MIS Notes

Q) What is an Information System? Explain with necessary elements.

Answer:
An Information System (IS) is a system that helps in collecting, storing, processing, and
distributing information so that organizations can take better decisions, coordinate activities,
and control operations.

• It is not only about computers, but also about people and processes.

• Example: In a hospital, an IS keeps patient records, helps doctors see reports, and
prepares bills automatically.

Elements of Information System:

1. Hardware

o Hardware refers to the physical devices used in the system.

o It includes computers, laptops, servers, printers, scanners, and networking

devices.

o Without hardware, data cannot be stored or processed.

o Example: ATM machines in banks are part of IS hardware.

2. Software

o Software is the set of programs or applications that tell the hardware what to
do.

o It can be system software (like Windows, Linux) or application software (like

MS Excel, ERP systems).

o Software helps to process data into useful information.

o Example: Railway reservation software processes bookings and cancellations.

3. Data

o Data are raw facts and figures collected from day-to-day activities.

o On their own, data have no meaning, but when processed, they become
information.
 o Example: “100, 200, 300” are just numbers (data), but if we say “sales in three
days = 100, 200, 300,” it becomes information.

o Data is the core element of IS.

4. People

o People are the users who interact with the system.

o They can be managers, employees, IT staff, or customers.

o Without people, the system cannot function because they enter data, interpret
reports, and take decisions.

o Example: A manager checking sales reports or a student checking exam results

online.

5. Processes/Procedures

o Processes are the rules, methods, and steps for collecting, processing, and
using information.

o They ensure that data is entered correctly, stored safely, and used properly.

o Example: In a bank, there are fixed procedures for creating a new account,
approving loans, or updating balances.
Q) Explain the Types of Information Systems.

Answer:
Organizations use different kinds of Information Systems (IS) depending on their needs and
levels of management. The main types are:

1. Transaction Processing System (TPS)

• TPS is used at the operational level of an organization.

• Its main function is to record and process the routine, day-to-day transactions.

• These systems handle large volumes of data and must be very accurate and fast.

• TPS ensures that business operations run smoothly without interruption.

• Examples:

o ATM machines in banks (withdrawal/deposit).

o Supermarket billing system.

o Railway or airline reservation system.

2. Management Information System (MIS)

• MIS is used at the middle management level.

• It collects data from the TPS and provides summarized reports for managers.

• MIS helps managers in planning, controlling, and decision-making.

• It usually provides information in the form of regular reports such as daily, weekly, or
monthly summaries.

• Examples:

o Monthly sales reports for managers.

o Attendance reports of employees.

o Inventory management reports.

3. Decision Support System (DSS)

• DSS is used by middle and top-level managers for complex decision-making.

• It helps in solving semi-structured and unstructured problems where the solution

is not straightforward.

• DSS uses data from MIS, along with analytical models, simulations, and “what-if”
analysis.

• It is very useful when managers need to compare alternatives.

• Examples:

o Choosing the best location for opening a new branch.

o Analysing investment options for maximum profit.

o Forecasting sales using models.

4. Executive Support System (ESS) / Executive Information System (EIS)

• ESS is used by top-level executives.

• It provides highly summarized information about the overall performance of the

organization.

• It helps in long-term strategic planning and monitoring the external environment

(like competitors, government policies, market trends).

• Information is usually presented in dashboards, charts, or graphs for quick

understanding.

• Examples:

o Dashboard showing overall company performance.

o Graphical reports of global sales.

o Market trend analysis for top executives.

5. Knowledge Management System (KMS)

• KMS focuses on capturing, storing, and sharing the knowledge and experience of
employees in an organization.

• It encourages learning and innovation by making information easily available to all

staff.
 • KMS improves productivity because employees can access the knowledge of others
instead of repeating work.

• Examples:

o Online training platforms for employees.

o Company knowledge base (FAQs, manuals).

o Research and development information sharing.

Q) Explain the Impact of Information Systems on Organizations and Society.

1. Impact on Organizations

Definition:
In organizations, an Information System (IS) is a setup of hardware, software, people, and
processes that helps in managing business data and supports decision-making.

