Management Information System

. MIS is the system, which makes available the right information to

the right person, at the right place, at the right time, in the right
form and at the right cost.

. According to Davis & Olson “MIS is an integrated user-machine

system for providing information to support operations,
management & decision-making function in an organisation. The
system utilities computer hardware & software, manual
procedures/models for analysis, planning, control & decision
making & a database.”
. According to Henry C. Lucas “MIS is a set of procedures which
when executed provide information to support decision making.”
 Concept of MIS
Processing Logic

Data Computers

Intelligence Design Choice

Data Human Being

Data Base
Decision

MIS
Decision Implementation

Performance
Monitoring/Feedback
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Management Control

Operational Control

Transaction processing

Data Base Management System

Data Base
• Characteristics of MIS

Strategic Planning:-Formulation of objective & strategic plans.

Management Control:-Formulation of budgets & resource
allocation.
Operational Control:-Scheduling of activities & performance
report.
Transaction Processing:-Processing of orders, shipments &
receipts.
Marketing:-Sales forecasting, planning, customer & sales analysis.
Production:-Production planning, scheduling & cost analysis.
Logistic:-Planning & control of purchasing, inventories &
distribution.
Personnel:-Planning personnel requirement, analyzing
performance & salary distribution.
Finance & Acc.:-Finance analysis, cost analysis, capital requirement
planning & income measurement.
Information Processing:-Information system planning, cost
effective analysis.
Top Management:-Strategic planning, resource allocation.
Pre-requisites of MIS.

1) should be unified system.

2) Should support decision.
3) Should be compatible with the organisations structure &
culture.
4) Should have user involvement.
5) Should be cost effective/beneficial.
6) Should be responsive to changes around & within org.
7) Should be speedy & accurate.
8) Should provide validated & valid information.
 Contemporary Approaches to MIS
Information technology has become an integral part of
corporate as well as personal life style. information system
based on computers are now progressively used for
acquiring ,processing, sorting & dismaintaining information.
Over the years, the system development has ceased to
be purely technical activity. while developing information
system, attention is given to the related aspects like
organisational structure, org. culture, people behavior , etc.
This approaches to MIS is divided into 3 types
1. The technical approach
2. The behavioral approach
3. The socio-technical approach
1.The technical approach
This approach centered around mathematical & normative models to
study information system. It also relies heavily on the physical technology &
the formal capabilities of these system. As such, computer science,
management science & operations research disciplines contribute
significantly to the technical approach.

2.The behavioural approach

Information technology may heavily depend on technical aspects, the
developer has to consider the behavioural impact/response of people in
the organisation where information system would be implemented.
As information system has to address & take cognizance of behavioural
problem & issue. It is imperative that behavioural factors are taken into
consideration.
This approach, therefore, borrows heavily from the principle of political
science, psychology , sociology & O.B. among others. This approach focuses
not on technical solution but on the changes in attitudes, management &
organisation policy.
3.The socio-technical approach
The problem faced while developing and implementing
information system are neither purely technical nor
behavioural.
The socio-technical approach does not opt for purely
technical nor behavioural approach, but it does attempt to
borrow heavily from both the approach & synthesize so as to
optimize the performance of the information system as a
whole.
This approach is now being increasingly accepted &
implemented.
Information as a strategic resource.
With the increasing & intensifying trends towards
globalization, competition is increasing & become more
global. Global competition has increased performance
standards in many dimensions covering the whole gamut of
cost, price, quality, technology, productivity, product launch
& smooth operations.
Information has emerged as a strategic resource:-
resource that is scarce, has significant cost and has alternative
uses. Best owing competitive edge on the organisation which
possess it. Hence, in the present competitive environment
information has become critical organisational resource &
increasingly consider as a valuable strategic resource.
 The probability of achieving strategic competitiveness in
the present competitive environment could be enhanced for
the organisation that realized that it’s survival, success &
prosperity depends on the ability capture information,
transform it into usable knowledge through the organisation.
Organisation that accept this challenge, shift their focus from
OBTAINING the information to EXPLOITING the information, to
gain a strategic competitive advantage over competing / rival
firms.
 To able to grab & retain the strategic competitive edge, its
important for the org. to be able to raise & answer the
question like
i) What business the organisation should be in?
ii) What existing business activities should be spoon off?
iii) What new activities should be undertaken?
iv) How to protect the org. from business cycles/swings?
v) What are the competitors doing & can do?
vi) What are the competitors capabilities?

