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Chapter 1- Intro to MIS

Chapter 1- Intro to MIS



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Published by: ridhimaamit on Aug 03, 2009
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Chapter 1Introduction
Before one can explain management information systems, the terms
must briefly be defined.
is a combination or arrangement of parts to form an integrated wholeaccording to some common principles or rules. A system is a plan or method of doing something.
A system is an assembly of elements arranged in a local order toachieve certain objectives. The organization is also a system of people where people areselected on the basis of number, quality and ability and are placed in hierarchical order  plan and execute the business activities to achieve certain goals and objectives.A system is a scientific method of inquiry, that is, observation, the formulation of an idea,the testing of that idea, and the application of the results. The scientific method of  problem solving is systems analysis in its broadest sense. Data are facts and figures.However, data have no value until they are compiled into a system and can provideinformation for decision making.
is what is used in the act of informing or the state of being informed.Information includes knowledge acquired by some means.
It is processed data which inturn is collection of raw facts, observations and figures.
is usually defined as planning, organizing, directing, staffing andcontrolling the business operation. This definition, which evolved from the work of HenriFayol in the early 1900s, defines what a manager does, but it is probably moreappropriate to define what management is rather than what management does.
Management is the process of allocating an organization's inputs, including humanand economic resources, by planning, organizing, directing, and controlling for thepurpose of producing goods or services desired by customers so that organizationalobjectives are accomplished
. If management has knowledge of the planning, organizing,directing, and controlling of the business, its decisions can be made on the basis of facts,and decisions are more accurate and timely as a result.
Definition of MIS
 Management information systems
are those systems that allow managers to makedecisions for the successful operation of businesses.
MIS refers broadly to a computer- based system that provides managers with the tools for organizing, evaluating andefficiently running their departments. In order to provide past, present and predictioninformation, an MIS can includesoftwarethat helps in decision making, data resourcessuch asdatabases, thehardwareresources of a system,decision support systems, people management and project managementapplications,and any computerized processes thatenable the department to run efficiently.
Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include
 IS (Information Services)
 IT (Information Technology).
 'MIS' is a planned system of collecting, processing, storing and disseminating data in theform of information needed to carry out the functions of management. According toPhillip Kotler "A marketing information system consists of people, equipments, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurateinformation to marketing decision makers."The terms MIS and information system are often confused. Information systems includesystems that are not intended for decision making. MIS is sometimes referred to, in arestrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focuseddiscipline. MIS has also some differences with Enterprise Resource Planning (ERP) asERP incorporates elements that are not necessarily focused on decision support.Management information system would mean a set of computer based systems and procedures implemented to help managers in their crucial job of decision making. Theactual process of MIS will involve the collection, organization, distribution and storage of organization-wide information for managerial analysis and control. It is better understoodif these components are understood. Management Information Systems (MIS), sometimesreferred to as Information Management and Systems, is the discipline covering theapplication of people, technologies, and procedures — collectively called informationsystems — to solving business problems. Management Information Systems are distinctfrom regular information systems in that they are used to analyze other informationsystems applied in operational activities in the organization. Academically, the term iscommonly used to refer to the group of information management methods tied to theautomation or support of human decision making, Business computers were used for the practical business of computing the payroll and keeping track of accounts payable andreceivable. As applications were developed that provided managers with informationabout sales, inventories, and other data that would help in managing the enterprise, theterm "MIS" arose to describe these kinds of applications. Today, the term is used broadlyin a number of contexts and includes (but is not limited to): decision support systems,resource and people management applications, project management, and databaseretrieval application.
Management information systems consist of computer resources, people, andprocedures used in the modern business enterprise.
The term
stands for management information systems. MIS also refers to the organization that develops andmaintains most or all of the computer systems in the enterprise so that managers canmake decisions.
The goal of the MIS organization is to deliver information systems tothe various levels of corporate managers
. MIS professionals create and support thecomputer system throughout the company. Trained and educated to work with corporatecomputer systems, these professionals are responsible in some way for nearly all of thecomputers, from the largestmainframeto the desktop and portable PCs.
Components of MIS
The three components of MIS are:1.Concept of Management2.Information3.Information system
A. Concept of Management
Management information Systems (MIS), sometimes referred to as InformationManagement and Systems, are the discipline covering the application of people,technologies, and procedures — collectively called information systems — to solving business problems. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied inoperational activities in the organization. Academically, the term is commonly used torefer to the group of information management methods tied to the automation or supportof human decision making, e.g. Decision Support Systems, Expert systems, andExecutive information systems.MIS - Management information System - a monthly (usually) generated by bigcompanies to find out where they are standing out in the business. For example eachdepartment viz., Production, Marketing, HR, and Finance etc will report & submit their reports according the requirement of the management as below Production: No. of Unitsreduced, Wastages, Target for the month Vs achieved, Reason & justification of anydownfall, At last backlog & proposed date of shipment. Marketing: No. Orders procured/executed/lost - Reason viz price high or Discount could not be extended, Adetailed report on pros & cons of marketability. HR: Monthly Manpower turnout withreasons Finance: Interest recd/paid, Interest Lost due to delayed receipts. Finance chargesincurred and so on
B. Information
 It is other way considered as collection of data. In fact the words are different. Data refersto facts. These facts may be expressed in numerical, text, image or voice. Data usuallytake the form of historical records.As businesses have evolved, the need for both fast access to quality intelligence andindependence at the business unit level have made it imperative and challenging tomanage information assets more effectively, efficiently and wisely. Developing andimplementing a complete strategy for how information about suppliers, customers,competitors and global markets is obtained, validated, stored, managed, accessed,analyzed and distributed is now central to organizational survival and profitability.To make the most of opportunities, organizations must maximize the business value of information and leverage investments made in all data management technologies. The

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