Fundamental concepts of MIS

Meaning of MIS

• Management Information System (MIS) is a term used to refer to a class of information systems, that provides the management with the information required for decision making.

• Three words which constitute MIS are– Management– Information – System

Management

• It is the unseen force that drives the organization.

• The lifeblood of an organization.• People performing various management roles

in an organization are called managers.• The most important task that managers

perform is the task of taking decisions.

Information

• Is the key ingredient for taking decisions.• Information improves the quality of decision

making. That’s why information is the most important asset for managers.

• Information is created after processing data, mostly transaction – level data.

• This transaction – level data has to be captured , stored and then processed to create any meaningful information for managers.

System

• A system can be defined as a set of interacting entities having interrelation, interconnections with each other, forming an integrated whole.

• A system means a process(technology - enabled) for capturing data , storing it and then processing / analyzing it to provide information.

• Information systems that help a management in taking decisions are called management information systems.

• MIS consists of a set of information systems working towards the common goal of achieving greater efficiency in decision- making at each level of management.

• MIS deals with internally- generated information.

• The in – house data is processed (summarized/aggregated) to create reports , which helps a management at different levels in taking decisions.

• MIS is designed in order to achieve information flow , which is based on the ‘need to know’ principle.

• E.g. for MIS– Enterprise Resource Planning System.(ERP)– Customer Relationship Management System(CRM)– Supply Chain Management System(SCM)

• MIS is a set of systems , which helps the management of an organization at different levels to take better decisions by providing the necessary information.

• MIS is not a monolithic entity but a collection of systems , which provides a user with a monolithic feel.

• The different subsystems working in the background have different objectives, but work in concert with each other to satisfy the overall requirement of managers for good quality information.

• The decision taken by the managers differ in terms of– Complexity– Information requirement for taking the decision.– Relevance– Effect on the organization– Degree of structured behavior of the decision –

making process.

Information System (IS)

• It is concerned with processing the raw facts into information and transferring this information to the users.

• Information system can be two types– Manual IS ( that uses pen, pencil or paper

technology)– Computer based IS (CBIS) (uses IT to perform its

various tasks.)

• IT refers to all the components that a system needs to operate including the following.– Software • Operating system s/w, database management s/w, web

browsers etc.

– Hardware• Servers, computers, I/O devices

– Telecommunication• Modems, switches, routers etc

IS (information system) and ICT(information and communication technology)

• Reasons for IS to run on ICT are as follows: • Timeliness• accuracy

ROLE OF MANAGEMENT

• titular figurehead: respected within the organization, possess some special quality, contribution within the organization

• Leader: takes the responsibility of getting things done by inspiring and motivating other people.

• Liaison: interacts with social networks for business development and other related activities.

• Monitor: controls the organizational activities• Information disseminator: relays information

from top down and bottom up• Spokesperson: communicates with the

environment• Entrepreneur: hunts for opportunities and

initiates changes• Troubleshooter: solves organizational problems

and does midcourse corrections

• Allocator of resources: decides on the quantum of resources required for completing resources under his domain

• Negotiator: acts as representative of organization keeping in mind the best interests of the organisation

Management reports

• The means by which a data driven manager achieves his tasks is through the use of reports. reports convey to the managers:

• Whether the activities under his sphere of influence are proceeding according to his expectations.

• Insight or clue into some larger problems which might be happening in the organization

Types of reports

• Scheduled reports: there are generated regularly. they are in nature of daily, weekly or monthly reports.they contain latest information

• On-demand reports: these are unscheduled and are created when managers need it.

• Exception reports: they are special reports which indicates the manager that some control need to be exercised to bring an issue under control

• Predictive reports: these are special reports which give manager a sneak preview of the future

• Summary reports: these are general reports which aggregate data and provide summarized information to manager to get a macro view .

• Regulatory and statutory report: these are created under the obligation to follow rules and statutes