1. Types of IS and
Components of MIS
Report submitted for MIS
Submitted to:
Mr. C. Nagapavan
Faculty, Centre for Bus. Adm.
Submitted by:
Apurva Utkarsh
IMBA- 3rd Sem.
(Session 2010-15)

2. Index:
Information System………………………………………………………….01
Fundamental role of IS………………………………………………………02
Types of IS……………………………………………………………...…….02
 OAS…………………………………………………………………….02
 TPS……………………………………………………………………..03
 MIS………………………………………………………….………….04
 DSS………………………………………………………….………….06
 ESS……………………………………………….…………………….07
Case…………………………………………………………………………...09

3. W ithincreasing competition and sizes of the firms, use of computers in
01
business has gone up. At the same time the complexities of the systems have
also gone up. Earlier there were separate information systems for separate
business functional areas but now there is a merger and large interdependence
of different business processes and IS. The cut-throat competition in the market
has made it essential for the firms to provide relevant information instantly to
their managers in order to get hold of the opportunities or at least survive in the
market. This makes IS one of the most vital parts of the business.
Information System (IS)
Information: Information is data that has been processed into a form that is
meaningful to the recipient (USER) and is of real or perceived value in current
or prospective actions or decisions.
System: A system is a group of interrelated components, with a clearly defined
boundary, working toward the attainment of a common goal by accepting inputs
and producing outputs in an organized transformation process.
Information System: An IS can be any organized combination of people,
hardware, software, communications networks, data resources, and policies and
procedures that stores, retrieves, transforms, and disseminates information in an
organization.

4. 02
Fundamental Roles of IS in Business:
An IS has essentially three fundamental roles in a business at three different
levels as-
 Support of business processes and operations for lower level management
 Support of decision making for the middle level management
 Support of strategies for competitive advantage for the top level
management
Top Management Support Strategies for Competitive
Advantage
Support Business Decision
Middle Level Management
Making
Support Business Processes
Lower Level Management
and Operations
Fundamental Roles of IS in Business
Types of IS
There are many IS but to conclude this report in accordance with the syllabus
these five are discussed:
Office Automation System (OAS): Office Automation Systems are systems
that try to improve the productivity of employees who need to process data and
information. Perhaps the best example is the wide range of software systems
that exist to improve the productivity of employees working in an office (e.g.
Microsoft Office) or systems that allow employees to work from home or whilst
on the move.

5. Transaction Processing System (TPS): As the name implies, Transaction
Processing Systems ("TPS") are designed to process routine transactions
efficiently and accurately. A business will have several (sometimes many) TPS;
for example:
- Billing systems to send invoices to customers
- Systems to calculate the weekly and monthly payroll and tax payments
- Production and purchasing systems to calculate raw material requirements
- Stock control systems to process all movements into, within and out of the
business
Computerized TPS is of three types:
 Batch TPS: Batch processing involves processing several transactions at
the same time, and the results are not immediately available when the
transaction is being entered; there is a time delay. Transactions are
accumulated for a certain period where updates are made especially after
work. This kind of TPS is relatively easy to program, install and maintain
and batches can be processed during low-activity periods but at the same
time information is delayed.
 Online TPS: OLTP is the form of TP that processes data as it becomes
available. It processes transactions in real-time and is required for any
‘modern’ application where time is critical. It must be well supported by
client/server computing model.
 Hybrid TPS: This is a newer kind of TP which is a combination of Batch
and Online TPS. In this system OLTP applications can feed transactions
to batch systems with real time order capture and delayed processing.

6. Management Information System (MIS): Management Information Systemis
mainly concerned with internal sources of information. MIS usually take data
from the transaction processing systems and summarize it into a series of
management reports like Scheduled reports, On-demand reports, Key-indicator
(business fundamentals), Exception reports, etc.MIS reports support middle
management and operational supervisors in tactical and operational decision
making.
Goals of MIS:There are essentially three goals of MIS:
 Provide managers with information
 Regular, routine operations
 Control, organize and plan better
Functional Perspectives of MIS
 Financial MIS
Will integrate information from multiple sources
Functions
Costing
P&L reporting
Auditing
Funds management
 Manufacturing
Design and Engineering
Master Production Scheduling
Inventory Control
Materials Planning
Manufacturing and Process Control
Quality Control
 Marketing
Market research
 Web-based market research
Pricing

