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A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.[1] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.[1]

It has been described as, "MIS 'lives' in the space that intersects technology and business. MIS combines tech with business to get people the information they need to do their jobs better/faster/smarter. Information is the lifeblood of all organizations - now more than ever. MIS professionals work as systems analysts, project managers, systems administrators, etc., communicating directly with staff and management across the organization." [2]

Contents

Overview

At the start, in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and instead of the collection of mass of data, important, and to the point data that is needed by the organization was stored.

In their infancy, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and accounts receivable. As applications were developed that provided managers with information about sales, inventories, and other data that would help in managing the enterprise, the term "MIS" arose to describe these kinds of applications. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, ERP, SCM, CRM, project management and database retrieval application.

An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities that were planned and executed. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." [3]

The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support.

Professor Allen S. Lee states that "...research in the information systems field examines more than the technological system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge when the two interact." [4].

 MANAGEMENT INFORMATION SYSTEM is defined as :-
 1)Provides information support for decision making in the organization
 2)MIS is an integrated system of man and machine for providing the information to support the operation .
 3)MIS is defined as a computer based information system.

See also

What are Management Information Systems?

Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation.

The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making. Applications of MIS With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

  • Strategy Support

While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.

  • Data Processing

Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific.

The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analysed by decision-makers.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.

Core Competencies

Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.

References

  1. ^ a b O’Brien, J (1999). Management Information Systems – Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill. ISBN 0071123733. 
  2. ^ http://www.ssu.edu/isystems/
  3. ^ Kotler, Philip; Keller, Kevin Lane (2006). Marketing Management (12 ed.). Pearson Education. 
  4. ^ Lee |first= Allen S. |authorlink= Allen S Lee |coauthors= |year= 2001 |month= |title=Editor’s Comments |journal= MIS Quarterly |volume=25 |issue=1 |pages=iii-vii |id= |url= |format= |accessdate= |nopp= true }}

External links

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Study guide

Up to date as of January 14, 2010

From Wikiversity

INTRODUCTION-MIS

What Management Information system(MIS) is all about? Indeed, for a question like this, the perception could be that its all about computers or its all about Computer Software and Hardware. some people may percieve that it's all about programming. However, it should be noted that all these perceptions could be partially right, but the perfect answer is something totally different. To understand about MIS one should realize the distinct 'Information Component' encircling every individual in this world! Information is considered to be the wealth when it can really make the difference between the profit and loss of an enterprise. Information is considered to be luck when it can make a difference between a win and a loss in a bet. Information is considered to be an opportunity, when it can provide the avenues for further prosperity. Thus information is capable of playing different roles in every individual's life. In the Scientific Management Process the effective planning, efficient organizing and strategic decision-making revolves around critical information and their availability at appropriate time.

INFORMATION COMPONENT AND BUSINESS

In the Scientific Management Process the widely accepted functional components are

(i)Marketing (ii)Human Resource Management (iii)Finance and (iv) Production or Operation.

All these functional components can be easily visualized in every business models.

Business Model with different Information Components

MANAGEMENT INFORMATION SYSTEM:


Marketing information :- 1. Product positioning details 2. competitive analysis and related information

Human Resource Information :- 1. Travel policies 2. Benefit profiles 3. Training programs

Training :- 1. Class registration details 2. courses available 3. training profiles

Finance Information :- 1. Quarterly report 2. annual report 3. stockholder details

Sales Information :- 1. Competitive Analysis 2. current sales details 3. customer information

Customer information :- 1. customer feedback 2. customer visits and details

Manufacturing information :- 1. total quality management 2. product schedule details


Management Information Systems can be subdivided into two classes: Financial Reporting Systems (FRS) and Operating Information Systems (OIS).

FRS encompass highly recognized financial reports such as Income Statements, Balance Sheets, Cash Flow, "Registers" such as Accounts Receivable Register, and other business-specific reports.

OIS are the crucial information of a non-financial nature that businesses require to manage and monitor vital information. The number and types of reports used vary widely. One idea of how to create OIS reports is the concept of the key variable, that is, the one or two pieces of management information that must be reviewed daily in order to verify that the business is working well. For instance, in the trucking industry, it might be said that the number of miles logged by all trucks the previous day is a key variable that indicates the direction of profits/success. This information might be the one piece of data the owner/general manager requires to be on his/her desk in the morning. If the number looks good, it's business-as-usual that day, but if not, he/she begins the work to get that number up.

TYPES OF INFORMATION

Before discussing the types of information, it is quite appropriate to understand the difference between the data and information. Data is nothing but an abstract representation of a number, alphabets or a symbol. The data is required to be processed in different ways to obtain different types of informations.

Information is Classified into :

1.Strategic Information

2.Tactical Information

3.Operational Information

4.Statutory Information.


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