MANAGEMENT INFORMATION SYSTEM

NOTES

Submitted by
Aswathy N – FM 1853
Abin Stubert – FM 1856
Arun C Samuel - FM 1857
Amritha A – FM 1858
Aparna M C – FM 1876
Femi Maria Sebastian – FM 1988
Business processes
Business process is a set of activities to accomplish a certain goal. It can also be defined as
activities, once accomplished will lead to the attainment of organizational goal.
Meaning of Management Information System
Management demands precise information about a problem or issue at the right time to
make effective decisions. Gathering, managing, and delivering relevant information to the
appropriate management at the appropriate time not only decreases the risk of making
poor judgments, but it also functions as a powerful management mechanism. Because of
the intricacies of business and economic activities, as well as the numerous government
restrictions, prompt distribution of the relevant information to the relevant manager is
essential.
Definition of Management Information System
Management Information System (MIS) is defined as, “a formal method of making available
to management accurate and timely information necessary to facilitate the decision-making
process and enable the organisation’s planning, control and operational functions to be
carried out effectively.”
Importance of Management Information System
Reports generated by these systems are relied upon by managers at all levels of a business.
This system aids people in evaluating their daily tasks, such as problem-solving and decision-
making, as well as tracking development. Management information systems (also known as
information management systems) are corporate tools that assist procedures, operations,
intelligence, and information technology. Data is moved and information is managed using
MIS tools. MIS creates data-driven reports to assist organisations in making the best
decisions possible at the right time. Managers must make rapid and precise decisions due to
global competitiveness. Because information is doubling, managers must process massive
volumes of data in order to obtain accurate data.
Information System
A formal, sociotechnical, organisational system designed to collect, process, store, and
distribute information is known as an information system (IS). From society's point of view
Information systems are made up of four components. Task, people, structure or roles, and
technology are the four elements. It's a collection of interconnected components for
gathering, storing, and processing data, as well as delivering information, knowledge, and
digital products. An information system is a piece of software that aids in the organisation
and analysis of data. An information system's goal is to transform raw data into meaningful
information that can be utilised to make decisions in an organisation. The information
system primarily contains data about important people, locations, and things within the
organisation or in the surrounding environment. An example of a government employing an
information system to provide services to residents is a woman taking a driver's licence test
on a computer.
A woman taking a driver's license test on a computer is a kind of an example in which the
government is using an information system to provide services to citizens.
Difference between data and information

Data Information

Data means raw facts. Processed data are called information.

Data does not help in decision making. Information helps in decision making.

Data may not be in an order. Information is arranged in a particular order.

Input to any system can be said as Output after processing can be said as
data. information.

Data is very difficult to understand Information is very easy to understand.

E.g.: survey data E.g.: Census report.

Perspectives on Information system

Input, Processing and output are the three activities in an information system that produce
the information an organization needs. Input captures or collects raw data from within the
organization or from its external environment. Processing converts this raw input into a
meaningful form. Output transfers the processed information to the people who will use it
or to the activities for which it will be used. Information systems also require feedback,
which is output that is returned to appropriate members of the organization to help them
evaluate or correct the input stage.
Levels in a firm
Senior level management - They are also called top level managers or top managers. Top-
level managers make decisions affecting the entirety of the firm. Top managers do not direct
the day-to-day activities of the firm; rather, they set goals for the organization and direct
the company to achieve them.
Middle level management - Middle-level managers, or middle managers, are those in the
levels below top managers. Middle-level managers are responsible for carrying out the goals
set by top management.
Operational Management - It is concerned with converting materials and labour into goods
and services as efficiently as possible to maximize the profit of an organization. They are
responsible for monitoring the daily activities of the business.
Knowledge workers - Knowledge workers are workers whose main capital is knowledge.
Their primary contribution to the workplace is knowledge of a specific subject.
Data workers - Data workers as workers who collect, store, manage and analyse data as
their primary activity, or as a relevant part of their activity.
Service workers - They are responsible for understanding customer needs and for
interpreting customer requirements in real time. By focusing on the critical role of service
employees and by developing strategies that lead to effective customer-oriented service,
organizations can begin to close the service performance gap.
Organizational dimension of Information System
Separation of business functions - In business the separation by sharing of more than one
individual in one single task is an internal control intended to prevent fraud and error.
Sales and marketing - The term, sales, refers to all activities that lead to the selling of goods
and services. And marketing is the process of getting people interested in the goods and
services being sold.
Human resources - the department of a business or organization that deals with the hiring,
administration, and training of staff.
Finance and accounting - it is concerned with the summary, analysis and reporting of
financial transactions related to a business. This involves the preparation of financial
statements
Manufacturing and production - Manufacturing is the process where machines produce
goods from raw materials. Production is the process of converting resources into finished
products.
Unique business processes - collection of related, structured activities or tasks by people or
equipment in which a specific sequence produces a service or product for a particular
customer or customers.
Unique business culture -It refers to the beliefs and behaviours that determine how a
company's employees and management interact with each other and others.
Major business functions
The principal business functions in a business firm are:
1. Marketing and sales
2. Production
3. Accounting and finance
4. Human resources

