Management Information
Systems (MIS)
CHAPTER # 01
BY: ALI MUSTAFA ABRO
LECTURER
The University of Larkano
Faculty of Social Science and Humanities
Department of Business Administration
Introduction
• In every day, we use information generated by
an information system (e.g. surfing the web,
withdrawing money, asking for an report)
• Nowadays, computer based system generates
lots of information
What is a system?
• A group of interrelated components working
together towards a common goal, by
accepting inputs and producing outputs in an
organized transformation process (dynamic
system)
INFORMATION SYSTEM (IS)
• An information system is a combination of
software, hardware, and telecommunication
networks to collect useful data, especially in
an organisation. Many businesses use
information technology to complete and
manage their operations, interact with their
consumers, and stay ahead of their
competition.
Concepts related to Information
Systems (IS)
• Data: stream of raw facts representing events
(occurring in an organization) on the physical
environment before being structured so the
people can understand and use them
• Information: data which is meaningful and
useful to human beings
• Computer based information systems:
information systems that rely on computer
hardware and software for processing and
disseminating information
IS Definition
• IS collects, stores, and distributes information
from an organization’s environment and internal
operations to support organizational functions
and decision making, communication,
coordination, control, analysis, and visualization.
• IS provides a solution to a problem or challenge
facing a firm and provides real economic value to
the business.
Information can be:
• Resource (input to the production of output)
• (4M of Resources: Manpower, Material,
Machinery and Money)
• Asset (contributing to the production of
output)
• Commodity (can be sold)
Sources of Information
• Personal information sources, which provide
information through contact with sales staff,
customers, suppliers, distributors, bankers,
etc.
• Impersonal information sources, which range
from general publications (e.g., reports on the
current situation, bank and official entity
reports, specialized journals) to specific
studies (e.g., market research, opinion studies,
consultants’ reports
IS Concepts
Context of IS
Typical Components of IS
• Hardware. Computer hardware, such as
processors, monitors, keyboard, and printers,
but also sensors, tracking devices etc.
• Software. These are the programs used to
organize, process and analyze data.
• Databases or related. Information systems work
with data, organized into
tables/files/repositories.
Functions of IS
• Data capture and collection
• Storage
• Information processing
• Distribution or dissemination of information
Example of IS
Example 1: a university
State university stores all student data in a database
Built-in query capability
Other types of analysis can be done
Example 2: Teletech
International textile company
Database stores data on products, suppliers, sales personnel,
costs
Process components
Forecasting models
Why IS are so essential in business
today?
• Business today use IS to achieve 6 major objectives:
1) operational excellence
2) new products, services, and business models
3) customer/supplier intimacy
4) improved decision making
5) competitive advantage
6) day-to-day survival
• IS have become essential for helping organizations operate in a global
economy.
• All core business processes are digitally enabled.
Business Processes and their
Relationship to IS
• A business process is a logically related set of
activities that define how specific business
tasks are performed.
• A business can be viewed as a collection of
business processes.
• IS can help organizations achieve greater
efficiencies by automating parts of these
processes or by helping organizations redesign
and streamline them.
Types of IS
EIS
DSS
MIS
TPS
Types of IS
Executive information system (EIS)
An Executive Information System (EIS) is a
specialized decision-support tool designed for
top-level management in an organization. It
facilitates the efficient gathering, processing, and
presentation of relevant and critical business
data in an easy-to-understand format
Analyze essential information from both external and
internal sources
Manipulate and refine data to make it more meaningful
Types of IS
Executive information system (EIS) EXAMPLE
Time series charts, scatter diagrams, maps,
motion graphics, sequence charts, and
comparison-oriented graphs (i.e., bar
charts) Model base—EIS models contain
routine and special statistical, financial,
and other quantitative analysis.
Types of IS
• Decision-support systems:
• A decision support system (DSS) is a
computer program application used to
improve a company's decision-making
capabilities. It analyzes large amounts of
data and presents an organization with the
best possible options available.
– Help with monitoring, controlling, decision
making, and administrative activities
Types of IS
• Decision-support systems Example
• Businesses in all industries can benefit
from DSS software, such as: GPS: A GPS
analyzes route information and traffic data
to plan the best path between
places. Crop planning: Decision support
systems help farmers know the best time
to plant, fertilize and harvest
Types of IS
• Transaction processing systems:
• A transaction processing system (TPS) is a type
of data management information-processing
software used during a business transaction to
manage the collection and retrieval of both
customer and business data.
– Keep track of basic activities and transactions of
organization (e.g., sales, receipts, cash deposits,
payroll, credit decisions, flow of materials in a
factory).
Types of IS
Examples of transaction processing systems
are as follows:
• ATM (Automated Teller Machines)
• Airline seat reservation system.
• Order processing systems.
Management Information Systems
• Management Information Systems (MIS) is the study of people,
technology, organizations, and the relationships among them.
MIS professionals help firms realize maximum benefit from
investment in personnel, equipment, and business processes.
• A management information system is an
information system used for decision-making,
and for the coordination, control, analysis, and
visualization of information in an organization.
The study of the management information
systems involves people, processes and
technology in an organizational
There are many management information
systems, including:
Process control. ...
Management reporting system. ...
Inventory control. ...
Sales and marketing systems. ...
Human resource systems. ...
Accounting and finance systems. ...
Decision support systems.
An MIS is a system that provides managers with the
necessary information to make decisions about an
organization's operations. The MIS gathers data from
various sources and processes it to provide
information tailored to the managers' and their
staff's needs.
A management information system example is
a customer relationship management system. It
collects customer data and provides organizations
with a channel for direct communication with clients.
Feedback from customers is essential data that can
be processed for better decision-making.
Components of Management Information System
Components of Management Information System
To enable decision-making, the MIS consists of four primary
components that equip managers with essential
information. These components are hardware, software,
data, and people.
1. Hardware refers to the physical components
of the MIS, such as computers, servers, and
other devices that store and process data.
2. Software includes the programs used to
process and analyze data. This includes
various applications like databases,
spreadsheets, and business intelligence tools.
Components of Management Information System
3. Data serves as the fundamental resource for
the MIS. It is collected from various sources
and processed using advanced techniques to
generate significant insights.
4. People are a crucial component of MIS. They
are responsible for collecting, processing, and
analyzing data. People who work in MIS have
different abilities, such as looking at data,
organizing databases, and keeping information
safe.
