chapt 3 introduction of mis

8/19/2019 Chapt 3 Introduction of Mis

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INTRODUCTION OF MIS

A Management Information System (MIS) focuses on the management of

information systems to provide efficiency and effectiveness of strategic decision

making. The concept may include systems termed transaction processing

system, decision support systems, expert systems, and executive information

systems. The term MIS is often used in the usiness schools. Some of MIS

contents are overlapping !ith other areas such as information

system, information technology, informatics, e"commerce and computer

science. Therefore, the MIS term sometimes can e inter"changeale used in

aove areas.

Management Information Systems (plural) as an academic discipline studies

people, technology, organi#ations, and the relationships among them.$%& This

definition relates specifically to 'MIS' as a course of study in usiness schools.

Many usiness schools (or colleges of usiness administration !ithin

universities) have an MIS department, alongside departments of accounting,

finance, management, marketing, and may a!ard degrees (at undergraduate,

master, and doctoral levels) in Management Information Systems.

MIS professionals help organi#ations to maximi#e the enefit from investmentsin personnel, euipment, and usiness processes

There are different areas of concentration !ith different duties and

responsiilities in information system managers starting from the hief

information officer (I*s), hief technology officer (T*s), IT directors

and IT security managers. hief information officer (I*s) are responsile for

the overall technology stately of their organi#ations. +asically they are more of

the decision makers and action takers !hen it comes do!n determining thetechnology or information goals an organi#ation and making sure the necessary

planning to implement those goals are eing met.

hief technology officer (T*s) are responsile for evaluating ho! ne!

technology can help their organi#ation. They usually recommend technological

solutions to support the policies issued y the I*$&

IT directors including MIS directors are in charge of oth their organi#ations

Information technology departments and the supervision of there of. They are

https://en.wikipedia.org/wiki/Decision_makinghttps://en.wikipedia.org/wiki/Decision_makinghttps://en.wikipedia.org/wiki/Transaction_processing_systemhttps://en.wikipedia.org/wiki/Transaction_processing_systemhttps://en.wikipedia.org/wiki/Decision_support_systemhttps://en.wikipedia.org/wiki/Expert_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_technologyhttps://en.wikipedia.org/wiki/Informaticshttps://en.wikipedia.org/wiki/E-commercehttps://en.wikipedia.org/wiki/Computer_sciencehttps://en.wikipedia.org/wiki/Computer_sciencehttps://en.wikipedia.org/wiki/Management_information_system#cite_note-1https://en.wikipedia.org/wiki/Business_schoolhttps://en.wikipedia.org/wiki/Chief_information_officerhttps://en.wikipedia.org/wiki/Chief_information_officerhttps://en.wikipedia.org/wiki/Chief_technology_officerhttps://en.wikipedia.org/wiki/IT_securityhttps://en.wikipedia.org/wiki/Management_information_system#cite_note-2https://en.wikipedia.org/wiki/Transaction_processing_systemhttps://en.wikipedia.org/wiki/Transaction_processing_systemhttps://en.wikipedia.org/wiki/Decision_support_systemhttps://en.wikipedia.org/wiki/Expert_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_technologyhttps://en.wikipedia.org/wiki/Informaticshttps://en.wikipedia.org/wiki/E-commercehttps://en.wikipedia.org/wiki/Computer_sciencehttps://en.wikipedia.org/wiki/Computer_sciencehttps://en.wikipedia.org/wiki/Management_information_system#cite_note-1https://en.wikipedia.org/wiki/Business_schoolhttps://en.wikipedia.org/wiki/Chief_information_officerhttps://en.wikipedia.org/wiki/Chief_information_officerhttps://en.wikipedia.org/wiki/Chief_technology_officerhttps://en.wikipedia.org/wiki/IT_securityhttps://en.wikipedia.org/wiki/Management_information_system#cite_note-2https://en.wikipedia.org/wiki/Decision_makinghttps://en.wikipedia.org/wiki/Decision_making


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also in charge of implementing the policies that have een chosen y the other

top ranches (I*s,T*s). It is their role to ensure the availaility of data and

net!ork services y coordinating IT activities

IT Security Managers oversee the net!ork and security data as the title implies.

They develop programs to offer information and a!areness to their employees

aout security threats. This team is very important ecause they must keep up to

date on It security measures in order to e successful in their organi#ation. Any

security violations need to e investigated and supervised y this specific team.

Types and terminology of MIS] The terms management information system (MIS), information

system, enterprise resource planning (-/), and information technology

management are often confused. Information systems and MIS are roader

categories that include -/. Information technology management concerns the

operation and organi#ation of information technology resources independent of

their purpose.

• Management information systems, produce fixed, regularly scheduled

reports ased on data extracted and summari#ed from the firm0s

underlying transaction processing systems$1& to middle and operational level

managers to identify and inform structured and semi"structured decision

prolems.

