Management Information System

For B.Com.
(H) 6th Sem-2015
Tutorial
for
Management Information
Systems
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Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
For B.Com.(H) 6th Sem-2015

Introduction
1.1 MANAGEMENT INFORMATION SYSTEM ( MIS) CONCEPT
The concept of the MIS has evolved over a period of time comprising many
different facets of the organizational function. MIS is a necessity of all the
organizations. The initial concept of MIS was to process data from the
organization and present it in the for of reports at regular intervals. The system
was largely capable of handling the data from collection to processing. It was
more impersonal, requiring each individual to pick and choose the processed
data and use it for his requirements. This concept was further modified when a
distinction was made between data and information. The information is a product
of an analysis of data. This concept is similar to a raw material and the finished
product. What are needed are information and not a mass of data. However, the
data can be analyzed in a number of ways, producing different shades and
specifications of the information as a product. It was, therefore, demanded that
the system concept be an individual- oriented, as each individual may have a
different orientation. Towards the information. This concept was further modified,
that the system should present information in such a form and format that it
creates an impact on its user, provoking a decision or an investigation. It was
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later realized then even though such an impact was a welcome modification,
some sort of selective approach was necessary in the analysis and
reporting. Hence, the concept of exception reporting was imbibed in MIS. The
norm for an exception.
Was necessary to evolve in the organization. The concept remained valid till and
to the extent that the norm for an exception remained true and effective. Since
the environment turns competitive and is ever changing, fixation of the norm for
an exception becomes ka futile exercise at least for the people in the higher
echelons of the organization. The concept was then evolved that the system
should be capable of handling a need based exception reporting. This need
maybe either of an individual or a group of people. This called for keeping all
data together in such a form that it can be accessed by anybody and
can be processed to suit his needs. The concept is that the data is one but it can
be viewed
by different individuals in different ways. This gave rise to the concept of DA
.ABASE, and the MIS based on the DATABASE proved much more effective.
Over a period of time, when these conceptual developments were taking place,
the concept of the end user computing using multiple databases emerged. This
concept brought a fundamental charge in MIS. The change was decentralization
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of the system and the user of the in formation becoming independent of
computer professionals. When this becomes a reality, the concept of MIS
changed to a decision making system. The job in a computer department is to
manage the information resource and leave the task of information processing to
the user. The concept of MIS in today.s world is a system which handles the
databases, databases, provides com-putting facilities to the end user and gives a
variety of decision making tools to the user of the system.
The concept of MIS gives high regard to the individual and his ability to use
information. An MIS gives information through data analysis. While analyzing the
data, it relies on many academic disciplines. These include the theories,
principles and concepts from the Management Science, Psychology and Human
Behavior, making the MID more effective and useful. These academic disciplines
are used in designing the MIS, evolving the decision support tools for modeling
and decision - making.
The foundation of MIS is the principles of management and if its practices. MIS
uses the concept of management Information System can be evolved for a
specific objective if it is evolved after systematic planning and design. It calls for
an analysis of a business, management views and policies, organization culture
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and the culture and the management style. The information should be generated
in this setting and must be useful in managing the business. This is possible only
when it in conceptualized as system with an appropriate design. The MIS,
therefore, relies heavily on the systems theory offers solutions to handle the
complex situations of the input and output flows. It uses theories of
communication which helps to evolve a system design capable of handling data
inputs,
process, and outputs with the lest possible noise or distortion in transmitting the
information form a source to a destination. It uses the principles of system
Design, Viz.,
an ability of continuous adjustment or correction in the system in line with the
environmental change in which the MIS operates. Such a design help to keep the
MIS tuned with the business managements needs of the organization.
The concept, therefore, is a blend of principle, theories and practices of the

Management, Information and System giving rise to single product known as
Management Information System (MIS). The Physical view of the MIS can be
seen as assembly of several subsystems based on the databases in the
organization. These subsystems range from data collection, transaction
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processing and validating, processing, analyzing and storing the information in
databases. The subsystem could be at a functional level or a corporate level.
The MIS is a product of a multi- disciplinary approach to the business

management. It is a product which needs to be kept under a constant review and
modification to meet the corporate needs of the information. It is prescribed
product design for the organization. The MIS differs since the people in two
organizations involved in the same business. The MIS is for the people in the
organization. The MIS model may be the same but it differs greatly in the
contents.
The MIS, therefore, is a dynamic concept subject to change, time and again, with
a change in the business management process. It continuously interacts with the
internal and the external environment of the business and provides a corrective
mechanism in the
system so that the change needs of information are with effectively. The MIS,
therefore, is a dynamic design, the primary objectively. The MIS, therefore, is a
dynamic design the primary objective of which is to the information the
information
for decision making
and
it is developed
considering
the
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organizational fabric, giving due regard to the people in the organizational the
management functions and the managerial and the managerial control.
The MIS model of the organization changes over a time as the business passes
through several phases of developmental growth cycle. It supports the
management of the business in each phase by giving the information which is
crucial in that phase. Every has
critical success factors in each phase of growth cycle and the MIS model gives
more information on the critical success factors for decision making.
1.2 MIS DEFINITION
The Management Information System (MIS) is a concept of the last decade or

two. It has been understood and described in a number ways. It is also known as
the Information System, the Information and Decision System, the Computerbased information System.
The MIS has more than one definition, some of which are give below
.
1. The MIS is defined as a system which provides information support for
decision making in the organization.
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2. The MIS is defined as an integrated system of man and machine for providing
the information to support the operations, the management and the decision
making function in the organization.
3. The MIS is defined as a system based on the database of the organization

evolved for the purpose of providing information to the people in the organization.
4. The MIS is defined as a Computer . based Information System.
Thought there are a number of definitions, all of them converge on one single
point, i.e., the MIS is a system to support the decision making function in the
organization. The difference lies in defining the elements of the MIS. However, in
today.s world MIS a computerized .business processing system generating
information for the people in the organization to meet the information needs
decision making to achieve the corporate objective of the organization. In any
organization, small or big, a major portion of the time goes in data collection,
processing, documenting it to the people. Hence, a major portion of the
overheads goes into this kind of unproductive work in the organization. Every
individual in an organization is continuously looking for some information which is
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needed to perform his/her task. Hence, the information is people-oriented and it
varies
with the nature of the people in the organization.
The difficulty in handling this multiple requirement of the people is due to a

couple of reasons. The information is a processed product to fulfill an imprecise
need of the people. It takes time to search the data and may require a difficult
processing path. It has a time value and unless processed on time and
communicated, it has no The scope and the quantum of information is individualdependent and it is difficult to conceive the information as a well-defined product
for the entire organization. Since the people are instrumental in any business
transaction, a human error is possible in conducting the same. Since a human
error is difficult to control, the difficulty arises in ensuring a hundred per cent
quality assurance of information in terms of completeness, accuracy, validity,
timeliness and meeting the decision making needs.
In order to get a better grip on the activity of information processing, it is

necessary to
have a formal system which should take care of the following points:
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Handling of a voluminous data.
Confirmation of the validity of data and transaction.
Complex processing of data and multidimensional analysis.
Quick search and retrieval.
Mass storage.
Communication of the information system to the user on time.
Fulfilling the changing needs of the information.
The management information system uses computers and communication

