Management Information System (MIS
Management Information System (MIS)
Faculty: Mr. Manish Kumar Sharma Sir Vikas,
By: Kshitiz & Himanshu
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Management Information System (MIS)
Presenting this project in the present form, we keenly feel to recognize the obligations of the personalities behind the screen. We wish to acknowledge the encouragement and inspiration we received from our Faculty Mr. Manish Kumar Sharma. We present our heartful gratitude to our project leader, who immersed him in the subject matter and kept us simulated throughout this endeavor.
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"MIS" or the "MIS department" refers to a central or centrally-coordinated system of computer expertise and management. and other data that would help in managing the enterprise. Basically.
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. The elements or corporate technology are studied and its application to specific business situations is discussed. often including mainframe systems but also including by extension the corporation's entire network of computer resources. In the beginning. Typically. Today. resource and people management applications. the term ‘MIS’ arose to describe these kinds of applications. As applications were developed that provided managers with information about sales. and database retrieval applications. This course shows students how Information Systems are used to support critical business operations and achieve strategic objectives. Students develop a small information system using Microsoft Access and use Excel as a decision support tool. in a large corporation.Management Information System (MIS)
Management Information System: Definition
MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems. Management Information Systems is the study of the use of computers in business. The MIS program is intended to be the first step in a life-long learning experience in the exciting and dynamic field of information technology. the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems. It provides a strong foundation for advancement and success in IT careers and ventures. project management. business computers were used for the practical business of computing the payroll and keeping track of accounts payable and receivable. inventories.
decision-making. IT service management is a practitioner-focused discipline centering on the same general domain. and not with computer engineering. and frequently involves software engineering. The study of information systems is usually a commerce and business administration discipline. information systems support business processes and operations. and competitive strategies.Management Information System (MIS)
What is Management Information System?
Management Information System is a general name for the academic discipline covering the application of information technology to business problems. As an area of study it is also referred to as Information Technology Management. which focuses more on the design of computer hardware. In business.
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. The area of study should not be confused with computer science which is more theoretical in nature and deals mainly with software creation. but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization.
The management information system uses computers and communication technology to deal with these points of supreme importance. communication and use of data for the purpose of efficient management of operations and for business planning”. Complex processing of data and multi-dimensional analysis.Management Information System (MIS)
Purpose & Scope of Management Information System
The Purpose and Scope of MIS can be defined as “The combination of human and computer based resources that results in the collection. Communication of the information system to the user on time.
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. retrieval. Quick search & retrieval. Fulfilling the changing needs of the information. storage. it is necessary to have a formal system which should take care of the following points: Handling of a voluminous data. Confirmation of the validity of data & transaction. Mass Storage. In order to get a better grip on the activity of information processing.
a group of individuals.Management Information System (MIS)
Role of Management Information System
The role of the MIS in an organisation can be compared to the role of heart in the body. and sent further to all the needy destinations. the management functionaries: the managers & the top management. The system ensures that an appropriate data is collected from the various sources. Modelling Systems and Decision Support Systems. The system is expected to fulfill the information needs of an individual. processes it and sends it to the destination in the quantity needed. the heart plays the role of supplying pure blood to all the elements of the body including the brain.
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. The MIS satisfies the diverse needs through a variety of systems such as Query Systems. The MIS helps in Strategic Planning. Operational Control and Transaction Processing. In the body. The MIS plays exactly the same role in the organisation. processed. The information is the blood and MIS is the heart. It fulfills the needs of blood supply to human body in normal course and also in crisis. The heart works faster and supplies more blood when needed. Analysis Systems. It regulates and controls the incoming pure blood. Management Control.
