MIS – Management MIS – Management Information SystemInformation System

Prof. Purvish ShahProf. Purvish Shah

MIS: It is a general term for the computer Systems in an enterprise that provide information about its business operations

Management information system is study of use of computer in business.

This is separate from Computer science orHardware and networking course and should Not be confused with.

In MIS concentration is not on developingSoftware, preparing programs or learning About the networking solutions.

PURPOSE and SCOPE Of MIS:

The Purpose and Scope of MIS can be defined as “The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning”.

FOR BETTER INFORMATION SYSTEM BELOWGIVEN NEEDS TO BE TAKEN CARE OF:

-Handling of a voluminous data.-Confirmation of the validity of data & transaction.-Complex processing of data and multi-dimensional -analysis.-Quick search & retrieval.-Mass Storage.-Communication of the information system to the user on time.-Fulfilling the changing needs of the information

MIS Definition:

MIS is system which provides information support for decision making in organization

OR

It is considered to be integral system of man and machine for providing the information to supportThe operations, the management and the decision making function of organization.

[ It is a system to support decision making]

EVOLUTION OF MIS:

-Usage was started in 1960’s but was limited only to very large corporate.

-In 1970 Decision support system was introduced.These were interactive systems and user could choose between number of options and configurations.

-In 1980 was the time of decentralized computers. And birth of “AI” along with expert systems.

- In 1990 strategic information system was in use.

EVOLUTION OF MIS:

- The initial concept of MIS was to process data from the organization and present it in thefor of reports at regular intervals.

System was capable of only handling the data from collection to processing.

-Each individual was required to choose the required data and use it for his requirement.

- As the time has progressed concept of data collection was changed to decision making system.

- Over the period of time MIS has started using concepts of Principals of Management as its base.

- It has become dynamic concept which is subject to change.

-Role of individual has reduced in data gathering part.

ROLE OF MANAGEMENT INFORMATION SYSTEM:

The role of the MIS in an organization can be compared to the role of heart in the body.

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.

- Over the period of time MIS has started using concepts of Principals of Management as its base.

- It has become dynamic concept which is subject to change.

-Role of individual has reduced in data gathering part.

ADVANTAGES:

1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision – making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

Cont…

4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .

5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information

USER OF MIS IN ORGANIZATION:

EVERY ONE USES MIS IN AN ORGANIZATION

CLERK: clerk can use the MIS for a quick search and reporting the same data to higher level.

ASSISTANT: With the help of MIS can collecting and organizing the data, and conducting a rudimentary analysis of integrating the data.

MANAGER: MIS provides action oriented information can be used as a strategic weapon to counter the threats to business, make business more competitive

Five Elements of Five Elements of usable MISusable MIS TimelinessTimeliness AccuracyAccuracy ConsistencyConsistency CompletenessCompleteness RelevanceRelevance

Characteristics of Characteristics of Management Information Management Information SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formats standard formats – Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End user can develop custom reportsEnd user can develop custom reports Requires formal requests from usersRequires formal requests from users

MIS for Competitive MIS for Competitive AdvantageAdvantage Provides support to managers as Provides support to managers as

they work to achieve corporate they work to achieve corporate goalsgoals

Enables managers to compare Enables managers to compare results to establish company results to establish company goals and identify problem areas goals and identify problem areas and opportunities for and opportunities for improvementimprovement

MIS and Web MIS and Web TechnologyTechnology Data may be made available from Data may be made available from

management information management information systems on a company’s internetsystems on a company’s internet

Employees can use browsers and Employees can use browsers and their PC to gain access to the their PC to gain access to the data.data.

Functional AspectsFunctional Aspects

MIS is an integral collection of MIS is an integral collection of functional information systems, functional information systems, each supporting particular each supporting particular functional areas.functional areas.

Financial MISFinancial MIS

Provides financial information to Provides financial information to all financial managers within an all financial managers within an organizationorganization

Inputs to the Financial Inputs to the Financial Information SystemInformation System Strategic plan or corporate policiesStrategic plan or corporate policies

– Contains major financial objectives Contains major financial objectives and and often projects financial needsoften projects financial needs

Transaction processing system (TPS)Transaction processing system (TPS)– Important financial information collected Important financial information collected

for almost every TPS – payroll, inventory for almost every TPS – payroll, inventory control, order processing, accounts control, order processing, accounts payable, accounts receivable, general payable, accounts receivable, general ledger.ledger.

– External sourcesExternal sources– Annual reports and financial statements of Annual reports and financial statements of

competitors and general news items.competitors and general news items.

Financial MIS Financial MIS Subsystems and OutputsSubsystems and Outputs

Financial subsystemsFinancial subsystems– Profit/loss and cost systemsProfit/loss and cost systems– AuditingAuditing– Internal auditingInternal auditing– External auditing External auditing – Uses and management of fundsUses and management of funds

Manufacturing MISManufacturing MIS

Inputs to the Inputs to the Manufacturing MISManufacturing MIS Strategic plan or corporate policiesStrategic plan or corporate policies The TPS:The TPS:

– Order processingOrder processing– Inventory dataInventory data– Receiving and inspecting dataReceiving and inspecting data– Personnel dataPersonnel data– Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory control Inventory control Manufacturing resource planning3Manufacturing resource planning3 Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing Computer-integrated manufacturing

(CIM)(CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Support managerial activities in Support managerial activities in product development, product development, distribution, pricing decisions, and distribution, pricing decisions, and promotional effectivenesspromotional effectiveness

Inputs of Marketing Inputs of Marketing MISMIS Strategic plan and corporate Strategic plan and corporate

policiespolicies The TPSThe TPS External sources:External sources:

– The competitionThe competition– The marketThe market

Marketing MIS Marketing MIS Subsystems and OutputsSubsystems and Outputs

Market researchMarket research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs– Provides aggregated information on Provides aggregated information on

accounts payable, account receivable, accounts payable, account receivable, payroll, and other applicationspayroll, and other applications

Geographical information systems Geographical information systems (GISs)(GISs)– Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data maps or map outlines with tabular data to describe aspects of a particular to describe aspects of a particular geographical region.geographical region.