Working:
IS in organizations works by collecting data from daily activities, processing it into useful
information, and then providing reports to managers and employees. This helps in planning,
controlling, and taking quick decisions. For example, when a customer buys a product in a
shop, the billing system records the sale, updates the inventory, and creates a sales report
automatically.

Examples & Use:

• In banks, IS is used for ATM services, online banking, and keeping customer records.

• In retail companies, IS is used for managing stock, customer orders, and delivery.

• In manufacturing companies, IS is used for supply chain management and quality

control.

Impact on Organizations :

1. Information Systems improve efficiency in organizations by automating routine work

like payroll, billing, and salary management. This saves time and reduces errors.

2. They also improve communication and coordination among departments.

Employees can share reports and information instantly through emails, shared
databases, and dashboards.

3. IS provides a competitive advantage because companies using advanced IS can

serve customers faster and better than others. Example: Amazon and Flipkart use IS to
track orders, manage warehouses, and provide one-day delivery.
2. Impact on Society

Definition:
In society, Information Systems provide people with access to information, services, and
communication tools that improve daily life and social activities.

Working:
IS works in society by connecting people through the internet, storing and sharing large
amounts of information, and offering online services such as e-learning, e-governance, and
digital payments. It makes life easier and faster.

Examples & Use :

• In education, IS is used for online classes, e-libraries, and digital exams.

• In healthcare, IS is used for storing patient data, telemedicine, and online

appointments.

• In daily life, IS is used for online shopping, mobile payments, and social media.

Impact on Societies :

1. IS has improved the quality of life by giving people access to online shopping,
banking, healthcare, and education from anywhere. For example, during the COVID-
19 pandemic, online learning platforms and work-from-home systems helped society
to continue functioning.

2. IS also improves communication and global connectivity. People can interact

through social media, video calls, and emails. This has made the world a "global
village." Governments also use IS for e-governance, smart cities, and online tax filing.

3. However, IS in society also has challenges like cybercrime, fake news, and digital
divide (where rural or poor people do not have access to technology). Still, the
benefits like convenience, connectivity, and better services outweigh the negatives.
Q. Advantages Achieved in Information Systems (IS)

Information Systems (IS) provide several advantages to organizations, individuals, and

society. These advantages can be seen in terms of efficiency, decision-making,
communication, and overall productivity.

1. Improved Efficiency and Productivity

IS automates routine and repetitive tasks such as payroll processing, billing, attendance, and
inventory management. This reduces human errors, saves time, and increases overall
productivity in organizations.

2. Better Decision-Making

With tools like Decision Support Systems (DSS) and Management Information Systems
(MIS), managers get real-time, accurate data and analytical reports. This helps them make
faster and more informed decisions.

3. Enhanced Communication and Collaboration

IS allows instant communication through emails, video conferencing, and messaging apps.
Within organizations, teams can collaborate easily even if they are located in different parts
of the world.

4. Cost Reduction

By reducing manual work, paperwork, and physical storage, IS lowers operating costs. Cloud
storage and digital processes are cheaper than traditional methods.

5. Competitive Advantage

Organizations using IS can serve customers better and faster (example: Amazon using IS for
tracking, recommendation, and delivery). This gives them an edge over competitors.

6. Better Customer Service

IS improves customer support through chatbots, helplines, and online portals. Customers can
track orders, make payments, and resolve issues easily.
Q. Short Notes on TPS and ERP

1. Transaction Processing System (TPS)

A Transaction Processing System (TPS) is an information system that records and processes
the daily routine transactions of an organization. These are operations that happen regularly,
such as sales, deposits, payroll, inventory control, or billing. TPS ensures that all transactions
are processed quickly, accurately, and without duplication.

The working of TPS is simple: it takes input data (like customer orders), processes it in real
time or in batches, and stores the results in a database for further use. For example, when you
withdraw money from an ATM, the system updates your account immediately — this is a
TPS in action.

Uses and examples: TPS is widely used in banks (ATM, fund transfers), retail stores (billing
and inventory management), and airlines (ticket booking). Its impact is high because it
ensures smooth, error-free, and reliable day-to-day operations of an organization.

2. Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is an integrated information system used by

organizations to manage all key business functions through a single system. ERP combines
departments like finance, HR, supply chain, sales, and production into one database, so that
information can flow easily between them.