• Decision support systems (DSS) are computer program applications used

y middle and higher management to compile information from a !ide

range of sources to support prolem solving and decision making. A 2SS is

used mostly for semi"structured and unstructured decision prolems.

• Executive information systems (EIS) is a reporting tool that provides

uick access to summari#ed reports coming from all company levels and

departments such as accounting, human resources and operations.

• Marketing Information Systems are Management Information Systems

designed specifically for managing the marketing aspects of the usiness

• Accounting information systems are focused accounting functions.

https://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Enterprise_resource_planninghttps://en.wikipedia.org/wiki/Information_technology_managementhttps://en.wikipedia.org/wiki/Information_technology_managementhttps://en.wikipedia.org/wiki/Information_technologyhttps://en.wikipedia.org/wiki/Transaction_processing_systemshttps://en.wikipedia.org/wiki/Management_information_system#cite_note-4https://en.wikipedia.org/wiki/Decision_support_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Marketing_Information_Systemhttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Accounting_information_systemhttps://en.wikipedia.org/wiki/Accountinghttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Information_systemhttps://en.wikipedia.org/wiki/Enterprise_resource_planninghttps://en.wikipedia.org/wiki/Information_technology_managementhttps://en.wikipedia.org/wiki/Information_technology_managementhttps://en.wikipedia.org/wiki/Information_technologyhttps://en.wikipedia.org/wiki/Transaction_processing_systemshttps://en.wikipedia.org/wiki/Management_information_system#cite_note-4https://en.wikipedia.org/wiki/Decision_support_systemhttps://en.wikipedia.org/wiki/Executive_information_systemhttps://en.wikipedia.org/wiki/Marketing_Information_Systemhttps://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Accounting_information_systemhttps://en.wikipedia.org/wiki/Accounting


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• 3uman resource management systems are used for personnel aspects.

• Office automation systems (OAS) support communication and

productivity in the enterprise y automating !orkflo! and eliminating

ottlenecks. *AS may e implemented at any and all levels of management.

• School Information Management Systems (SIMS) cover school

administration, and often including teaching and learning materials.

• Enterprise resource planning facilitates the flo! of information et!een

all usiness functions inside the oundaries of the organi#ation and manage

the connections to outside stakeholders.

Advantages of MIS

The follo!ing are some of the enefits that can e attained using MISs.

• ompanies are ale to identify their strengths and !eaknesses due to the

presence of revenue reports, employees4 performance record etc. Identifying

these aspects can help a company improve its usiness processes and

operations.

• 5iving an overall picture of the company.

• Acting as a communication and planning tool.

• The availaility of customer data and feedack can help the company to

align its usiness processes according to the needs of its customers. The

effective management of customer data can help the company to perform

direct marketing and promotion activities.

• MISs can help a company gain a competitive advantage. ompetitive

advantage is a firm0s aility to do something etter, faster, cheaper, or

uniuely, !hen compared !ith rival firms in the market.

The +asic characteristics of an effective Management Information System are

as follo!s6

I. Managementoriented!

https://en.wikipedia.org/wiki/Human_resource_management_systemhttps://en.wikipedia.org/wiki/Office_automationhttps://en.wikipedia.org/wiki/Workflowhttps://en.wikipedia.org/wiki/School_Information_Management_Systemhttps://en.wikipedia.org/wiki/Enterprise_resource_planninghttps://en.wikipedia.org/wiki/Business_processhttps://en.wikipedia.org/wiki/Competitive_advantagehttps://en.wikipedia.org/wiki/Human_resource_management_systemhttps://en.wikipedia.org/wiki/Office_automationhttps://en.wikipedia.org/wiki/Workflowhttps://en.wikipedia.org/wiki/School_Information_Management_Systemhttps://en.wikipedia.org/wiki/Enterprise_resource_planninghttps://en.wikipedia.org/wiki/Business_processhttps://en.wikipedia.org/wiki/Competitive_advantage


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The asic o7ective of MIS is to provide information support tothe management

in the organi#ation for decision making. So an effective MIS should startits

7ourney from appraisal of management needs, mission and goal of the usiness

organi#ation. It may e individual or collective goals of an organi#ation. The

MIS is such that it serves all the levels of management in an organi#ation i.e.top, middle and lo!er level.

II.Management dire"ted!

8hen MIS is management"oriented, it should e directed y themanagement

ecause it is the management !ho tells their needs and reuirements more

effectively than anyody else.Manager should guide the MIS professionals not

only at the stage of planning ut also on development, revie! and

implementation stages so that effective system should e the end product of

the !hole exercise in making an effective MIS.

III.Integrated!

It means a comprehensive or complete vie! of all the su systems in the

organi#ation of a company. 2evelopment of information must e integrated so

that all the operational and functional information su systems should e

!orked together as a single entity. This integration is necessary ecause it

leads to retrieval of more meaningful and useful information.