Marketing activities are directed toward planning, promoting, and selling goods and services
to satisfy the needs of customers and the objectives of the organization.
Marketing information systems support decision making regarding the marketing mix. These
include:
1. Product
2. Price
3. Place
4. Promotion
Sales Forecasting
Based on the planned marketing mix and outstanding orders, sales are forecast and a full
marketing plan is developed. Sale forecasting is an area where any quantitative methods
employed must be tempered with human insight and experience. The actual sales will
depend to a large degree on the dynamics of the environment.
Manufacturing Information Systems
Global competitive pressures of the information society have been highly pronounced in
manufacturing and have radically changed it.
Accounting and Financial Information Systems
The financial function of the enterprise consists in taking stock of the flows of money and
other assets into and out of an organization, ensuring that its available resources are
properly used and that the organization is financially fit.
Human Resource Information Systems
A human resource information system (HRIS) supports the human resources function of an
organization with information. The name of this function reflects the recognition that
people who work in a firm are frequently its most valuable resources. The complexity of
human resource management has grown immensely over recent years, primary due to the
need to conform with new laws and regulations.
Cloud computing
Simply put, cloud computing is the delivery of computing services—including servers,
storage, databases, networking, software, analytics, and intelligence—over the Internet
(“the cloud”) to offer faster innovation, flexible resources, and economies of scale. You
typically pay only for cloud services you use, helping lower your operating costs, run your
infrastructure more efficiently and scale as your business needs change.
Role of information systems in business
How information systems are transforming business
Increase in wireless technology use, Web sites Increased business use of Web 2.0
technologies
Cloud computing, mobile digital platform allows more distributed work, decision-making,
and collaboration
Globalization opportunities
Internet has drastically reduced costs of operating on global scale Presents both challenges
and opportunities
What Does Space Shifting and time shifting Mean?
Space shifting is digital media conversion from one format to another. It involves moving a
digital asset from one platform to another by copying a protected digital work and then
transferring it to another electronic device, allowing it to execute on a new device, usually a
portable one. Some people argue that space shifting can be used to infringe copyright.
Time shifting is the process of recording and storing data for later viewing, listening, or
reading. In television, time shifting can be done with a device called a personal video
recorder (PVR) or a computer with a TV tuner card. In older systems, videocassette
recorders (VCRs) sometimes have a time shifting capability.
Which are new in MIS that’s describing in bellow…
* Technology:
1. Cloud computing:
Any things- can share with others via Facebook, twitter, google plus, and various social
network and communication with one another is called cloud computing etc.
2. Growth in software:
Growths in share mention that various software that can be use via online and offline also.
Some of these software’s are YouTube, social network and various management software
via online and offline also. By which can solve various mathematical problem and can enjoy
various kind of video by which we can know many things that’s called growth in software.
3. Growth in mobile technology:
Once, we used 2G net for mobile technology but we must be missed various things of
mobile networking system. When have come 3G net we may use various things of mobile
technology such as, video calling, fast net browsing etc.
4. More efficient & powerful system:
Technology has more efficient now from previous generation’s system. Due to-there is more
system were invented step by step. These are desktop, laptop, tab, and smart phone etc. by
those inventions everyone can use net anywhere. These are only for more efficient and
powerful system.
* Management:
1. Social networking:
Social networking is one part of the cloud computing. But there is no mere then features
from cloud computing of technology.
2. Business applications:
Update software’s for business such as, accounting software, management software etc. It
may offline or online software’s. These information systems are called business applications.
3. Virtual matting place:
It mentions that virtual meeting via social network. Communicate with one another. But not
in front of one another. These are virtual meeting place.
Role of information systems in business
Although many managers are familiar with the reasons why managing their typical
resources such as equipment and people are important, it is worthwhile to take a moment
to examine the growing interdependence between a firm’s ability to use information
technology and its ability to implement corporate strategies and achieve corporate goals.
Specifically, business firms invest heavily in information to achieve six strategic business
objectives:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
1. Operational Excellence
Businesses continuously seek to improve the efficiency of their operations in order to
achieve higher profitability. Information systems and technologies are some of the most
important tools available to managers for achieving higher levels of efficiency and
productivity in business operations, especially when coupled with changes in business
practices and management behaviour.
EX:
PIZZA 20 min.
Wal-Mart
2. New Products, Services, and Business Models
Information systems and technologies are a major enabling tool for firms to create new
products and services, as well as entirely new business models.
Information systems and technology a major enabling tool for new products, services,
business models
A business model describes how a company produces, delivers, and sells a product or
service to create wealth. As successful as Apple Inc, Netflix, and Wal-Mart were in their
traditional brick-and-mortar existence, they have all introduced new products, services, and
business models that have made them both competitive and profitable.
EX:
Apple INC. (Especially iPad)
Netflix
Wal-Mart
3. Customer and Supplier Intimacy
When a business really knows its customers, and serves them well, the way they want to be
served, the customers generally respond by returning and purchasing more. This raises
revenues and profits. Likewise with suppliers:
the more a business engages its suppliers, the better the suppliers can provide vital inputs.
Wal-Mart is an excellent example of how the use of information systems and technologies
are extensively used to better serve their suppliers and retail customers.
EX:
Wal-Mart (Real Link System)
Hotel Ritz-Carlton (CLASS System)
CLASS: Customer Loyalty Anticipation Satisfaction System
4. Improved Decision Making
Information systems and technologies have made it possible for managers to use real-time
data from the marketplace when making decisions.
Previously, managers did not have access to accurate and current data and as such relied on
forecasts, best guesses, and luck. The inability to make informed decision resulted in raising
costs and lost customers.
EX:
DSS (Decision Support System)
For: Structured, Unstructured or/and Semi-Structured Problems
5. Competitive Advantage
Doing things better than your competitors, charging less for superior products, and
responding to customers and suppliers in real time all add up to higher sales and higher
profits that your competitors cannot match.
Dell Computers and Wal-Mart are prime examples of how these companies used
information systems and technologies to separate themselves from their competition. Dell
remains the most efficient producer of PCs in the world. Wal-Mart is the most efficient retail
store in the industry.
EX:
Wal-Mart (Created Largest Retail Chain)
UPS (Created Largest Network)
6. Survival
Firms also invest in information systems and technologies because they are necessities of
doing business. Information system is not a luxury. In most businesses, information systems
and technology are the core to survival. Citibank was the first banking firm to introduce
ATMs.
EX: Citi Bank (First Banking firm Introduce ATMs)

