MIS for Business Operations
In this chapter we will discuss the applications of MIS in various functional areas in any business org.
and ` other is short-term sources like bank borrowings etc.
. risk etc. Resources for Procurement of funds has basically two categories: long term sources like debentures. Each source has its own merits and demerits like cost. equity etc.FINANCE INFORMATION SYSTEM
Financial decision making deals with: ->Procurement or Raising of funds from various resources and ->Allocation to activities to maximise profits.
To achieve the above goal the financial manager has to perform various activities such as:
. one in long-term assets and the other is in short-term assets.Allocation can be made in two ways. we can say that financial management deals with reducing the cost of capital and proper utilization of funds to maximising the profits. In other words.
the manager is able to deposit this cash into a bank or in the other financial institution or in a short-term project.These systems also produce daily.
. weekly and monthly forecasts reports of cash receipt and payments which help the manager to identify future requirements. . This income will enhance the financial position of the org. management system collect information on all cash receipts and payments.Cash Management : .Cash . .Because of the fast retrieval of this information.
The portfolio of such securities can be managed with the help of portfolio management software. can invest their excess cash in short-term and low-risk securities or higher returns high risk securities.
.Investment Management : Investment management deals with kind and proportion of different securities to be maintained with in business org. A business org.
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 analysts typically use electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business.
. Financial Planning : The financial planning is concerned with the best overall financing for the business.
ACCOUNTING INFORMATION SYSTEM
Accounting systems are based on double-entry book keeping principles.
. pay roll and general ledgers system etc. comprises the inventory control. costing etc. Computerized Accounting Information System being the oldest and most widely used information systems in business.. Its branches include financial accounting.
People Resources : accounts manager. auditors. Software Resources: Hardware Resources:
Network Resources :
. financial analysts etc. Finance and accounting information system also has a number of subsystems which are: Data Resources : cash receipts. clerks. customer order etc.FINANCE AND ACCOUNTING INFORMATION SYSTEM
Finance and accounting as such are separate functions but are related to each other. owner.
.MARKETING INFORMATION SYSTEM
Marketing management is the process of planning and executing the pricing. A marketing information system is collection of data. promotion and distribution of goods and services to achieve organizational goals. tools and supporting hardware and software to achieve the above goals.
Advertising and Promotion: Marketing information system helps in selecting media and promotional methods and evaluate the results of various advertising and promotional campaigns. quick and accurate sales reports are available that help in analyzing sales by product. salesperson and so on.Marketing information system is also a collection of various subsystems such as : Sales Management : With the help of computer based sales management system. relevant to a specific marketing situation faced by the company. Market research information systems provide market intelligence to help managers make better forecasts.
. analysis and reporting of data and findings. collection. customer. territory. Market Research: Market research is the systematic design.
clerks. customer order etc. People Resources : Marketing manager. sales managers. Software Resources: Hardware Resources:
. sales representatives etc.Components of Marketing Information System: Data Resources : invoice. owner.
selection. maintain personnel records and analyze the use of personnel in business operations. along with these operations. supports recruitment. a business uses computer based information system to produce pay slips and payroll reports. of the human resources.
. performance appraisals.HUMAN RESOURCE INFORMATION SYSTEM Traditionally. training etc. But now the human resource information system.
The production information system has following various subsystems: Production Planning: .PRODUCTION/MANUFACTURING INFORMATION SYSTEM
Production management is the term used to refer to those activities which are necessary to manufacture goods and services.Drawing up the bills of materials
.Making drawings etc. .Drawing up the schedule .
Production Scheduling : .Minimise wastage
.Minimise the idle time Production Control: . 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 Engineering: Preparation of drawings. specifications.
. management attitude towards this activity . Research & Development Information System. conduct research with the help of some outside agency. analysis and reporting of data and findings relevant to a specific business situation being faced by the business org. of factors such as size of org.. conduct research. how an org. Sometimes org.RESEARCH & DEVELOPMENT INFORMATION SYSTEM
Whether to have a separate R&D department depends upon a no. is the systematic design. So it is not imp.