However. although MIS and accounting reconcilement totals for related listings and activities should be similar. It should be supportive of the institution's longer term strategic goals and objectives. employees. it provides the data and information to help the board and management make strategic decisions. and procedures for the organization. Accordingly. These should be followed throughout the institution in the development. At other levels. Support the organization's strategic goals and direction. Provide an objective system for recording and aggregating information. use. An institution's MIS should be designed to achieve the following goals: Enhance communication among employees. Financial accounting systems and subsystems are just one type of institutional MIS. The importance of maintaining a consistent approach to the development. Because MIS supplies decision makers with facts. Financial accounting systems are an important functional element or part of the total MIS structure. accrual adjustments. MIS provides the means through which the institution's activities are monitored and information is distributed to management. policies or practices. MIS should have a clearly defined framework of guidelines. they may not necessarily balance. Effective MIS should ensure the appropriate presentation formats and time frames required by operations and senior management is met. reconciling and correcting entries used to reconcile the financial systems to the general ledger are not always immediately entered into other MIS systems. For example.Management Information System (MIS)
Background of Management Information System
A Management Information System (MIS) is a system or process that provides the information necessary to manage an organization effectively. it supports and enhances the overall decision making process. maintenance. and customers. and review of MIS systems within the institution must be an ongoing concern of both bank management and OCC examiners. and use of all MIS. Deliver complex material throughout the institution. At the most senior levels. MIS is viewed and used at many levels by management. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. To the other extreme it is also those everyday financial accounting systems that are used to ensure basic control is maintained over financial recordkeeping activities. MIS also enhances job performance throughout an institution. standards. MIS can be maintained and developed by either manual or Page 7 of 24
. they are more narrowly focused on the internal balancing of an institution's books to the general ledger and other financial accounting subsystems. Reduce expenses related to labor-intensive manual activities.
MIS supports management's ability to perform such reviews. In addition. measure. a written policy is not required by the OCC. establish controls.Management Information System (MIS) automated systems or a combination of both. monitor. and the assignment of duties and responsibilities to staff and managers. management can use MIS to measure performance. and help an institution comply with regulatory requirements. the OCC may Page 8 of 24
. The OCC fully endorses and supports placing these principles in writing to enhance effective communications throughout the institution. If however. appropriate control procedures must be set up to ensure that information is correct and relevant. As such. It should always be sufficient to meet an institution's unique business goals and objectives. One example of this would be the managing and reporting of loans to insiders. Staff and management. The effective deliveries of an institution's products and services are supported by the MIS. Risk management involves four main elements: Policies or practices. management follows sound fundamental principles and governs the risk in the MIS Review area. Feedback devices. If sound principles are not effectively practiced. Commonly. All institutions must set up a framework of sound fundamental principles that identify risk. technology also increases the potential for inaccurate reporting and flawed decision making. The most efficient and useable MIS should be both operational and informational. Technology advances have increased both the availability and volume of information management and the directors have available for both planning and decision making. limit. manage resources. MIS is a critical component of the institution's overall risk management strategy. Frequently. minicomputers. operational processes. and manage risks. controls must ensure that systems on smaller computers have processing controls that are as well defined and as effective as those commonly found on the traditionally larger mainframe systems. and microcomputers. Operational processes. MIS can also be used by management to provide feedback on the effectiveness of risk controls. Controls are developed to support the proper management of risk through the institution's policies or practices. Because data can be extracted from many financial and transaction systems. an organization may choose to establish and express these sound principles in writing. These systems should be accessible and useable at all appropriate levels of the organization. and provide for effective MIS review and monitoring systems throughout the organization. operational processes and feedback devices are intertwined and cannot easily be viewed separately. Correspondingly. since MIS often originates from multiple equipment platforms including mainframes. MIS should be used to recognize.
and audit coverage. operating procedures and safeguards. Sound fundamental principles for MIS review include proper internal controls.
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.Management Information System (MIS) require management to establish written MIS policies to formally communicate risk parameters and controls in this area.
production and personnel becomes more efficient. it creates an impact on the organisation’s functions. entity and attributes. finance. The MIS creates another impact in the organisation which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. the management of marketing. This leads to streamlining of the operations which complicate the system design.Management Information System (MIS)
Impact of the Management Information System
Since the MIS plays a very important role in the organisation. Since the goals and objectives of the MIS are the products of business goals & objectives. The MIS calls for a systemisation of the business operations for an effective system design. It uses a dictionary of data. respectively. The impact of MIS on the functions is in its management. performance and productivity. With a good MIS support.
