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 maximize 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 maximizing the profits. To achieve the above goal the financial manager has to perform various activities such as:

Financial Management

Cash Management

Investment Management

Capital Management

Financial 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 subsystems: 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.