BCM 2208 Management Information Systems Lecture II

Maasai mara university
school of business and

economics
Bcm 2208: management information systems.
Lecture II
Management information systems
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 and marketing.
The study of the management information systems involves people,
processes and technology in an organizational context.
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.
Objectives of MIS
The goals of an MIS are to implement the organizational structure

and dynamics of the enterprise for the purpose of managing the
organization in a better way and capturing the potential of the
information system for competitive advantage.
Following are the basic objectives of an MIS −
Capturing Data − Capturing contextual data, or operational
information that will contribute in decision making from various
internal and external sources of organization.
Processing Data − The captured data is processed into information
needed for planning, organizing, coordinating, directing and
controlling functionalities at strategic, tactical and operational level.
Processing data means −
• making calculations with the data
• sorting data
• classifying data and
• summarizing data
Information Storage − Information or processed data need to be
stored for future use.
Information Retrieval − The system should be able to retrieve this
information from the storage as and when required by various users.
Information Propagation − Information or the finished product of the
MIS should be circulated to its users periodically using the
organizational network
Characteristics of Computerized MIS
• Following are the characteristics of a well-designed computerized MIS

−
It should be able to process data accurately and with high speed,
using various techniques like operations research, simulation,
heuristics, etc.
It should be able to collect, organize, manipulate, and update large
amount of raw data of both related and unrelated nature, coming
from various internal and external sources at different periods of
time.
It should provide real time information on ongoing events without
any delay.
It should support various output formats and follow latest rules and
regulations in practice.
It should provide organized and relevant information for all levels of
management: strategic, operational, and tactical.
It should aim at extreme flexibility in data storage and retrieval.
Classification of information systems
Transaction Processing System
Management Information System (MIS)
Decision Support System (DSS)
Executive Support System (ESS)
Office Automation Systems (OAS)
Transaction Processing System
TPS processes transaction and produces reports.

It represents the automation of the fundamental, routine processing
used to support business operations.
 It does not provide any information to the user to his/her decision-
making.
Management Information System (MIS)
MIS is an information system, which processes data and converts it
into information.
 A management information system uses TPS for its data inputs.
The information generated by the information system may be used
for control of operations, strategic and long-range planning.
Short-range planning, management control, and other managerial
problem solving.
Mis con…..
It encompasses processing in support of a wide range of
organizational functions & management processes.
MIS is capable of providing analysis, planning & decision making
support.
The functional areas of a business may be marketing, production,
human resource, finance and accounting
Decision Support System (DSS)
A decision support system (DSS) is an information system application that
assists decision-making.
DSS tends to be used in planning, analyzing alternatives, and trial and error
search for solution.
The elements of the decision support system include a database, model base
& software. The main application areas of DSS are Production, finance and
marketing.
DSS can be differentiated from MIS on the basis of processing the
information. MIS processes data to convert it into information.
DSS processes information to support the decision making process of a
manager.
Executive Support System (ESS)
• Executive Support System (ESS) is an extension of the management

information system, which is a special kind of DSS;
• An ESS is specially tailored for the use of chief executive of an
organization to support his decision-making.
• It includes various types of decision-making but it is more specific
and person oriented.
Office Automation Systems (OAS)
Office automation refers to the application of computes and communication technology to

office functions.
Office automation systems are meant to improve the productivity of managers at various
levels of management of providing secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely

i) Activities performed by clerical personnel (clerks, secretaries, typist, etc.,) and
ii) Activities performed by the executives (managers, engineers or other professionals like
economist, researches etc.)
In the first category, the following is a list of activities.
a) Typing
b) Mailing

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Maasai mara university

school of business and

The goals of an MIS are to implement the organizational structure

• Following are the characteristics of a well-designed computerized MIS

TPS processes transaction and produces reports.

• Executive Support System (ESS) is an extension of the management

Office automation refers to the application of computes and communication technology to

Office activities may be grouped under two classes, namely

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