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. it helps indirectly to pull the entire organisation in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organisation. This process brings a high degree of professionalism in the business operations. designed for information generation in the organisation. The tracking and monitoring of the functional target becomes easy. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems & procedures.
Identify the role and reporting alternatives of management information systems.
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. Give examples of several ways expert systems can be used in business decision-making situations. and intelligent agents can be used in business.Management Information System (MIS)
Learning Objectives of MIS
Identify the changes taking place in the form and use of decision support in E-business enterprises. Describe how online analytical processing can meet key information needs of managers. Identify how neural networks. genetic algorithms. fuzzy logic. virtual reality. Explain the decision support system concept and how it differs from traditional management information systems. Explain how executive information systems can support the information needs of executives and managers.
mission statements. supply chain data. storing.
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. corporate objectives. They involve collecting. and other strategic management records.
The bottom line is that the information systems use all of the above to implement. work in process data. Recording and storing such human resource records as personnel data. Processing these marketing records into advertising elasticity reports. balance sheets. control. salary data. Recording and storing inventory data. competitor analysis data. and performance based reports. and other marketing records. and other production/operations records. and portfolio models. new business models or new business ventures. Processing these human resources records into employee expense reports. investment data. Processing these strategic management records into industry trends reports. but for all kinds of organisations such as Disaster Management Organisation for using it as Disaster Management Information System. Processing these operations records into production schedules. ledgers. customer profiles. Processing such records into financial statements such as income statements. and production monitoring systems. inventory systems. recording. Recording and storing business intelligence data. and monitor plans.Management Information System (MIS)
The Functional Support Role in MIS
It can also be called Data Base Management System (DBMS) wherein maximum utilization in an efficient manner based on the organisational needs is obtained by analyzing. and payroll data. advertising data. processing and referencing of Data Base. marketing research data. Not only for the business. Recording and storing market data. equipment repair and maintenance data. purchase data. and sales activity reports. and customer purchase histories. production controllers. Business processes and operations support function are the most basic. market share reports. etc. marketing plans. Information systems support business processes and operations by:
Recording and storing accounting records including sales data. and employment histories. new products. strategies. industry data. and management reports. and basic processing of data. tactics.
but. then decrease it by 5% in three months? It also allows users to deal with contingencies: If inflation increases by 5% (instead of 2% as we are assuming). The enhanced ability to explore "what if" a question is central to analyzing the likely results of possible decisions and choosing those most likely to shape the future as desired. "Business decisionmaking support function" is a phrase likely to quicken the pulse of no one but an accountant. It allows users to ask very powerful "What if…?" questions: What if we increase the price by 5%? What if we increase price by 10%? What if we decrease price by 5%? What if we increase price by 10% now. It becomes an integral part -.
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. in fact.Management Information System (MIS)
The Decision Support Role in MIS
The business decision-making support function goes one step further.of decisionmaking. then what do we do? What do we do if we are faced with a strike or a new competitive threat? An organization succeeds or fails based on the quality of its decisions.even a vital part -. it is all about turning wonderful dreams into solid realities.
