MANAGEMENT INFORMATION SYSTEM

DEFINITION

• Management information system are those systems that allow managers to make decisions for the successful operation of a business.MIS refers to a computer based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

CHARACTERISTICS

• Management oriented• Management directed• Integrated• Heavy planning element• Sub system concept• Common database • Computerized• Flexibility and ease of use

functions

Data capturing

Processing of data

Storage of information

Retrieval of information

Dissemination of MI

Data capturing- MIS captures data from internal and external sources of an organization. Data capturing may be manual or through computer terminals.

Processing of data- processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.

Storage of information- MIS stored processed or unprocessed data for future use. Stored data is commonly organized into fields, records, files and database.

Retrieval of information- MIS retrieves information from its stores as an and when required from various users.

Dissemination of MI - management information, which is a finished product of MIS, is disseminated to the users in the organization. It could be periodic, through reports or on-line through computer terminals.

APPLICATIONSStrategy supportData processingManagement by objectivesCore competenciesEnhance supply chain management

Quick reflexes

Strategy support- MIS information transform data into information useful for decision making. Computer can process financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.DSS enable more informed decision making within enterprise that would not be possible without MIS system.

Data processing- not only do MIS system allows for the collection for vast amounts of business data but also process the data.

Management by objectives- Objectives are set using the SMART ratio, that is objective should be specific, Measureable, Agreed, Realistic and Time specific.

Core competencies- MIS system provides the tools necessary to gain a better understanding of the market as well as better understanding of the enterprise itself.

Enhance supply chain management- With better information on the production process comes the ability to improve the management of the supply chain including everything from the sourcing of materials to the manufacturing and distribution of the finished product.

Quick reflexes- Better MIS system enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.

Evolution of MIS

Until the 1960’s the role of most information system was simple. It is also called transaction processing system.

In 1960s, another role was added to the use of computers:the processing of data into useful informative reports. The concept of management information system (MIS) was born.

• In 1970s,these pre-defined management reports were not sufficient to meet many of the decision making needs of management. In order to satisfy such needs, the concept of decision support system (DSS) was born.

• In the 1980s, the introduction of microcomputers into the workplace ushered in a new era which led to a profound effect on organization. For that concept of executive information system (EIS) was developed.

• Executive information system-provide critical information from MIS,DSS and other sources, tailored to the information needs of executives.

• The mid to late 1990s saw the revolutionary emergence of enterprise resource planning (ESS) system. The primary advantage of these ERP systems lies in their common interface for all computer based organizational functions and their tight integration and data sharing needed for flexible strategic decision making.

Data management Decision Strategic & ElectronicProcessing Reporting support end user commerce

Electronic Data

Processing-TPS

Management Information

SystemDecision Support System Expert System

-SIS E-Business and

Commerce