2️⃣ The Three Fundamental Roles of Information Systems in Business

1 Operations
A business information system carries out specific functions in support of operations,
including payroll, employee record storage, preparing and storing company documents and
credit card processing. If your company operates a manufacturing line, the information
system can schedule tasks and processes while keeping quality records. Some companies,
such as graphic designers or advertising companies, use the information system to produce
their products and services. In supporting operations, the information system can increase
efficiency and improve employee productivity.
2 Controls
Monitoring and controlling the activities of employees is a core function of information
systems. This is especially true of financial transactions in which management has a duty to
prevent fraud and theft. In this role, the security of the information system is critical, as
managers rely on it to track payments received from customers and invoices from suppliers.
The system imposes its control functions by allowing only authorized employees to log in
and access the relevant functions. For example, only a few employees may be authorized to
generate a company check. In addition to limiting who can perform such functions, the
system keeps track of who logged in and carried out the task.
3 Suppliers competitive advantage
Locking in suppliers or buyers Competitive Advantage in any industry or business venture is
achieved when one particular organization performs more effectively and/or efficiently than
the others in the same category. This Competitive Advantage does not have to be all
encompassing of the industry and may only cover small segments. A Competitive Advantage
is achieved when an organization can do any one thing, process, function, etc. more
effectively and or efficiently than others in that industry segment or in some cases across
the entire industry.

