Management information system

A management information system (MIS) is an information system[1] used for decision-making, and for
the coordination, control, analysis, and visualization of information in an organization. The study of the
management information systems involves people, processes and technology in an organizational
context.[2][3]

In a corporate setting, the ultimate goal of the use of a management information system is to increase the
value and profits of the business.[4] This is done by providing managers with timely and appropriate
information allowing them to make effective decisions within a shorter period of time.[5]

Contents
History
Technology
Management
Types
Advantages and disadvantages
Enterprise applications
See also
References
External links

History
While it can be contested that the history of management information systems date as far back as companies
using ledgers to keep track of accounting, the modern history of MIS can be divided into five eras
originally identified by Kenneth C. Laudon and Jane Laudon in their seminal textbook Management
Information Systems.[6][7]

First Era – Mainframe and minicomputer computing

Second Era – Personal computers
Third Era – Client/server networks
Fourth Era – Enterprise computing
Fifth Era – Cloud computing

The first era (mainframe and minicomputer computing) was ruled by IBM and their mainframe computers
for which they supplied both the hardware and software. These computers would often take up whole
rooms and require teams to run them. As technology advanced, these computers were able to handle greater
capacities and therefore reduce their cost. Smaller, more affordable minicomputers allowed larger
businesses to run their own computing centers in-house / on-site / on-premises.
The second era (personal computers) began in 1965 as microprocessors started to compete with
mainframes and minicomputers and accelerated the process of decentralizing computing power from large
data centers to smaller offices. In the late 1970s, minicomputer technology gave way to personal computers
and relatively low-cost computers were becoming mass market commodities, allowing businesses to
provide their employees access to computing power that ten years before would have cost tens of thousands
of dollars. This proliferation of computers created a ready market for interconnecting networks and the
popularization of the Internet. (The first microprocessor—a four-bit device intended for a programmable
calculator—was introduced in 1971, and microprocessor-based systems were not readily available for
several years. The MITS Altair 8800 was the first commonly known microprocessor-based system,
followed closely by the Apple I and II. It is arguable that the microprocessor-based system did not make
significant inroads into minicomputer use until 1979, when VisiCalc prompted record sales of the Apple II
on which it ran. The IBM PC introduced in 1981 was more broadly palatable to business, but its limitations
gated its ability to challenge minicomputer systems until perhaps the late 1980s to early 1990s.)

The third era (client/server networks) arose as technological complexity increased, costs decreased, and the
end-user (now the ordinary employee) required a system to share information with other employees within
an enterprise. Computers on a common network shared information on a server. This lets thousands and
even millions of people access data simultaneously on networks referred to as Intranets.

The fourth era (enterprise computing) enabled by high speed networks, consolidated the original
department specific software applications into integrated software platforms referred to as enterprise
software. This new platform tied all aspects of the business enterprise together offering rich information
access encompassing the complete management structure.

Technology
The terms management information system (MIS), Information management system (IMS), information
system (IS), enterprise resource planning (ERP), computer science, electrical computer engineering, and
information technology management (IT) are often confused. MIS is a hierarchical subset of information
systems. MIS are more organization-focused narrowing in on leveraging information technology to increase
business value. Computer science is more software-focused dealing with the applications that may be used
in MIS.[8] Electrical computer engineering is product-focused mainly dealing with the hardware
architecture behind computer systems. ERP software is a subset of MIS and IT management refers to the
technical management of an IT department which may include MIS.

A career in MIS focuses on understanding and projecting the practical use of management information
systems. It studies the interaction, organization and processes among technology, people and information to
solve problems.[9]

Management
While management information systems can be used by any and every level of management, the decision
of which systems to implement generally falls upon the chief information officers (CIO) and chief
technology officers (CTO). These officers are generally responsible for the overall technology strategy of
an organization including evaluating how new technology can help their organization. They act as
decision-makers in the implementation process of new MIS.

