Management Information Systems

Introduction to Information Systems:

In businesses and organizations, Information Systems are defined as:

• Information Systems are technically, a union of software, hardware, and the intercommunication
networks between the people working there used to collect, share and distribute data.

They are a mean to store data and other communications safely and efficiently for streamline business
operations.

Types of Information Systems:

There are many types of Information Systems, depending upon their use cases, but for
now we will only discuss MIS in our domain.

Management Information Systems:

In business administration, MIS is defined as the study of organizations, people
working in that organization, technology used and the interactions between them. MIS is very crucial for
organizations and firms as it helps them to maximize their return from investment in their workforce
and processes. MIS is mainly focused towards people and providing service through technology. MIS
provides information to help businesses and companies in order to speed up the decision-making
processes. This system makes use of computer systems, data analysis models, planning, and database
management.

In the past, before the advent of computers, MIS has existed in many companies but
they had poor processing power and decision-making. But when computers got introduced into the
companies, they were initially used for data-processing. But as the time grew, computers became way
more powerful and fast, more data-related tasks were handed over to computer. This hard-work paved
way for further developments and ultimately, a computer-based Information system (CBIS) which
eventually became MIS of today.

The future is bright for MIS too, we will witness a widespread use of systems using
Artificial Intelligence to detect problems and provide solution for them.

Components of Management Information Systems:

Typically, Management Information systems are comprised of five parts, namely:

1. Software: Software consists of a set of instructions that tell a computer what to do. Software is
created by programmers and intended to be used by computers. Depending on their use
scenario, there are two types of software : System Software and Application Software. System
Software is responsible for managing tasks of the operating system while the Application
Software performs other tasks for user like Word Processor, Playing Games etc.
2. Hardware: Hardware is the portion of the information system that we can touch and feel. It
consists of physical tangible parts of the Information Systems. It includes all the physical parts
 and the devices connected to the computer. Some examples include Input Devices, RAMs and
Processor.
3. Data: Data is the collection of information that is fed into the computer to be processed. It
consists of raw facts ready to be processed by the system.
4. People: All the people that are related to Information System from Developer to Data Analyst as
they are crucial to the system. Data can either be quantitative or qualitative. The processed data
is called information
5. Process: A process is a step of instructions that tell how to perform a task or goal. A process can
be more specified into algorithm which provides nitty gritty details of the work.

The last 2 parts deviate from the technical aspect of Management Information Systems as they are the
only non-technical parts of information system but they are the backbone of MIS.

Core Concepts of Management Information System:

The idea of MIS has been around from 1960s and has been evolving ever since but the
core concepts have remained the same no matter what. These core concepts are:

 Management: Management is the essential part of a MIS. Any business van not survive
without management. Management helps in getting job done through other people. The basic
chores in management include planning, controlling staff and organizing. Decision making is also
a very important one in this case.
 Information: Information is the fundamental concept in MIS. Information consists of
processed data and conveys a meaning to the user. Management is supposed to get information
at times of need. This information is important because it is needed to plan, manage and control
the business. The validity of any information depends on a number of factors e.g. The timing
and the type of the information presented to management. Information is needed when the
management is going to make some important decisions.
 System: A system is defined as the group of particles when then join up later for a common
cause. A system has an orderly arrangement based on one rules and regulations. The 3 elements
of a system are Input, Processing and Output. In a manufacturing corporation, the input is the
raw material. Then it gets processed by passing it through many processing machineries and
converts into finished project which is the output of the system.

Conclusion:
Thus we can conclude on the fact that MIS is a crucial part of many businesses
nowadays and helps to maintain and control their records. It helps to maximize their revenue and
increases reliability. These MIL are constantly improving day by day. Though in the near future, they will
be guided by Artificial Intelligence and this will be the beginning of a new era in Information Systems.