The working of ERP is that it centralizes data from different departments, avoids duplication,
and provides real-time updates. For example, if the sales department enters a new order, the
system will automatically update inventory, billing, and delivery schedules. This improves
decision-making and efficiency.

Uses and examples: ERP is commonly used in manufacturing companies, hospitals,

universities, and large businesses. Popular ERP software includes SAP, Oracle, and Microsoft
Dynamics. The main advantage is that ERP reduces costs, increases productivity, and
supports better planning across the organization.
 2ND MOD

Q. What is Big Data? Explain its characteristics and various challenges.

Definition:
Big Data refers to extremely large and complex sets of data that cannot be processed, stored,
or analyzed using traditional database systems. It includes structured, semi-structured, and
unstructured data generated from multiple sources like social media, sensors, transactions,
and mobile devices. Big Data is important because it helps organizations find patterns, trends,
and useful insights for decision-making.

Characteristics :

1. Volume : Volume refers to the enormous amount of data that is generated every second
from different sources like social media, sensors, transactions, and IoT devices. Traditional
storage systems cannot handle such huge datasets efficiently. For example, Facebook stores
petabytes of images, videos, and text uploaded daily by millions of users. In Big Data, special
distributed storage systems like Hadoop HDFS are used to manage this massive volume
effectively.

2. Velocity : Velocity is the speed at which data is created, transferred, and processed. In
many cases, data needs to be processed in real-time or near-real-time to be useful. For
instance, in stock market trading, prices change within milliseconds, and systems must
process data instantly to make decisions. Big Data technologies like Apache Kafka and Spark
Streaming handle such high-speed data flows efficiently.

3. Variety : Variety means the presence of different types and formats of data. Unlike
traditional systems that mainly handle structured data (rows and columns in databases), Big
Data deals with structured, semi-structured, and unstructured data. Examples include
structured data like bank transaction records, semistructured data like JSON or XML files,
and unstructured data like images, videos, and social media posts. Handling variety requires
flexible storage and processing tools.

4. Veracity : Veracity is about the trustworthiness and quality of the data collected. Big Data
often comes from multiple sources, so it may contain errors, duplicates, or misleading
information. For example, in social media sentiment analysis, false news or spam posts can
reduce the accuracy of results. Ensuring veracity involves cleaning, validating, and filtering
data before analysis so that the insights generated are reliable.

5. Value : Value is the most important characteristic because Big Data is only useful if it can
generate meaningful and actionable insights. Simply storing large amounts of data is not
enough; it must be analyzed to bring business or social benefits. For example, analyzing
customer purchase history can help online stores recommend products, leading to increased
sales and customer satisfaction.
Top 5 Challenges of Big Data

1. Data Storage and Management

o Big Data comes in huge volumes, often in terabytes or petabytes.

o Storing and managing this data in traditional systems is difficult.

o Cloud storage and distributed systems like Hadoop are used, but they increase
cost and complexity.

2. Data Quality and Accuracy

o Not all collected data is clean or useful.

o A lot of Big Data may be incomplete, inconsistent, or full of errors.

o Organizations must spend time cleaning and validating data to ensure accurate
analysis.

3. Data Security and Privacy

o Since Big Data often contains sensitive information (like customer details,
transactions, medical history), protecting it from cyberattacks is a big
challenge.

o Unauthorized access or leaks can cause financial loss and damage trust.

4. Data Integration and Variety

o Data comes from multiple sources: social media, sensors, emails, websites,
etc.

o Combining all these into one platform is tough because formats and structures
are different.

o Organizations need advanced tools to integrate and standardize the data for
analysis.

5. Skilled Workforce and Tools

o Big Data requires special tools like Hadoop, Spark, and advanced machine
learning techniques.

o Skilled professionals (data scientists, analysts) are limited, and training new
ones is costly.

o Without the right people and tools, organizations cannot use Big Data
effectively.
Q. What is Data Mart and Data Warehouses? Give two examples which show generation of
Big Data

Data Warehouse

• Definition:
A Data Warehouse (DW) is a centralized storage system that collects and integrates
data from different sources such as sales, marketing, finance, HR, etc. It stores
historical and current data in a structured format for analysis and decision-making.

