Fundamental concepts of MIS

Meaning of MIS
Management Information System (MIS) is a term used to refer to a class of information systems, that provides the management with the information required for decision making.

 Three words which constitute MIS are

Management Information System

Management
It is the unseen force that drives the organization. The lifeblood of an organization. People performing various management roles in an organization are called managers. The most important task that managers perform is the task of taking decisions.

Information
Is the key ingredient for taking decisions. Information improves the quality of decision making. That s why information is the most important asset for managers. Information is created after processing data, mostly transaction level data. This transaction level data has to be captured , stored and then processed to create any meaningful information for managers.

System
A system can be defined as a set of interacting entities having interrelation, interconnections with each other, forming an integrated whole. A system means a process(technology enabled) for capturing data , storing it and then processing / analyzing it to provide information.

 Information systems that help a management in taking decisions are called management information systems. MIS consists of a set of information systems working towards the common goal of achieving greater efficiency in decisionmaking at each level of management.

 MIS deals with internally- generated information. The in house data is processed (summarized/aggregated) to create reports , which helps a management at different levels in taking decisions. MIS is designed in order to achieve information flow , which is based on the need to know principle.

 E.g. for MIS

Enterprise Resource Planning System.(ERP) Customer Relationship Management System(CRM) Supply Chain Management System(SCM)

 MIS is a set of systems , which helps the management of an organization at different levels to take better decisions by providing the necessary information. MIS is not a monolithic entity but a collection of systems , which provides a user with a monolithic feel.

 The different subsystems working in the background have different objectives, but work in concert with each other to satisfy the overall requirement of managers for good quality information.

 The decision taken by the managers differ in terms of

Complexity Information requirement for taking the decision. Relevance Effect on the organization Degree of structured behavior of the decision making process.

Information System (IS)

It is concerned with processing the raw facts into information and transferring this information to the users. Information system can be two types
Manual IS ( that uses pen, pencil or paper technology) Computer based IS (CBIS) (uses IT to perform its various tasks.)

 IT refers to all the components that a system needs to operate including the following.
Software
Operating system s/w, database management s/w, web browsers etc.

Hardware
Servers, computers, I/O devices

Telecommunication
Modems, switches, routers etc

IS (information system) and ICT(information and communication technology)

Reasons for IS to run on ICT are as follows: Timeliness accuracy

ROLE OF MANAGEMENT
titular figurehead: respected within the organization, possess some special quality, contribution within the organization Leader: takes the responsibility of getting things done by inspiring and motivating other people. Liaison: interacts with social networks for business development and other related activities.

 Monitor: controls the organizational activities Information disseminator: relays information from top down and bottom up Spokesperson: communicates with the environment Entrepreneur: hunts for opportunities and initiates changes Troubleshooter: solves organizational problems and does midcourse corrections

 Allocator of resources: decides on the quantum of resources required for completing resources under his domain Negotiator: acts as representative of organization keeping in mind the best interests of the organisation

Management reports
The means by which a data driven manager achieves his tasks is through the use of reports. reports convey to the managers: Whether the activities under his sphere of influence are proceeding according to his expectations. Insight or clue into some larger problems which might be happening in the organization

Types of reports
Scheduled reports: there are generated regularly. they are in nature of daily, weekly or monthly reports.they contain latest information On-demand reports: these are unscheduled and are created when managers need it. Exception reports: they are special reports which indicates the manager that some control need to be exercised to bring an issue under control

 Predictive reports: these are special reports which give manager a sneak preview of the future Summary reports: these are general reports which aggregate data and provide summarized information to manager to get a macro view . Regulatory and statutory report: these are created under the obligation to follow rules and statutes