technology
to deal with these points of supreme importance.
1.3 ROLE OF THE MANAGEMENT INFORMATION SYSTEM
The role of the MIS in an organization can be compared to the role of heart in the
body. The information is the blood and MIS is the heart. In the body the heart
plays the role of supplying pure blood to all the elements of the body including
the brain.
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The heart works faster and supplies more blood when needed. It regulates and
controls the incoming impure blood, processes it and sends it to the destination
in the quantity needed. It fulfills the needs of blood supply to human body in
normal course and also in crisis.
The MIS plays exactly the same role in the organization. The system ensures
that an appropriate data is collected from the various sources, processed, and
sent further to all the needy destinations. The system is expected to fulfill the
information needs of an individual, a group of individuals, the management
functionaries: the managers and the top management.
The MIS satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems
the MIS helps in Strategic Planning, Management Control, Operational Control
and Transaction Processing.
The MIS helps the clerical personnel in the transaction processing and answers
their queries on the data pertaining to the transaction, the status of a particular
record and references on a variety of documents. The MIS helps the junior
management personnel by providing the operational data for planning,
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scheduling and control, and helps them further in decision making at the
operations level to correct an out of control situation. The MIS helps the middle
management in short them planning, target setting and controlling the business
functions. It is supported by the use of the management tools of planning and
control. The MIS helps the top management in goal setting, strategic planning
and evolving the business plans and their implementation.
The MIS plays the role of information generation, communication, problem

identification and helps in the process of decision making. The MIS, therefore,
plays a vita role in the management, administration and operations of an
organization.
1.4 IMPACT OF THE MANAGEMENT INFORMATION SYSTEM
Since the MIS plays a very important role in the organization, it creates an impact
on the organization.s functions, performance and productivity. The impact of MIS
on the functions is in its management. With a good support, the management of
marking, finance, production and personnel become more efficient. The tracking
and monitoring of the functional targets becomes easy. The functional, managers
are informed about the progress, achievements and shortfalls in the probable
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trends in the various aspects of business. This helps in forecasting and longterm perspective planning. The manager.s attention is brought to a situation
which is exceptional in nature, inducing him to take an action or a decision in the
matter. A disciplined information reporting system creates a structured data and
a knowledge base for all the people in the organization. The information is
available in such a form that it can be used straight away or by blending analysis,
saving the manager.s valuable time.
The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of a data
entity and its attributes. It uses a dictionary if data, entity and attributes,
respectively, designed for information generation in the organization. Since all
the information system use the dictionary, there is common understanding of
terms and terminology in the organization brining clarity in the communication
and a similar understanding an even of the organization.
The MIS calls for a systemization of the business operation for an affective
system design. A well designed system with a focus on the manger makes an
impact on the managerial efficiency. The fund of information motivates an
enlightened manger to use a variety of tools of the management. It helps him to
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resort to such exercises as experimentation and modeling. The use of computers
enables him to use the tools techniques which are impossible to use manually.
The ready-made packages make this task simpler. The impact is on the
managerial ability to perform. It improves the decision making ability
considerably.
Since the MIS works on the basic systems such as transaction processing and
databases, the drudgery of the clerical work is transferred to the computerized
system, relieving the human mind for better work. It will be observed that a lot of
manpower is engaged in this activity in the organization. It you study the
individual.s time utilization and its application; you will find that seventy per cent
of the time is spent in recording, searching, processing and communication. This
is a large overhead in the organization. The MIS has a direct impact on this
overhead. It creates an information- based work culture in the organization.
1.5 MANAGEMENT INFORMATION SYSTEM AND COMPTER
Translating the real concept of the MIS into reality is technically, an infeasible
proposition unless computers are used. The MIS relies heavily on the hardware
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and software capacity of the computer and its ability to process, retrieve
communicate with no serious limitations.
The variety of the hardware having distinct capabilities makes it possible to

design the MIS for a specific situation. For example, if the organization needs a
large database and very little processing, a computer system is available for such
a requirement. Suppose the organization has multiple business location at long
distances and if the need is to bring the data at one place, process, and then
send the information to various location, it is possible to have a computer system
with a distributed data processing capability. If the distance is too long, then the
computer system can be hooked through a satellite communication system. The
ability of the hardware to store data and process it at a very fast rate helps to
deal with the data volumes, its storage and access effectively. The ability of the
computer to sort and merge helps to organize the data in a particular manner and
process it for complex lengthy computations. Since the computer is capable of
digital, graphic, word image, voice and text processing, it is exploited to generate
information and present it in the form which is easy to understand for the
information user.
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The ability of a computer system to provide security of data brings a confidence
in the management in the storage o data on a magnetic media in an impersonal
mode. The computer system provides the facilities such as READ ONLY where
you cannot delete to UPDATE. It provides an access to the selected information
through a password and layered access facilities. The confidence nature of the
data and information can be maintained in a computer system. With this ability,
the MIS become a safe application in the organization.
The software, an integral part of a computer system, further enhances the

hardware capability. The software is available to handle the procedural and
nonprocedural data processing. For example, if you want to use a formula to
calculate a certain result, an efficient language is available to handle the
situation. If you are not use a formula but have to resort every time to a new
procedure, the nonprocedural languages are available.
The software is available to transfer the data from one computer system to
another. Hence, you can compute the results at one place and transfer them to a
computer located at another place for some other use. The computer system
being able to configure to the specific needs helps to design a flexible MIS.
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The advancement in computers and the communication technology has the
distance, speed, volume and complex computing an easy task. Hence, designing
the MIS for a specific need and simultaneously designing a flexible and open
system becomes possible, thereby saving a lot of drudgery of development and
maintenance and maintenance of the system. The concept of user . friendly
systems and the end user computing is possible, making information processing
a personalized function.
However, the application of the management principles and practices in todays

complex business world is possible only when the MIS is based on computer
system support.
1.6 MANAGEMENT INFORMATION SYSTEM AND ACADEMICS
The management.s information system draws a lot of support from other

academic disciplines too. The foundation of MIS is the management theory. It
uses the principles and practices of management while designing the system, ant
gives due regard to the theory of organizational behavior. It considers the human
mind as a processor of information. While designing the report format and
forming communication channels, MIS takes into account the behavior of the
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manager as an individual and in a group. It gives due regard to the personal
factors such as bias, thinking with a fixed frame of reference, risk aversion,
strengths and weaknesses. Another area of academics is operational research.
The operational research is used for developing the models of management and
they are then incorporated in the MIS as decision support systems. The inventory
control, queuing theory, and resource programming are used in the MIS as
decision support systems. The network theory is used for planning and
controlling large projects. The application of PER / CPM to a project planning is
now easily possible through the MIS support.
In the area of accounting application, it uses the accounting principles to ensure

