Introduction to MIS:

MIS stands for management information system. It can be defined as:

“A computer-based system that provides managers with the tools and information to support the
operations, managements, analysis and decision-making functions in an organization.”

There are three elements of management information system.

 Managements
 Information
 System
i. Management:
It is an art of getting things through and with others. It is the process of planning,
organizing, leading and controlling.

ii.
Information:
The collection of
raw facts and
figures is known as
data. Information
is obtained by
processed
data in a system.
iii. System:
System is an orderly grouping of components that are arranged together to achieve a
desired goal or objective. Data is processed into information with the help of a system.

Input and output of MIS:

a. Input:
There are two sources of inputs to MIS.
i. Internal data sources include:
 TPSs and ERP systems and related databases
 Data warehouses and data marts
 Specific functional areas throughout the firm
ii. External data sources include:
 Customers, suppliers, competitors and stakeholders whose data is not already
captured by the TPS
 Internet
 Extranets
b. Output:
 Scheduled report: These reports are produced periodically or on a schedule
(daily, weekly, monthly).
 Key-indicator report: It summarizes the previous day’s critical activities like
sales, inventory etc.
 Demand report: It is developed to give certain information at someone’s request.
 Exception report: It is produced automatically when a situation is unusual or
requires management action.
 Drill Down report: It provides increasingly detailed data about a situation.
Types and Applications of MIS:
1. Financial MIS:
It provides financial information to all financial managers within an organization. The
finance function is responsible for managing the firm’s financial assets. In order to
determine whether the firm is getting the best return on its investments, the finance
function must obtain a considerable amount of information from sources external to the
firm.
2. Manufacturing MIS:
It is responsible for producing the firm’s goods and services. Manufacturing and
production activities deal with the planning, development, and maintenance of production
facilities; the establishment of production goals.
3. Marketing MIS:
It is responsible for selling the organization’s products or services. It is concerned
with identifying the customers for the firm’s products or services, determine what they
need or want, planning and developing products and services to meet their needs, and
advertising and promoting these products and services.
4. Human Resource MIS:
It is concerned with all of the activities related to employees and potential employees
of the organization. It supports in maintaining complete records on existing employees,
and creating programs to develop employees’ talents and skills.
5. Accounting MIS:
It provides aggregate information on accounts payable, accounts receivable, payroll
and many other applications.

6. Geographic MIS:
It is a computer system capable of assembling, storing, manipulating and displaying
geographic information.

Overview of MIS:
  It is an integrated collection of people, procedures, databases, and devices.
 It provides managers and decision makers with information to help achieve
organizational goals.
 It can give the organization a competitive advantage.
 It provides the right information to the right people in the right format and at the
right time.
 It provides managers with information that supports effective decision making and
provides feedback on daily operations.

Functional Aspects of MIS:

Management information system processes data into information in a system. This
information is then communicated to the various departments in an organization for
appropriate decision-making.

Information Decision
Data Communication

Management information systems perform three major activities. First, the sources of
information within the organization or outside the organization receives as input. The work
done on the received data allows the system to produce the desired information. Finally, the
user-generated information intended for a manager or an employee puts.
Advantages and Needs of MIS:

Needs:

MIS has vital importance for any organization because:

 It emphasizes on the management decision making.

 It emphasizes on the system framework that should be used for organizing information
system applications.
 It helps in processing of data generated by business operations.
 It provides information in the form of standardized reports and displays for the managers
to make decisions.

Advantages:

Management information system has many advantages. Some of them are given below:

 Market monitoring: It helps in identifying emerging market segments with respect to

various changes.
 Strategy development: It helps in formulating new marketing strategies.
 Functional integration: It helps in coordinating the activities of marketing department
with other departments.
 Management information systems give business owners the ability to collect, process and
interpret data. Data sets can include nearly all aspects of business operations, including
sales revenues, production costs and employee output. Business owners examine MIS
data, compare it to previous time frames and adjust their production strategies.
 A guiding principle of MIS is that all computer-related business processes work as a
single integrated system. An integrated system allows for improved communication
among executives, managers, department heads and employees.
 A business owner checks his MIS system and sees that his supply of components is not
sufficient to meet his production goals. The owner can then decide either to order more
components or to lower his production targets.