MANAGEMENT INFORMAION SYSTEM (MIS)

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By D r. V e e r a
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Types of Information System (Types of CBIS)

1. MIS (Management Information System.
2. TPS (Transaction Processing System.
3. DSS (Decision Support Systems.
4. EIS (Executive Information Systems
5. ES (Expert Systems)
6. OAS (Office Automation System)

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TPS (Transaction Processing System)

• TPS (Transaction Processing System) is an
  information system that manipulates data , from
  business transactions. Transaction include
  events such as sales, purchases, deposits,
  withdrawals, refunds and payments. TPS performs
  routines and repetitive tasks.
• Example When an organization sells something
  to a customer on credit, data about the customer,
  about product, about salespersons etc. must be
  stored and processed.

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• Definition
• TPS is the computerised system that perform and
  record the daily routine transaction necessary to
  conduct a business.
• TPS is a type of information system that
  collects, stores, modifies and retrieves
  transaction of an organization.

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Examples of important TPS

• Payroll Processing
• Order Processing
• Inventory System
• Invoicing System (Price catalogues)
• Accounts receivable systems
• Purchasing systems
• Accounts payable systems
• General ledger systems.

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General areas where TPS is used

• ATM
• Airlines Reservation
• E-Payroll Processing
• Any ticket reservation.

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Types of Transaction Processing

• 1. Batch transaction processing
• In this information is gathered
  but not processed immediately. Processing may be
  done on daily, weekly or monthly basis.
• Example invoice or cheque processing in a
  bank.
• 2. OLTP (Online transaction processing)
  or Real time transaction processing
• Here transaction is processed
  immediately and operator has access to online
  database.
• In other words input device is
  directly linked to the TPS and data are processed
  as soon as it is entered into the system.
• Example Withdrawal from an ATM.

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Steps in Processing a Transaction
Enter data
Validate data
Process data
Generate Output
Process Inquiries
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Advantages (Features) of TPS

• Fast Performance
• Continuously Availability
• Ease of Use
• Database availability
• Data hiding
• Modular growth
• Sharing among many users
• Data integrity

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Disadvantages of TPS

• Chance of double booking
• Processing schedule is predetermined
• Problem in sorting the transactions
• No possibility of error correction.

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MANAGEMENT INFORMAION SYSTEM (MIS)

• Meaning MIS or Management Information System,
  are used to manage the data created within
  organization for providing information, to
  support the operations and to ease the management
  analysis and decision making functions in an
  organizations.
• In other words, The information system developed
  to provide accurate, timely and relevant
  information that helps managers in effective
  decision making are known as Management
  Information System.

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• Examples of MIS
• 1.Personnel Information Systems
• 2.Marketing Information Systems
• 3.Sales Information Systems.
• 4. Production and Operations Information Systems.
• Primary users of MIS are middle and top
  management.

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MIS is used after TPS as shown in diag.
Summary Reports
Transaction data
TPS
MIS
Exception Reports
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Input sources of MIS

• Plan or Policies It contains different types of
  strategies and financial plan to achieve the
  goal.
• Transaction Processing System It contains
  information from every transactions
  like-Payroll,Inventory Control, Order Processing
  and accounts etc.
• External Sources Such as Annual reports,
  Financial statements of competitors and general
  news items.

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Output Source of MIS

• 1.Scheduled Reports Management can take report
  periodically such as daily, weekly, and monthly
  basis.
• 2.Summary Report Here MIS provide Key
  activities such as previous day critical
  activities at the beginning of each day.
• 3.Demand report Here MIS provide information on
  demand or request of managers.
• 4. Exception Report Sometimes MIS takes the
  decision on the basis of available information
  and automatically produced the report when a
  situation is unusual or requires management
  action urgently.

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Objectives of MIS

• 1.Helpful in decision making
• 2. Provide planning and control tools
• 3. Provide right information to the right manager
  at the right time.
• 4. Create the process of communication
• 5. Provide complete system
• 6. Maintenance of centralised data
• 7.Less processing time

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• 8. Helpful to managers to compare results
• 9. Tabular and graphical reports.
• 10. Easy to access data

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MIS Characteristics orWhat quality should be in
ideal MIS

• 1. Flexibility
• 2.Reliability
• 3. Simplicity
• 4. Economical
• 5. Helpfulness
• 6. Consistency
• 7. Management oriented
• 8. Management directed

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• 9. Integrated
• 10. Common data flows
• 11. Heavy planning element
• 12. Sub-system concept
• 13. Common data base
• 14. Computerised
• 15. Exception based
• 16. Relevance
• 17. Brevity
• 18. Accuracy

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Problems of MIS (Limitations)

• Highly sensitive
• Not qualitative
• Not perfect substitute
• Not flexible
• Not universal
• Ignores the non-quantitative factors
• Not more effective in special circumstances.