Information about this issue would help an org. prepare an

anticipated “Response Profile” of each competitor in
following aspects.
a) What will competitor do in future?
b) Where does the organisation hold advantage over its
competitors?
c) How will this change the organisations relationship with its
competitors?
All these questions could be answered by undertaking “Competitors
Analysis” or “Competitive Intelligence”
To survive, succeed in this competitive environment, corporate org.
have to be cost/price/technology/quality competitive. They
have to be more profitable, be able to respond quickly & offer
better quality products/services ahead of the competitors & at
price lower than competitors.
Those organisations that will have information, would gain the
strategic competitive edge & proceed to the finish line to
winners.
• Use of Information for Competitive Advantage.

What is competitive advantage?

“competitive advantage is about changing the balance of power
between a firm & its competitors in the industry, in the firms
favor.
“competitive advantage is an internal system that delivers benefits
to a firm, not enjoyed its competition”
Role of Information in Competitive Environment.

According to Poster-Miller theory.

a) It changer industry structure
i) The bargaining power of customer.
ii) The bargaining power of suppliers.
iii) Threat of new entrants in the firms market.
iv) Pressure from substitute products.
b) It spawns/creates whole new business.
i) Information revolution makes new business technologically
feasible.
ii) Information also creates new business by creating derived
demand for new product.
iii) Information & information technology helps to create
business within old ones.
The specific use of information for competitive advantage, for this
purpose, we would consider the uses under 2 types.
i) Functional use
ii) Strategic use
i) Functional use:-Competitive advantage is considered as a function
of cost/value chain
1)Information & information system helps in
a) Facilitating product delivery.
b) Adding value to quality.
c) Improving product quality.
2)Information helps org. with speed & ability to move quickly into
the market.
3) Information helps org. to enhance
a) Quality of their operations.
b) Quality of their products.
c) Quality of their services.
4)Information can help to specify.
a) Products
b) Product process
c) Production cycle time.
5) Information helps organisations
a) Meet benchmarking standards.
b) Improve customer services.
c) Improve quality of design & product.
2) Strategic uses:
i)Information gives organisations new ways to out perform
their rivals.
ii)A firm can use following basic competitive strategies to
deal with competitive forces.
a)Product differentiation.
b) Developing right linkage to customers & suppliers.
c) The new intensity of information makes it possible for
more precise development of strategies, planning, forecasting &
monitoring.
d) Information facilitates availability of extensive data,
both internal & external for problem solving & decision making.
e) Information & I.T. help improve an org. abilities to co-
ordinates its activities regionally, nationally & globally
f) Information enables org. to “think globally , act locally.”
• MIS as an Instrument for Organisational Change.
Organisation & Change.
Organisation will have to address or will have to come to terms with
following changes.
1)A larger global market place made smaller by enhanced technologies &
completions from abroad.
2)A worldwide recognition of the environment as an influencing variable
& government attempts to draw back from environmental calamity.
3)Health consciousness among all groups through the world.
4)Change in life style trends affecting the ways in which people view
work, purchase, society.
5)The changing work place & need for non traditional employees.
6)The knowledge asset of org., its people, becoming increasingly crucial
to its competitive well being, thanks to I.T.
MIS & Organisational Change.
MIS would help about organisational change in following manner.
1)MIS/IT will have a significant effect on the internal appearance of
organisations of future. MIS will lead to reduced hierarchy as
fewer managers would be required to act as conduits of
information.
2)The organisations would not be functioning based on ‘cornered
information’ but would have ‘shared information’.
3)MIS would accelerate restructuring of work flows, giving new
powers to both line & staff functionaries.
4)The power/authority would be based more on knowledge & merit
than seniority.
5)Bcos of MIS, the culture of MIS of organisation, would tend to
become result/performance oriented.
6)MIS would, Thus make organisational culture more open &
competitive & the organisational structure more flexible.
MIS is Instrumental in change.

MIS would be instrumental in bringing about organisational change.

In fact MIS would keep on issuing “wake-up calls”. It is true that
MIS has traditionally been a change agent, where as line & staff
functionaries have been change target. It is also true that MIS
professionals generally posses a problem solving, multi-
dimensional & multi- disciplinary way of thinking that makes
them the strongest candidates for the role of “Corporate re-
engineer”.