Lesson 1, Topic 1
In Progress

1.12. Management Information System (MIS)

ryanrori February 1, 2021

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The primary purpose of an Information System is to collect data, processes it into information then converts information into knowledge for a specific purpose.

Data: Elementary description of things, events, activities, and transactions that are recorded, classified, and stored, but not organised to convey any specific meeting

Information: Data that has been organised so that they have meaning and value to the recipient 

Knowledge: Information that has been organised and processed to convey understanding, experience and expertise as they apply to a current problem or activity

An information system (IS) can span departments, business units and corporations and is usually connected by means of electronic networks

An information system (IS) support each department in a corporation including:

  • Operations
  • Accounting
  • Finance
  • Marketing
  • Human resources 

The following diagram graphically demonstrates the use of Information Systems within the company:




Executive Support System


Management Information SystemDecision Support SystemIntelligent Support Systems


Knowledge Management SystemsOffice Automation System




Transaction Processing System
5-year sales trendProfit Planning5-year budget forecastingProduct development

Sales ManagementInventory ControlAnnual budgetProduction SchedulingCost AnalysisPricing Analysis

SimulationSystem SupportWord ProcessingDesktop publishing

Order ProcessingFulfilmentMaterial MovementPayrollPOS

Systems Design

Systems design is the process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements. Systems design could be seen as the application of systems theory to product development. There is some overlap with the disciplines of systems analysis, systems architecture and systems engineering.

If the broader topic of product development “blends the perspective of marketing, design, and manufacturing into a single approach to product development,” then design is the act of taking the marketing information and creating the design of the product to be manufactured. Systems design is therefore the process of defining and developing systems to satisfy specified requirements of the user.

Until the 1990s systems design had a crucial and respected role in the data processing industry. In the 1990s standardisation of hardware and software resulted in the ability to build modular systems. The increasing importance of software running on generic platforms has enhanced the discipline of software engineering.

Object-oriented analysis and design methods are becoming the most widely used methods for computer systems design. The UML has become the standard language in object-oriented analysis and design. It is widely used for modelling software systems and is increasingly used for high designing non-software systems and organisations.

Logical design 

The logical design of a system pertains to an abstract representation of the data flows, inputs and outputs of the system. This is often conducted via modelling, using an over-abstract (and sometimes graphical) model of the actual system. In the context of systems design are included. Logical design includes ER Diagrams i.e. Entity Relationship Diagrams.

Physical design

The physical design relates to the actual input and output processes of the system. This is laid down in terms of how data is input into a system, how it is verified / authenticated, how it is processed, and how it is displayed as output. In Physical design, following requirements about the system are decided.

  1. Input requirement,
  2. Output requirements,
  3. Storage requirements,
  4. Processing Requirements,
  5. System control and backup or recovery.

Put another way, the physical portion of systems design can generally be broken down into three sub-tasks:

  1. User Interface Design
  2. Data Design
  3. Process Design

User Interface Design is concerned with how users add information to the system and with how the system presents information back to them. Data Design is concerned with how the data is represented and stored within the system. Finally, Process Design is concerned with how data moves through the system, and with how and where it is validated, secured and/or transformed as it flows into, through and out of the system. At the end of the systems design phase, documentation describing the three subtasks is produced and made available for use in the next phase.

For the purpose of this program we will take a look at a physical example of a very simple Information System. It is important to note that when you take on the task of creating an Information System for a company, scalability should be your primary consideration when choosing database software. For the purpose of demonstrating the concepts, we will use a simple MS Access database.