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Basics of Information Systems

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CONTENTS Information ConceptsCharacteristics of Information

What is Information System?What is MIS?Functional Aspects of MIS

Outputs of MISCharacteristics of MIS

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Information Concepts: Data, Information, and Knowledge

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Data : raw facts Alphanumeric, image, audio, and video

Information : collection of facts organized in such a waythat they have additional value beyond the value of thefacts themselves

Value of Information is directly linked to how ithelps decision makers achieve their organizations goalsand can be measured in time required to make a decision Increased profits to the company

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Figure 1.2: The Process of Transforming Data into Information

Data, Information, and Knowledge

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The Characteristics of ValuableInformation

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Table 1.2: Characteristics of Valuable Information

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The Characteristics of ValuableInformation (continued)

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Table 1.2: Characteristics of Valuable Information (continued)

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What Is an Information System?

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Figure 1.3: The Components of any Information System

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Management Information System

MIS is a communication process which enables flow of information to berecorded, stored and retrieved for decisions on planning, operating theOrganization.

Input Processor Output

ReportsDecisions

InformationRecorded

StoredRetrievedProcessed

SummarisedClassified

Information

To plan,Operate& controlsystems

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Management information system (MIS)

An MIS provides managers with information and support for effectivedecision making, and provides feedback on daily operations.

Output or reports, are usually generated through accumulation oftransaction processing data.

Used for generating reports including inventory status reports,financial statements, performance reports etc.

Reports are essential for analyzing different aspects of business.

Help to answer 'what-if' questions like what would be the effect oncash flows of a company if the credit term is changed for its customersetc.

Each MIS is an integrated collection of subsystems, which are typically

organized along functional lines within an organization.

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Functional Aspects of MIS

MIS is an integrated collection of functional information systems, eachsupporting particular functional areas.

An Organizations MIS

MarketingMIS

Human

ResourcesMIS

AccountingMIS

Exception reports

Demand reportsKey-indicator reports

Scheduled reportsDatabasesof

external

data

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Production& operation

MIS

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Outputs of a Management Information System

Scheduled reportsProduced periodically, or on a schedule (daily, weekly, monthly)

Key-indicator reportSummarizes the previous days critical activities Typically available at the beginning of each day

Demand reportGives certain information at a managers request Exception report

Automatically produced when a situation is unusual or requiresmanagement action.

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FunctionalBusinessSystem

Customer relationshipmanagementInteractive marketing

Sales force automation

Manufacturingresource planningManufacturingexecution systems

Process control

Compensation analysisEmployee skillsinventoryPersonnelrequirements

forecasting

Order processingInventory controlAccounts receivableAccounts payablePayrollGeneral ledger

Cash managementCredit managementInvestment managementCapital budgetingFinancial forecasting

Marketing

Human ResourceManagement

Production Operations

AccountingFinance

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Characteristics of MIS1. Comprehensive2. Integrated3. Co-ordinated

4. Transformation of Data into Information5. Relevant Information6. Conforming with ManagersStyles/Characteristics

7. Selective Sharing of Data8. Feedback

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