The rapid change has made access to timely and current information critical in a competitive environment. superior to the competition. it is referred to as a sustainable competitive advantage. no advantage can be sustained in the long run.Management Information System (MIS)
The Communication Decision Support System Role
Information systems can support a company's competitive positioning. Occasionally. They used an extranet to integrate their whole supply chain. evaluation and accounting that are presented in the evaluation and qualitative reports. The real-time mastery in the costs of dysfunctions cause distances from accounts. This use of information systems gave Sam Walton a competitive advantage for two decades. For a core competency to become a sustainable competitive advantage it must be difficult to mimic. low cost production techniques. government protected monopoly. They are the most recent and the most pragmatic systems within the reach of the manager. All successful companies have one (or two) business functions that they do better than the competition. sustainable. One example is Wal-Mart. They are typically named "Business Workflow Analysis" (BWA) or of "Business Management Systems p2p". Another example is Dell Computer. Other examples of company characteristics that could constitute a sustainable competitive advantage include: superior product quality. like business environmental scanning systems. They are the solutions to reductions of costs and management of performance. extensive distribution contracts. However. They used the internet to market custom assembled PC's. and superior employees and management team. and applicable to multiple situations. They argue that the only truly sustainable competitive advantage is to build an organization that is so alert and so agile that it will always be able to find an advantage. These are called core competencies. Michael Dell is still benefiting from this low-
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. they ensure control over piloting the set functions of a company. Tool networks. some experts hold that in today's changing and competitive world. the information system itself is the competitive advantage. patents and copyrights. Information systems often support and occasionally constitute these competitive advantages. The list of potential sustainable competitive advantage characteristics is very long. Here are three levels of analysis: The supports for help in piloting the chain of internal value. unique. accumulated brand equity and positive company reputation. support almost all sustainable competitive advantages. Information systems. If a company's core competency gives it a long term advantage in the marketplace. no matter what changes occur.
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.Management Information System (MIS) cost promotion and distribution technique. Amazon. and Business Workflow Analysis. Federal Express. Other examples are eBay.
To monitor results and performances (reach ratios). maintains and operates software managing a large scope of general purpose data. They have to be used as an MBO (Management by objectives) tool. The applications enable: On-site users to process orders. To send alerts. and safety aspects related to experiments. a forms. The world-wide ESRF user community to process scientific proposals.
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. in some cases daily. to managers at each level of the organization.Management Information System (MIS)
The Performance Monitoring Role in MIS
MIS are not just statistics and data analysis. They help: To establish relevant and measurable objectives. on all deviations between results and pre-established objectives and budgets. assets and stocks. manage budgets. reports. statistics and soon experiment scheduling. The Management Information System Group develops. but also assessment of human capabilities.
problem free delivery. Information systems can mean better production processes. It can enhance distribution channel management. purchasing. IT investment can boost production processes. This is because. To build a brand. defending the organization's primary turf and protecting its markets and profits. investment in distribution channel management systems can ensure quicker delivery times. it can mean some control over access to retailers. problem-free delivery and an assured supply. It can also mean price discounts and other preferential treatment. something they can do better than anyone else. When the distribution channel management system is exclusive. This could be anything from new product development to customer service. Automated systems are the most cost efficient way to organize large scale production. economies of scope in distribution and promotion. Great companies invariably have one or two core competencies. Michael Porter claims that economies of scale are a barrier to entry. reduced overhead allocation per unit. It is the heart of the business and no matter what it is. once more. These can produce economies of scale in promotion. Such an investment can support a core competency. Such systems have become essential in managing large production runs. and production. a barrier to entry. As with supplier networks. a company producing at a point on the long-run Page 17 of 24
. information technology can support that core competency. This absolute cost advantage can mean greater profits and revenue.Management Information System (MIS)
Potential Benefits of MIS Investments
Investing in information systems can pay off for a company in many ways. Such an IT investment can help build brand equity. aside from the absolute cost advantages they provide. This means faster delivery times. firms often invest huge sums in advertising. A huge brand name is a formidable barrier to enter and sustaining it can be facilitated by investment in marketing information systems and customer relationship management system. and preferential treatments. Information systems allow company flexibility in its output level. An IT investment in a company's core competency can create a significant barrier to entry for other companies. and shorter break-even times more easily. and. The inability of new entrants to get onto a supply chain/inventory management system can be a major barrier to entry. It can build supply chain networks. Firms that are a part of an integrated supply chain system have established relationships of trust with suppliers.
New entrants will be at a disadvantage unless they can redefine the industries best practices and leap-frog existing firms. This can create proprietary product differences. Information systems leverage stability.Management Information System (MIS) average cost curve where economies of scale exist has the potential to obtain cost savings in the future. Firms outside the industry are generally not familiar with the industry specific aspects of using these systems. Implementing IT experience can leverage learning curve advantages. IT controlled production technology can facilitate collaborative. and others enjoy greater stability.