that the data is correct and valid. It uses the principles of double entry
bookkeeping for balancing the accounts. It uses the accounting methodology for
generating a trial balance sheet and other books of accounts.
The MIS uses the communication theory in a significant manner. The principle of
feedback is used while designing analysis. Systems. While designing the report
format, attention is paid to avoid noise and distortions in the communication
process. The MIS further relies heavily on the decision methodology. It uses
different mathematical techniques to handle the situation of decision making uses
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the method of decision- making under certainty for decision- making and action.
The MIS is based on database structures, viz .hierarchical, network and
relational database have roots in the mathematics and the set theory.
The MIS becomes rich in content and more useful when it becomes more and
more a decision- making or decision- support system. The is possible when it
builds decision making systems in MIS which in turn is possible if it draws tools,
techniques, methods, rules and principles from pure and application science, and
use them as an integral part of the system. The MIS draws data from its own
source and uses it in the application of a variety of tools and techniques to solve
the management, mathematics, and accounting. Psychology, communication
theory, operations research and probability theory for building processes,
methods, and decision support systems in designing business application.
1.7 MIS AND THE USER
Every person in the organization is a user of the MIS. The people in the
organization operate at all levels in the hierarchy. A typical user is a clerk, an
assistant, an officer, an executive or a manager. Each of them has a specific task
and a role to play in the management of business. The MIS caters to the needs
of all persons.
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The main task of a clerk is to search the data, make a statement and submit it to
the higher level. A clerk can use the MIS for a quick search and reporting the
same to higher level. An assistant has the task of collecting and organizing the
data, and conducting a rudimentary analysis of integrating the data from different
and disciplines to analyze it and make a critical comment if anything adverse is
found. The MIS offers the methods and facilities to integrate the data and report
the same in a proper format. An executive plays the role of a decision maker. He
is in of responsibility and accountability a position of a planner and a decision
maker. He is responsible for achieving the target and goals of the organization.
The MIS provides facilities to analyze the data and offers the decision support
systems to perform the task of execution. The MIS provides an action . oriented
information. The manager has a position of responsibility and accountability for
the business results. His management role expands beyond his management
function. He is a
strategist and a long-term planner. He is a person with a foresight, an analytical
ability and is expected to use these abilities in the functions of top management.
The MIS provides information in a structured or unstructured format for him to
react. The MIS caters to his constant changing needs of information. The user of
the MIS is expected to be a rational person and the design of the MIS is based
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on this assumption. However, in reality the impact created on individuals by MIS
is difficult to explain. The nature of the impact in a few cases is negative.
However, this negative impact can be handled with proper training and
counseling.
It is observed that at lower level, is a sense of insecurity. As the MIS takes away
the drudgery of search, collection, writing and reporting the data, the work
vacuum, so created is not easily filled, thus creating a sense of insecurity. To
some extent the importance of the person is also lost, giving rise to a fear of nonrecognition in the organization. At the level of an officer and an executive, the
MIS does the job the of data manipulation and integration. It analyses the data in
a predetermined manner. This means that the knowledge of business is
transferred from an individual to the MIS and is made available to all in the
organization. This change arising out of the MIS creates a sense of being
neglected for knowledge, information and advice. The psychological impact is
larger if the person is not able to cope up with this change by expanding or
enriching the job and the position held by him.
The manager holding a position in the top or middle management suffers from
fear of challenge and exposure. The MIS makes these competitors more
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effective as they have access to the information and have an ability to interpret.
This leads to a situation where he is afraid that that his position, decision and
defense will be challenged and may be proved wrong sometime. The risk of
adverse exposure to the higher management also increases. The effects so far
pointed out are all negative and they are seen only in few cases.
The positive effects on the individuals at all levels are that they have become
more effective operators. The time and energy which was spent earlier in
unproductive work is now applied for a productive work. Some are able to use
their analytical skills and knowledge with the in formation support for improving
their position in the organization. Managers, having improved their decision .
making ability, are able to handle the complex situations with relative ease. Some
are benefited by improving their performance and being held in high esteem by
the higher management.
The enterprising managers are able to use the systems and the models for trying
out a Number of alternatives in a given problem situation. The impact of the MIS
on people Of the organization is phenomenal as it has made the same body of
people collectively more effective and productive.
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The recent major technological advances in communication such as Multimedia,
Imaging. Graphical User Interfaces (GUI), Internet, Web etc. and the ability to
access the data stored at different locations on the variety hardware of platforms
would make MIS more attractive and efficient proposition. An intelligent user of
information can demonstrate the ability of decision making, since his
manipulative capability is considerably increased, with the information now being
available on his desktop.
Through the MIS, the information can be used as a strategic weapon to counter
the threats
to business, make business more competitive, and bring about the organizational
transformation through integration. A good MIS also makes an organization
seamless by removing all the communication barriers.
Information is the basis for every decision taken in an organization. The

efficiency of management depends upon the availability of regular and relevant
information. Thus it is essential that an effective and efficient reporting system be
developed as part of accounting system. The main object of management
information is to obtain the required about the operating results of an
organization regularly in order to use them for future planning and control.
The old techniques like intuition, rule of thumb, personal whim and prestige, etc.
are now considered useless in the process of decision taking. Modern
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management is constantly on look out for such quantitative and such information,
which can help in analyzing the proposed alternative actions and choosing one
as its decision. Thus, modern management functions are information-oriented
more popularly known as management by information. And the system through
which information is communicated to the management is known as
management
information
system
(MIS).
The
management
needs
full
information before taking any decision. good decisions can minimize costs and
optimize results. Management information system can be helpful to the
management in undertaking management decisions smoothly and effectively.
Management information system can be analyzed thus:
Management: management covers the planning, control, and administration of
the operations of a concern. The top management handles planning; the middle
management concentrates on controlling; and the lower management is
concerned with actual administration.
Information: information, in MIS, means the processed data that helps the
management in planning, controlling and operations. Data means all the facts
arising out of the operations of the concern. Data is processed i.e. recorded,
summarized, compared and finally presented to the management in the form of
MIS report.
System: data is processed into information with the help of a system. a system is
made up of inputs, processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information
to the management for performing its functions.
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CONCEPTUAL VIEW OF MIS
The concept is a blend of principles, theories and practices of management,