Once decisions have been made, IT directors, including MIS directors, are in charge of the technical
implementation of the system. They are also in charge of implementing the policies affecting the MIS
(either new specific policies passed down by the CIOs or CTOs or policies that align the new systems with
the organization's overall IT policy). It is also their role to ensure the availability of data and network
services as well as the security of the data involved by coordinating IT activities.

Upon implementation, the assigned users will have the appropriate access to relevant information. It is
important to note that not everyone inputting data into MIS need necessarily be management level. It is
common practice to have inputs to MIS be inputted by non-managerial employees though they rarely have
access to the reports and decision support platforms offered by these systems.

Types
The following are types of information systems used to create reports, extract data, and assist in the decision
making processes of middle and operational level managers.

Decision support systems (DSSs) are computer program applications used by middle and
higher management to compile information from a wide range of sources to support problem
solving and decision making. A DSS is used mostly for semi-structured and unstructured
decision problems.
Executive information system (EIS) is a reporting tool that provides quick access to
summarized reports coming from all company levels and departments such as accounting,
human resources and operations.
Marketing information systems are management Information Systems designed specifically
for managing the marketing aspects of the business.
Accounting information systems are focused accounting functions.
Human resource management systems are used for personnel aspects.
Office automation systems (OAS) support communication and productivity in the enterprise
by automating workflow and eliminating bottlenecks. OAS may be implemented at any and
all levels of management.
School Information Management Systems (SIMS) cover school administration, often
including teaching and learning materials.
Enterprise resource planning (ERP) software facilitates the flow of information between all
business functions inside the boundaries of the organization and manage the connections to
outside stakeholders.[10]
Local databases, can be small, simplified tools for managers and are considered to be a
primal or base level version of a MIS.

Advantages and disadvantages

The following are some of the benefits that can be attained using MIS:[11]

Improve an organization's operational efficiency, add value to existing products, engender

innovation and new product development, and help managers make better decisions.[12]
Companies are able to identify their strengths and weaknesses due to the presence of
revenue reports, employee performance records etc. Identifying these aspects can help a
company improve its business processes and operations.
Giving an overall picture of the company.
Acting as a communication and planning tool.
The availability of customer data and feedback can help the company to align its business
processes according to the needs of its customers. The effective management of customer
data can help the company to perform direct marketing and promotion activities.
MIS can help a company gain a competitive advantage.
 MIS reports can help with decision-making as well as reduce downtime for actionable items.

Some of the disadvantages of MIS systems:

Retrieval and dissemination are dependent on technology hardware and software.

Potential for inaccurate information.

Enterprise applications
Enterprise systems—also known as enterprise resource planning (ERP) systems—provide
integrated software modules and a unified database that personnel use to plan, manage,
and control core business processes across multiple locations. Modules of ERP systems
may include finance, accounting, marketing, human resources, production, inventory
management, and distribution.[13]
Supply chain management (SCM) systems enable more efficient management of the supply
chain by integrating the links in a supply chain. This may include suppliers, manufacturers,
wholesalers, retailers, and final customers.[14]
Customer relationship management (CRM) systems help businesses manage relationships
with potential and current customers and business partners across marketing, sales, and
service.[15]
Knowledge management system (KMS) helps organizations facilitate the collection,
recording, organization, retrieval, and dissemination of knowledge. This may include
documents, accounting records, unrecorded procedures, practices, and skills. Knowledge
management (KM) as a system covers the process of knowledge creation and acquisition
from internal processes and the external world. The collected knowledge is incorporated in
organizational policies and procedures, and then disseminated to the stakeholders.[16]

See also
Bachelor of Computer Information Systems Enterprise architecture
Business intelligence Enterprise information system
Business performance management Enterprise planning system
Business rule Management by objectives
Corporate governance of information Online analytical processing
technology Online office suite
Data mining Real-time computing
Predictive analytics Real-time marketing
Purchase order request

