Planning of information systems:

Many organizations have purchased computers for data processing and for meeting the statutory requirements of filling the returns
and reports to the government. Computers are used mainly for computing and accounting the business transactions and have not
been considered as tool for information processing.

The organizations have invested on computers and expanded its use by adding more or bigger computers to take care of the
numerous transactions in the business. In this approach, the information processing function of the computers in the organization
never got its due regard as an important asset to the organization. In fact, this function is misinterpreted as data processing for
expeditious generation of reports and returns, and not as information processing for management action and decisions.

However, the scene has been changing since late eighties when the computers become more versatile, in the function of storage,
communication, intelligence and language. The computer technology is so advanced that the barriers of storage, distance
understanding of language and speed are broken.

In short, we need a management information system flexible enough to deal with the changing information needs of the
organization. It should be conceived as an open system continuously interacting with the business environment with a built-in
mechanism to provide the desired information as per the new requirements of the management. The designing as such in open
system is a complex task. It can be achieved only if the MIS is planned, keeping in view, the plan of the business management of
the organization.

Development of information systems:

Once the plan of MIS is made, the development of the MIS calls for determining for the strategy of development. As discussed
earlier, the plan consists of various systems and sub systems. The development strategy determines where to begin and what
sequence the development can take place with the sole objective of assuring the information support.

The choice of the system or the sub-system depends on its position in the total MIS plan, the size of the system, the user
understands of the systems and the complexity and its interface with other systems. The designer first develops systems
independently and starts integrating them with other systems, enlarging the system scope and meeting the varying information
needs.

Determining the position of the position of the system in the MIS is easy. The real problem is the degree of structure, and
formalization in the system and procedures which determine the timing and duration of development of the system.

Define Management Information System and

Explain the different components of MIS in
detail according to the theoretical definition of a
management information system?
In: Business Plans, Business Finance [Edit categories]

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Ans:- Meaning and Defination: 'MIS' is a planned system of collecting, processing, storing and
disseminating data in the form of information needed to carry out the functions of management.
According to Phillip Kotler "A marketing information system consists of people, equipments,
and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers."
The terms MIS and information system are often confused. Information systems include systems
that are not intended for decision making. 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.

Management information system would mean a set of computer based systems and procedures
implemented to help managers in their crucial job of decision making. The actual process of MIS
will involve the collection, organization, distribution and storage of organization-wide
information for managerial analysis and control. It is better understood if these components are
understood. Management Information Systems (MIS), sometimes referred to as Information
Management and Systems, is the discipline covering the application of people, technologies, and
procedures — collectively called information systems — to solving business problems.
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.
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, Business computers were
used for the practical business of computing the payroll and keeping track of accounts payable
and receivable. As applications were developed that provided managers with information about
sales, inventories, and other data that would help in managing the enterprise, the term "MIS"
arose to describe these kinds of applications. 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, project management, and database retrieval application The following
are the different types of components in MIS system.

a. Concept of Management b. Information c.Information system

A. Concept of Management

Management information Systems (MIS), sometimes referred to as Information Management and

Systems, are the discipline covering the application of people, technologies, and procedures —
collectively called information systems — to solving business problems. 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.
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.

MIS - Management information System - a monthly (usually) generated by big companies to find
out where they are standing out in the business. for example each department viz., Production,
Marketing, HR, Finance etc will report & submit their reports according the requirement of the
management as below Production: No. of Units reduced, Wastages, Target for the month Vs
achieved. Reason & justification of any downfall. At last backlog & proposed date of shipment.
Marketing: No. Orders procured/executed/lost - Reason viz price high or Discount could not be
extended. A detailed report on pros & cons of marketability. HR: Monthly Manpower turnout
with reasons Finance: Interest recd/paid, Interest Lost due to delayed receipts. Finance charges
incurred and so on B. Information Information is otherway considered as collection of data. In
fact the words are different. Data refers to facts. These facts may be expressed in numerical, text,
image or voice. Data usually take the form of historical records.

As businesses have evolved, the need for both fast access to quality intelligence and
independence at the business unit level have made it imperative and challenging to manage
information assets more effectively, efficiently and wisely. Developing and implementing a
complete strategy for how information about suppliers, customers, competitors and global
markets is obtained, validated, stored, managed, accessed, analyzed and distributed is now
central to organizational survival and profitability.

To make the most of opportunities, organizations must maximize the business value of
information and leverage investments made in all data management technologies. The rewards
will go beyond survival to quickness, compliance, innovation, and in the end, competitive
advantage.

The following are the several common ideas of information system in MIS

a. It is the processed date b. It has an element of surprise value c. It has a value in decision
making process.

C. Information System:

The next component of MIS is information system which is most loosely used in management
literature. The information system is a system of group of interrelated components working
together towards a common goal by accepting inputs and producing outputs in an organized
transformation process. In this system there are three basic components or functions are
involved. i.e., Input, Processing and Output.

Input: It involves capturing and assembling elements that enter the system to be processed. In
general what ever the date after collection to enter into the computing system for further
processing is called input. For example. Raw Material, energy, data and human efforts must be
secured and organized for further processing.

Processing: After successful of input and involves transformation processes that convert into
output. Example: Manufacturing process, human breathing process and mathematical
calculations etc.,

Output: After successful of the processing and it involves transferring elements that have been
produced by transformation process to their ultimate destination. Example: Finished products,
human services and management information.
Information system
planning
ISP is the planning of information systems for
an organization.
Information system planning is assessing the
information needs of an organization and
defining the systems, databases and
technologies that best satisfy those needs.

Planning and
development
Planning of information system


A.Development of long range plans:

It focuses efforts and resources on long-term,
general
objectives and yet provides a foundation for short-
term
activities
Provides a framework for action.
It involves thinking ahead and designing future

action
development of
information
system
 A. Development and implementation of the MIS.
The development strategy determines where to begin
and
in what sequence the development can take place with
the sole objective of assuring the information support


B. Prototype approach
Building a scaled-down working version of the


system
Advantages:


Users are involved in design

Captures requirements in concrete form