A management information system (MIS) is a system or process that provides information

needed to manage organizations effectively [1]. Management information systems are regarded to
be a subset of the overall internal controls procedures in a business, which cover the application
of people, documents, technologies, and procedures used by management accountants to solve
business problems such as costing a product, service or a business-wide strategy. Management
information systems are distinct from regular information systems in that they are used to
analyze other information systems applied in operational activities in the organization.[2]
Academically, the term is commonly used to refer to the group of information management
methods tied to the automation or support of human decision making, e.g. Decision Support
Systems, Expert systems, and Executive information systems.[2]

Contents
[hide]

 1 Overview
 2 See also
 3 References
 4 External links

[edit] Overview
At the start, works in businesses and other organizations, internal reporting was made manually
and only periodically, as a by-product of the accounting system and with some additional
statistic(s), and gave limited and delayed information on management performance. Previously,
data had to be separated individually by the people as per the requirement and necessity of the
organization. Later, data was distinguished from information, and so instead of the collection of
mass of data, important and to the point data that is needed by the organization was stored.

Early on, business computers were mostly used for relatively simple operations such as tracking
sales or payroll data, often without much detail. Over time these applications became more
complex and began to store increasing amounts of information while also interlinking with
previously separate information systems. As more and more data was stored and linked man
began to analyze this information into further detail, creating entire management reports from the
raw, stored data. The term "MIS" arose to describe these kinds of applications, which were
developed to provide managers with information about sales, inventories, and other data that
would help in managing the enterprise. Today, the term is used broadly in a number of contexts
and includes (but is not limited to): decision support systems, resource and people management
applications, ERP, SCM, CRM, project management and database retrieval application.

An '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. In a way it is a
documented report of the activities that were planned and executed. According to Philip Kotler
"A marketing information system consists of people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision
makers." [3]

The terms MIS and information system are often confused. Information systems include systems
that are not intended for decision making. The area of study called MIS is sometimes referred to,
in a restrictive sense, as information technology management. That area of study should not be
confused with computer science. IT service management is a practitioner-focused discipline.
MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates
elements that are not necessarily focused on decision support.

Any successful MIS must support a businesses Five Year Plan or its equivalent. It must provide
for reports based up performance analysis in areas critical to that plan, with feedback loops that
allow for titivation of every aspect of the business, including recruitment and training regimens.
In effect, MIS must not only indicate how things are going, but why they are not going as well as
planned where that is the case. These reports would include performance relative to cost centers
and projects that drive profit or loss, and do so in such a way that identifies individual
accountability, and in virtual real-time.

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Management Information Systems (MIS), are information systems, typically computer based, that are used
within an organization. WordNet described an information system as a system consisting of the network of all
communication channels used within an organization. ... components that collect, manipulate, and
disseminate data or information... people, communications systems such as telephone lines, and the data
itself. The activities involved include inputing data, processing of data into information, storage of data and
information, and the production of outputs such as management reports...
Decision Support Systems, Expert systems, and Executive information systems. More

(MIS) A computer system, usually based on a {mainframe} or {minicomputer}, designed to provide

management personnel with up-to-date information on an organisation's performance, e.g. inventory and
sales. These systems output information in a form that is useable by managers at all levels of the
organisation: strategic, tactical, and operational.

The term  system in  MIS  implies  order, arrangement and purpose. The information can be used  for 
various  purposes,

-strategic planning
-delivering increased  productivity
-reducing  service cycles
-reducing  product development  cycles
-reducing  marketing life cycles
-increasing  the  understanding  of  customers' needs
-facilitating business and  process re-engineering. More

What are Management Information Systems?

  

Definition: Management Information Systems (MIS) is the term given to the discipline
focused on the integration of computer systems with the aims and objectives on an
organisation.

The development and management of information technology tools assists executives and
the general workforce in performing any tasks related to the processing of information.
MIS and business systems are especially useful in the collation of business data and the
production of reports to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business
that does not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist
management in understanding the effects of their strategies, and help enable effective
decision-making.

MIS systems can be used to transform data into information useful for decision making.
Computers can provide financial statements and performance reports to assist in the
planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision
makers. By studying these reports decision-makers can identify patterns and trends that
would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that
answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS
systems can provide predictions about the effect on sales that an alteration in price would
have on a product. These Decision Support Systems (DSS) enable more informed decision
making within an enterprise than would be possible without MIS systems.

* Data Processing

Not only do MIS systems allow for the collation of vast

amounts of business data, but they also provide a
valuable time saving benefit to the workforce. Where
in the past business information had to be manually
processed for filing and analysis it can now be entered
quickly and easily onto a computer by a data
processor, allowing for faster decision making and
quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis
they can also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series
of objectives for the subordinate to attempt to achieve within a set time frame. Objectives
are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed,
Realistic and Time-Specific.

The aim of these objectives is to provide a set of key performance indicators by which an
enterprise can judge the performance of an employee or project. The success of any MBO
objective depends upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system.
Since all SMART objectives are by definition measurable they can be tracked through the
generation of management reports to be analysed by decision-makers.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert
organisations such as the Institute of MIS along with peer reviewed journals such as MIS
Quarterly continue to find and report new ways to use MIS to achieve business objectives.
Core Competencies

Every market leading enterprise will have at least one core competency – that is, a
function they perform better than their competition. By building an exceptional
management information system into the enterprise it is possible to push out ahead of the
competition. MIS systems provide the tools necessary to gain a better understanding of
the market as well as a better understanding of the enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined

production process. 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

As a corollary to improved supply chain management comes an improved ability to react

to changes in the market. Better MIS systems 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.

Further information about MIS can be found at the Bentley College Journal of MIS and the
US Treasury’s MIS handbook, and an example of an organisational MIS division can be
found at the Department of Social Services for the state of Connecticut.

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