BUS 201: Introduction to
Business
Fundamentals of Management Information
Systems (MIS)
What is MIS?
Management Information Systems (MIS) is a discipline that
teaches us how management, organization, and technology
create information systems to solve business
problems/challenges in an organization.
For Example:
Business Challenges: Registration in open credit system is a business
problem for IUB. If this registration were done manually, it would be
almost impossible to complete it successfully for employees. An
employee has to check lot of issues before allocating a course to
student e.g., prerequisites, course level, time clash, class capacity, room
capacity, dues and many more. These issues if checked manually would
make the registration process very time consuming and erroneous.
MIS: MIS studied the problem, proposed a solution to the problem,
and finally, deployed IRAS which is an information system to solve the
problem.
Results: IRAS system does this registration within 1-2 days, checking
all above issues simultaneously for many students. Thus, IRAS reduces
registration time, number of employees, and error rate for IUB.
This is how MIS supports an organization
Information Systems (IS)
• Information vs Data
• Information Systems (IS ) is a collection of
people, hardware, software, data, and
telecommunication technologies that work
together to collect, process, store, and
disseminate information in an organization.
Components of Information
Systems
People Resources: end users and IS specialists, system
analyst, programmers, data administrators etc.
Hardware Resources: Physical computer equipments and
associate devices, machines and media.
Software Resources: programs and procedures.
Data Resources: Customers records and employee files.
Networks Resources: Communications media and
Communication processors.
Fundamental Roles of IS
Three major roles of the business applications of information
systems include:
Support Business Processes- involves dealing with
information systems that support the business processes and
operations in a business.
Support Decision Making- helps decisions makers to make
better decisions and attempt to gain a competitive
advantage.
Support Competitive Advantage- helps decision makers to
gain a strategic advantage over competitors requires
innovative use of information technologies.
Functional Business Systems
Many organizations are structured based on
functional areas. Typically, functional areas
include the following:
Accounting
Finance
Marketing
Human resource management
Production and Manufacturing
Many of these functional areas have their own
Information System.
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IT in Business
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Marketing Systems
A marketing system supports activities
throughout the many activities of marketing
departments. Some of the marketing functions that
are supported by marketing systems are:
marketing research,
product development and delivery,
promotion and advertising,
product pricing and sales analysis etc.
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Manufacturing Information
Systems
Supports the production/operations functions
Includes all activities concerned with planning and control
of the processes producing goods or services
provides information on production /operation activities of
an organization and thus facilitates the decision-making
process of production managers of an organization.
Continuous development of new products and services
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Human Resource Management
Systems
This functional information system supports the
functions of human resource management of an
organization. Human Resource Management
System supports the following activities of HRM:
Workforce planning
Staffing
Training and development
Performance evaluation etc.
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Accounting Information
Systems
The oldest and most widely used information
system in business.
Records and reports business transactions and
economic events
Produces financial statements
Forecasts future conditions etc.
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Financial Management
Systems
A financial system provides financial
information for managers to make daily
decisions on operations within the organization.
Most systems provide these functions:
Integrate financial information from multiple sources
Provide easy access to financial information in
summarized form
Enable financial analysis using easy-to-use tools
Compare historic and current financial activity etc.
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Functions of IS
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.
Thank You!