• Working:
Data from different systems (ERP, CRM, online transactions, etc.) is extracted,
cleaned, and loaded (ETL process) into the warehouse. Then, managers and analysts
use queries, reports, and dashboards to study trends, forecasts, and business
performance.

• Example:
A retail company like Reliance Trends collects sales data from all branches across
India into a single warehouse. Managers then analyze which products sell best in each
region.

Data Mart

• Definition:
A Data Mart is a smaller, specialized version of a data warehouse. It focuses on a
specific department or business area such as sales, marketing, or finance.

• Working:
Instead of giving access to the full warehouse, a data mart stores only relevant
information for a particular team. This makes access faster, cheaper, and easier to
use.

• Example:
In the same retail company, the marketing team’s data mart may only store data
about customer feedback, campaign responses, and regional sales promotions.
Examples Showing Generation of Big Data

1. Social Media Platforms:

Apps like Instagram or Facebook generate huge amounts of data daily from user
posts, likes, comments, shares, and videos. This unstructured and real-time data is an
example of Big Data.

2. E-commerce Platforms (Amazon/Flipkart):

Every time customers browse, search, purchase, review, or make payments,
massive amounts of transaction and behavioral data are generated. Analyzing this
helps in personalized recommendations and fraud detection.

Q. Architecture of Data Warehouse and Data Marts.

Architecture of Data Warehouse

Definition

A Data Warehouse is a central storage system that collects, stores, and manages large
amounts of data from different sources. It is mainly used for decision-making, reporting, and
analysis.

Architecture

The architecture of a data warehouse is usually divided into three layers:

1. Data Source Layer

o This is the starting point.

o It contains different data sources like databases, ERP systems, CRM systems,
flat files, social media, and transaction records.

o Example: Sales data from SAP, customer data from MySQL, etc.

2. Data Staging Layer (ETL – Extract, Transform, Load)

o Data from sources is collected (Extracted), cleaned and formatted

(Transformed), and then stored in the warehouse (Loaded).

o This step ensures all data is in the same format and removes errors.

o Example: Changing "M" and "Male" into a single format “Male.”

3. Data Storage Layer (Warehouse Database)

o This is the main central database of the warehouse.

o It stores structured, historical data for fast queries and analysis.

o Example: Oracle, Teradata, Amazon Redshift.

 4. Presentation Layer (Front-End Tools)

o The final step where users interact with the system.

o Data is accessed through dashboards, reports, OLAP tools, or visualization

tools like Tableau or Power BI.

o Example: A manager checking monthly sales trends.

Data Mart Architecture

A Data Mart is a smaller, subject-oriented version of a Data Warehouse that focuses on a

specific area of an organization, such as sales, marketing, or finance. While a data warehouse
stores company-wide information, a data mart only stores relevant data needed by a particular
department or business unit.

The architecture of a Data Mart usually consists of three layers:

1. Data Source Layer – Data is collected from different operational systems like sales
records, financial transactions, or HR systems. Sometimes, data can also come from
external sources such as market research or customer feedback tools.

2. Data Staging Layer – In this step, the collected data is extracted, cleaned, and
transformed so that it becomes accurate and consistent. This process ensures that
wrong or duplicate data is not passed into the data mart. ETL (Extract, Transform,
Load) tools are generally used here.

3. Data Storage Layer – This is the actual data mart database where the processed data
is stored in a structured format. It is optimized for fast access and easy retrieval so
that users can quickly generate reports.

4. Presentation Layer – This layer allows business users to access the data through
reporting tools, dashboards, or OLAP (Online Analytical Processing). For example, a
sales manager can check monthly sales trends or a finance officer can analyze
expenses.
Q. Illustrate Knowledge Management Cycle.

Knowledge Management Cycle

The Knowledge Management Cycle describes the systematic process through which
knowledge is created, refined, stored, shared, and applied within an organization. It ensures
that valuable insights, experiences, and information are effectively managed and utilized to
support decision-making, innovation, and competitive advantage. The cycle generally
consists of the following five phases:

1. Knowledge Creation & Capture

This is the first step of the cycle where new knowledge is generated and existing knowledge
is captured.

• Creation: Knowledge may emerge through research, innovation, brainstorming,

collaboration, or problem-solving. For example, when employees work together on a
project, they generate new ideas and methods.