7.  Transportation and Logistics
Route and schedule optimization
 Human Resources
 Accounting
Components of MIS:
There are essentially 5 components of a MIS-
 Hardware: Hardware includes all physical devices and materials used in
information processing. Specifically, it includes not only machines, such
as computers and other equipment, but also all data media, that is,
tangible objects on which data are recorded, from sheets of papers to
magnetic or optical disc. In computer based MIS it refers to the computer
system and peripherals.
 Software: It includes all types of information processing set of
applications and programs in the computer based IS. Software is of two
types: i) System software which allows the user to use the computer like
MS Windows 7, Unix, Mac, etc. ii) Application software which facilitates
using a particular application of the computer like MS Excel, Photoshop,
etc.
 Data: Data are the raw materials of a Management Information System. It
is a valuable organizational resource which when processed becomes
information and thus provides ground for day to day business decisions to
the managers.
 Procedures: Procedures are sets of rules or guidelines, which an
organization establishes for the use of a computer based IS. In other
words, it is a set of information processing and operating instructions for
the people who will use an information system. Examples are using a
software package, instructions regarding applications, etc.

8.  People: People are essential ingredient for the successful operation of all
IS. These people include end users and IS specialists. IS specialists are
people who develop and operate IS. They include system analysts,
software developers, system operators, and other managerial, technical,
and clerical IS personnel. Briefly, systems analysts design IS based on the
information requirements of end users, software developers create
computer programs based on the specifications of systems analysts, and
system operators help monitor and operate large computer systems and
networks.
End users (also called users or clients) are people who use an information
system or the information it produces. They can be customers,
salespersons, engineers, clerks, accountants, or managers and are found at
all levels of an organization.
Decision Support System (DSS):Decision-support systems ("DSS") are
specifically designed to help management make decisions in situations where
there is uncertainty about the possible outcomes of those decisions. DSS
comprise tools and techniques to help gather relevant information and analyse
the options and alternatives. DSS often involves use of complex spreadsheet and
databases to create "what-if" models.
Characteristics of DSS:
 Data from multiple sources internal and external to organization
 Presentation flexibility
 Simulation and what-if capability
 Support for multiple decision approaches
 Statistical analysis

9. Advantage of DSS:
 Improves personal efficiency
 Speed up the process of decision making
 Increases organizational control
 Encourages exploration and discovery on the part of the decision maker
 Speeds up problem solving in an organization
 Facilitates interpersonal communication
 Promotes learning or training
 Generates new evidence in support of a decision
 Creates a competitive advantage over competition
 Reveals new approaches to thinking about the problem space
Disadvantages of DSS:
 Assumptions about reality may be incorrect
 Accuracy of predications often unreliable
 Requires abstract thinking
Executive Support System (ESS):An Executive Support System ("ESS") is
designed to help senior management make strategic decisions. It gathers,
analyses and summarises the key internal and external information used in the
business.
A good way to think about an ESS is to imagine the senior management team in
an aircraft cockpit - with the instrument panel showing them the status of all the
key business activities. ESS typically involves lots of data analysis and
modeling tools such as "what-if" analysis to help strategic decision-making.
Characteristics of ESS:
 Tailored to individual executives
 Easy to use
 Drill down capabilities
 Can access external data
 Can deal with a high degree of uncertainty
 Future orientation
 Linked with value-added business processes

10. Capabilities of an ESS:
 Support for defining overall vision
 Support for strategic planning
 Support for strategic organizing & staffing
 Support for strategic control
 Support for crisis management

11. A CASE
 RakeshAnmol has a family owned hereditary restaurant which spans
over 3 floors in a single building. 1st floor is dedicated to fast food and
snacks, 2nd floor is dedicated to international cuisine while 3 rd floor is a
dedicated bar. The restaurant was once one of the most desired places in
the city with customers from premier segments flowing to the place.
Rakesh is the only person to take care of his business as there is no one
except him in his family to run this business.
Rakesh, being the only person to manage his business, was finding it
tough to run the show. There was mismanagement on two of the three
floors. Manual-billing system made it tough to detect the fraud in the
accounts and particularly in the bill-books as there was only one billing
counter for all the three floors. Bill generation and table service were also
very much slow. There were no immediate records regarding sales and
items sold. The inventory system was also having a back-log as there was
no instant update and so on. All these things led to customer
dissatisfaction and a continuous downfall in the sales and customers was
clearly visible.
 What Rakesh did…??
Rakesh went for installing an Information System. He now has a TPS
installed in his restaurant which is having three computerized billing-
counters, one on each floor with one of them as the super-ordinate and
rest being sub-ordinates. The main system records all the bills generated,
thus eliminating any misrepresentation or fraud in the books. It also
reduced the service time in the restaurant. The inventory is now 24*7
updated. There was instant information regarding availability of an item.
Order processing was also connected with this system and thus
processing time also went down. Customers were turning up. He is now
planning for extension of his business and has also installed MIS which
assists him in taking effective decisions by generating reports based on
the TPS. Now he is having butter in his mouth as he is making more and
more out of the same old family business.