siness% The e'ceptionsco"ld &e a&normal e#ents! s"rprisin de#elopments! shockinnews! or somethin that was not consistent with thee'ceptions% The MIS m"st catch all s"ch points and reportsthen to the concerned manaement% It m"st! therefore!

reconi$e all s"ch possi&le points and pro#ide a meas"re forcomparison with the act"al performance% @nless s"ch a feat"reis incl"ded! the MIS will &e s"pplyin merely data and notinformation%

The MIS! initially! concentrates on the


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O&(ecti#es1F"nctions of the information system0ompanies or oranisations de#elop information systems to help to performthe tasks they are speci+cally desined to do% For instance! a hospital willha#ea medical records system! police departments will hold criminal records! allcompanies will ha#e a payroll system! s"permarkets will "se in#entorysystems!o=ces will ha#e o=ce a"tomation systems! etc%All information systems carry o"t a series of f"nctions that may &e classi+edasfollows*5 -ata capt"re and collection%5 Storae%5 Information processin%

5 -istri&"tion or dissemination of information%6% -ata capt"re and collectionThis f"nction consists of capt"rin &oth e'ternal 2related to the en#ironment3andinternal 2enerated within the company3 information and sendin it thro"hthecomm"nication system to the entities within the information systemresponsi&lefor oranisin it to a#oid d"plication and "seless information 2noise3% Thepersonor people who capt"re the information will depend on what type of company

theywork for% Sales sta,! p"rchasers! manaers at di,erent le#els in the hierarchyormem&ers of the company in direct contact with oranisations in theen#ironmentcan all act as information atherers% The data capt"re and collection processsho"ld&e more intense in the areas or sectors of the en#ironment and the companythatare s"&(ect to the reatest chanes%Once the information has &een collected and +ltered! and red"ndant

informationremo#ed! it is stored%

7% StoraeThe information may &e stored in di,erent ser#ices and departments! or in asinle location to which all "sers ha#e access% The company will decidewhich of these two options is most appropriate! dependin on how speci+cthe information is% Access to or retrie#al of the information can take many


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formsD for e'ample passwords may &e "sed to access a data&ase! ena&linonly a"thorised personnel to access the information when re


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A data&ase is a collection of interrelated data! s"ch as an oranisation)sh"man reso"rce or prod"ct data&ases%The c"stomer data&ase is e'tremely #al"a&le to the company since it can &e"sed to inform clients of new prod"cts or to de#elop new prod"cts that meettheir needs% A data&ase m"st &e oranised so it can &e accessed accordin

to its contentD for e'ample an order may &e i#en to retrie#e the names andaddresses of c"stomers that were in#oiced for totals in e'cess of one millionin the pre#io"s year% -ata&ases are manaed &y software systems known asdatabase management systems 2d&ms3%

9% Telecomm"nicationsTelecomm"nications are the means &y which information is transmittedelectronically o#er lon distances% Nowadays! comp"ter systems areenerally connected &y telecomm"nications networks% Hario"s networkconnections are a#aila&le to s"it the needs of di,erent companies% In a smallcompany! pcs are connected &y local area networks 2lan3! ena&lin their "sersto comm"nicate and share data! tasks and e


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New prod"cts! ser#ices! and &"siness models

0"stomer and s"pplier intimacy

Impro#ed decision makin

0ompetiti#e ad#antae

S"r#i#al

0i4erence bet5een data and informationData are streams of raw facts representin e#ents occ"rrin in orani$ationsor the physical en#ironment &efore they ha#e &een orani$ed and arranedinto a form that people can "nderstand and "se% Information is data thatha#e &een shaped into a form that is meaninf"l and "sef"l to h"man&eins%

!haracteristics of !omputerized MISFollowin are the characteristics of a well/desined comp"teri$ed MIS*

It process data acc"rately and with hih speed! "sin #ario"s techni


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:% O=ce Manaement LInformation S"pport* S"pport andcoordinate knowlede work in an o=ce en#ironment &yhandlin doc"ments and messaes in a #ariety of forms/ te't!imae! #oice! m"ltimedia! #ideo! fa'! etc 2OAS3

7evels of management and Information need

6% ower le#el manaement makes decisions that a,ect day to dayoperations%K .rorammed decisions that are predetermined &y r"les andproced"res% They lead to a desired res"lt%K The information needs of lower/le#el mrs% can &e met &yadministrati#e data processin acti#ities%


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7% Middle/le#el mrs% plan workin capital! sched"le prod"ction!form"late &"dets! and make short/term forecasts%K Mid/le#el manaers make tactical decisions that "s"ally in#ol#etime periods of "p to two years%K Many Mid/le#el mmt decisions are non/prorammed decisions% Nospeci+c predetermined steps can &e followed to each sol"tion%K The information needs of Mid/le#el mrs% m"st &e speci+c%5 8% Top/le#el mrs% pro#ide direction for the company &y planninfor the ne't +#e years %K Top/le#el mrs% make strateic decisions that in#ol#e a reat dealof "ncertainty%K Top/le#el mt% decisions are non/prorammed decisions%

9% Today Strateic and Manaement le#els are com&ined%


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Role played by systems serving the various levels o management ina business and their relationship

There are fo"r ma(or types of information systems in contemporaryorani$ations ser#in operational! middle! and senior manaement% Systemsser#in operational manaement are transaction processin systems 2T.S3!s"ch as payroll or order processin! that track the 4ow of the daily ro"tinetransactions necessary to cond"ct &"siness% MIS and -SS pro#ide middlemanaement with reports and access to the orani$ation)s c"rrentperformance and historical records% Most MIS reports condense informationfrom T.S and are not hihly analytical% -SS s"pport manaement decisionswhen these decisions are "ni


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ST@M;ING ;O0SMIS System tho"h &oon to the corporate world is aain not foolproof%owe#er!this system s",ers a n"m&er of pro&lems incl"din*

0onf"sin and di=c"lt* MIS Software)s are a iantic packae and consists of

nn"m&erof mod"le! so it is #ery di=c"lt to "nderstand its characteristics &"tonce yo" "nderstand it &ecomes easier to work%

0"stomi$ation is costly* 0"stomi$ation is oio"sly costly! for instance when

report is needed to con+"re! one person e'pected from the MIS #endors sidehas to come and i#e s"pport% ence more the c"stomi$ation 1con+"rationreater sho"ld &e the ser#ice cost chared &y #endor%

0"stomi$ation is time cons"min and in many cases impractical* MIS is not a

one or two day (o& it is a re"lar process it re


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sometimes not s"its indi#id"al persons who are eoraphically away%

Implementation of an MIS pro(ect is a lon process* ike c"stomi$ation

implementation is also a lon process &eca"se there is ample n"m&er ofdepartments and MIS can come in f"ll4owor to et its f"ll 4a#o"r! the entire

department sho"ld &e f"lly compati&le with MIS interation% .latform restrictions%* .latform restricts co"ld &e the another o&stacles "p to

some e'tent as they are "sin di,erent operatin systems%