• Capture: It also involves documenting tacit knowledge (personal know-how,

experiences) into explicit forms like reports, manuals, or databases. Capturing ensures
that valuable insights are not lost when individuals leave the organization.

2. Knowledge Refinement

Before storing and using knowledge, it must be processed and refined to ensure accuracy,
quality, and usefulness.

• Validation: Raw knowledge is checked for reliability, relevance, and correctness.

• Filtering: Irrelevant, outdated, or redundant information is removed.

• Improvement: Insights may be enhanced by integrating feedback, linking related

knowledge, and aligning with organizational goals.
This step ensures that the organization only retains high-quality, useful knowledge.
3. Knowledge Storage & Organization

Once refined, knowledge is systematically stored and organized for easy access.

• Storage: Knowledge is saved in repositories such as databases, document

management systems, or intranet portals.

• Organization: Information is categorized, indexed, and structured with metadata or

taxonomies for quick retrieval.
This phase ensures that the right knowledge is available at the right time and prevents
knowledge loss.

4. Knowledge Sharing & Dissemination

Stored knowledge must be actively shared so that individuals and teams can benefit from it.

• Sharing Methods: Includes training programs, workshops, communities of practice,

wikis, internal communication platforms, or meetings.

• Dissemination: Ensures that the right knowledge reaches the right person at the right
time, reducing duplication of effort and improving collaboration.
This step transforms knowledge from being static in storage to becoming dynamic
and accessible across the organization.

5. Knowledge Application & Use

The ultimate purpose of knowledge management is to apply knowledge effectively in real-

world situations.

• Application: Employees use stored and shared knowledge to solve problems, make
better decisions, and innovate.

• Outcome: Knowledge application improves productivity, efficiency, and

competitiveness, while also generating new insights and experiences—feeding back
into the Knowledge Creation & Capture phase.
Q. Analyze impact of Business Intelligence (BI) on decision making.

Impact of Business Intelligence (BI) on Decision Making

Business Intelligence (BI) refers to technologies, processes, and tools that collect, analyze,
and present business data to help organizations make informed decisions. It transforms raw
data into meaningful insights, enabling managers and stakeholders to improve efficiency and
competitiveness.

1. Improved Decision Accuracy

• BI provides real-time, data-driven insights rather than relying on guesswork or

intuition.

• Decisions are based on factual, consistent, and verified data, reducing the chances of
errors.
Example: A retail chain can analyze customer purchase patterns to stock the right
products.

2. Faster Decision-Making

• BI tools provide dashboards and reports that allow managers to access key
information instantly.

• This reduces the time spent on data collection and analysis, enabling quick responses
to market changes.
Example: Financial firms use BI to react immediately to stock market fluctuations.

3. Enhanced Strategic Planning

• BI supports long-term planning by predicting trends, identifying risks, and

highlighting new opportunities.

• Organizations can align resources and strategies with future business goals.
Example: Telecom companies use BI to predict customer churn and design retention
strategies.

4. Increased Operational Efficiency

• By analyzing performance metrics, BI identifies bottlenecks, inefficiencies, and areas

for cost reduction.

• This helps in optimizing processes and improving productivity.

Example: Manufacturing units use BI to monitor production lines and reduce
downtime.
5. Better Customer Understanding

• BI enables organizations to analyze customer behavior, preferences, and feedback.

• This leads to personalized services and higher customer satisfaction.

Example: E-commerce platforms like Amazon use BI for product recommendations.
 3RD MOD

Q1: Explain ethical issues and threats of Information Systems (IS).

Answer

Information Systems (IS) play a very important role in organizations today. They help in
storing, processing, and sharing huge amounts of data. But along with these benefits, there
are also some ethical issues and threats that need to be considered. Ethical issues mean
situations where people have to decide what is “right” and what is “wrong” when using
technology. Threats are the possible risks or dangers that can harm the system, data, or the
organization.

Here is an expanded explanation of the main ethical issues and threats in IS:

1. Privacy Issues

One of the biggest ethical concerns in IS is the protection of privacy.

• Organizations store a lot of personal data about customers, such as name, address,
phone number, bank details, and sometimes even medical records.

• If this information is misused or accessed without permission, it becomes a serious

ethical problem.

• For example, if an online shopping site shares your phone number with advertising
companies without asking you, it is a violation of your privacy.

