MIS (management information systems) MIS (management information systems) is a general term for the computer systems in an enterprise

that provide information about its business operations. It's also used to refer to the people who manage these systems. Typically, in a large corporation, "MIS" or the "MIS department" refers to a central or centrally-coordinated system of computer expertise and management, often including mainframe systems but also including by extension the corporation's entire network of computer resources. In the beginning, 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 applications. An organized approach to the study of the information needs of an organization's management at every level in making operational , tactical, and strategic decisions. Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner. In a management information system , modern, computerized systems continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. Definition - What does Management Information System (MIS) mean? A Management Information System (MIS) is a broadly used and applied term for a three-resource system required for effective organization management. The resources are people, information and technology, from inside and outside an organization, with top priority given to people. The System is a collection of information management methods involving computer automation (software and hardware) or otherwise supporting and improving the quality and efficiency of business operations and human decision making. As an area of study, MIS is sometimes referred to as "IT management" (information technology management) or "information services" (IS). Neither should be confused with "computer science." Techopedia explains Management Information System (MIS) It is important to note that a MIS should not only indicate the status of a businesss conditions, but also indicate why the conditions are improving or deteriorating. For example, a MIS should report performance relative to cost and profitable or unprofitable projects, while identifying individual accountability - both current and past. This can be done only if such reports are based on constantly updated information accessible to those in authority who are responsible for assessing and assuring it is used for timely decision-making. Examples of the broad scope and varied contexts of MISs are: Decision Support Systems, Enterprise Resource Planning (ERP), Supply Chain Management, Customer Relationship Management (CRM), Project Management and Executive Information Systems (EIS), among others. The term MIS and "information system" are often confused. Information systems, by themselves, are differentiated from the decision making process. Of course, the data within them may facilitate the decision making process.

Why Businesses Need an Efficient Management Information System? We are living in a time of great change and working in an Information Age. Managers have to assimilate masses of data, convert that data into information, form conclusions about that information and make decisions leading to the achievement of business objectives. For an organization, information is as important resource as money, machinery and manpower. It is essential for the survival of the enterprise. Before the widespread use of computers, many organizations found difficulties in gathering, storing, organizing and distributing large amounts of data and information. Developments in computer technology made possible for managers to select the information they require, in the form best suited for their needs and in time they want. This information must be current and in many cases is needed by many people at the same time. So it has to be accurate, concise, timely, complete, well presented and storable. Most firms nowadays depend on IT. The term management information system (MIS) made its first appearance in U.S. navy report on the use of computers to construct a single integrated system to manage all navy resources. A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures 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. 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. Read More: Introduction to Managment Information Systems MIS combines tech with business to get people the information they need to do their jobs better/faster/smarter. MIS professionals work as systems analysts, project managers, systems administrators, etc., communicating directly with staff and management across the organization. A system to convert data from internal and external sources into information and communicate that information in an appropriate form, to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible.(Bee and Bee, 1999) 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 those 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. Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. Trained and educated to work with corporate computer systems, these professionals are responsible in some way for nearly all of the computers, from the largest mainframe to the desktop and portable PCs.

