2. Definition
•
Management Information Systems (MIS), referred to as
Information Management and Systems, is the discipline
covering the application of people, technologies, and
procedures collectively called information systems, to
solving business problems.
•
“'M ' is a planned system of collecting, storing and
IS
dissem
inating data in the form of inform
ation needed to carry
out the functions of m
anagem
ent.”
3. Advantages
•
•
•
Companies are able to highlight their strengths and
weaknesses due to the presence of revenue reports,
employees' performance record etc. The identification of
these aspects can help the company improve their business
processes and operations.
Giving an overall picture of the company and acting as a
communication and planning tool.
The availability of the customer data and feedback can help
the company to align their business processes according to
the needs of the customers. The effective management of
customer data can help the company to perform direct
marketing and promotion activities.
4. Characteristics
• Systems Approach
• Management Oriented
• Need Based
• Exception Based
• Future Oriented
• Integrated
• Common Data Flow
• Long Term Planning
• Sub System Concept
• Central database
6. Information in MIS
•
Information is the product of data processing.
Information is interrelated data. Information is
equivalent to finished goods produced after processing
the raw material. The information has a value in
decision making. Information brings clarity and creates
an intelligent human response in the mind.
Information Generation
7. Types of Information
•
Formal Information System
•
Informal Information System
•
Computer Based Information System
-Transaction Processing System (TPS)
-Management Information System(MIS)
-Decision Making System (DSS)
-Office Automation System (OAS)
8. STRUCTURE OF MIS
Approaches
• Physical Components
• Information System Processing Functions
• Decision Support
• Levels of Management Activities
• Organizational Functions
9. Based on Physical Components
• Hardware: E.g. CPU, Monitor, Keyboard, Printer etc.
• Software: E.g. System and Application S/W.
• Database: E.g. Data stored in files.
• Procedures: E.g. Manuals etc.
• Operating Personnel: E.g. Computer Operators,
Programmers, System Analysts, System Manager etc.
• Input & Output: E.g. Printouts, Reports etc.
10. Based on Processing Functions
•
To Process Transactions: E.g. Making a purchase or a
sale of a product.
•
To Maintain Master Files: E.g. For preparing an
employee’s salary, required data items are Basic Pay,
Allowances, Deductions etc.
•
To Produce Reports: For e.g. Specific or Adhoc reports
•
To Process Enquiries: For e.g. Regular or Adhoc
enquiry.
•
To Process interactive Support Applications: E.g.
Applications designed for planning, analysis and
decision making.
11. MIS Support for Decision Making
Structured / Programmable Decisions:
• Decisions that are repetitive, routine and have a
definite procedure for handling them.
• For e.g. Inventory reorder formula, Rules for granting
Credit.
Unstructured / Non-Programmable Decisions:
• Non-routine decision in which the decision maker must
provide judgment, evaluation, and insights into the
problem definition. O For e.g.
Semi-Structured Decisions:
• Decision where only part of the problem has a clear cut
answer provided by an accepted procedure.
12. Based on Management Activities
LEVEL
COMMENTS
Strategic Planning
Deals with long range
considerations. Definitions of
Goals, Policies & General
Guidelines Charting Course for
Organization. Determination of
Organizational Objectives
Management Control & Tactical
Planning
It has medium term planning
horizon. Acquisition of resources,
Acquisition Tactics, Plant Location,
New Products.
Establishment & Monitoring of
Budgets
Operational Planning & Control
It is related to short-term decisions
for current operations. Effective &
efficient use of existing facilities &
resources to carry out activities
within budget constraints
15. Management Activities
•
Levels of management: In order to understand who the
users of an MIS are and what information they need, one
must first understand the levels of management and the
types of decisions are made at each level.
16. Levels of management
1. Lower level management makes decisions that affect
day to day operations.
2. Middle-level mgrs. plan working capital, schedule
production, formulate budgets, and make short-term
forecasts.
3. Top-level mgrs. provide direction for the company by
planning for the next five years +.
17. Too Many Information Systems!
X University has of late expanded very rapidly introducing a
number of programs and increasing student intake capacity. It has
recently computerized its examination process based on some
off-the shelf software. The library had already been computerized
a couple of years back using a freely distributed Library
Automation System. Daily cash transactions are also handled by
computers in the Finance and Accounting Division, using an
accounting software. For further improvement of efficiency, the
new governing body of the University have entrusted the task of
developing an MIS for the University to a Software Company.
All these developments were welcomed by a cross-section of the
University Community except a few. One of them is a faculty
member at the Management Science Department who
commented that the University is burdening itself with too many
independent information systems. He strongly favored an
integrated information system on the lines of an ERP for a
business organization.