This raises the question: Who owns the data, and who has the right to use it?

2. Security Threats

Security is another important area. Information systems are always under threat from hackers,
malware, viruses, and cybercriminals.

• Hackers may break into systems to steal sensitive information like passwords or
financial data.

• Viruses and ransomware can damage files or lock systems until money is paid.

• For example, in 2017, the “WannaCry” ransomware attack affected many

organizations worldwide, including hospitals. Patients’ data and systems were locked
until the ransom was paid.
Here, the ethical concern is whether organizations are taking proper steps to protect their
users’ data.

3. Intellectual Property Rights

Another ethical issue is related to ownership of digital content.

• Information systems make it very easy to copy and share digital files like music,
movies, software, or books.

• Many people download pirated software or movies without paying, but this is illegal
and unethical.

• For example, using cracked versions of Microsoft Office or downloading movies from
illegal torrent sites violates intellectual property rights of the creators.

This raises the ethical question of respecting the work and rights of others.

4. Accuracy and Reliability of Information

Information stored and processed by IS must be accurate and reliable.

• Wrong or incomplete data can lead to wrong decisions.

• For example, if a bank’s system wrongly shows that a customer has not paid their loan
installment, it can damage the person’s credit score unfairly.

• Similarly, fake news spreading through online platforms is also an ethical problem, as
it misguides people.

Here the ethical issue is: Are organizations making sure the data they use and share is
correct?

5. Accessibility and Digital Divide

Another ethical issue is about fairness in access to technology.

• Not everyone has equal access to the internet or digital devices. This creates a gap
known as the digital divide.

• For example, students in rural areas may not have access to online education
platforms, while city students do.

• Organizations must think ethically about how to make technology more inclusive and
accessible to all.
Q2. Major Types of Controls that Organizations Can Use to Protect Information
Systems.

Information Systems are very important for organizations, as they store data, process
information, and support decision-making. But they are also vulnerable to risks like data
theft, hacking, misuse, or natural disasters. To protect them, organizations put in place
different types of controls. Controls are like protective measures or safeguards.

Below are the 3 major types of controls with clear explanation and examples:

1. Physical Controls

Physical controls are the most basic and direct way to protect Information Systems. These
controls protect the hardware, servers, and physical resources of the system from damage,
theft, or unauthorized access.

• Meaning in simple words: Just like we lock our home doors to prevent outsiders
from entering, physical controls are locks and barriers for computers and networks.

• Examples:

o Installing CCTV cameras in the server room.

o Using biometric locks (fingerprint/retina scanners) to enter the data center.

o Keeping backup servers in fireproof rooms.

o Guards at the main gate of IT infrastructure.

Why important? Because even if the system is protected digitally, if someone can walk into
the server room and steal the hard disk, all data is gone.

2. Access Controls

Access controls deal with who can use the system and what they are allowed to do. They
make sure that only the right people (authorized users) can log in and access sensitive data or
programs.

• Meaning in simple words: Just like an ATM card requires both your card and PIN
before giving money, access controls ensure that no one can enter the system without
permission.

• Examples:

o Passwords and PIN numbers for logging in.

o Two-factor authentication (OTP sent to your mobile).

 o Role-based access (for example, an employee can only see their own data, but
the manager can see team data).

o Smart cards or ID cards to access office computers.

Why important? Because insider misuse is a big threat. If every employee can access all
company data, misuse and leaks will happen. Access control limits people only to what they
need for their job.

3. Communication (Network) Controls

Communication controls focus on protecting the data that moves across networks (internet,
emails, cloud, internal networks). Since most organizations share data online, these controls
prevent hackers from stealing or altering information during transmission.

• Meaning in simple words: Just like we seal an envelope before posting a letter to
make sure nobody reads it on the way, communication controls keep data safe while
traveling across networks.

• Examples:

o Firewalls to block unauthorized access.

o Encryption (data is changed into a secret code, only the receiver can read it).

o Virtual Private Network (VPN) for secure remote work.

o Intrusion detection systems to catch hackers trying to enter.

Why important? Because most cyberattacks happen during communication. Hackers try to
capture passwords, emails, or financial data when it is moving over the internet.
Communication controls make sure the data reaches safely without being stolen or changed.