information and system giving rise to a single product called MANAGEMENT
INFORMATION SYSTEM.
The concept of management gives high regard to the individual and his ability to
use the information. MIS gives information through data analysis. While
analyzing the information, it relies on many academic disciplines like
management science, OR, organization behavior, psychology, etc.
The foundation of MIS is the principles of management and its practices. MIS
uses the concept of management control in its design and relies heavily on the
fact that the decision maker is a human being and is a human processor of
information.
A MIS can be evolved for a specific objective it is evolved after systematic
planning and design. It calls for an analysis of business, management views and
policies, organization culture and the management style.
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The MIS,therefore relies heavily on systems theory.The systems theory offers
solutions to handle complex situations of the input and output flows. it uses
theory of communication which helps to evolve a system design capable of
handling data inputs, process, the outputs with the least possible noise or
distortion in transmitting the information from a source to destination.
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TYPES OF INFORMATION SYSTEM
Information systems differ in their business needs and the information varies
depending upon different levels in organization. Information system can be
broadly categorized into following:
Transaction processing system
Management Information System
Decision support system
The information needs are different at different organizational levels. Accordingly
the information can be categorized into following:
Strategic information
Managerial information
Operational information.
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Transaction Processing Systems
It processes business transaction of the organization. Transaction can be any
activity of the organization. For example, take a railway reservation system.
Booking, canceling, etc are all transactions. Any query made to it is a transaction.
This provides high speed and accurate processing of record keeping of basic
operational processes and include calculation, storage and retrieval.
Transaction processing systems provide speed and accuracy, and can be
programmed to follow routines functions of the organization.
Management Information Systems
It assist lower management in problem solving and making decisions. They use
the results of transaction processing and some other information also.
An important element of MIS is database.A database is a non-redundant
collection of interrelated data items that can be processed through application
programs and available to many users.
Decision Support Systems
These systems assist higher management to make long term decisions. These
type of systems handle unstructured or semi structured decisions. A decision is
considered unstructured if there are no clear procedures for making the decision
and if not all the factors to be considered in the decision can be readily identified
in advance.
A decision support system must very flexible.
The user should be able to produce customized reports by giving particular data
and format specific to particular situations.
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Types of Management Information Systems
A management information system (MIS) is a computer-based system that
provides the information necessary to manage an organization effectively. An
MIS should be designed to enhance communication among employees, provide
an objective system for recording information and support the organization's
strategic goals and direction. There are four types of MIS that will be introduced
in ascending order of sophistication.
Transaction Processing Systems
These systems are designed to handle a large volume of routine, recurring
transactions. They were first introduced in the 1960s with the advent of
mainframe computers. Transaction processing systems are used widely today.
Banks use them to record deposits and payments into accounts. Supermarkets
use them to record sales and track inventory. Most managers use these systems
to deal with tasks such as payroll, customer billing and payments to suppliers.
Operations Information Systems
These systems were introduced after transaction processing systems. An
operations information system gathers comprehensive data, organizes it and
summarizes it in a form that is useful for managers. Most of these systems
access data from a transaction processing system and organize it into a form
usable by managers. Managers use operations information systems to obtain
sales, inventory, accounting and other performance-related information.
Decision Support Systems (DSS)
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A DSS is an interactive computer system that can be used by managers without
help from computer specialists. A DSS provides managers with the necessary
information to make intelligent decisions. A DSS has three fundamental
components:
1. Database management system (DBMS): Stores large amounts of data
relevant to problems the DSS has been designed to tackle.
2. Model-based management system (MBMS): Transforms data from the DBMS
into information that is useful in decision making.
3. Dialog generation and management system (DGMS): Provides a user-friendly
interface between the system and the managers who do not have extensive
computer training.
Expert Systems and Artificial Intelligence
These systems use human knowledge captured in a computer to solve problems
that ordinarily need human expertise. Mimicking human expertise and
intelligence requires that the computer (1) recognize, formulate and solve a
problem; (2) explain solutions and (3) learn from experience. These systems
explain the logic of their advice to the user; hence, in addition to solving problems
they can also serve as a teacher. They use flexible thinking processes and can
accommodate new knowledge.
Considerations
A potential problem with relying on electronic communication and processing of
information is the loss of the vital human element. Sometimes because of the
complexity of information, an MIS report cannot effectively summarize it. Very
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rich information is needed to coordinate and run an enterprise and certain
classes of information cannot be quantified. For example, it might be wrong to
evaluate an employee's performance solely based on numbers generated by an
MIS. Numbers can indicate a performance problem but a face-to-face meeting
will be necessary to discuss the nature of the problem.
Components of Management Information System
A Typical Management Information System is based on four major components:
Data Gathering
The process of collecting required data from external and internal sources
Data Entry
The collected data is imputed and stored in the database. Database is the core
component used in information processing.
Data Transformation
The data stored in the database is transformed into useful information through
the application of computer programs and judgments made by the technical
support staff and the end users.
Data Utilization
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The data that has been transformed into useful information is retrieved as
needed by the management of the firm for managing operations and decision
making.
Difference between DSS & MIS
MIS functions to produce routine reports,DSS employ sophisticated data
modelling & analysis tools for the purpose of resolving structured problems.
MIS is used by a limited group (staff managers & professionals), DSS are used
by groups,individuals & managers at various levels.
DSS is charachterized by an adaptability which contrasted with the semiinflexible nature of MIS.
DSS data sources are much more varied comprising inventory, accounting &
production sources & not just internal business ones & its analytical tools are
more sophisticated(simulation,atatistical analysis).
Thus, MIS & DSS are differentiated in terms of components, dynamics ,
analytical tools & general properties.
Importance Of MIS In Organizations
In today's scenario MIS plays a pivotal role in Organizations. Organizations
worldwide makes extensive use of MIS.Its desgined by the top management of
an organization, is a tool to assembling & accumulating facts & figures of all the
important business processes.
MIS is a very vast topic , its very difficult to cover the whole in one article. Thus
here are some of the major importance / advantages of MIS in organizations:
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The organization that uses MIS is able to record ,process, route & tabulate all
important business transactions. As & when need arises the organization is able
to incorporate the needed changes & improvements in the area of concern.
MIS facilitates informed DECISION MAKING.It usuallly represents a number of
options from which one can choose the best.
The top management ANALYSES whether its resources are being utillized
optimally.
A TWO WAY COMMUNICATION FLOW is greatly enhanced by the MIS. The
management freelytells the jobv responsibilities to its employees.The employees
in return discuss their doubts & grievances.
MIS supports the planning & controlling function of managers in the
organization.Managers use past/historical data as well as the current data to
analyse the performance & hence apply controlling measures.
MIS encourages DECENTRALISATION in the organisation.Decentralisationis
possible when there's a system to measure operations at the lower levels.
It brings COORDINATION.It facilitates integration of specialized activities by
keeping each department aware of the problems & requirements of other
departments.
Hence, in some way MIS keeps the organization binded.
Strategic management
Executives develop organizational goals, strategies, policies, and objectives
As part of a strategic planning process
Tactical management
Managers and business professionals in self-directed teams
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Develop short- and medium-range plans, schedules and budgets
Specify the policies, procedures and business objectives for their subunits
Operational management
Managers or members of self-directed teams
Develop short-range plans such as weekly production schedules
DECISION STRUCTURE
Structured Decisions situations where the procedures to follow when a
decision is needed can be specified in advance
Unstructured Decisions decision situations where it is not possible to specify
in advance most of the decision procedures to follow
Semi structured Decisions - decision procedures that can be prespecified, but
not enough to lead to a definite recommended decision
COMPONENTS OF DSS
CLASSIFICATION OF DSS
Model-driven DSS
Communication-driven DSS
Data-driven DSS
Document-driven DSS
Knowledge-driven DSS
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BENEFITS OF DSS
Improves personal efficiency
Accelerate problem solving
Facilitates interpersonal communication
Promotes learning or training
Increases organizational control
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the problem space
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REVIEV QUESTIONS
1) What is the scope of information system and Management Information
system?
2) Give three reasons for using computer for MIS in the organization?
3) Designing an MIS for an organization?
4) Can you think of an MIS which could be user independent and business
dependent?
5) State the difference between MIS and a computer system.
6) Take an organization of your knowledge and give a conceptual view of
MIS and physical view of MIS.
7) State which capabilities of a computer are used in MIS to create an impact.
8) Identify the nature of impact of MIS on people, organization and the
management style.
9) If application science and MIS can be brought together, the MIS design
would be realistic and useful. Discuss.
10)Why is MIS looked upon as a strategic need of management today?
11) applies and explains an understanding of the nature and function of
information
technologies
to
specific
practical
situation.
12) develops and explains solutions for an identified need which address all the
information processes.
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Planning & Control :
In general, a successful organization depends on proper organizational planning. In a
setting where there are continual constraints on resources, both human and financial,
good planning enables an organization to make the most out of the resources at hand.
Planning usually involves groups and organizational processes internal or external to the
organization. They can include employees, management, stockholders, other outside
stakeholders, the physical environment, the political and legal environment, the
competitive environment, and the technological environment.
The Planning Process
Planning is the process used by managers to identify and select goals and courses of
action for the organization.
The organizational plan that results from the planning process details the goals to
be attained.
The pattern of decisions managers take to reach these goals is the organizations
strategy.
Planning is the first step in building MIS in an organization
Three Stages of the Planning Process
1. Determining the Organizations mission and goals (Define the business)
2. Strategy formulation (Analyze current situation & develop strategies)
3. Strategy Implementation (Allocate resources & responsibilities to achieve strategies)
Planning Levels
Corporate-level: decisions by top managers.
Considers on which businesses or markets to be in.
Provides a framework for all other planning.
Business-level: details divisional long-term goals and structure.
Identifies how this business meets corporate goals.
Shows how the business will compete in market.
Functional-level:
actions
taken
by
managers
in
departments
of
manufacturing, marketing, etc.