The simple fact that IT investment takes a significant amount of money makes it a barrier to entry. Both of these tend to increase customer loyalty. CAD systems facilitate the speedy development and introduction of new products. Leverage IT investment in computer aided design (1). especially in financial services. IT investment can impact mass customization production processes. They can also be used to create a sense of community. transparent.A barrier to entry. it becomes familiar with a set of best practices that are more or less known to other firms in the industry. adaptive. As a company gains experience using IT systems.) It means expanded E-commerce. and this potential is a barrier to entry. and commercial needs. This flexibility can increase margins and increase customer satisfaction. Company web sites can be personalized to each customer’s interests. expectations. it worked for Bill Gates. Proprietary product differences can be used to create incompatibilities between competing products (as every computer user knows). suppliers. or cosmetic customization. Technologically sophisticated firms with multiple electronic points of contact with customers.guess what? -. Anything that increases capital requirements is -.
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. These incompatibilities increase consumers’ switching costs. Product differentiation can be a barrier to entry. This monumental appearance of stability can be a barrier to entry. Customer loyalty is an important barrier to entry. High customer switching costs is a very valuable barrier to entry (Hey.
Mounds of reports were generated just because it was possible to do so. The sustainability of these applications has since been called into question by N. Not only was the user allowed customizing outputs. have countered. Porter. you typically had to pay to have an IBM system developer permanently on site. numerous PC’s were spread around the organization. As part of your mainframe leasing agreement. C. specialized journals. including income statements (they were called P & L’s back then). Carr. but they were not up to the task. and only what they wanted.
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. produced mountains of paper. they discovered all the things their system was capable of. This information overload was mitigated somewhat in the 1980s with the introduction of “executive information systems”. most of it valueless. These programs could give advice within a very limited subject area. They were used to record and store bookkeeping data such as journal entries. as was expected. “elecsystems” could be afforded by only the largest organizations. Markides. among others. The promise of decision making support. they also could configure the programs to their specific needs. instead of creating a paperless society. and DOS batch programming. Instead of having one large mainframe computer for the entire enterprise. J. BIOS functions. In the incipient decade (1950s and '60s). each user had their own computer that they could customize for their own purposes. There was a cost though. Reise. T Peters. As people became comfortable with their new skills. and J. come to fruition. They streamlined the process. The 1990s saw the introduction of the Strategic information system. Many poor souls fought with the vagaries of DOS protocols. giving the executive exactly what they wanted. had step-by-step. balance sheets and sales reports. The main development in the 1980s was the introduction of decentralized computing. first attempted in management information systems back in the 1960s. which Piccoli and Ives. The 1980s also saw the first commercial application of artificial intelligence techniques in the form of “expert systems”. They were trying to perform a decision making support role.Management Information System (MIS)
The role of business information systems has changed and expanded over the last four decades. This meant that instead of submitting a job to the computer department for batch processing and waiting for the experts to perform the procedure. They were interactive in the sense that they allowed the user to choose between numerous options and configurations. Barney in the 1980s. Computers. and ledems” were used to generate a limited range of predefined reports. By the 1970s “decision support systems” were introduced. These systems used information technology to enable the concepts of business strategy developed by scholars like M.
Management Information System (MIS) The role of business information systems had now expanded to include strategic support.
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. and the growth of intranets and extranets at the turn of the century. The latest step was the commercialization of the Internet.
make businesses more competitive. and bring about the organisational transformation through integration. the information can be used as a strategic weapon to counter the threats to business.Management Information System (MIS)
Through the MIS.
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. A good MIS also makes an organisation seamless by removing all the communication barriers.
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.Management Information System (MIS)
Wikipedia – Online Encyclopedia Microsoft Encarta Reference Library Google Search Engine AltaVista Search Engine Ask.
Management Information System (MIS)
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Management Information System (MIS)
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