I#.Common data flo$s!

The integration of different su systems !ill lead to a common data flo! !hich

!ill further help in avoiding duplicacy and redundancy in data collection,

storage and processing. 9or example, the customer orders are the asis for many

activities in an organi#ation vi#. illing, sales for cashing, etc. 2ata is collected

ya system analyst from its original source only one time. Then he utili#es the

data !ith minimum numer of processing procedures and uses the information

for production output documents and reports in small numers and eliminates

the undesirale data. This!ill lead to elimination of duplication that simplify the

operations and produce inefficient information system.

#.%eavy planningelement!

The preparation of MIS is not a one or t!o day exercise. It usually takes : to ;

years and sometimes a much longer period. So the system expert has to keep

things in mind < one is that he has to keep future o7ectives as !ell as the firm0s

information !ell in advance and also he has to keep in mind that his MIS !ill

not e osolete efore it gets into action.

#I. S&' System "on"ept!

8hen a prolem is seen in su parts, then the etter solution to the prolem is possile. Although MIS is vie!ed as a single entity ut for its effective use, it


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should e roken do!n in small parts or susystems so that more attention and

insight is paid to each su system.

MIS F&n"tions

The road functions of MIS are as given elo!6

%. To improve de"isionma(ing! MIS helps management y providing

ackground information on a variety of issues and helps to improve the

decision"making uality of management. The fast and accurate information

supplied y MIS is leveraged y the managers to take uicker and etter

decisions therey improving the decision"making uality and adding to the

ottom line of the company.. To improve effi"ien"y! MIS helps managers to conduct their tasks !ith

greater ease and !ith etter efficiency. This reflects in etter productivity for the

company.

:. To provide "onne"tivity! MIS provides managers !ith etter

connectivity !ith the rest of the organi#ation.

COM)AN*+S ,-FC MIS S*ST/M AND STRAT/0I/S

-ach =9 outlet use MIS in accounting, kno!ing production, and very useful

in formulating 3 policies !hich helps them to rate their employees.

The development and management of information technology tools assists

executives and the general !orkforce in performing any tasks related to the

processing of information. MIS and usiness systems are especially useful in

the collation of usiness data and the production of reports to e used as tools

for decision making.


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8ith computers eing as uiuitous as they are today, there4s hardly any large

usiness that does not rely extensively on their IT systems. 3o!ever, there are

several specific fields in !hich MIS has ecome invaluale.

MIS systems can e used to transform data into information useful for decisionmaking. omputers can provide financial statements and performance reports to

assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuale function in that they can collate into coherent

reports unmanageale volumes of data that !ould other!ise e roadly useless

to decision makers. +y studying these reports decision"makers can identify

patterns and trends that !ould have remained unseen if the ra! data !ere

consulted manually.

MIS systems can also use these ra! data to run simulations < hypothetical

scenarios that ans!er a range of >!hat if0 uestions regarding alterations in

strategy. 9or instance, MIS systems can provide predictions aout the effect on

sales that an alteration in price !ould have on a product !hich is very useful for

=9 future development. These 2ecision Support Systems (2SS) enale more

informed decision making !ithin an enterprise than !ould e possile !ithout

MIS systems.

?ot only do MIS systems allo! for the collation of vast amounts of usiness

data, ut they also provide a valuale time saving enefit to the !orkforce.

8here in the past usiness information had to e manually processed for filing

and analysis it can no! e entered uickly and easily onto a computer y a data

processor, allo!ing for faster decision making and uicker reflexes for the

enterprise as a !hole.

Management 'y O'1e"tives

8hile MIS systems are extremely useful in generating statistical reports and

data analysis they can also e of use as a Management y *7ectives (M+*)tool.

M+* is a management process y !hich managers and suordinates agree upon

a series of o7ectives for the suordinate to attempt to achieve !ithin a set time

frame. *7ectives are set using the SMAT ratio6 that is, o7ectives should e

Specific, Measurale, Agreed, ealistic and Time"Specific.

The aim of these o7ectives is to provide a set of key performance indicators y

!hich an enterprise can 7udge the performance of an employee or pro7ect.+enefits of MIS


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The field of MIS can deliver a great many enefits to enterprises in every

industry. -xpert organi#ations such as the Institute of MIS along !ith peer

revie!ed 7ournals such as MIS @uarterly continue to find and report ne! !ays

to use MIS to achieve usiness o7ectives.