3️⃣ E-business
E-business refers to any business conducted online using the internet and related digital
technologies. E-commerce involves buying and selling products or services on the internet.
Think of "e-business" as an umbrella term that encompasses e-commerce, e-sales, e-
banking, e-learning and online communication.
Business Model
The term business model refers to a company's plan for making a profit. It identifies the
products or services the business plans to sell, its identified target market, and any
anticipated expenses. Business models are important for both new and established
businesses. For instance, direct sales, franchising, advertising-based, and brick-and-mortar
stores are all examples of traditional business models. There are hybrid models as well, such
as businesses that combine internet retail with brick-and-mortar stores or with sporting
organizations like the NBA.
Fundamental Roles of Information System in Business
Support Strategies for competitive advantage- Gaining a strategic advantage over
competition requires the innovative application of information technologies. For example;
Store management might make a decision to install touch screen kiosks in all stores, with
links to the ecommerce website for online shopping.
Support Business Decision making - Information systems also help store managers and other
business professionals make better decisions. For example; decisions about what lines of
merchandise need to be added or discontinued and what kind of investments they require.
Support Business Processes and Operations - As a consumer used it to support the business
processes and operations at the many retail stores where you shop. Example for help their
employees record customer purchases, keep track of inventory, pay employees, buy new
merchandise, and evaluate sales trends.
The Role of E-business
E-business, often known as online business, refers to commercial transactions that take
place through the internet. In the year 1996, the word "e-business" was coined. Electronic
business is abbreviated as e-business. As a result, the buyer and vendor do not meet in
person.
Reduced Business costs - One of the most significant advantages of e-business is its capacity
to reduce expenses. It is no longer necessary to have a physical presence, such as a store or
an office, thanks to this technology. Companies are no longer required to rent office space
or pay for utilities unless they choose to do so. For example, if you provide PR and marketing
services, it's not necessary to rent an office. You can run your business remotely and reach
customers worldwide. Sure, you can expand your operations, rent a space and hire staff but
that's optional. You could just as well hire a remote team and do everything online.
More Efficient Marketing -Over 93 percent of online experiences begin with a search engine.
Today, most customers look for information about products and services on the internet. By
implementing the best e-business practices, you can reach a wider audience and increase
customer engagement.
Centralized data - The latest e-business functionalities allow businesses to securely store
large volumes of data. For example, cloud hosting enables you to move client data, movies,
contracts, personnel records, and other material from your office to a virtual storage site,
eliminating the need for USB drives or paper papers. Furthermore, you have access to these
files.
Higher Revenue- The latest e-business strategies can translate into higher revenue for your
business. They can not only reduce costs but also enhance communication within your
organization. Data-driven marketing, CRM software, content management tools and other
technologies contribute to your business growth.
Enterprise Collaboration System
An Enterprise Collaboration Technology (ECS) is an information system that allows teams
and people in an organisation to share documents and knowledge more efficiently. The
Internet, groupware, numerous types of software and hardware, and internal and external
networks are all examples of ECS tools. In a collaborative working setting, ECS performs best
(CWE). Email, video conferencing, project management software, and collaboration
software are among the business communication technologies included in ECS systems. ECS
has aided in the development of the modern "e-professional" by allowing project teams,
workgroups, and participants to fulfil their objectives. ECS enables team members to work
from a variety of places, including divisions, departments, and distant sites.
Ecommerce
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying
and selling of goods or services using the internet, and the transfer of money and data to
execute these transactions.
Types of Ecommerce
Business-to-Business (B2B) A B2B model of business involves the conduct of trade between
two or more businesses/companies. The channels of such trade generally include
conventional wholesalers and producers who are dealing with retailers.
Business to Customer(B2C)
Business-to-Consumer model of business deals with the retail aspects of e-commerce, i.e.
the sale of goods and/or services to the end consumer through digital means. The facility,
which has taken the business world by storm, enables the consumer to have a detailed look
at their proposed procurements before placing an order. After the placement of such
orders, the company/agent receiving the order will then deliver the same to the consumer
in a convenient time-span. Some of the businesses operating in this channel include well-
known players like Amazon, Flipkart, etc.
Consumer-to-Consumer (C2C)
This business model is leveraged by a consumer for selling used goods and/or services to
other consumers through the digital medium. The transactions here are pursued through a
platform provided by a third party, the likes of which include OLX, Quick, etc.
Peer to Peer Ecommerce
One of the business concepts within the eCommerce umbrella is a peer-to-peer (or P2P)
marketplace. Individual merchants and purchasers may locate each other and exchange
products and services using P2P marketplaces. On the surface, this appears to be quite
similar to the services offered by classified websites. However, though these two
eCommerce business concepts are comparable, they are not identical.
Mobile E- Commerce
Mobile commerce, also known as m-commerce or commerce, is the use of wireless
handheld devices like cell phones and tablets to conduct commercial transactions online,
including the purchase and sale of products, online banking, and paying bills.
Business information Value chain
A value chain is a business model that describes the full range of activities needed to create
a product or service. ... The purpose of a value-chain analysis is to increase production
efficiency so that a company can deliver maximum value for the least possible cost.
Information System
A formal, sociotechnical, organisational system designed to collect, process, store, and
distribute information is known as an information system. Information systems are made up
of four components from a sociotechnical standpoint: task, people, structure, and
technology.
System software
System software is a sort of computer programme that manages the hardware and
applications on a computer. The system software is the interface between the hardware and
the user applications, if we think of the computer system as a layered model. The most well-
known example of system software is the operating system.

Benefits of Investment in Information Technology

Investing in IT has several business advantages and should be viewed as a true return on
investment. It lowers the overall risk for companies. Up-to-date systems, with IT security as
a top focus, give you peace of mind and more functionality, allowing you and your team to
work more efficiently.