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Dr. Vineet Kumar
These plans state exactly how business-level strategies are

accomplished.
Planning Process
6-steps to Building a Personal Financial Plan
These 6-steps are designed to help you get started on the road to financial security. By
following the six steps, your journey will take you from where you are now to where you
want to be for the future.
Setting goals and objectives is the first step of any financial planning process - if you do
not know where you are going, how can you know when you'll get there, or even decide
which route to take? Setting goals and objectives is the foundation of any sound financial
plan.
No matter where you are heading, you need to assess where you are now, and what you
already have in place for the journey. Data gathering will ensure that your personal
documents are up-to-date and that you know your current financial situation.
Heading in a general direction won't guarantee success in reaching your final destination.
Before heading out on your journey, do your analysis and find solutions. This strategy
will assist you in reaching your stated goals and will provide you with a roadmap to help
you achieve these goals.
Your financial plan should confirm that your goals are achievable and appropriate
recommendations will help define what you need to do to ensure that you reach these
goals.
A financial plan is only helpful if the recommendations are put into action. Implementing
strategies will assure you reach your destination.
Finally, follow-up and annual reviews are critical to ensuring you maintain a clear focus
in order to succeed.
1. Setting Goals and Objectives
Give some thought to your financial goals. Some may be short-term in nature, others
long-term. Assign each one a time frame and put them in order of importance to you.
These goals are the building blocks to any sound financial plan. Our financial advisors
can assist you in identifying goals and establishing time frames.
2. Data Gathering
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One should always have their finger on the pulse of where they stand financially.
However, its understandable that some matters get pushed to the back burner. Now is the
time to gather all of your financial documents and ensure all information is current.
3. Analysis and Solutions
Depending on the goals that you established in Step 1, you will need to perform some
further analysis to define a roadmap to help you achieve your goals. This may include
analyzing your retirement, education, debt or insurance needs.
For most Canadians, Retirement Planning is a major goal that requires considerable
financial commitment. At Deverall, Calma & Associates, we can show you where you are
today and how much you need to save to meet your retirement goals.
With the costs of a typical four-year Canadian university undergraduate degree program
currently estimated to be about $40,000 including room and board, and that figure rising,
most parents consider Education Planning an important long-term financial goal, and a
regular investment plan is an important part of this strategy. Our RESP (Registered
Education Savings Plan) is designed to assist you with saving money today in order to
meet future education costs.
While you may not wish to drastically alter your lifestyle, a budget is important for
planning purposes and to determine the availability of funds to set aside for savings. Debt
Management is the ability to handle your current debt and whether one can assume
further debt. Since most of us incur debt at some point in our lives, effective debt
management is critical to a sound financial plan. Debt reduction often ranks as a primary
financial goal, especially if it includes paying down a mortgage. The first step is to
determine how much you currently owe.
Life can be unpredictable. Whatever your age and personal situation, make sure you have
a plan in place to provide for your survivors.
Any goal, regardless of the amount, can best be served by applying a systematic approach
to savings. Consider investing regular amounts to your plan during the year as opposed to
attempting to come up with large amounts when it is required. Not only do you avoid the
rush and pressure, but you take advantage of dollar-cost averaging. Deverall, Calma &
Associates financial advisors will show you how to implement this important strategy for
any of your goals.
4. Recommendations
Now that you have established goals and objectives, you will want to begin by
implementing the recommendations that will ensure that you reach these goals.
5. Implementation
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Once the preparatory work of analyzing, determining and calculating is finished, the most
important step is implementing the recommendations to ensure your goals are reached.
Deverall, Calma & Associates Financial Services Inc. is designed to assist you in
establishing a well-diversified portfolio that will help you meet your goals by spreading
risk, reducing volatility and enhancing the potential for solid long-term returns. No matter
what the goal, a well-balanced portfolio, based on your individual investor profile is a
requirement of any financial plan.
6. Follow-up and Periodic Reviews
Finally, follow-up's and annual reviews by both yourself and your financial planner are
critical to ensuring your success. Your financial situation should be reassessed at least
once a year to account for any changes in your life cycle or economic conditions.
Achieving your goals and objectives are the ultimate measure of success in the 6-steps to
a personal financial plan.
Types of planning
1.
2.
3.
4.
OPERATIONAL PLANNING
INTERMEDIATE PLANNING
CONTINGENCY PLANNING
STRATEGIC PLANNING
What is OPERATIONAL planning?

short-range planning that deals with day-to-day maintenance activities performed at a
unit or departmental level done as part of the overall strategic planning
Ex1: Unit Director plans a meeting of staff nurses to reinforce knowledge gained from
orientation of new staff may get endorsement from the Division Chief Nurse who has
set her own staff development plan for the whole division.
Ex2: Unit Director reviews with staff medicine supplies
STEPS IN OPERATIONAL PLANNING
1.Set your objectives
2.Set your priorities
3.State your assumptions
4.Review any and all limitations
5.Develop your primary and back-up plans
6.Implement the plan
7.Set up a control system and follow up on progress and results
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APPLICATION OF THE PLANNING STEPS
CASE:
AS NURSE MANAGER OF THE UNIT, YOU HAVE JUST BEEN INFORMED THAT
THE EMERGENCY ROOM IS BUSY WITH ADMISSIONS. YOUR UNIT HAS TWO
ROOMS READY FOR NEW ADMISSIONS. BUT YOU FIND YOURSELF
ASKING,WHAT IF THERE WOULD BE MORE THAN TWO?
2. INTERMEDIATE PLANNING
What is INTERMEDIATE planning? a planning that is usually done in the middle of the
fiscal year process: mid-year appraisal followed by affirming ongoing plans and setting
forth new plans for the rest of the year often covers issues about performance, resources,
and staff development
EXAMPLE OF MID-YEAR PLANNING & INTERVENTION

IN A MID-YEAR EVALUATION MEETING, TEAM A REPORTS A WEAKNESS IN
THE ORIENTATION PROGRAM GIVEN TO NEW SUPERVISING CLINICAL
INSTRUCTOS FOR THE FIRST SEMESTER. INPUTS ABOUT THE ONCOLOGY
AND INTENSIVE CARE UNITS WERE RATED POORLY. IN PREPARATION FOR
THE 2ND SEMESTER ORIENTATION PROGRAM, IT WAS PLANNED TO GET A
NEW TEAM MEMBER WHO HAS THE EXPERTISE OF THE TWO UNITS.
3. CONTINGENCY PLANNING
What is CONTINGENCY planning? managing the problems that interfere with
getting work done could be reactive or proactive
Ex: 2 nurses for an 8-hour night shift in the emergency room called in sickWhat
contingency plans would you do?
4. STRATEGIC PLANNING
What is STRATEGIC planning? is defining and prioritizing long-term plans that includes
examining an organizations purpose, mission, philosophy and goals in the light of its
external environment it is proactive and future-oriented, focuses on a 3-5 year operation
of the organization it generally aims at creating an image of the desired future and design
ways to make plans a reality.
Scope of strategic planning

External assessment >opportunities and threats
Internal assessment >strengths and weaknesses
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Priority issues and programs
Vision, mission, values, philosophy
Goals:
strategic organization
operational division, unit
Objectives
Strategies
timelines
plans
Policies and procedures
Implementation
Evaluation
production/operations
finance
marketing
STEPS IN STRATEGIC PLANNING

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Analyze the organizations internal and external environment (SWOT analysis)

Conduct a stakeholder assessment
Define the purpose of the organization
Clarify values important to the organization
Set the goals and objectives
Communicate the goals and objectives to the constituents
Identify strategies set time lines and tasks
Estimate and allocate resources
Develop and communicate a marketing or business plan
Establish a system for the implementation and monitoring of policies, procedures,
and rules
11. Establish a system for exchanging information and building consensus
12. Provide a mechanism for evaluation
The process of controlling:

The process of analyzing current performance and comparing them against predefined
standards contained in plan and taking appropriate corrective actions against the
identified deviation in the result.
Controlling is
one
of
the
managerial
functions
like planning, organizing, staffing and directing. It is an important function because it helps to
check the errors and to take the corrective action so that deviation from standards are
minimized and stated goals of the organization are achieved in a desired manner.
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According to modern concepts, control is a foreseeing action whereas earlier concept of
control was used only when errors were detected. Control in management means setting
standards, measuring actual performance and taking corrective action.
Characteristics
Control is a continuous process
Control is a management process
Control is embedded in each level of organizational hierarchy
Control is forward looking
Control is closely linked with planning
Control is a tool for achieving organizational activities
Control is an end process
Control compares actual performance with planned performance*
control point out the error in the execution process

cotrol helps in minimising cost
control helps in acheiveing standard
control saves the time
Types of Controls
Areas of Control
Physical resources inventory management, quality control, and equipment control.
Human resourcesselection and placement, training and development, performance
appraisal, and compensation.
Information resourcessales and marketing forecasts, environmental analysis, public
relations, production scheduling, and economic forecasting.
Financial resourcesmanaging capital funds and cash flow, collection and payment of
debts.
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What is E-Commerce?
There are many different definitions and understanding about E-Commerce. According to
Frederick J. Riggins and Hyeun-Suk Rhee, a recent pilot survey shows that some
practitioners and managers view E-Commerce --> buying and selling goods and products
over internet.
However, researchers believe the E-Commerce practice should include a wide variety of
presale and post-sale activities.Applegate et al. identify three classes of e-commerce
applications:
- Customer-to-business
- Business-to business
- Intraorganzational
By Internet commerce, we mean the use of the global Internet for purchase and sale of
goods, services, including service and support after sale. Internet commerce brings some
new technology and new capabilities to business, but the fundamental business problems
are those that merchants have faced for hundred - even thousands - of years: you must
have something to sell, make it known to potential buyers,accept payment deliver the
goods or services, and provide appropriate service after the sale.
Extranet
An extranet is a private network that uses Internet technology and the public
telecommunication system to securely share part of a business's information or operations
with suppliers, vendors, partners, customers, or other businesses. An extranet can be
viewed as part of a company's intranet that is extended to users outside the company. It
has also been described as a "state of mind" in which the Internet is perceived as a way to
do business with other companies as well as to sell products to customers.
An extranet requires security and privacy. These can include firewall server management,
the issuance and use of digital certificates or similar means of user authentication,
encryption of messages, and the use of virtual private networks (VPNs)
that tunnel through the public network.
Companies can use an extranet to:
Exchange large volumes of data using Electronic Data Interchange (EDI)

Share product catalogs exclusively with wholesalers or those "in the trade"
Collaborate with other companies on joint development efforts
Jointly develop and use training programs with other companies
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Provide or access services provided by one company to a group of other

companies, such as an online banking application managed by one company on
behalf of affiliated banks
Share news of common interest exclusively with partner companies
ERP is short for enterprise resource planning.

Enterprise resource planning (ERP) is business process management software that allows
an organization to use a system of integrated applications to manage the business and
automate back office functions. ERP software integrates all facets of an operation,
including product planning, development, manufacturing processes, sales and marketing.
ERP Software Modules

ERP software typically consists of multiple enterprise software modules that are
individually purchased, based on what best meets the specific needs and technical
capabilities of the organization. Each ERP module is focused on one area of business
processes, such as product development or marketing. A business scan use ERP software
to manage back-office activities and tasks including the following:
Distribution process management, supply chain management, services knowledge base,
configure, prices, improve accuracy of financial data, facilitate better project planning,
automate employee life-cycle, standardize critical business procedures, reduce redundant
tasks, assess business needs, accounting and financial applications, lower purchasing
costs, manage human resources and payroll.
Some of the most common ERP modules include those for product planning, material
purchasing, inventory control, distribution, accounting, marketing, finance and HR.
As the ERP methodology has become more popular, software applications have emerged
to help business managers implement ERP into other business activities and may also
incorporate modules for CRM and business intelligence and present them as a
single unified package.
The basic goal is to provide one central repository for all information that is shared by all
the various ERP facets in order to smooth the flow of data across the organization.
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Top ERP Trends
The ERP field can be slow to change, but the last couple of years have unleashed forces
which are fundamentally shifting the entire area. According to Enterprise Apps Today,
the following new and continuing trends affect enterprise ERP software:
1. Mobile ERP
Mobility continues to be a big trend. Executives and employees want real-time access to
information, regardless of where they are. It is expected that businesses will quickly
embrace mobile ERP, not just for reports and dashboards, but for conducting key
business processes.
2. Cloud ERP
The cloud has been advancing steadily into the enterprise for some time, but many ERP
users have been reluctant to place data cloud. Those reservations have gradually been
evaporating, however, as the advantages of the cloud become apparent.
3. Social ERP
There has been much hype around social media and how important or not -- it is to add
to ERP systems. Certainly, vendors have been quick to seize the initiative, adding social
media packages to their ERP systems with much fanfare. But some wonder if there is
really much gain to be had by integrating social media with ERP.
4. Two-tier ERP
Enterprises once attempted to build an all-encompassing ERP system to take care of
every aspect of organizational systems. But some expensive failures have gradually
brought about a change in strategy adopting two tiers of ERP.
Data
Data is distinct pieces of information, usually formatted in a special way. All software is
divided into two general categories: data and programs. Programs are collections
of instructions for manipulating data. Data can exist in a variety of forms -- as numbers
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or text on pieces of paper, as bits and bytes stored in electronic memory, or as facts stored
in a person's mind.
Strictly speaking, data is the plural of datum, a single piece of information. In practice,
however, people use data as both the singular and plural form of the word.
Database Management System, its advantages,

DBMS A database management system is the software system that allows users
to define, create and maintain a database and provides controlled access to the data.
A Database Management System (DBMS) is basically a collection of programs that
enables users to store, modify, and extract information from a database as per the
requirements. DBMS is an intermediate layer between programs and the data. Programs
access the DBMS, which then accesses the data. There are different types of DBMS
ranging from small systems that run on personal computers to huge systems that run on
mainframes. The following are main examples of database applications:
Computerized library systems
Automated teller machines
Flight reservation systems
Computerized parts inventory systems
A database management system is a piece of software that provides services for accessing
a database, while maintaining all the required features of the data. Commercially
available Database management systems in the market are dbase, FoxPro, IMS and
Oracle, MySQL, SQL Servers and DB2 etc.
These systems allow users to create update, and extract information from their databases.
Compared to a manual filing system, the biggest advantages to a computerized database
system are speed, accuracy, and' accessibility.
Advantages of DBMS
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The database management system has promising potential advantages, which are
explained below:
1. Controlling Redundancy: In file system, each application has its own private
files, which cannot be shared between multiple applications. 1:his can often lead to
considerable redundancy in the stored data, which results in wastage of storage space. By
having centralized database most of this can be avoided. It is not possible that all
redundancy should be eliminated. Sometimes there are sound business and technical
reasons for maintaining multiple copies of the same data. In a database system, however
this redundancy can be controlled.
For example: In case of college database, there may be the number of applications
like General Office, Library, Account Office, Hostel etc. Each of these applications may
maintain the following information into own private file applications:
It is clear from the above file systems, that there is some common data of the student
which has to be mentioned in each application, like Rollno, Name, Class, Phone_No~
Address etc. This will cause the problem of redundancy which results in wastage of
storage space and difficult to maintain, but in case of centralized database, data can be
shared by number of applications and the whole college can maintain its computerized
data with the following database:
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It is clear in the above database that Rollno, Name, Class, Father_Name, Address,
Phone_No, Date_of_birth which are stored repeatedly in file system in each application,
need not be stored repeatedly in case of database, because every other application can
access this information by joining of relations on the basis of common column i.e.
Rollno. Suppose any user of Library system need the Name, Address of any particular
student and by joining of Library and General Office relations on the basis of column
Rollno he/she can easily retrieve this information.
Thus, we can say that centralized system of DBMS reduces the redundancy of data to
great extent but cannot eliminate the redundancy because RollNo is still repeated in all
the relations.
2. Integrity can be enforced: Integrity of data means that data in database is always
accurate, such that incorrect information cannot be stored in database. In order to
maintain the integrity of data, some integrity constraints are enforced on the database. A
DBMS should provide capabilities for defining and enforcing the constraints.
For Example: Let us consider the case of college database and suppose that college
having only BTech, MTech, MSc, BCA, BBA and BCOM classes. But if a \.,ser enters
the class MCA, then this incorrect information must not be stored in database and must
be prompted that this is an invalid data entry. In order to enforce this, the integrity
constraint must be applied to the class attribute of the student entity. But, in case of file
system tins constraint must be enforced on all the application separately (because all
applications have a class field).
In case of DBMS, this integrity constraint is applied only once on the class field of the
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General Office (because class field appears only once in the whole database), and all
other applications will get the class information about the student from the General
Office table so the integrity constraint is applied to the whole database. So, we can
conclude that integrity constraint can be easily enforced in centralized DBMS system as
compared to file system.
3. Inconsistency can be avoided : When the same data is duplicated and changes are
made at one site, which is not propagated to the other site, it gives rise to inconsistency
and the two entries regarding the same data will not agree. At such times the data is said
to be inconsistent. So, if the redundancy is removed chances of having inconsistent data
is also removed.
Let us again, consider the college system and suppose that in case of General_Office file
it is indicated that Roll_Number 5 lives in Amritsar but in library file it is indicated that
Roll_Number 5 lives in Jalandhar. Then, this is a state at which tIle two entries of the
same object do not agree with each other (that is one is updated and other is not). At such
time the database is said to be inconsistent.
An inconsistent database is capable of supplying incorrect or conflicting information. So
there should be no inconsistency in database. It can be clearly shown that inconsistency
can be avoided in centralized system very well as compared to file system ..
Let us consider again, the example of college system and suppose that RollNo 5 is
.shifted from Amritsar to Jalandhar, then address information of Roll Number 5 must be
updated, whenever Roll number and address occurs in the system. In case of file system,
the information must be updated separately in each application, but if we make updation
only at three places and forget to make updation at fourth application, then the whole
system show the inconsistent results about Roll Number 5.
In case of DBMS, Roll number and address occurs together only single time in
General_Office table. So, it needs single updation and then an other application retrieve
the address information from General_Office which is updated so, all application will get
the current and latest information by providing single update operation and this single
update operation is propagated to the whole database or all other application
automatically, this property is called as Propagation of Update.
We can say the redundancy of data greatly affect the consistency of data. If redundancy is
less, it is easy to implement consistency of data. Thus, DBMS system can avoid
inconsistency to great extent.
4. Data can be shared: As explained earlier, the data about Name, Class, Father __name
etc. of General_Office is shared by multiple applications in centralized DBMS as
compared to file system so now applications can be developed to operate against the
same stored data. The applications may be developed without having to create any new
stored files.
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5. Standards can be enforced : Since DBMS is a central system, so standard can
enforced easily may be at Company level, Department level, National level
International level. The standardized data is very helpful during migration
interchanging of data. The file system is an independent system so standard cannot
easily enforced on multiple independent applications.
be
or
or
be
6. Restricting unauthorized access: When multiple users share a database, it is likely

