MIS Management Information System Prof.

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 or Hardware and networking course and should Not be confused with.
In MIS concentration is not on developing Software, 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 BELOW GIVEN 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 support The 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 1960s 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 the for 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 usable MIS

Timeliness Accuracy Consistency Completeness Relevance

Characteristics of Management Information System

Provides reports with fixed and standard formats

Hard-copy and soft-copy reports

Uses internal data stored in the computer system End user can develop custom reports Requires formal requests from users

MIS for Competitive Advantage

Provides support to managers as they work to achieve corporate goals Enables managers to compare results to establish company goals and identify problem areas and opportunities for improvement

MIS and Web Technology

Data may be made available from management information systems on a companys internet Employees can use browsers and their PC to gain access to the data.

Functional Aspects

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

Financial MIS

Provides financial information to all financial managers within an organization

Inputs to the Financial Information System

Strategic plan or corporate policies

Transaction processing system (TPS)
Contains major financial objectives often projects financial needs

and

Important financial information collected for almost every TPS payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. External sources Annual reports and financial statements of competitors and general news items.

Financial MIS Subsystems and Outputs

Financial subsystems
Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds

Manufacturing MIS

Inputs to the Manufacturing MIS

Strategic plan or corporate policies The TPS:

Order processing Inventory data Receiving and inspecting data Personnel data Production process

External sources

Manufacturing MIS Subsystems and Outputs

Design and engineering Master production scheduling Inventory control Manufacturing resource planning3 Just-in-time inventory and manufacturing Process control Computer-integrated manufacturing (CIM) Quality control and testing

Marketing MIS

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

Inputs of Marketing MIS

Strategic plan and corporate policies The TPS External sources:

The competition The market

Marketing MIS Subsystems and Outputs

Market research Product development Promotion and advertising Product pricing

Human Resource MIS Subsystems and Outputs

Human resource planning Personnel selection and recruiting Training and skills inventory Scheduling and job placement Wage and salary administration

Other MISs

Accounting MISs
Provides aggregated information on accounts payable, account receivable, payroll, and other applications

Geographical information systems (GISs)

Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographical region.