Wednesday, 7 April 2021

Management Information System - Introduction, Definition & Examples (MIS 07.04.2021)

Management Information System

 

AN INTRODUCTION

 

Information or collection of information has come to play a role in human beings and its processing contributes heavily to success or failure of their different activities. While managing a business this becomes further more important as it acts as bases of decision making. Information acts as past experience which helps to predict unknown future so that a definite course of action is chosen with advent of very large business and heavy quantum of business activity has become a specialised task to manage this heavy volume information so that it can prove to be helpful for management decision making.

As the name itself suggests, Management Information System (MIS) includes three terms: first Management, secondly, Information and thirdly, System.

Management comprises of the processes activities that managers do in their organisation viz., planning organising, directing, controlling and staffing.

Information consists data that is gathered and processed so that some inferences can drawn from it. This information is retrieved as and when required that manager can use it for performing his functions and take decision.

System is a set of processes and sub-processes that are joined in definite sequence to yield and achieve some objective.

Thus, MIS subject that attempts at giving systems approach to managing with computer is used as a tool that helps in tabulation and integration data so that logical inferences can be drawn.

 

Management information systems or computer information systems (CIS) consists of five related components—hardware, software, people, procedures, and collection of data.

 

MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. The full form of MIS is Management Information Systems. The purpose of MIS is to extract data from varied sources and derive insights that drive business growth.

Management Information System is an implementation of the organizational systems and procedures. To a programmer it is nothing but file structures and file processing. However, it involves much more complexity.

A management information system (MIS) is a computer system consisting of hardware and software that serves as the backbone of an organization’s operations. An MIS gathers data from multiple online systems, analyzes the information, and reports data to aid in management decision-making.

 

The three components of MIS provide a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data, and Management is the ultimate user, the decision makers.

 

Management information system can thus be analysed as follows −

Management

Management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration.

Information

Information, in MIS, means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

System

Data is processed into information with the help of a system. A system is made up of inputs, processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.

 

Definition

Management Information System or 'MIS' is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management.

According to Murdick, "MIS supports decision-making in both structured and unstructured problem environments. MIS supports decision-making at all levels of the organisation. MIS are intended to be woven into the fabric of the organisation, not standing alone.”

 

According to Cannith, "MIS is an approach that visualises the business organisation as a single entity composed of various interrelated and interdependent subsystems looking together to provide timely and accurate information for management decision-making, which leads to the optimisation of overall enterprise goals."

 

According to Davis and Olsan, "A management information system is an integrated user machine system for providing information to support the management, analysis and decision-making functions in an organisation.” In this definition the use of computer has been included along with manual procedures of planning, controlling and decision making.

 

Example

Mr. Parson is the Chief Operations Officer (COO) at Bermuda Fabrics LLC. As part of his job, he needs to forecast the next quarterly production plan, which includes an expected production quantity for each of the products that the company sells. He needs a lot of information and statistics to come up with a useful and reliable projection that captures the current business environment the company is facing and the company’s capacity to manufacture within those parameters. How could a MIS help Mr. Parson to develop these forecasts properly?

The system can provide all the different variables Mr. Parson needs to develop the forecast. He will need to review production patterns, past sales, current equipment, and current suppliers. By the system displaying all this information in a useful way, Mr. Parson will be able to design a forecasting model (which can also be included on the system) that will allow him to plan for next quarter production.

 

What are examples of information systems that are needed in organizations

1. Sales and Marketing

1.               Sales Management

2.               Marketing Management

3.               Lead Generation and Tracking

4.               Order Processing and eCommerce

5.               Reservation Management

6.               Customer Relationship Management (CRM)

7.               Customer Intelligence

8.               Customer Support Call Center

9.               Customer Chat

10.           Customer Loyalty

 

2. Operations

1.               Enterprise Resource Planning (ERP)

2.               Operations Support

3.               Engineering

4.               Manufacturing

5.               Distribution

6.               Logistics

7.               Inventory and Stock Control

8.               Scheduling

9.               Process Control

10.           Procurement

 

3. Research & Development and Medical

1.               Research Management

2.               Laboratory Information Management System (LIMS)

3.               Scientific Information Management

4.               Innovation Management

5.               Intellectual Property Management

6.               Clinical Information System (CIS)

7.               Hospital Information System (HIS)

8.               Electronic Medical Record (EMR)

9.               Electronic Health Record (EHR)

10.           Drug Information System (DIS)

 

4. Financial

1.               Accounts Payable

2.               Accounts Receivable

3.               General Ledger

4.               Budgeting and Planning

5.               Forecasting and Reporting

6.               Expense Management

7.               Funds Transfer

8.               Investment and Portfolio Management

9.               Shareholder and SEC

10.           Tax Processing

 

5. Human Resources

1.               Recruiting and Hiring

2.               Personnel Data

3.               Payroll

4.               Staffing

5.               Performance Management

6.               Time Entry

7.               Expense Reporting

8.               Travel

9.               eLearning and Learning Management System (LMS)

10.           Gamification and Recognition

 

6. Productivity

1.               Project Management

2.               Email and Calendar

3.               Word Processing

4.               Spreadsheets

5.               Presentations

6.               Notes and Databases

7.               Workflow

8.               Web Conferencing

9.               Team Chat

10.           Voicemail

 

7. Information Management

1.               Electronic Content Management (ECM)

2.               Document Management

3.               Records Management

4.               Images

5.               Videos

6.               Geographic Information Systems (GIS)

7.               Executive Information Systems (EIS)

8.               Management Information Systems (MIS)

9.               Planning

10.           Reporting

 

8. Business Intelligence

1.               Big Data

2.               Data Warehouses

3.               Data Lakes

4.               Decision Support

5.               Modelling

6.               Prediction Markets

7.               Analytics and Text Analytics

8.               Visualization

9.               Market Research

10.           Competitive Intelligence

 

9. Artificial Intelligence and Cognitive Computing

1.               Expert Systems

2.               Neural Networks

3.               Natural Language Processing

4.               Machine Learning

5.               Deep Learning

6.               Intelligent Agents

7.               Intelligent Personal Assistants

8.               Chatbots

9.               Robotic Process Automation (RPA)

10.           Pattern Recognition

 

10. Knowledge Management

1.               Repositories and Knowledge Bases

2.               Digital Workplace

3.               Social Business

4.               Enterprise Collaboration

5.               Enterprise Taxonomy

6.               Enterprise Search

7.               Expertise Location and Skills Inventory

8.               Intranets and Portals

9.               Syndication and Subscription Management

10.           Idea Management

 

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