MIS for Business Operations

In this chapter we will discuss the

applications of MIS in various functional
areas in any business org.
FINANCE INFORMATION SYSTEM
Financial decision making deals with:
->Procurement or Raising of funds from various resources and
->Allocation to activities to maximise profits.

Resources for Procurement of funds has basically two

categories:

long term sources like debentures, equity etc. and

`
other is short-term sources like bank borrowings etc.

Each source has its own merits and demerits like cost, risk etc.
 Allocation can be made in two ways, one in long-term assets and
the other is in short-term assets.

In other words, we can say that financial management deals with

reducing the cost of capital and proper utilization of funds to
maximising the profits.

To achieve the above goal the financial manager has to perform

various activities such as:

Financial Management

Cash Investment Capital Financial

Management Management Management Planning
 Cash Management :
- Cash , management system collect information
on all cash receipts and payments.
- Because of the fast retrieval of this information,
the manager is able to deposit this cash into a
bank or in the other financial institution or in a
short-term project. This income will enhance the
financial position of the org.
- These systems also produce daily, weekly and
monthly forecasts reports of cash receipt and
payments which help the manager to identify
future requirements.
Investment Management :
Investment management deals with kind and
proportion of different securities to be
maintained with in business org. A business org.
can invest their excess cash in short-term and
low-risk securities or higher returns high risk
securities.
The portfolio of such securities can be managed
with the help of portfolio management software.
Capital Budgeting :
Computerized capital Budgeting System incorporates
NPV or IRR method to analyze the expected cash
flow and risks to determine the optimum mix of capital
for a business.
Financial Planning :
The financial planning is concerned with the best
overall financing for the business.
Financial analysts typically use electronic spreadsheets
and other financial planning software to evaluate the
present and projected financial performance of a
business.
ACCOUNTING INFORMATION SYSTEM

Accounting systems are based on double-entry

book keeping principles.. Its branches include
financial accounting, costing etc.
Computerized Accounting Information System
being the oldest and most widely used
information systems in business, comprises the
inventory control, pay roll and general ledgers
system etc.
 FINANCE AND ACCOUNTING
INFORMATION SYSTEM
Finance and accounting as such are separate functions
but are related to each other. Finance and accounting
information system also has a number of subsystems
which are:
Data Resources : cash receipts, customer order etc.
People Resources : accounts manager, clerks, auditors,
owner, financial analysts etc.
Software Resources:
Hardware Resources:
Network Resources :
MARKETING INFORMATION SYSTEM
Marketing management is the process of planning
and executing the pricing, promotion and
distribution of goods and services to achieve
organizational goals.
A marketing information system is collection of
data, tools and supporting hardware and software
to achieve the above goals.
Marketing information system is also a collection of various
subsystems such as :
Sales Management :
With the help of computer based sales management system, quick
and accurate sales reports are available that help in analyzing sales
by product, territory, customer, salesperson and so on.
Advertising and Promotion:
Marketing information system helps in selecting media and
promotional methods and evaluate the results of various advertising
and promotional campaigns.
Market Research:
Market research is the systematic design, collection, analysis and
reporting of data and findings, relevant to a specific marketing
situation faced by the company.
Market research information systems provide market intelligence to
help managers make better forecasts.
Components of Marketing Information System:
Data Resources : invoice, customer order etc.
People Resources : Marketing manager, clerks, sales
managers, owner, sales representatives etc.
Software Resources:
Hardware Resources:
Network Resources
 HUMAN RESOURCE INFORMATION
SYSTEM
Traditionally, a business uses computer based
information system to produce pay slips and
payroll reports, maintain personnel records and
analyze the use of personnel in business
operations. But now the human resource
information system, along with these
operations, supports recruitment, selection,
performance appraisals, training etc. of the
human resources.
 PRODUCTION/MANUFACTURING
INFORMATION SYSTEM
Production management is the term used to refer
to those activities which are necessary to
manufacture goods and services. The production
information system has following various sub-
systems:
Production Planning:
- Making drawings etc.
- Drawing up the schedule
- Drawing up the bills of materials
Production Engineering:
Preparation of drawings, specifications, and
experimental activities in the product
engineering. Production engineers now a days
use computer-aided engineering to analyze and
evaluate the model of product design.
Production Scheduling :
- Minimise the idle time
Production Control:
- Minimise wastage
 RESEARCH & DEVELOPMENT
INFORMATION SYSTEM
Whether to have a separate R&D department
depends upon a no. of factors such as size of org.,
management attitude towards this activity .
Sometimes org. conduct research with the help of
some outside agency. So it is not imp. how an org.
conduct research.
Research & Development Information System, is
the systematic design, collection, analysis and
reporting of data and findings relevant to a
specific business situation being faced by the
business org.