Management information system (MIS)

MANAGEMENT
INFORMATION
SYSTEM

PAWE L K U. G A U TA M( 23 )
S ACHI N D HA MO D K A R ( 41 )

WHAT IS MANAGEMENT ?
• MANAGEMENT is the effective utilisation of
human and material resources to achieve the
enterprise objective
• It is a process consisting of the five basic
functions:
• 1 Planning
• 2 Organising
• 3 Staffing
• 4 Directing
• 5 Controlling

• In organisation there is managerial hierarchy
• Top Level Management

• Middle Level Management
• Lower Level Management

• There are various functional areas of
management which may be classified into the
following categories
• Production Management
• Marketing Management
• Financial management
• Personnel or Human Resource Management

Why Do People Need Information
• Individual – For Entertainment,
Enlightenment, Decision-Making, and
Problem Solving.
• Business - For Decision-Making,
Problem Solving and Control

DATA VS. INFORMATION
DATA
1. A “given” fact; a number, a statement, or a picture
2. Represents something in the real world.
3. The raw material in the production of information

Information
1. Data that have meaning within a context.

2. Data in relationships .
3. Data after manipulation

What Is a System ?
• System: A set of components or sub-system that work
together to achieve a common goal.

• Subsystem: One part of a system where the products of
more than one system are combined to reach an ultimate
goal.
• Closed system: Stand-alone system that has no contact
with other systems or the environment.
• Open system: System that interfaces with other system
and the environment.

Management Information
System (MIS): An Introduction
• Manager makes decisions all the time.

• There is an overload of information.
• All information is not useful.
• Anything which helps manager improve his decisionmaking will obviously lead to better result.
• MIS is a system, where data is the input, which is
processed to provide output in the form of information
reports, summaries, etc . Which aid the manager’s
decision-making process.

Concept and Definition of MIS
• Management Information System (MIS) refers to
that system by which information is
collected, processed and presented to
management to help it in making better decision.

• The MIS is defined as an integrated system of man
and machine for providing the information to
support the operation, the management , and the
decision-making function in the organisation.

Types of MIS
• Transaction-Processing Systems
• Operations Information Systems
• Decision Support Systems (DSS)

• Expert Systems and Artificial Intelligence
• Considerations

Transaction-Processing Systems
• Transaction-processing 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. Managers often use these
systems to deal with such tasks as payroll,
customer billing and payments to suppliers.

Operations Information Systems
• Operations information 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. These types of systems
access data from a transaction-processing
system and organize it into a usable form.
Managers use operations information
systems to obtain sales, inventory,
accounting and other performance-related
information.

Decision Support Systems (DSS)
• 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 informed decisions.
A DSS has three fundamental components:
database management system (DBMS), which
stores large amounts of data relevant to problems
the DSS has been designed to tackle; model-based
management system (MBMS), which transforms
data from the DBMS into information that is useful
in decision-making; and dialog generation and
management system (DGMS), which provides a
user-friendly interface between the system and the
managers who do not have extensive computer
training.

Expert Systems and Artificial Intelligence
• Expert systems and artificial intelligence
use human knowledge captured in a
computer to solve problems that ordinarily
need human expertise. Mimicking human
expertise and intelligence requires the
computer to do the following: recognize,
formulate and solve a problem; explain
solutions; and learn from experience. These
systems explain the logic of their advice to
the user; hence, in addition to solving
problems they also can 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 rich
information is needed to coordinate and run
an enterprise, and certain classes of
information cannot be quantified

IMPLEMENTATION OF MIS
IN BANKING SECTOR (SBI)

NEED OF MIS IN BANKING
• Regulatory requirements indicated by the RBI for
preparation of Off-site Monitoring Surveillance
(OSMOS) Reports on a regular basis in electronic
format

• Need for timely submission of Balance Sheets and
Profit & Loss Accounts
• Need for Inter-Branch Reconciliation of Accounts
within a definite time frame
• Need to undertake risk management strategies and
for this purpose build up appropriate sets of data
and market intelligence reports.

CORE BANKING
• 100% business is on CBS
• 27000+ ATMs : Over 2 million
transactions per day

• Internet banking services
• SBI 100% network globally

SERVICES IN SBI
• Mobile Payments
• Electronic Clearing Services(Credit)
• NEFT

• RTGS
• Ticket booking online

BANKING & INFORMATION
NETWORK
• Fast and efficient tax collection

Govt.-2-Customer

• Timely settlement of funds
• Real time MIS

Govt.-2-Business

• Timely payment of benefits
• Efficient & speedy transfer of
funds

Govt.-2-Employee

CONTD…
TECHNOLOGICAL ARCHITECTURE

Payments

Centralized
Accounting
Software
(CAS)

Remittances

Receipts

SUPPLY CHAIN
Four Tier Transfer Process
Central Transfers funds to State
State will Transfer funds to District

District in turn will Transfer to Block and
Finally Block will Transfer to Beneficiary
The functionality of payments to various vendors and salary
expenses is also included in this application

BENEFITS OF MIS
• Data can easily be accessed and analyzed without time
consuming manipulation and processing.
• Decisions can be made more quickly and with confidence
that the data are both time-relevant and accurate.
• Integrated information can be also kept in categories that are
meaningful to profitable operation.
• Significant cost benefits, time savings, productivity gains and
process re-engineering opportunities are associated with the
use of data warehouse for information processing.

Issues in MIS
• Security and Control –
• External Threats –
• through internet connection without a
firewall.
• Dial-up connections
• Internal Threats
• Passwords
• Employee Discrimination
• Access Ids disclosed to unauthenticated
user
• Authorization levels

Issues in MIS
•

Intellectual Property Rights (IPRs) in IT

Information or related products such as process,
code of
conduct, business models, diagrams, layouts
can be classified
as intellectual property which can be viewed,
copied & shared.
In this process it may loose its original identity.
Such
information requires protection provisions from:
1. Trade Secrets,
2. Copyright
3. Patents

CONCLUSION
• A management information system is a
system or process that information
necessary to manage an organization
effectively. MIS and the information it
generates are generally considered
essential components of prudent and
reasonable business decisions.

Management information system (MIS)

Management information system (MIS)

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