that some users will not be authorized to access all information in the database. For
example, account office data is often considered confidential, and hence only authorized
persons are allowed to access such data. In addition, some users may be permitted only to
retrieve data, whereas other are allowed both to retrieve and to update. Hence, the type of
access operation retrieval or update must also be controlled. Typically, users or user
groups are given account numbers protected by passwords, which they can use to gain
access to the database. A DBMS should provide a security and authorization subsystem,
which the DBA uses to create accounts and to specify account restrictions. The DBMS
should then enforce these restrictions automatically.
7. Solving Enterprise Requirement than Individual Requirement: Since many types
of users with varying level of technical knowledge use a database, a DBMS should
provide a variety of user interface. The overall requirements of the enterprise are more
important than the individual user requirements. So, the DBA can structure the database
system to provide an overall service that is "best for the enterprise".
For example: A representation can be chosen for the data in storage that gives fast access
for the most important application at the cost of poor performance in some other
application. But, the file system favors the individual requirements than the enterprise
requirements
8. Providing Backup and Recovery: A DBMS must provide facilities for recovering
from hardware or software failures. The backup and recovery subsystem of the DBMS is
responsible for recovery. For example, if the computer system fails in the middle of a
complex update program, the recovery subsystem is responsible for making sure that the
.database is restored to the state it was in before the program started executing.
9. Cost of developing and maintaining system is lower: It is much easier to respond to
unanticipated requests when data is centralized in a database than when it is stored in a
conventional file system. Although the initial cost of setting up of a database can be
large, but the cost of developing and maintaining application programs to be far lower
than for similar service using conventional systems. The productivity of programmers can
be higher in using non-procedural languages that have been developed with DBMS than
using procedural languages.
10. Data Model can be developed : The centralized system is able to represent the
complex data and interfile relationships, which results better data modeling properties.
The data madding properties of relational model is based on Entity and their
Relationship, which is discussed in detail in chapter 4 of the book.
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11. Concurrency Control : DBMS systems provide mechanisms to provide concurrent
access of data to multiple users.
Concept of Data Warehousing and architecture,

The business analyst get the information from the data warehouses to measure the
performance and make critical adjustments in order to win over other business holders in
the market. Having data warehouse has the following advantages for the business.
Since the data warehouse can gather the information quickly and efficiently therefore it
can enhance the business productivity.
The data warehouse provides us the consistent view of customers and items hence help us
to manage the customer relationship.
The data warehouse also helps in bringing cost reduction by tracking trends, patterns over
a long period in a consistent and reliable manner.
To design an effective and efficient data warehouse we are required to understand and
analyze the business needs and construct a business analysis framework. Each person has
different views regarding the design of a data warehouse. These views are as follows:
The top-down view - This view allows the selection of relevant information needed for
data warehouse.
The data source view - This view presents the information being captured, stored, and
managed by operational system.
The data warehouse view - This view includes the fact tables and dimension tables.This
represent the information stored inside the data warehouse.
The Business Query view - It is the view of the data from the viewpoint of the end user.
Three-Tier Data Warehouse Architecture

Generally the data warehouses adopt the three-tier architecture. Following are the three
tiers of data warehouse architecture.
Bottom Tier - The bottom tier of the architecture is the data warehouse database server.It
is the relational database system.We use the back end tools and utilities to feed data into
bottom tier.these back end tools and utilities performs the Extract, Clean, Load, and
refresh functions.
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Middle Tier - In the middle tier we have OLAp Server. the OLAP Server can be
implemented in either of the following ways.
By relational OLAP (ROLAP), which is an extended relational database

