MIS Concept

“Right information to the Right Person  at the Right Place  at the Right Time  in the Right Form  at the Right Cost.”

In Short for Management Information System – MIS refers broadly to a computer-based
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system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In other words “MIS refers to the data, equipment and computer programs that are used to develop information for managerial use”.

Im pact of Inform ation Sys m in a bus s e te s ine s nvironm nt e
Organization Information Systems

- Customer Satisfaction Better software - Productivity Business Lower hardware costs Value - Profitability Easier to use software Impact Reliability Companies in Lead: FedEx, Dell, HLL, ICICI, IRCTC, ITC eChaupal

So MIS is 1.An integrated user machine system . 2.For providing information. 3.To support the operation of management analysis and decision – making .  MIS is designed to provide information needed for effective decision making which is the important process of any organization and that is why MIS is a popular term in the field of information system.
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Management Information Systems
o Definition (Barry Cushing) – It is a set of human and capital resources within an organization which is responsible for the collection and processing of data to produce information which is useful to all levels of management in planning and controlling the activities of an organization. o Evolution of MIS – industrialization and globalization, requirement of speed, quality, accessibility and presentation, introduction of IT


IT & Systems


MIS is “an integrated user/machine system for

Definition of MIS

providing information to support the operations, management and decision making functions in an organization.”- G.B Davis

 For this system utilizes hardware and software, manual procedures, management decision model and database.  'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management  Output, or reports, are usually generated through accumulation of transaction processing data 

The concept of MIS in today’s world is a system which handles

the databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system. An MIS gives information through data analysis. While analyzing the data, it relies on many academic disciplines. These include the theories, principle and concept from the Management Science, Management Accounting, Operations Research, Organizational Behavior, Engineering, Computer Science, Psychology and Human Behavior, making the MIS more effective and useful. MIS uses the concept of management control in its design

Components of MIS

*Functional Uses of MIS:It Enhance :

Ø Quality of our operations Ø Quality of our services
By These we achieve :

Ø Efficiency Ø Transparency Ø Speedy Decision making

*Strategic Uses of MIS:§ § § § §

Pre ci d e ve l p m e n t o f stra te g i s, se o e p l n n i g , fo re ca sti g a n d m o n i ri g a n n to n Pro b l m so l n g e vi D e ci o n -m a ki g si n S e p a ra te w o rk fro m l ca ti n o o

Functions of MIS
o Data Collection o Data storage and processing o Information presentation


IT & Systems



Management Activities







Characteristics of Management Information system

Characteristics of Management Information system

Definitions of MIS
 “A system of people, equipment, procedures, documents and

communications that collects, validates, operates on transformers, stores, retrieves, and present data for use in planning, budgeting, accounting, controlling and other management process.” controlling decisions.”

  “A system that aids management in making, carrying out and   “An MIS (i) applies to all management levels; (ii) and is linked

to an organizational sub-system; (iii) functions to measure performance, monitor progress, evaluate alternatives or provide knowledge for change or collective action; and (iv) is flexible both internally and externally.”

Computer based Information System

Computer based information system is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store and process data into information.

Components of CBIS  Hardware is computer peripherals used to perform input, processing, and output activities.  Software is the computer program that governs the operation of the computer.  Database is an organized collection of facts and information.  Telecommunications involves the electronic transmission of signals; enables organizations to carry out their processes and tasks through effective computer networks.  Procedures are the strategies, policies, methods, and rules for using a CBIS.

Requirements of MIS
Databases Qualified System and management staff Top management support Active participation of operating management Control and maintenance of MIS Evaluation of MIS Take the feedback from the users Evaluate whether flexibility exists in the system
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Benefits of MIS
It provide timely, accurate, scientific, reliable


It avoids duplication of efforts Coordinated the whole organization. It provides information in form and formats a

required by the information seekers. decision by the management.

It helps in making better and scientific Speed of processing and fast retrieval of data

 Management Oriented: MIS should be designed in such a manner that it meets all the

Characteristics Infact,MIS process of deciding and development of of the whole requirement of managers.

MIS begins after taking into account the management needs and keeping in view the overall objective of the management. Management Directed: Normally a highly experience representative of each department forms a part of the core and is expected to spend great deal of time during the process of system designing and thereafter for the smooth functioning of the system. Integrated: The effective use of all the resources is an important factor and contributes to the success of the management. MIS is thus expected to be catalyst and the nerve center of an organization. It has number of subsystem each performing exclusive functions therefore to make these subsystems effective; it becomes essential to view MIS as an integrated system so that the result is balanced. Elimination of duplicated data: The objective of integration can be achieved only if the duplication of data is avoided. In order to achieve this; data collection, storage and retrieval is usually confined to original source. Also, the technique of common data flow and minimum data processing effort results in producing effective MIS. Futuristic: Design of MIS and implementation are kept in view for the future organization’s objective and requirement of various users at different levels. Therefore, heavy planning element is needed to make it effective over long period of time. Computerized: MIS can be computerized because of its nature as a comprehensive system. This provides faster creation and assessing of files, accuracy, consistency, reduction in clerical work, minimizing human error etc.

Importance of MIS
o o o o o o Easy and faster decision making Categorizing of information Timely availability of information Redundancy elimination (integration) Current requirement related changes Improvement of management process


IT & Systems


Achieving a Competitive Advantage

Figure 2.2 Many strategic moves can work together to achieve a competitive advantage


Achieving a Competitive Advantage

Figure 2.3 Strategic alliances combine services to create synergies


Limitations of MIS
1. It is a data processing and not the Information processing system. 2. The quality of input process if not fine than it impact on output. 3. Not substitute for effective management. 4. Complexities of business systems are underestimated that lead to un successful implementation. 5. It may not have requisite flexibility to quickly update itself with the changing needs of time, especially in fast changing and complex environment. 6. It developed without streamlining the TPS system in organization. 7. Generator of data and users of information are different i.e in effective. 8. MIS does not give information to all, and it works for quantitative factors.


Limitations of MIS
9. It cannot consider the qualitative factors like moral and attitude of managers. 10. It is less useful in non-programmed decision. 11. It also affected in case of change in top management,  organizational structure and operational team. 12. It is less effective in organizations where information is  not being shared with others. 13. It can not replace managerial judgment and not a  substitute for effective Mgt. 14. Incomplete update of database affects the reliability for all the users. 15. It is slow in responding to the dynamics of market situation. 16. MIS report is not used for analysis of situation for finding alternative course of action.

Limitations of MIS
 The quality of the outputs of MIS is largely governed by the quantity of

inputs and processes.  MIS is not a substitute for effective management. It is merely an important tool in the hands of executive for decision-making and problem solving.  MIS may not have requisite flexibility to quickly update itself with changing needs of time, especially in fast changing and complex environment.  MIS cannot provide tailor-made packages suitable for the purpose of every type of decisions made by managers.  MIS takes into account only the quantitative factors. Non-quantitative factors like morale and attitude of the members of the organization, which have an important bearing on decision-making process, is conveniently ignored.  MIS is less useful for making non-programmed decisions.  The effectiveness of MIS gets reduced in the organization of the type where information sharing is not adopted as culture.  MIS effectiveness decreases if there is frequent change of guards at the top management and/or frequent alterations in the organizational structure or the operational team.