MANAGEMENT
INFORMATION SYSTEM
Introduction to MIS
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Introduction
• Management – Planning, controlling, and administration of
an organization.
• Information – Processed data to support management
functions.
• System – Supports the processing of data into information.
• Information System – A unified data and knowledge
infrastructure, which collects/ retrieves, processes, stores, and
dispenses information. It supports decision making and
control.
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Meaning Of Information Systems
• An information system is an organized combination of
people, hardware, software, communications Networks and
data resources that collects, transforms, and disseminates
information in an organization.
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Types Of Information System
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Common Types of Information Systems
• Transaction Processing Systems – comprise the routine, day-to-day accounting
operations, provide linkage among the customer, accounts receivable, accounts
payable, inventory control and many other operations.
• Management Reporting Systems – generates the pre-planed printed reports for
decision making purposes or for managers. Reports produced are commonly
by-products of the extensive and detailed database assembled by Transaction
Processing Systems. These reports consists of Routine summary of information
about organizational operations.
• Decision Support Systems – provides a set of easy to use modeling, retrieving
and reporting capabilities so that people can generate the information that they
feel will be useful to them when making decisions.
• Office Information Systems – include the use of such computer based, office
oriented technologies as word processing, electronic mail, video
teleconferencing and so on.
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MANAGEMENT INFORMATION SYSTEM(MIS)
• The MIS is defined as a system based on the database of the evolved for
the purpose of providing information to the people in the organization.
• Management information systems are distinct from regular information
systems in that they are used to analyze other information systems
applied in operational activities in the organization. MIS involve three
primary resources: technology, information, and people.
• Management information systems are regarded to be a subset of the
overall internal controls procedures in a business, which cover the
application of people, documents, technologies, and procedures used by
management accountants to solve business problems such as costing a
product, service or a business-wide strategy.
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Role Of MIS
• The role of MIS in an organization can be compared to the role of heart in the
body.
• The information is the blood and MIS is the heart. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the
brain.
• The MIS plays exactly the same role in the organization.
• The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations.
• The system is expected to fulfill the information needs of an individual, a group
of individuals, the management functionaries: the managers and the top
management.
• The MIS satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems.
• The MIS helps in Strategic Planning, Management Control, Operational
Control and Transaction Processing.
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Characteristics of MIS
• Management-oriented: The basic objective of MIS is to provide
information support to the management in the organization for
decision making.
• Management directed: When MIS is management-oriented, it
should be directed by the management because it is the
management who tells their needs and requirements more
effectively than anybody else.
• Integrated: It means a comprehensive or complete view of all the
subsystems in the organization of a company.
• Common data flows: The integration of different subsystems
will lead to a common data flow which will further help in
avoiding duplicacy and redundancy in data collection, storage and
processing.
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• Heavy planning-element: The preparation of MIS is not a one or two day
exercise. It usually takes 3 to 5 years and sometimes a much longer period.
• Subsystem concept: When a problem is seen in 2 sub parts, then the better
solution to the problem is possible.
• Common database: This is the basic feature of MIS to achieve the objective
of using MIS in business organizations.
• Computerized: MIS can be used without a computer. But the use of
computers increases the effectiveness and the efficiency of the system.
• User friendly/Flexibility: An MIS should be flexible.
• Information as a resource: Information is the major ingredient of any MIS.
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Features of MIS
• Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance
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Aims & Objectives of Management Information
System
• The main aim of MIS is to inform management and help them make
informed decisions about management and the way the business is run.
• MIS processes data to support the management function.
• MIS manages information system productivity.
• Competitive advantage created from using information to the maximum
through:
• 1) Capturing data – collects the relevant data
• 2) Processing data – transforms data into information
• 3) Information storage – store the information securely
• 4) Information retrieval – easy retrieval by authorized users
• 5) Information propagation – nonstop access and updating
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Pillars of MIS
• Long term planning perspective
• Respect of an organization’s dynamics and structure
• Comprehensiveness and interconnectivity
• Hierarchical and wholly participatory
• Supports all levels of management decisions (strategic,
operational, and tactical)
• Highlights problems and exceptional situations
• Driven by information technology
• Computer based – Hardware, software and telecom
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Elements of MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications and Networks
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Outputs Of a MIS
• Scheduled reports which are
produced periodically, or on a
Schedule (daily, weekly, monthly).
• Key-indicator report which
summarizes the previous day’s critical
activities and also it is typically
available at the beginning of each day.
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• Demand report which
gives certain information at
a manager’s request.
• Exception report which is
automatically produced
when a situation is unusual
or requires management
action.
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Benefits of MIS
• It improves personal efficiency.
• It expedites problem solving(speed up
the progress of problems solving in an
organization).
• It facilitates interpersonal
communication
• It promotes learning or training.
• It increases organizational control.
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• It generates new evidence in support
of a decision.
• It creates a competitive advantage
over competition.
• It encourages exploration and
discovery on the part of the decision
maker.
• It reveals new approaches to thinking
about the problem space.
• It helps automate the Managerial
processes.
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