References
1. Bourgeois, David T. (2014). Information Systems for Business and Beyond. The Saylo
Academy. p. 5.
2. "What is Management Information Systems?" (https://web.archive.org/web/2015050900322
8/http://mays.tamu.edu/info/what-is-mis/). Mays Business School. Archived from the original
(http://mays.tamu.edu/info/what-is-mis/) on May 9, 2015.
3. "Leveraging People Processes and Technology" (https://saunders.rit.edu/undergraduate/maj
ors-minors/management-information-systems-mis-degree-overview). Saunders College of
Business, Rochester Institute of Technology. 2017-04-28.
 4. "Management Information Systems" (https://www.umassd.edu/charlton/programs/mis/).
umassd.edu. University of Massachusetts Dartmouth. Retrieved 2018-04-11.
5. Lucey, Terry; Lucey, Terence (2004). Management Information Systems (https://books.googl
e.com/books?
id=A0bu30rNgJsC&q=what+is+management+information+system&pg=PR14). Cengage
Learning EMEA. ISBN 978-1-84480-126-8.
6. Laudon, Kenneth C.; Laudon, Jane P. (2009). Management Information Systems: Managing
the Digital Firm (11 ed.). Prentice Hall/CourseSmart. p. 164.
7. Boykin, George (2017-09-26). "The History of Management Information Systems" (https://bizf
luent.com/about-5444925-history-management-information-systems.html). bizfluent.com.
Retrieved 2018-04-26.
8. The University of Arizona (2014-08-04). "What is MIS?" (https://mis.eller.arizona.edu/what-is-
mis). Retrieved 2018-04-26.
9. "Management Information Systems Aka MIS: A Versatile Degree in a Growing Field" (http://ji
ndal.utdallas.edu/blog/management-information-systems-mis-degree-growing-field). JSOM
Perspectives. Retrieved 2020-02-17.
10. Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1. John Wiley & Sons, Inc. p.
707.
11. (1995), Strategic Information Systems Planning: A Review. Information Resources
Management Association International Conference, May 21–24, Atlanta.
12. "Delivering Business Analytics and Technology Solutions" (https://saunders.rit.edu/undergra
duate/majors-minors/management-information-systems-mis-degree-overview). Saunders
College of Business, Rochester Institute of Technology. 2017-04-28.
13. Costa, A; Ferreira, C.; Bento, E.; Aparicio, F. (2016). "Enterprise resource planning adoption
and satisfaction determinants". Computers in Human Behavior. 63: 659–671.
doi:10.1016/j.chb.2016.05.090 (https://doi.org/10.1016%2Fj.chb.2016.05.090).
hdl:10071/12282 (https://hdl.handle.net/10071%2F12282).
14. Taylor, Victoria. "Supply Chain Management: The Next Big Thing?" (http://www.businesswe
ek.com/business-schools/supply-chain-management-the-next-big-thing-09122011.html).
Sept. 12, 2011. Business Week. Retrieved 5 March 2014.
15. Lynn, Samara. "What is CRM?" (https://www.pcmag.com/article2/0,2817,2391297,00.asp).
PC Mag. Retrieved 5 March 2014.
16. Joshi, Girdhar (2013). Management Information Systems (http://www.oup.co.in/product/highe
r-education/business-management/business-management/6/management-information-syste
ms-1e/9780198080992). New Delhi: Oxford University Press. p. 328. ISBN 9780198080992.

External links
Index of Information Systems Journals (http://lamp.infosys.deakin.edu.au/journals/)
MIS Links (http://www.chris-kimble.com/Courses/mis/mis_links.html) (University of York)
Executive Information Systems: Minimising the risk of development (http://www.chris-kimble.
com/Research/Executive-Information-Systems.html)
RIT Saunders College of Business – MIS - What is MIS? (https://saunders.rit.edu/mis)
Central Michigan University – MSIS (https://www.cmich.edu/colleges/cba/academic_progra
ms/grad/msis/Pages/default.aspx)
University of Alabama Birmingham – MSIS (http://businessdegrees.uab.edu/mis-degree-ma
sters/)
Northwestern University – MSIS (http://sps.northwestern.edu/program-areas/graduate/inform
ation-systems/)
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