B.

Com (Computer Application)-Semester V

Course Name- Management Information System
Topic- Need, Scope and Nature of MIS
Reference Video Link
https://www.youtube.com/watch?v=Df2R-3yW9vk

Study Material

MIS Need for Information Systems

Managers make decisions. Decision-making generally takes a four-fold path −
 Understanding the need for decision or the opportunity,
 Preparing alternative course of actions,
 Evaluating all alternative course of actions,
 Deciding the right path for implementation.

MIS is an information system that provides information in the form of standardized

reports and displays for the managers. MIS is a broad class of information systems
designed to provide information needed for effective decision making.
Data and information created from an accounting information system and the reports
generated thereon are used to provide accurate, timely and relevant information
needed for effective decision making by managers.
Management information systems provide information to support management
decision making, with the following goals −
 Pre-specified and preplanned reporting to managers.
 Interactive and ad-hoc support for decision making.
 Critical information for top management.
MIS is of vital importance to any organization, because −
 It emphasizes on the management decision making, not only processing of data
generated by business operations.
 It emphasizes on the systems framework that should be used for organizing
information systems applications.
Nature and Scope of MIS
MIS is supposed to have borrowed the management concepts from various disciplines
such as accounting, computing, organizations, management and operations, because of
this interdisciplinary nature of MIS, it is considered both as an art and a science.

Significance of MIS
MIS is defined as the field of management where timely and reliable information plays a
very important role. This information is obtained through a logical and well-structured
method of collecting information and processing of the collected information, which
helps the decision-makers in carrying out the decisions. MIS is very significant these
days because the term information is considered equally important to the three M have
related to the business industry namely money, materials, men and machines.
The significance of a planned, analyzed, designed and maintained MIS is as follows:
 Helps in progress and growth of the business and management infrastructure in
increasing business complexities by providing timely, useful and reliable
information. This information is provided to the management for taking quick,
rational and speedy decisions.
 Helps in globalization and liberalization of the organizations that need to
compete not only locally but globally too.

Management Information System

In terms of business decision-making, an information system (IS) is a set of data,
computing devices and management methods that support routine company
operations. A management information system (MIS) is a specific subset of IS.
A management information system, as used by a company or institution, might be a
computerized system consisting of hardware and software that serves as the backbone
of information for the company. Specifically, the computerized database may house all
the company's financial information and organize it in such a way that it can be
accessed to generate reports on operations at different levels of the company.
An analysis of MIS data could reveal how to utilize internal and external information
better. It might help a business better implement a new social media strategy or better
organize employee benefits. It might instead highlight that a company's use of IT is
outdated or poorly applied.
Much like IT professionals, MIS specialists tend to spend a lot of time troubleshooting,
adjusting software or supporting less technologically savvy associates.
Information Technology
By definition, information technology (IT) is the technology that involves the
development, maintenance and use of computer systems, software, and networks for
the processing and distribution of data.
Put more simply, the most encompassing interpretation of information technology
would be anything related to computers or computing technology. Computing
technology includes hardware, software, networking, and internet interactions.
A company with an excellent IT framework or one that employs excellent IT technicians
finds it easier to build, adjust and deploy a management information system.
Even though IT can (and must) be directed toward specific ends, its general scope is
unfocused outside of computing processes. Conversely, MIS begins with a focused
purpose; it addresses the needs of business management. IT supports and informs the
methods of reaching MIS objectives.