Subsystems of MIS

Question: What is MIS? Describe the Subsystems of MIS.

MIS - Management Information System
Management information system (MIS) refers to the processing of information through computers and other intelligent devices to manage and support managerial decisions within an organization.

Definition of MIS

MIS - Management Information System can be defined as "a system providing management with accurate and timely information necessary to facilitate the decision-making process and enable the organization's planning, control, and operational functions to be carried out effectively".

Subsystems of MIS

Systems may consist of numerous sub-systems, each of which has elements, interactions, and objectives. Subsystems perform specialized tasks related to the overall objectives of the total system.
A system exists on more than one level and can be composed of subsystems or element parts.

Following are the subsystems of the Management Information System:
  1. Transaction Processing System
  2. Management Reporting System
  3. Decision Support System
  4. Office Information System
  5. Business Expert System
Transaction Processing System - A transaction is defined as an exchange between two or more business entities. Overall transaction processing, also known as data processing, reflects the principal business activities of a firm like - sales, production, inventory, shipping, receiving, billing, accounts payable, accounts receivables, payroll, general ledger, etc. Transactions are important events for an organization, and collecting data about them is called transaction processing. Transaction Processing System's primary purpose is to record, process, validate, and store transactions that take place in the various functional areas of a business for future retrieval and use. Transaction processing systems are cross-functional information systems that process data resulting from the occurrence of business transactions.
  • A TPS records internal and external transactions for a company.
  • A TPS performs routine and repetitive tasks. It is mostly used by lower-level managers to make operational decisions.
  • Transactions can be recorded in batch mode or online. In batch mode files are updated periodically; and in online mode, each transaction is recorded as it occurs.
  • TPS is a six-step process - Data entry, Data capture, Data validation, Processing and re-validation, Storage, Output generation, and Query support.
Management Reporting System - Management Reporting Systems are the most elaborate of management-oriented MIS components. Its main objective is to provide lower and middle management with printed reports and inquiry capabilities to help maintain operational and management control of the enterprise.

  • MRSs are usually developed by information system professionals, rather than by end-users.
  • MRSs are oriented towards reporting on the past and the present, rather than projecting the future.
  • MRSs largely report on internal company operations.
  • MRSs generally have limited analytical capabilities. 
  • MRSs do not directly support the decision-making process
  • MRSs provide Scheduled or Periodic Reports, Exception Reports, and Demand or Ad-hoc Report.
Decision Support System - Decision Support Systems are a class of computerized information systems that support decision-making activities. DSS are interactive computer-based systems and subsystems intended to help decision-makers. A DSS may present information graphically and may include an expert system or artificial intelligence. DSS tends to be designed primarily to serve management control level and strategic planning level managers.

  • DSSs support for decision-makers in semi-structured and unstructured problems.
  • DSSs are more focused on specific decisions rather than routine flows of information.
  • DSS present information graphically and may include an expert system or artificial intelligence.
  • DSSs are adaptive over time.
Office Information System - Office Information System is an information system that uses hardware, software, and networks to enhance workflow and better communication between employees. Office automation refers to the application of computer and communication technology to office functions. Office automation systems are meant to improve the productivity of managers at various levels of management by providing secretarial assistance and better communication facilities. Office automation systems are the combination of hardware, software, and people in information systems, that process office transactions and support office activities at all levels of the organization. These systems include a wide range of support facilities, which include word processing, electronic filing, electronic mail, message switching, data storage, data and voice communication, etc.

Business Expert System - The business expert system is a knowledge-based information system that uses its knowledge about a specific, complex application area to act as an expert. This system is one of the knowledge-based information systems. The expert system provides decision support to managers in the form of advice from an expert in a specific problem area. Expert systems find application in diverse areas, ranging from medical, engineering, and business.
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