What is MIS?• 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.

• MIS is a people-oriented field with an emphasis on service through technology.

• Businesses use information systems at all levels of operation to collect, process and store data.

continued

• Management aggregates and disseminates this data in the form of information needed to carry out the daily operations of business.

• Everyone who works in business, from someone who pays the bills to the person who makes employment decisions, uses information systems.

• A car dealership could use a computer database to keep track of which products sell best.

• A retail store might use a computer-based information system to sell products over the Internet

• In fact, many businesses concentrate on the alignment of MIS with business goals to achieve competitive advantage over other businesses.

continued• MIS professionals create information systems for

data management (i.e., storing, searching and analyzing data).

• In addition, they manage various information systems to meet the needs of managers, staff and customers.

• By working collaboratively with various members of their work group, as well as with their customers and clients, MIS professionals are able to play a key role in areas such as information security, integration and exchange.

continued• MIS refers broadly to a computer-based system that provides

managers with the tools for organizing, evaluating and efficiently running their departments.

• In order to provide past, present and prediction information,

an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently.

• Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).

continued• A management information system (MIS) provides information that

organizations require to manage themselves efficiently and effectively.

• Management information systems are typically computer systems used for managing five primary components:

1.) Hardware, 2.) Software, 3.) Data (information for decision making), 4.) Procedures (design,development and documentation), and 5.) People (individuals, groups, or organizations).

• Management information systems are distinct from other information systems, in that they are used to analyze and facilitate strategic and operational activities.

• Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems.

Overview• A management information system gives the business managers the information that

they need to make decisions.

• Early business computers were used for simple operations such as tracking inventory, billing, sales, or payroll data, with little detail or structure.

• Over time, these computer applications became more complex, hardware storage capacities grew, and technologies improved for connecting previously isolated applications .

• As more data was stored and linked, managers sought greater abstraction as well as greater detail with the aim of creating significant management reports from the raw, stored data.

• Originally, the term "MIS" described applications providing managers with information about sales, inventories, and other data that would help in managing the enterprise.

• Over time, the term broadened to include: decision support systems, resource management and human resource management, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management (CRM), project management and database retrieval applications.

• Management information systems provide a variety of information products to managers.

The Purpose of Information Systems

• Businesses use information systems– To make sound decisions– To solve problems

• Problem: any undesirable situation• Decision: arises when more than one solution to

problem exists• Both problem solving and decision making

require information

The Purpose of Information Systems (continued)

• Keys to success in business:– Gathering correct information efficiently– Storing information– Using information

• Purpose of information systems is to support these activities

Data, Information, and Information Systems

• “Data,” “information,” and “system” are commonly used terms

• Important to understand their similarities and differences

Data vs. Information

• Data: a given or fact– Can be number, statement, or picture– Is the raw material in the production of

information• Information: facts or conclusions that have

meaning within context– Composed of data that has been manipulated

Data Manipulation

• Data is manipulated to make useful information– New information can be generated from data,

such as averages, trends, etc.• Survey is common method of collecting data• Raw data is hard to read• Information is more useful to business than data

Generating Information

• Process: the manipulation of data– Usually produces information– May produce more data

• A piece of information (output of a process) in one context may be considered data (input to a process) in another context

Generating Information (continued)

Information in Context

• Not all information is useful• To be useful, information must be:

– Relevant– Complete– Accurate

• In business, information must also be:– Current– Obtained in a cost-effective manner

What Is a System?

• System: array of components that work together to achieve goal or goals

• System– Accepts input– Processes input– Produces output

What is a System? (continued)

• System may have multiple goals• System may contain subsystems• Subsystem: component of a larger system• Subsystems have subgoals that contribute to

main goal• Subsystems can receive input from and transfer

output to other subsystems

What is a System? (continued)