Helwan University
Business Information System Program
Chapter2: Management
Information Systems: An Overview
Part 3
Contents
1. Understand the Perspectives of Information
Systems
2. Present Different Type of Information Systems
3. Discuss Management Information Systems Role
in Business
4. Discuss Management Information Systems
Components, Functions, and Processes
5. Explain the role of blockchain in IS
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2.3 Management Information Systems
(MIS)
• It is mention that the activities of the
information system take place within the
organizational structure and the MIS seeks to
serve the organization’s objectives.
• Therefore, it is important for information
specialists to have a working knowledge of
– what organizations are their structures and
– factors which influence their methods and operations.
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2.3.1 Planning and Decision Support
• Planning and decision making have rightly been called
the primary management tasks and these tasks occur
at every level of management.
• Planning is the process of deciding in advance what is
to be done and how it is to be done.
• The planning process results in plans which are
predetermined courses of action that reflect
organizational objectives and these plans are
implemented by decisions and actions.
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2.3.1 Planning and Decision Support
• MIS designers must be aware of the types of decisions at the
various levels of the organization.
• One of the classification perspectives classified decision making
into programmed and non-programmed.
• Programmed decisions are those that are routine and
repetitive and where decision rules are known (figure 2.8).
• non-programmed decisions are novel and unstructured, and
the nature of the problem and decision rules are complex and
little understood.
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2.3.2 MIS Definition
• MIS is a system to support the decision-making functions in the
organization. The difference lies in defining the elements of the
MIS.
• MIS is a computerized, business processing system generating
information for the people in the organization to meet the
information needs and assisting in taking decisions to achieve the
corporate objective of the organization and in the public sector,
MIS is designed to deliver services to the citizen also.
• MIS provides information that organizations require to manage
themselves efficiently and effectively.
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The five primary components
of MIS are:
1) Hardware
2) Software
3) Data (information for decision-making),
4)Procedures (design, development, and documentation),
and
5) People (individuals, groups, or organizations).
Management information systems are distinct from other
information systems because they are used to analyze
and facilitate strategic and operational activities.
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2.3.3 MIS for Management Functions and
Levels
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2.3.4 The Importance of MIS to
Management
• MIS is generally thought of as an integrated, user-machine
system providing information to support operations,
management, and decision-making functions in an organization.
• MIS is a special-purpose system useful for management in an
organization (figure 2.10).
• MIS is an accessible and rapid for high-quality information from
its generation to its users.
• The heart of an effective MIS, therefore, is a carefully conceived
(perceived), designed, and executed database.
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The benefits that can be attained from MIS:
• Organizations can highlight their strengths and weaknesses due to the
presence of revenue reports, employees' performance records etc.
• The identification of these aspects can help the company improve their
business processes and operations.
• MIS gives an overall picture of the company and acts as a communication
and planning tool.
• The availability of customer data and feedback in the MIS can help the
company to align their business processes according to the needs of the
customers.
• The effective management of customer data can help the company to
perform direct marketing and promotion activities. MIS can help an
organization to gain a competitive advantage
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2.3.5 Physical View of MIS
• The Physical view of the MIS can be seen as an assembly
of several subsystems based on the databases in the
organization (figure 2.11).
• These subsystems range from data collection, transaction
processing and validating, processing, analyzing, and
storing the information in databases.
• The subsystem could be at a functional level or a corporate
level.
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2.3.6 The characteristics of MIS in
practice
There are many characteristics of MIS in practice; some of them may
include the following:
• An information focus, designed for managers in an organization.
• Structured information flow; An integration of data processing jobs
by business function, such as production of MIS, personnel MIS and
so on; and inquiry and report generation, usually with a database.
• The new thrust in MIS is on the uses to which the information is put
and not how it is processed.
• The emphasis is on managing the information as a resource, which
is important, and not on the intermediate processing stage.
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2.3.7 Management Information
Systems Role in Business
• The role of the MIS in business can be compared to the role of heart in the
body. MIS plays important role in the business. The information is the blood
and MIS is the heart.
• The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations.
• MIS satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems.
• MIS helps in Strategic Planning, Management Control, Operational Control
and Transaction Processing.
• MIS plays the role of information generation, communication, problem
identification and helps in the process of decision making.
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2.3.8 The Impact of MIS in Business
• The tracking and monitoring of the functional targets become easy.
• The functional, managers are informed about the progress, achievements, and
shortfalls in the probable trends in the various aspects of business.
• This helps in forecasting and long-term perspective planning
• A disciplined information reporting system creates a structured data and a
knowledge base for all the people in the organization.
• MIS creates another impact in business which relates to the understanding of the
business itself.
• MIS begins with the definition of a data entity and its attributes. It uses dictionary
of data, entity, and attributes, respectively, designed for information generation in
business.
• A well-designed system with focus on the manger makes an impact on the
managerial efficiency.
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2.3.9 Successful Factors of MIS in
Business
• MIS is integrated into the managerial functions.
• An appropriate information processing technology required to meet the
data processing and analysis needs of the users of the MIS is selected.
• MIS is oriented, defined and designed in terms of the user’s requirements
and its operational viability (feasibility) is ensured.
• MIS is kept under continuous surveillance, so that its open system design
is modified according to the changing information needs.
• MIS focuses on the results and goals and highlights the factors and
reasons for non-achievement.
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2.3.9 Successful Factors of MIS in
Business
• MIS recognizes that the different information needs for different
objectives must be met with. The globalization of information in
isolation from the different objectives leads to too much
information and its non-use.
• The design of the MIS has the features which make up a user-
friendly design.
• MIS design, has a basic potential capability to quickly meet new
needs of information.
• MIS concentrates on developing the information support to
manage critical success factors.
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2.3.10 Failure Factors of MIS in Business
• Underestimating the complexity in the business systems and not recognizing it in
the MIS design leads to problems during implementation.
• Adequate attention is not given to the quality control aspects of the inputs, the
process and the outputs leading to insufficient checks and controls in the MIS.
• MIS is developed without streamlining the transaction processing systems in
the organization and lack of training on MIS to stakeholders.
• MIS does not meet certain critical and key factors of its users such as, response to
the query on the database, inability to get the processing done in a particular
manner, lack of user-friendly system and dependence on the system personnel.
• MIS can solve all the management problems of planning and control of the business
and lack of administrative discipline in following the standardized systems and
procedures, faulty coding and deviating from the system specifications result in
incomplete and incorrect information.
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2.4 Blockchain
• The blockchain is a distributed ledger technology in
the form of a distributed transactional database,
secured by cryptography, and governed by a
consensus mechanism.
• A blockchain is essentially a record of digital events.
• However, it is not ‘‘just a record,’’ since it can also
contain so called smart contracts, which are
programs stored on the blockchain that run as
implemented without any risk of downtime,
censorship, or fraud.
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2.4 Blockchain
• While blockchain is now seen mostly as the technology enabling
cryptocurrencies such as Bitcoin, it will most likely become an even
more valuable enabler of economic and social transactions, for
instance as a general-purpose digital asset ownership record.
• The global economic system depends on that individuals and
organizations trust other entities to create, store, and distribute
essential records.
• For example, banks construct and maintain the financial records,
hospitals construct and maintain health records, and universities
construct and maintain education records.
• The financial sector leads the way in developing blockchain applications
and business models; but also, companies in industries from shipping
and transportation to healthcare and entertainment are actively using
blockchain applications to coordinate the movement of products,
facilitate the creation of e-health records, and to securely manage
original entertainment content.
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End of Lecture
Thank you
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