Its purpose is to help managers to solve structured problems. But it should also fulfill a number of other purposes: It should provide a basis to analyze warning signals that can originate both externally and internally; this is the main function of data base; It should automate routine operations thus avoiding human work in the processing tasks; It should assist management in making routine decisions; It should provide the information necessary to make non-routine decisions; It should serve as a strategic weapon to gain competitive advantages. Computer-based or manual system transforms data into information useful in the support of decision making. MIS can be classified as performing three functions: 1. To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes. To answer what-if questions asked by management. For example, questions such as What would happen to cash flow if the company changes its credit term for its customers? can be answered by MIS. This type of MIS can be called Simulation. To support decision making. This type of MIS is appropriately called Decision Support System (DSS). DSS attempts to integrate the decision maker, the data base, and the quantitative models being used. When information systems are designed to provide information needed for effective decision making by managers, they are called management information systems. MIS is a formal system for providing management with accurate and timely information necessary for decision making. The system provides information on the past, present and project future and on relevant events inside and outside the organization. It may be defined as a planned and integrated system for gathering relevant data, converting it in to right information and supplying the same to the concerned executives. The main purpose of MIS is to provide the right information to the right people at the right time. A management information system is an integrated man machine systems that provides information to support the planning and control function of manager in an organization. For example, an organization often processes a lot of data which it is required by law to furnish to various government regulatory agencies. Such a system, while it may have interfaces with an MIS, would not be a part of it, instances of such systems is salary disclosures and excise duty statements. Generally, MIS deals with information that is systematically and routinely collected in accordance with a welldefined set of rules. Thus, and MIS is a part of the formal information network in an organization. Normally, the information provided by an MIS helps the managers to make planning and control decisions. Now, we will see, what is planning and control. Every organization in order to function must perform certain operations. For Example, a car manufacturer has to perform certain manufacturing activities; a wholesaler has to provide water to its area of jurisdiction. All these are operations that need to be done. Besides these operations, an organization must make plans for them that it must decide on how many and what type of cars to make next month or what commissions to offer retailers or what pumping stations to install in the next five years.

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Also an organization must control the operations in the light of the plans and targets developed in the planning process. The car manufacturer must know if manufacturing operations are in line with the targets and if not, he must make decisions to correct the deviation or revise his plans. Similarly the wholesaler will want to know the impacts that his commissions have had on sales and make decisions to correct adverse trends. Effective management information systems are needed by all business organization because of the increased complexity and rate of change of todays business environment. For Example, Marketing manager need information about sales performance and trends, financial manger returns, production managers needs information analyzing resources requirement and worker productivity and personnel manager require information concerning employee compensation and professional development? Thus, effective management information systems must be developed to provide modern managers with the specific marketing, financial, production and personnel information products they required to support their decision making responsibilities. An MIS provides the following advantages. 1. It facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. In Minimizes information overload: MIS change the larger amount of data in to summarize form and there by 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. It 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. It makes control easier: MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost. MIS assembles, process, stores, retrieves, evaluates and disseminates the information. To function effectively as an interacting, interrelated, and interdependent feedback tool for management and staff, MIS must be useable. The five elements of a useable MIS system are: timeliness, accuracy, consistency, completeness, and relevance. The usefulness of MIS is hindered whenever one or more of these elements are compromised. Timeliness: To simplify prompt decision making, an institutions MIS should be capable of providing and distributing currentinformation to appropriate users. Information systems should be designed to expedite reporting of information. The system should be able to quickly collect and edit data, summarize results, and be able to adjust and correct errors promptly. Accuracy: A sound system of automated and manual internal controls must exist throughout all information systems processing activities. Information should receive appropriate editing, balancing, and internal control checks. A comprehensive internal and external audit program should be employed to ensure the adequacy of internal controls. Consistency: To be reliable, data should be processed and compiled consistently and uniformly. Variations in how data is collected and reported can distort information and trend analysis. In addition, because data collection and

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reporting processes will change over time, management must establish sound procedures to allow for systems changes. These procedures should be well defined and documented, clearly communicated to appropriate employees, and should include an effective monitoring system. Completeness: Decision makers need complete and pertinent information in a summarized form. Reports should be designed to eliminate clutter and voluminous detail, thereby avoiding information overload. Relevance: Information provided to management must be relevant. Information that is inappropriate, unnecessary, or too detailed for effective decision making has no value. MIS must be appropriate to support the management level using it. The relevance and level of detail provided through MIS systems directly correlate to what is needed by the board of directors, executive management, departmental or area mid-level managers, etc. are in the performance of their jobs. 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. MIS which meets the five elements of use ability is a critical ingredient to an institutions short - and long-range planning efforts. To achieve sound MIS, the organizations planning process should include consideration of MIS needs at both the tactical and strategic levels. For example, at a tactical level MIS systems and report output should support the annual operating plan and budgetary processes. They should also be used in support of the long term strategic MIS and business planning initiatives. Without the development of an effective MIS, it is more difficult for management to measure and monitor the success of new initiatives and the progress of ongoing projects. Two common examples of this would be the management of mergers and acquisitions or the continuing development and the introduction of new products and services. Management needs to ensure that MIS systems are developed according to a sound methodology that encompasses the following phases: Appropriate analysis of system alternatives, approval points as the system is developed or acquired, and task organization. Program development and negotiation of contracts with equipment and software vendors. Development of user instructions, training, and testing of the system. Installation and maintenance of the system.

