Management information system - Wikipedia https://en.wikipedia.

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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][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

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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.[8]

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.[9] 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.[10]

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

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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.[11]
▪ 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:[12]

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

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and new product development, and help managers make better decisions.[13]
▪ 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.

▪ 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.[14]
▪ 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.[15]
▪ Customer relationship management (CRM) systems help businesses manage relationships with
potential and current customers and business partners across marketing, sales, and service.[16]
▪ 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.[17]

See also
▪ Bachelor of Computer Information Systems
▪ Business intelligence
▪ Business performance management
▪ Business rule
▪ Corporate governance of information technology
▪ Data mining
▪ Predictive analytics
▪ Purchase order request
▪ Enterprise architecture
▪ Enterprise information system
▪ Enterprise planning system
▪ Management by objectives

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▪ Online analytical processing ▪ Real-time computing

▪ Online office suite ▪ Real-time marketing

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/20150509003228/http://ma
ys.tamu.edu/info/what-is-mis/). Mays Business School. Archived from the original (http://mays.tamu.ed
u/info/what-is-mis/) on May 9, 2015.
3. "Leveraging People Processes and Technology" (https://saunders.rit.edu/undergraduate/majors-minors
/management-information-systems-mis-degree-overview). Saunders College of Business, Rochester
Institute of Technology. 2017-04-28.
4. "Management Information Systems" (https://web.archive.org/web/20171218055557/http://www.umass
d.edu/charlton/programs/mis/). umassd.edu. University of Massachusetts Dartmouth. Archived from
the original (https://www.umassd.edu/charlton/programs/mis/) on 2017-12-18. Retrieved 2018-04-11.
5. Lucey, Terry; Lucey, Terence (2004). Management Information Systems (https://books.google.com/boo
ks?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://bizfluent.com
/about-5444925-history-management-information-systems.html). bizfluent.com. Retrieved 2018-04-26.
8. Vuong, Quan-Hoang (2022). A New Theory of Serendipity: Nature, Emergence and Mechanism (http
s://www.amazon.com/dp/8366675858/). Walter de Gruyter GmbH. ISBN 9788366675582.
9. The University of Arizona (2014-08-04). "What is MIS?" (https://mis.eller.arizona.edu/what-is-mis).
Retrieved 2018-04-26.
10. "Management Information Systems Aka MIS: A Versatile Degree in a Growing Field" (http://jindal.utdall
as.edu/blog/management-information-systems-mis-degree-growing-field). JSOM Perspectives.
Retrieved 2020-02-17.
11. Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1. John Wiley & Sons, Inc. p. 707.
12. (1995), Strategic Information Systems Planning: A Review. Information Resources Management
Association International Conference, May 21–24, Atlanta.
13. "Delivering Business Analytics and Technology Solutions" (https://saunders.rit.edu/undergraduate/majo
rs-minors/management-information-systems-mis-degree-overview). Saunders College of Business,
Rochester Institute of Technology. 2017-04-28.
14. 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 (http
s://hdl.handle.net/10071%2F12282).
15. Taylor, Victoria. "Supply Chain Management: The Next Big Thing?" (http://www.businessweek.com/busi
ness-schools/supply-chain-management-the-next-big-thing-09122011.html). Sept. 12, 2011. Business
Week. Retrieved 5 March 2014.
16. Lynn, Samara. "What is CRM?" (https://www.pcmag.com/article2/0,2817,2391297,00.asp). PC Mag.
Retrieved 5 March 2014.

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17. Joshi, Girdhar (2013). Management Information Systems (http://www.oup.co.in/product/higher-educatio

n/business-management/business-management/6/management-information-systems-1e/97801980809
92). New Delhi: Oxford University Press. p. 328. ISBN 9780198080992.

External links
▪ 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/Rese
arch/Executive-Information-Systems.html)

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