Management Information Systems

Information Systems vs Data Processing Systems

How different systems are used:



A supermarket is a good example of the different systems in use.



Relevant information:

Internal and External Information

An organisation uses information from a variety of sources: information generated internally from within the organisation and information gathered from external sources.


Can you tell the difference?


Different types of information are required by different types of staff.


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Information Flow

Typical Inputs Typical Processes Typical Outputs
  • From external sources: e.g.
    • Environmental data
    • Market data
    • Competitive data
    • Supply / materials data
  • From internal sources: i.e.

    Company transactions of all types, e.g.

    • Sales
    • Purchases
    • Cash flows
    • Personnel
  • Management plans, assumptions, estimates,


  • Classify
  • Code
  • Interpret
  • Store / retrieve
  • Compare
  • Calculated
  • Summarise
  • Identify trends / exceptional items
  • Monitor
  • Highlight
  • Make routine decisions
  • etc.
  • Regularly produced reports on: e.g.
    • Performance
    • Budgets
    • Sales
    • Productivity
    • Accounting
  • Forecasts, trends, comparisons, analyses.
  • Routine decisions and intructions, e.g.
    • Stocks
    • Scheduling
  • Enquiry responses, decision support information.
  • Modelling, simulation, interactive responses



Find out how

Role of a Management Information System

A Management Information System takes data from internal and external sources and uses the information to aid managers make tactical and strategic decisions.

Features of an MIS

Success or Failure of an MIS


Structured and Unstructured Decision-Making

Decisions can be categorised as structured or unstructured decisions.

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Stages of decision-making:


Whenever an unstructured decision is made, the same process or stages are followed.