-FC 2s Core Competen"ies

-very market leading enterprise !ill have at least one core competency < that is,

a function they perform etter than their competition. +y uilding an

exceptional management information system into the enterprise it is possile to

push out ahead of the competition. MIS systems provide the tools necessary to

gain a etter understanding of the market as !ell as a etter understanding of

the enterprise itself./n3an"e S&pply C3ain Management

Improved reporting of usiness processes leads inevitaly to a more streamlined

production process. 8ith etter information on the production process comes

the aility to improve the management of the supply chain, including everything

from the sourcing of materials to the manufacturing and distriution of the

finished product.

4&i"( Refle5es

As a corollary to improved supply chain management comes an improved

aility to react to changes in the market. +etter MIS systems enale an

enterprise to react more uickly to their environment, enaling them to push out

ahead of the competition and produce a etter service and a larger piece of the

pie.

These factors help =9 to !ork smoothly and efficiently as !e already kno!n

that they are the only fast food chain !hich is selling fried chicken in !hich

they are speciali#ed.

MIS systems let the =9 management6 To capture information and store it, !henever they are making ills it helps

them to count sales per day, per !eek and per month ecause a copy of the ill

is stored in the computer.

Access stored information easily and manipulate it for the needs of their

clients0 !hile illing or taking order they 7ust enter the code of the product

reuested at that time and the uantity demanded.

-g"/roduct code /roduct name /roduct price (in s.)

B% Small oke BB Medium coke :;


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B: Carge coke 1;

B1 Small cokeD Collipop hicken E;

B; 9ried hicken tu(small) %B;

BE Small 9rench 9ries ;

BF Carge 9ries 1;BG hicken +urger ;

BH 9ried hicken tu(large) %1;

%B eg. +urger B

In =9 the aove mentioned kind of information is stored in each computer that

they use to maintain is SA/"sale module .They given codes to their 1; products

7ust y entering the code the product name comes out !ith cost on the screen.

ontrol flo! of information into, around and out of the systems.

8ork !ithin legislation such as the 2ata protection Act.

Manage resources this is a very important function as every day inventory is

recorded and therefore resources could e managed.

/roduce reports for themselves so that they can compare their o!n

performances !ith their o!n and other.

Maintain records needed for uality control so that the success story of all the

employees can e appraised.

espond confidently to the demands of the ommon Inspection 9rame!ork

MIS help them ecause they no! easily check !hen the last stocking !as done.

Manage and track employee records of !ork, achievement and progression for

promotions.

ecord and track outcomes.

Manage marketing information to further improve sales..

And a host of other information related functions.

If Management Information Systems are flexile, and relate to the needs of the

organi#ation, the clients and the curriculum that they are delivering, then they

!ork !ell and effectively. *ne has to e sure that, !hatever systems you use,

they suit your purposes and can e customi#ed to do so, are easy to use andallo! rapid data entry !ith rapid and flexile access for reporting purposes.

MIS S*ST/M OF -FC=ey 9unctions

%. -2I"(-lectronic 2ata Interchange)

. AMS"(Attendence Mointoring System)

:. A2JAMJA-(omputer Aided 2esignJomputer AidedManufacturingJomputerAided -ngineering)


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1. 2MS"(2ocument Management System)

;.MS(ommunication management Systems)E.SMS(Security Management

System)

CONC6USIONS AND R/COMM/DATIONS

The proposed system !ill not e a different system ut,an upgrade to theexisting one.

After an evaluation of various -/ solutions,I came to conclusion that anupgrade toK2 -d!ards -nterprise *ne G.%B to K2 -d!ards -nterprise*ne H.B

!ould e the est choice.

-/ System is very much helpfull to the organi#ation and also themanagement ecomes proper and maintained ecomes easy.

K2 -d!ards -nterprise *ne H.B includes enhancements for financialmanagement, supply chain management and human resource management.Thelatest release also includes industrt"specific caspaliilties for engineering and

construction,9ood and everages,commercial real estate,industrial

manufacturing and professional services.

The ne! !e"ased system enales uicker generation of inventory, saladand revenue reports"going from %hour to Bminutes.This helps the =9

management to make more accurate and uicker decisions in response to

demand changes.

The system also enales centrali#ed data respository,LMC"ased integration!ith other Applications. Also distriute formatted documents, results in saving

on third party soft!are licensing costs.

The system supports the company to automate inter"company invoicing and usiness !orkflo!s.

It helps ensuring consistency and enhancing operational efficiency. It potentially savesB":B additional headcount to process these routine

transactions

The system is user"friendly and there is ease in managing it.It helps to save a lot of time and resource for deployment and training across

various countries.


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Accounting module provides advanced pro7ect accounting integrated to anenterprise general ledger to help deliver etter data uality for enhanced

compliance and financial management and multiple options for expense

allocation on pro7ects.

2ynamic configuration capailities enale sales and customer servicerepresentatives to correctly enter sales order cominations comprised of products .

-/ incorporates customer"driven user interface improvements and adopts aconsistent *racle standard to enhance productivity and improve the visual

experience.

chapt 3 introduction of mis

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