management system. The ROLAP maps the operations on multidimensional data
to standard relational operations.
By Multidimensional OLAP (MOLAP) model, which directly implements
multidimensional data and operations.
Top-Tier - This tier is the front-end client layer. This layer hold the query tools and
reporting tool, analysis tools and data mining tools.
Supply Chain Management,
The supply chain starts with firms extracting raw materials from the ground such as
iron, oil, wood, and food- and then selling them to raw material manufactures. These
companies, acting on purchase orders and specifications they have received from
component manufacturers, turn the raw materials into materials that are usable by these
customers. Now what is supply chain management? SCM is management of material and
information flow in a supply chain to provide the highest degree of customer satisfaction
at the lowest possible cost.
Importance of SCM
Many firms, thought, have discovered value, long term benefits from their supply chain
management efforts. Firms with large system inventories, many suppliers, complex
product assemblies, and highly valued customers with large purchasing budgets have the
most to gain from the practice of supply chain management. For these firms, even
moderate supply chain management success can mean lower purchasing and inventory
costs, better product quality, and higher levels of customer service and sales. Purchasing
inventory, and transportation cost saving is quite sizable for firms utilizing supply chain
management strategies. Firms must realize that their management efforts can start small
for instance, with just one key supplierand build through time to include more supply
chain participants- such as other important suppliers, key customers, and shippers- and,
eventually, second-tier suppliers and customers. So why is this integration activity
important? As alluded to earlier, when a firm, its customers, and its suppliers all know
each others future plans, the planning process is easier and more accurate.
Useful model of supply chain operations
In this useful model identifies four categories of operations. We will use the following
four categories to organize and discuss supply chain operations, plan, source, make,
deliver.
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Plan: This refers to all the operations needed to plan and organize the operations in the
other three categories.
Source: Operations in this category include the activities necessary to acquire the inputs
to create products or services. These operations are procurement and credit& collection.
Make: This category includes the operations required to develop and build the products
and services that a supply chain provides.
Deliver: These operations encompass the activities that are part of receiving customer
orders and delivering products to customers.
Customer relationship management (CRM) is a multifaceted process, mediated by a
set of information technologies, that focuses on creating two-way exchanges with
customers so that firms have an intimate knowledge of their needs, wants, and buying
patterns. In this way, CRM helps companies understand, as well as anticipate, the needs
of current and potential customers. Functions that support this business purpose include
sales, marketing, customer service, training, professional development, performance
management, human resource development, and compensation. Many CRM initiatives
have failed because implementation was limited to software installation without
alignment to a customer-centric strategy.
There are many aspects of CRM which were mistakenly thought to be capable of being
implemented in isolation from each other.
From the outside of the organization, a customer experiences the business as one entity
operating over extended periods of time. Thus piecemeal CRM implementation can come
across to the customer as unsynchronized where employees and web sites and services
are acting independently of one another, yet together represent a common entity.
CRM is the philosophy, policy and coordinating strategy connecting different players
within an organization so as to coordinate their efforts in creating an overall valuable
series of experiences, products and services for the customer.
The different players within the organization are in identifiable groups:
Customer Facing Operations - The people and the technology support of

processes that affect a customer's experience at the frontline interface between the
customer and the organization. This can include face to face, phone, IM, chat,
email, web and combinations of all media. Self-service kiosk and web self-service
are doing the job of vocals and they belong here.
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Internal Collaborative Functional Operations - The people and technology

support of processes at the policy and back office which ultimately affect the
activities of the Customer Facing Operations concerning the building and
maintaining of customer relationships. This can include IT, billing, invoicing,
maintenance, planning, marketing, advertising, finance, services planning and
manufacturing.
External Collaboration functions - The people and technology support of
processes supporting an organization and its cultivation of customer relationships
that are affected by the organization's own relationship with suppliers/vendors and
retail outlets/distributors. Some would also include industry cooperative networks,
e.g. lobbying groups, trade associations. This is the external network foundation
which supports the internal Operations and Customer facing Operations.
Customer Advocates and Experience Designers - Creative designers of
customer experience that meet customer relationship goals of delivering value to
the customer and profit to the organization (or desired outcomes and achievement
of goals for non-profit and government organizations)
Performance Managers and Marketing Analysts - Designers of Key
Performance Indicators and collectors of metrics and data so as to
execute/implement marketing campaigns, call campaigns, Web strategy and keep
the customer relationship activities on track. This would be the milestones and
data that allow activities to be coordinated, that determine if the CRM strategy is
working in delivering ultimate outcomes of CRM activities: market share,
numbers and types of customers, revenue, profitability, intellectual property
concerning customers preferences.
Customer and Employee Surveyors and Analysts - Customer Relationships are
both fact driven and impression driven - the quality of an interaction is as
important as the information and outcome achieved, in determining whether the
relationship is growing or shrinking in value to the participants.
Procurement Management
In order to understand procurement documents, it is important to understand the
term Procurement Management.
Procurement is the purchase of goods and services at the best possible price to meet a
purchaser's demand in terms of quantity, quality, dimensions and site.
The procurement cycle in businesses work, which follows the below steps:
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Information Gathering: A potential customer first researches suppliers, who satisfy

requirements for the product needed.
Supplier Contact: When a prospective supplier has been identified, the customer
requests for quotations, proposals, information and tender. This may be done through
advertisements or through direct contact with the supplier.
Background Review: The customer now examines references for the goods/services
concerned and may also consider samples of the goods/services or undertake trials.
Negotiation: Next the negotiations regarding price, availability and customization
options are undertaken. The contract regarding the purchase of the goods or services is
completed.
Fulfilment: Based on the contract signed, the purchased goods or services are shipped
and delivered. Payment is also completed at this stage. Additional training or installation
of the product may also be provided.
Renewal: Once the goods or services are consumed or disposed of and the contract has
expired, the product or service needs to be re-ordered. The customer now decides
whether to continue with the same supplier or look for a new one.
Documents involved in the procurement cycle are called procurement documents.
Procurement documents are an integral part of the early stages of project initiation.
The purpose of procurement documents serves an important aspect of the organizational
element in the project process. It refers to the input and output mechanisms and tools that
are put in place during the process of bidding and submitting project proposals and the
facets of work that make up a project.
In a nutshell, procurement documents are the contractual relationship between the
customer and the supplier of goods or services.
Examples of Procurement Documents:
Some examples of what constitutes procurement documents include the buyer's
commencement to bid and the summons by the financially responsible party for
concessions.
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Dr. Vineet Kumar

In addition, requests for information between two parties and requests for quotations, and
proposals and seller's response are also parts of procurement documents.
Basically procurement documents comprise of all documents that serve as invitations to
tender, solicit tender offers and establish the terms and conditions of a contract.
Types of Procurement Documents

A few types of procurement documents are:
RFP: A request for proposal is an early stage in a procurement process issuing an
invitation for suppliers, often through a bidding process, to submit a proposal on a
specific commodity or service.
RFI: A request for information (RFI) is a proposal requested from a potential seller or a
service provider to determine what products and services are potentially available in the
marketplace to meet a buyer's needs and to know the capability of a seller in terms of
offerings and strengths of the seller.
RFQ: A request for quotation (RFQ) is used when discussions with bidders are not
required (mainly when the specifications of a product or service are already known) and
when price is the main or only factor in selecting the successful bidder.
Solicitations: These are invitations of bids, requests for quotations and proposals. These
may serve as a binding contract.
Offers: This type of procurement documents are bids, proposals and quotes made by
potential suppliers to prospective clients.
Contracts: Contracts refer to the final signed agreements between clients and suppliers.
Amendments/Modifications: This refers to any changes in solicitations, offers and
contracts. Amendments/Modifications have to be in the form of a written document.
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Dr. Vineet Kumar

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For B.Com.

(H) 6th Sem-2015

Page No. 1/57

For B.Com.(H) 6th Sem-2015

1.1 MANAGEMENT INFORMATION SYSTEM ( MIS) CONCEPT

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The concept, therefore, is a blend of principle, theories and practices of the

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The MIS is a product of a multi- disciplinary approach to the business

for decision making

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1.2 MIS DEFINITION

The Management Information System (MIS) is a concept of the last decade or

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3. The MIS is defined as a system based on the database of the organization

4. The MIS is defined as a Computer . based Information System.

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The difficulty in handling this multiple requirement of the people is due to a

In order to get a better grip on the activity of information processing, it is

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The management information system uses computers and communication

1.3 ROLE OF THE MANAGEMENT INFORMATION SYSTEM

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The MIS plays the role of information generation, communication, problem

1.4 IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

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1.5 MANAGEMENT INFORMATION SYSTEM AND COMPTER

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The variety of the hardware having distinct capabilities makes it possible to

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The software, an integral part of a computer system, further enhances the

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However, the application of the management principles and practices in todays

1.6 MANAGEMENT INFORMATION SYSTEM AND ACADEMICS

The management.s information system draws a lot of support from other

For B.Com.(H) 6th Sem-2015

In the area of accounting application, it uses the accounting principles to ensure

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1.7 MIS AND THE USER

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Information is the basis for every decision taken in an organization. The

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The concept is a blend of principles, theories and practices of management,

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