Management Information System

MIS
MANAGEMENT INFORMATION SYSTEM

MANAGEMENT
• MANAGEMENT is the effective utilisation of human
and material resources to achieve the enterprise
objective
INFORMATION
• Information: Information, in MIS, means the processed

data that helps the management in planning, controlling
and operations.
• Data means unstructured raw facts, observations or

unevaluated messages in isolation. Data involves facts and
figures. Information on the other hand is like a finished
product.
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DATA V/ S INFORMATION
SM001 North P001 475 Salesman Code Zone I tem Code Sales
SM002 East P002 500 SM001 North P001 475
……… SM002 East P002 500
……………………….
Data Processing Information
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SYSTEM
. A system is an orderly grouping of interdependent
components linked together according to a plan to
achieve a specific objective.
. Human body is a system composed of various parts,

which are working together towards a common
objective , that is to live
Information System
An information system is an organized

combination of people, hardware, software,
communications network, and data resources
that collects, transforms, and disseminates
in an organization.
Components of Information System
 Input
 Processor
 Output
 People
 Hardware(physical devices)
 Software (information processing instructions)
 Data
 Network (communication channels)
What is MIS ?
Management Information System is a
computer based information system which is
basically concerned with processing data into
information which is then communicated to
the various departments in an organization to
support the operations, the management and
the decision making function in the
organization.
Management Information System
 A management Information System is
 An integrated user-machine system
 For providing information
To support the operations, management, analysis, and
decision-making functions
 In an organization
The system utilizes

 Computer Hardware and Software
 Manual Procedures
Models for analysis, planning, control and decision making
and
 A database
Definition of MIS
• Management information system, or MIS,

broadly refers to a computer based system that
provides managers with the tools to organize,
evaluate and efficiently manage departments
within an organization.
Why MIS ?
• Manager makes decisions all the time.
• There is an overload of information.
• All information is not useful.
• Anything which helps manager improve his
decision-making will obviously lead to better
result.
• MIS is a system, where data is the input,
which is processed to provide output in the
form of information reports, summaries, etc .
Which aid the manager’s decision-making
process.
Advantages Of MIS
• Facilitates planning and timely control
• Summarized form thus minimizing information loading
• Encourages decentralization
• Coordination among all the departments.
• Enhance quick, cheap and efficient communication
• Bring down linguistic, geographical and cultural
boundaries.
• 24*7 availability of information
• Automation helps in saving time and papers
• Creation of new type of jobs like computer programmer,
system analyser, software and hardware developer etc
Disadvantages Of MIS
• Regular monitoring of sensitive data
• Security concerns
• Quality of output depends on quality of input
• Implementation is costly as requires hardware, software and training
of human resources
• Lack of flexibility to upgrade software
• Takes only quantitative data
• Increase unemployment
• Effectiveness decreases due to frequent change in top management
and their policies
Five Elements of Usable MIS
1. Timeliness
2. Accuracy
3. Consistency
4. Completeness
5. Relevance
How is a Management Information
System Useful in Companies?
• Planning and Control : MIS improves the quality of plants by providing relevant
information for decision – making. MIS serves as a link between managerial
planning and control. It improves the ability of management to evaluate and
improve performance.
• MIS Minimizes Information Overload : MIS change the larger amount of data
into summarized form and therefore, avoids the confusion which may arise
when managers are flooded with detailed facts.
• MIS Encourages Decentralization : Decentralization of authority is possibly

when there is a system for monitoring operations at lower levels. MIS is
successfully used for measuring performance and making necessary change in
the organizational plans and procedures.
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How is a Management Information
System Useful in Companies? Cont.
• Costs : Invest in a consultant to help define your core requirements that
include information for strategic planning and project management. To be
useful and successful, a management information system should focus on
company products and services, customers, operating costs, marketing
opportunities and the company's exposure to risk.
• MIS brings Coordination : MIS facilities integration of specialized activities

by keeping each department aware of the problem and requirements of
other departments. It connects all decision centers in the organization .
• MIS assembles, process , stores , retrieves , evaluates and disseminates the

information .
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Impact of the Management
Information System
• With a good MIS support, the management of marketing , finance,
production and personnel becomes more efficient.
• The MIS begins with the definition of a data entity and its
attributes, respectively, designed for information generation in the
organisation.
• The MIS calls for a systemisation of the business operations for an

effective system design.
• This leads to streamlining of the operations which complicate the

system design.
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Impact of the Management
Information System Cont.
• MIS improves the administration of the business by bringing a
discipline in its operations as everybody is required to follow
and use systems & procedures.
• This process brings a high degree of professionalism in the

business operations.
• Since the goals and objectives of the MIS are the products of
business goals & objectives, it helps indirectly to pull the
entire organisation in one direction towards the corporate
goals and objectives by providing the relevant information to
the people in the organisation.
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Types of Management
Information Systems
• Executive Support Systems ("ESS") -designed to help senior
management make strategic decisions. ESS typically involve lots of data
analysis and modeling tools to help strategic decision-making.
• Decision-support systems ("DSS")-specifically designed to help

management make decisions in situations where there is uncertainty
about the possible outcomes of those decisions.
• Knowledge Management Systems ("KMS")-to help businesses create

and share information. These are typically used in a business where
employees create new knowledge and expertise - which can then be
shared by other people in the organization to create further
commercial opportunities.
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Types of Management Information
Systems Cont…..
• Transaction Processing Systems ("TPS")-designed to process routine
transactions efficiently and accurately. Managers often use these systems to
deal with such tasks as payroll, customer billing and payments to suppliers.
• Office Automation Systems (“OAS”)-that try to improve the productivity of

employees who need to process data and information. Wide range of software
systems that exist to improve the productivity of employees working in an
office (e.g. Microsoft Office XP) or systems that allow employees to work from
home or whilst on the move.
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FUNCTIONAL INFORMATION SYSTEMS

Management Information System

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MIS

MANAGEMENT INFORMATION SYSTEM

• Information: Information, in MIS, means the processed

• Data means unstructured raw facts, observations or

Data Processing Information

. Human body is a system composed of various parts,

An information system is an organized

The system utilizes

• Management information system, or MIS,

• MIS Encourages Decentralization : Decentralization of authority is possibly

• MIS brings Coordination : MIS facilities integration of specialized activities

• MIS assembles, process , stores , retrieves , evaluates and disseminates the

• The MIS calls for a systemisation of the business operations for an

• This leads to streamlining of the operations which complicate the

• This process brings a high degree of professionalism in the

• Decision-support systems ("DSS")-specifically designed to help

• Knowledge Management Systems ("KMS")-to help businesses create

• Office Automation Systems (“OAS”)-that try to improve the productivity of

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