Depending on the size and complexity of its MIS system, an institution may need to use different manuals for different users such as first-level users, unit managers, and programmers.

Discuss the main Objectives of Management Information System. There are many objectives of Management Information Systems. These areData Capturing: MIS capture data from various internal and external sources of organization. Data capturing may be manual or through computer terminals. Processing of Data: The captured data is processed to convert into required information. Processing of data is done by such activities as calculating, sorting, classifying, and summarizing. Storage of Information: MIS stores the processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organization record, for later use. Retrieval of Information: MIS retrieves information from its stores as and when required by various users. Dissemination of Information: Information, which is a finished product of MIS, is disseminated to the users in the organization. It is periodic or online through computer terminal

Function

The function of all MIS systems is identical: manage, massage and manipulate data (or groups of data) in a fashion that enables good decision-making. In the first half of the 20th century, businesses managed information on paper, with detailed filing systems and hand calculated reports. Contemporary MIS systems involve one or more computers, working in concert, to achieve the stated goals of an organization. The function is always the same, but the desired results fluctuate with the specific goals and needs of individual organizations. Since the universal language of commerce is numbers, using the incredible speed of computers, MIS systems achieve their function amazingly well.

Types

There are as many types (and subtypes) of management information systems as there are business functions. Some of the most popular types of MIS are as follows: --Customer relationship management --Marketing, particularly target marketing efforts, directed at specific groups of potential customers or selling niche products --Financial management --Strategic plan development --Inventory management systems --Optimal investing strategy creation --Projected sales volume --Projected operating expenses and cost control Other types of MIS systems calculate projected tax revenue for governments; statistical evaluations of all types for business, researchers and universities; scientific purposes in all disciplines; and cost/benefit relationships for decision-making purposes.

Benefits

The benefits of MIS systems to businesses, governments, scientists, universities, students, nonprofits and all other entities are diversified. Some examples of the most often realized benefits include the following: --Implementation of Management by Objectives (MBO) techniques: MIS allows all participants, both management and staff, to view, analyze, and interpret useful data to set goals and objectives. --Generates competitive advantages: Businesses succeed or fail based on how they face competitive challenges. MIS, if implemented properly, provides a wealth of information to allow management to construct effective plans to meet, and beat, their competition. --Fast reaction to market changes: The victory often goes to the quick, not necessarily the best. MIS can deliver facts, data and trends to businesses with lightning speed. Having this information allows companies to react quickly to market changes, regardless of the type (positive or negative) of volatility.

Features

The most important features of contemporary MIS systems involve flexibility and reasonable cost. In the world of business, it matters little what industry you are in, how large or small the company may be and how computer savvy the management is. There are MIS systems that are easy to use, affordably priced and immensely reliable available to all businesses. Unlike earlier MIS systems, an entity does not even need to make a large investment in computer hardware or exotic software. Whether a company is in the Fortune 200 or the mom-and-pop category, it can take advantage of an MIS system that fits its budget and needs. For example, if an entity needs an MIS system that serves as a customer relationship and marketing database management tool, it need not invest in financial, strategy or scientific software. Likewise, a government, without a profit focus, can install an MIS system that predominantly tracks "customers" (auto licenses, property owners, pet owners, and so forth) or manages tax and fee income as it relates to their budgets.

The objective of an MIS system--to provide useful information, data and analysis--remains constant, but the features and uses are customizable to suit the preferences and needs of every business, individual or government.