Introduction

An information management system collects and manages data that is stored in a variety of

formats and makes it accessible to the people who need it. Often, a small business needs only

to manage office documents and spreadsheets and make them available to employees. Others

may need to collect and manage detailed information on customer data. Still other

information management systems make data available to large organizations or even the

public at large through a website.

Meaning and Nature of Information System

An information system is a specialized type of system and can be defined in a number of

different ways. An (IS) is a set of interrelated elements or components that collect (input),

manipulate (process-sort, summarize, filter, and fonnat), and disseminate (output) data and

information and provide a feedback mechanism to meet an objective. Most companies have

information in a variety of different formats stored in more than one place. Some files may be

stored on a company server, while others are stored locally on desktops and laptops, while

still others are stored in the cloud, with services like Google Drive or Microsoft OneDrive.

Specialized tools, like a Client Relationship Management (CRM) software or an inventory-

management software may keep information independent of these other systems.

Management information system (MIS) provides information that organizations require to

manage themselves efficiently and effectively. Management information systems are

typically computer systems used for managing the organizations. The five primary

components of MIS are:

1) Hardware- consist of computer equipment used to perform input, processing, and output

activities.

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2) Software- the computer program that governs the operation of the computer. These

programs allow a computer to process payroll, to send bills to customers, and to provide

managers with information to increase profits, to reduce costs, and to provide better customer

service.

3) Data (information for decision making)- an organized collection of facts and information.

An organization’s database can contain facts and information on customers, employees,

inventory, competitors’ sales information, online purchases, and so much more.

4) Procedures (design, development and documentation)- these include the strategies,

policies, methods, and rules for using the CIBI

5) People (individuals, groups, or organizations).

6) Telecommunications: the electronic transmission of signals for communication, which

enables organizations carry out their processes and tasks through effective computer

networks.

Information Systems for Business

Information system is an integrated set of components for collecting, storing and processing

data and for delivering information, cards, and digital products. Business firms and Other

Organizations rely on information systems to carry out and manage their operations, Interact

with their customers and suppliers, and compete in the marketplace.

The most common type of information systems used in business organizations are electronic

commerce systems, transaction processing systems, management information systems and

decision support systems. In addition, some organizations employ special-purpose systems

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such as artificial intelligence systems, expert systems, and virtual reality systems. Together,

these systems help employees in organizations accomplish both routine and special task-

from recording sales, to processing payrolls, to supporting decisions in various departments,

to providing alternatives for large-scale projects and opportunities.

Electronic Commerce

In a nutshell, e-commerce is just the process of buying and selling produce by electronic

means such as by mobile applications and the Internet. Ecommerce refers to both online retail

as well as electronic transactions. E-commerce involves any business transaction executed

electronically between parties such as companies (business-to-business), companies and

consumer (business-to-consumer), business and the public sector. and consumers and the

public sector.

Transaction Processing Systems

A transaction process system (TPS) is an information processing system for business

transactions involving the collection, modification and retrieval of all transaction data.

Characteristics of a TPS include performance, reliability and consistency. TPS is also known

as transaction processing or real-time processing. Since the 1950s, computers have been used

to perform common business applications. The objective of many of these early systems was

to reduce costs by automating many routine, labor-intensive business systems. A transaction

is any business-related exchange such as payment to employees, sales to customers, or

payments to suppliers. Thus, processing business transactions was the first application of

computers for niost organizations. A transaction processing system (TPS) is an organized

collection of people, procedures, software, databases, and devices used to record completed

business transactions.

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Workflow Systems

A workflow system is a platform that combines several discrete tools into one cohesive

application that automates processes involving both machine and human tasks, usually in a

linear sequence. However, task sequences can also be dynamic and/or parallel depending on

actions taken or the needs of the process. This is rule-based management software that

directs, coordinates, and monitors execution of an interrelated set of tasks arranged to form a

business process. The primary purpose of workflow systems is to provide employees with

tracking, routing, document imaging, capabilities designed to improve business processes.

Enterprise Resource Planning

Enterprise resource planning (ERP) is business process management software that allows an

organization to use a system of integrated applications to manage the business and automate

many back office functions related to technology, services and human resources.

An enterprise resource planning (ERP) system is a set of integrated programs that is capable

of managing a company’s vital business operations for an entire multisite, global

organization.

Management Information Systems

Management information systems are distinct from other information systems because they

are used to analyze and facilitate strategic and operational activities. Academically, the term

is commonly used to refer to the study of how individuals, groups, and organizations

evaluate, design, implement, manage, and utilize systems to generate information to improve

efficiency and effectiveness of decision making, including systems termed decision support

systems, expert systems, and executive information systems.

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The focus of an MIS is primarily on operational efficiency. Marketing, production, finance,

and other functional areas are supported by management information systems and linked

through a common database. Management information systems typically provide standard

reports generated with data and information from the transaction processing system.

Decision Support Systems (DSS)

A decision support system is an information system that supports business or organizational

decision-making activities. An organized collection of people, procedures, software,

database, and devices used to support problem-specific decision making. The focus of a DSS

is on decision effectiveness. Whereas an MIS helps an organization “do things right”, a DSS

helps managers “do the right thing.”

Artificial Intelligence

Artificial intelligence (AI) is an area of computer science that emphasizes the creation

of intelligent machines that work and react like humans.

Expert Systems

The expert systems are the computer applications developed to solve complex problems in a

particular domain, at the level of extra-ordinary human intelligence and expertise. A system

that gives a computer user the ability to make suggestions and act like an expert in a

particular field. The unique value of expert systems is that they allow organizations to capture

and use the wisdom of experts and specialist. Expert systems have been used to monitor

complex systems such as nuclear reactors, perform medical diagnoses, locale possible repair

problems, design and configure information system components, perform credit evaluations

and develop marketing plans for a new product or new investments strategies.

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References

James O., Hicks, J. (2003). Management Information System (Third edition, Virginia
Polytechnic Institute and State University)
James Reason (1990). Human Error. Ashgate. ISBN 1-84014-104-2.
Justin, M. O. G. (2012). Management Information System (MIS): Concepts and
Controversies. Port Harcourt.Cutting Edge Publishing
McAfee, Andrew and Erik Brynjolfsson (2008). “Investing in the IT That Makes a
Competitive Difference.” Harvard Business Review.
Wiseman, C., and I. C. MacMillan (1984). “Creating Competitive Weapons from Information
Systems.” Journal Of Business Strategy, 5(2), p. 42.