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MANAGEMENT INFORMATION SYSTEM
MIS DEFINITIONS
“Computer system or related group of system which collects and present management information to a
business in order to facilitate control.”
Charted instate of Management Accountant
“A management information system converts data form internal and external sources into information, and
communicates that information in an appropriate form to mangers at all levels. This enables them to make timely
and effective decisions for planning, directing and controlling the activities for which they are responsible”
MIS DEFINITIONS…
• MIS a computerized business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization.
• The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.
MIS DEFINITIONS…
ROLE OF THE MIS IN ORGANIZATION
MIS
Information
The role of the MIS in an organization can be compared to the role of heart in the body
Providing Information to various Departments
Collecting Data From Various Sources
“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.”
ROLE OF THE MIS IN ORGANIZATION
IMPACT OF THE MIS • A disciplined information reporting system creates a structured
data and a knowledge base for all the people in the organization.
• Easy way to tracking and monitoring of the functionsManagers are informed about the progress, achievements and shortfalls in the probable trends in the various aspects of business. This helps in forecasting and long- term perspective planning.
• Can make quick & correct decision through analysis of available data and information
IMPACT OF THE MIS • The MIS creates another impact in the organization which relates
to the understanding of the business itself .
• Since the MIS works on the basic systems such as transaction processing and databases, the drudgery of the defical work is transferred to the computerized system, relieving the human mind for better work. It will be observed that a lot of manpower is engaged in this activity in the organization.
• Its creates an information- based work culture in the organization.
PURPOSE OF MIS
“to assist managers in making strategic, tactical and operational decisions in an efficient and productive
manner.” It provides managers with essential
information that is gathered from a variety of sources, pooled into a single database and compiled in a readable format.
Through MIS, Organizations expecting to increase its efficient in all department by creating fast data transaction within them.
PURPOSE OF INFORMATION CAN BE DIVIDED INTO 5 CATEGORIES.
•Planning•Controlling •Recording Transaction •Performance Measurement •Decision making
•Strategic Information•Tactical Information
* Management Information * Knowledge Information
•Operational Information
TYPES OF INFORMATION
Strategic Information :
• Support Long-Range Planning of Senior Management.• Information gathered from both internal and external sources.• Time Scale is mostly above or more then 5 years • Strategic plans will have little or no detail in them and more
detailed strategic plans will be made slightly lower down the managerial ladder
Tactical Information :• Support monitoring, controlling, decision-making, and administration by middle management.• Decision-making takes place within the guidelines set by the
strategic plan. • Used by middle management• The timescale is usually at least between 6 months and 5 years
Tactical plans have a medium level of detail and will be very specific; they deal with such matters as who is doing what and within what specific budgets and timescales.
Operational Information :
• Produces routine answers• The lowest level is operational and operational planning takes
place based on the tactical plans. Used by Low Level Management or Workers
• The timescale is very short• Results of operational work will usually be passed upwards to let the
tactical planners evaluate their plans.
How Its (MIS) Work in Organization
Strategic Level• Strategic information is used at the very top level of management
in BOC. These are chief executives or directors who have to make decisions for the long term Strategic planning.
• For example introducing a New Saving Plan for Adults, Before introduce the plan those decision making level people start to use various kind of information from indoor and outdoor sources for above plan. For this they will take more time for analysis information and results will be more complex decisions, those will effect entire business in future.
(Defining How Information System is working in Organization. (Ex: Bank of Ceylon)
Managerial Level • Middle managers who implementing and controlling BOC
strategies in branches. • These people will make decision by using various information
given by strategic level and their experiences. • Deciding Promotion in Area by analyzing current situations. • OD rates, Loan decisions, etc.
Knowledge Level • These people involve in knowledge are of business. In BOC, those
people help to maintain a effective connection system with in organizations and branches, those specially from IT and communication filed. These people’s part will make organization productive organization.
Operational Level • Those people involving day works, Staff and Labours. Those people will
only follow instruction of Middle managers, They will use information to make decision in day to day progress and they will give more information, feed back to High level people to make decisions.
Executive information system (EIS) • An executive information system (EIS) is the type of information system used
by executives to access and manage the data they require to make informed business decisions. Although there are tools for managing an executive information system, the EIS in itself is not a tool, but rather, an infrastructure within a company. In the hierarchical structure of information systems, the EIS is at the top and is designed to convert all relevant data (from project to process to budget) into aggregated information that makes sense and brings value to the overall business strategy.
• A highly interactive system that provides a flexible access to information for monitoring results and general business conditions
• Use both internal and competitive information • User-friendly interface
Decision support system (DSS)
• DSS is An interactive information system that provides information, models, and data manipulation tools to help make decisions in semi-structured and unstructured situations
• Support analytical work• A computerized information system used to support decision-
making in an organization or business. A DSS enables users to sift through and analyze massive reams of data and compile information that can be used to solve problems and make better decisions.
• Simulation and Optimization
Decision support system (DSS)….• Simulation model – calculates the simulated outcome of tentative
decisions and assumptions • Optimization model – determine optimal decisions based on criteria
supplied by the user, mathematical search techniques, and constraints
• Online analytical processing (OLAP) : the use of data analysis tools to explore large databases of transaction data
• Data mining : the use of analysis tools to find patterns in large transaction databases
Knowledge work system. (KWs)• Knowledge workers perform three key roles that are critical to the organization
and to the managers who work within the organization:• Keeping the organization current in knowledge• Serving as internal consultants regarding the areas of their knowledge• Acting as change agents• Knowledge workers rely on traditional office systems but often require highly
specialized knowledge work systems with powerful graphics, analytical tools, and communications and document management capabilities. These systems require great computing power, access to external databases, easy-to-use interfaces, and optimization for the specific tasks to be performed.
Examples of knowledge work systems include:
CAD/CAM systems: Computer-aided design (CAD) and Computer-aided manufacturing (CAM) systems automate the creation and revision of designs, using computers and sophisticated graphics software. They provide engineers, designers, and factory managers with precise manufacturing control over industrial design and manufacturing
Virtual reality systems: These use interactive graphics software to aid drug designers, architects, engineers, and medical workers by presenting precise, three-dimensional simulations of objects.
Investment workstations: These are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.
MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS. However, in today's world MIS a computerized business processing system generating information for the people in the organization to
meet the information needs decision making to achieve the corporate objective of the organization. In any organization, small
or big, a major portion of the time goes in data collection, processing, documenting it to the people. Hence, a major portion of
the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her
task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.
