Concept of Management Information Systems
Chapter 2
Introduction
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• Differentiate between data and information
• Understand information as a resource
• Understand the role of information in organisational functions
• An overview of types of MIS
• Understand decision-making with MIS
• Understand communication within organisations
CASE STUDY - IS IN INDIAN RAILWAYS
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PASSENGER RESERVATION SYSTEM –
1980’s
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PASSENGER RESERVATION SYSTEM INTERNET
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CREW MANAGEMENT SYSTEM
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INTEGRATED COACHING MANAGEMENT
SYSTEM
https://www.youtube.com/watch?v=XMWIfJlyOmw
https://www.youtube.com/watch?v=_5GUafrcTcM
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Data and Information
Data is entered here.
Raw Facts are data
Processed data is
Information
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Measuring Data
BITS = Binary
Digits
0, 1
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Information As a Resource
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In modern organisations, information, data and information systems are used extensively
within and across organisational functions, across hierarchies.
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Typical functions in an organisation include accounting and finance, marketing, operations,
human resource management and information systems management.
Types of Information Technology
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Historically, information systems were designed for specific functions within organisations
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Modern information systems are designed largely to support individuals, groups or enterprise functions
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Functional IT is used by individuals for their own work, Network IT is used within functions to collaborate/
communicate within the group. Enterprise IT is designed for processes in the organisation and is very
efficient in moving data between different functions and to communicate with outside partners
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Types of Information Technology
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Diagram – Components of modern information technology infrastructure in an organisation
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Types of Information Systems: Transaction Processing system
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Transaction processing systems record all transactions as they happen, storing transaction data and preserving a digital
record of the functioning of the enterprise.
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They are designed to respond quickly to the user, through carefully designed interfaces that guide users through various
transactions.
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Types of Information Systems: Management
Information Systems
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MIS process data generated by Transaction processing systems, by aggregating
data into reports to be used by the management, to sense and monitor the
organisation.
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Real-time monitoring involves presenting data as soon as it is created
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Batch mode monitoring aggregates data over a period of time, allowing drilling
down to details
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Specific reports are tailored for specific decisions and hence the need for MIS to
be designed to meet the specific requirements of managers
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MIS at different levels
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Needs of managers at different levels are different
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Executives at the highest level require aggregated data – Executive Support
Systems (ESS) provide such reports which use graphs, charts and diagrams
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Managers who report to Executives use Decision Support Systems which use
scientific models of decision making on available data
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Knowledge workers use sophisticated models to analyse transaction data and
data related to the industry and economy
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A Screenshot of an ESS (simulated)
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Decision making with MIS: Tactical Decisions
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Tactical decisions are those that have short-term impact and are taken by
workers and operators
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Examples: Nurse attending to a patient in a hospital ward
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Decision making with MIS: Tactical Decisions
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Tactical decisions are those that have short-term impact and are taken by
workers and operators
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Examples: Shop Floor Assembly Line worker
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Decision making with MIS: Operational Decisions
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Decisions that have a medium-term scope and are made by managers are
Operational decisions
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These are based on aggregate data and are often supported by decision support
systems
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Examples: (Operations Manager, Mktg Manager, Finance Manager, Software
Project Manager)
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Control and planning are important activities involving operational decisions
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Decision making with MIS: Operational Decisions
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Decisions that have a medium-term scope and are made by managers are
Operational decisions
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These are based on aggregate data and are often supported by decision support
systems
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Examples: (Operations Manager, Mktg Manager, Finance Manager, Software
Project Manager)
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Control and planning are important activities involving operational decisions
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Travelling Salesman problem
This is an example of an operational decision.
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Strategic Decisions
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Decisions that are related to the vision & mission of the organisations with a
very long-term horizon in perspective.
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ESS is an example of a Strategic decision making tool.
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Pharma: Which markets to enter? (ESS→Industry data on competition)
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Govt (Indian Railways): How to plan for future capacity? (Long-term
infrastructure growth + Planning for future demand for services)
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Control & Planning
Control implies monitoring of activities against given or stated objectives
Planning involves forecasting situations in the future & arranging for
activities that will address them
• Setting up of marketing incentive schemes to help boost slack in sales
• Redeploy sales personnel is specific regions
• Send personnel for training programs
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Communication in organisations
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Communications occur through various forms within an organisation –
text messages, emails, documents and files
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As organisations grow their need for communication grows
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Communication is critical for transactions, decision making and
strategic collaborations.
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Types of Communication
Digital networks allow -
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Synchronous communication – two or more
parties communicate at the same time. (e.g.
Phone conversations)
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Asynchronous communication – two or
more parties communicate but not
simultaneously (e.g. Email exchange, chat
messages, etc)
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Simplex communication – possible only in
one direction between two parties (e.g.
Radio receivers)
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Half-duplex communication – two parties
can communicate with each other, but not
at the same time. (Email communication)
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Duplex communication – Two parties
communicate with each other at the same
time (Phone networks are duplex in nature)
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Examples of Communication in Organisations
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Sales
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Service
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Tracking
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Communication 'on the go’. The Internet presents many security
challenges
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Decision making with Communication Technology
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Communications in organisations are from people to people, device to
device and devices to people.
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Such high levels of connectivity leads to information overload and
organisations face the challenge of minimising this to present only
relevant information
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RFID in Banking →
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Questions !
Fill in the blanks
1. ESS stands for __________________________
True or False
1. When two or more parties communicate at the same time, it is referred to as Synchronous communication.
2. Nurse attending to a patient in a hospital ward is an example of Strategic decision.
Select the right option
1. Travelling salesman problem is an example of _________________ decision
a) Strategic
b) Operational
c) Both a and b
d) only b
Answers
1. Executive Support Systems
2. True
3. False
4. D