MIS in Practice
Types of Information Systems
(IS)
1
Types of IS
They are:
 Transaction Processing Systems (TPS)
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Management Reporting Systems (MRS)
 Knowledge Based Systems (KBS)
 Office Information Systems (OIS)
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Supports of IS
Support for Strategic Planning
Internal
Use
Support for management Control
Support for Operational Control
Improved Product Quality
External
Use
Improved Product Delivery
3
Transaction Processing
System (TPS)
 It supports day-to-day operations.
 For example:
– Order Entry Systems
– Cheque Processing Systems
– Account Receivable Systems
– Accounts Payable Systems
– Payroll Systems
– Ticket Reservation Systems
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Transaction Processing
System (TPS)
 Transaction processing is a set of procedures for
handling the transactions.
 Common activity includes:
–
–
–
–
–
Calculation
Classification
Sorting
Storage
Summarization
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Examples:
 Sales Order Processing System:
– The TPS data contains the list of products, available
for sale, their prices and related data.
 Railway Reservation System:
– The TPS data contains the location of available seats.
– It displays a message on the terminal indicating seats
sold out to people.
– It also prints the tickets and perhaps a mailing label
for sending them.
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Examples:
 So the TPS program generates two types of
outputs:
– It sends message back to the operator terminal
– It generates printed documents
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8
Need of MIS
 It helps management at different levels
 It is a means of communication where data are
– collected,
– stored and
– retrieved for planning, operation and control of an
organization
 It supports decision making with different types
of information obtained from different functional
areas of management like HR, Finance,
Marketing etc..
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Functions of MIS
Collect Data
Store and Process Data
Present Information to Managers
10
To Managers
Relationship between
Decision Making and MIS
12
External Sources
•Customers
•Distributors
•Competitors
•Consultants
External Environment
•Government Data
•Technology Data
•Social Change Data.. etc
Internal Sources
•Staff Specialists
•Sales Representatives
•Production People
Management
Information
System
Managers
Decision
Making
Internal Environment
•Marketing Data
•Financial Data
•Production Data
•Personnel data.. etc
13
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TPS Vs MIS
•They are concerned
with day to day operations
Example: Ticket Reservation
•MIS is conceptually
a level above
Transaction Processing
System.
•They are concerned
with activities that
do support operations.
TPS: Takes orders and print tickets.
MIS: Measures and reports the performance of each of the
agents who will sell tickets.
It keeps track of the number and amount of each
agent’s sales and it regularly produce reports
about agent’s effectiveness.
Decision Support System
(DSS)
 An information system that utilizes decision
models, a data base and a decision makers own
insights in an ad-hoc, interactive analytical
modeling process to reach a specific decision
by a specific decision-maker.
Or
 DSS is a system for providing information to
help management with new, un-structured
decision making.
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Example of DSS
 A strike by the dancer’s union-– It forces the cancellation of arranged dance performances.
 The management of the dance association wants to
know—
– The impact on revenue of the cancellation of each
performance.
 A DSS could be used to process the ticket agencies data
to produce the information.
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Architecture of a generic DSS
application
18
Components of a DSS
19
MIS Vs. DSS
Points
MIS
DSS
Focus
On structured tasks On semi structured tasks,
and routine
requiring managerial
decisions
judgment
Emphasis
On data storage
On efficiency
Reliance
On computer expert On managers own
judgment
Data
Access
Indirect access by
managers
On data manipulation
On effectiveness
Direct access by
managers