Management Information System

What is Management Information
System?
 Management: The organization and coordination of the activities of a
business in order to achieve defined objectives.
 Information: It is that which informs, i.e. an answer to a question, as well as
that from which knowledge and data can be derived.
 System: A set of detailed methods, procedures and routines created to
carry out a specific activity, perform a duty, or solve a problem.
 Management Information System: It broadly refers to a computer-based
system that provides managers with the tools to organize, evaluate and
efficiently manage departments within an organization.

 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.

Concept of MIS
 CONCEPT
The MIS is an idea which is associated with man, machine, marketing and
methods for collecting information’s from the internal and external source
and processing this information for the purpose of facilitating the process of
decision-making of the business.

Importance of MIS
Organizations have multiple functional systems. These usually include sales
systems, call center systems, financial systems, inventory systems, logistic
systems and more. MIS combines information from multiple systems. This helps
management staffers better understand their own departments' contributions.
In many cases, the combination of data, such as sales figures combined with
available inventory, help the manager take the appropriate action in order to
meet the customer's needs.
1. To control the creation and growth of records.
2. To reduce operating costs.
3. To improve efficiency and productivity

4. To assimilate new records management technologies.
5. To ensure regulatory compliance.
6. To minimize litigation risks.
7. To safeguard vital information.
8. To support better management decision making.
9. To preserve the corporate memory.
10. To foster professionalism in running the business

Characteristics of a Management
Information System
 Provides reports with fixed and standard formats.
 Hard-copy and soft-copy reports.
 Uses internal data stored in the computer system.
 End users can develop custom reports.
 Requires formal requests from users.
 Provides support to managers as they work to achieve corporate goals.
 Enables managers to compare results to established company goals and
identify problem areas and opportunities for improvement.

Goals of an MIS
 Provide managers with information.
 Regular, routine operations.
 Control, organize and plan better.

Functional Perspectives of MIS
1. Financial MIS
Will integrate information from multiple sources.
Functions:
Costing
Profit & Loss reporting
Auditing
Funds management

2. Manufacturing
 Design and Engineering
 Master Production Scheduling
 Inventory Control
 Materials Planning
 Manufacturing and Process Control
 Quality Control

3. Marketing
 Market research
Web-based market research
 Pricing
4. Transportation and Logistics
 Route and schedule optimization
5. Human Resources Accounting

Role of MIS
 The role of MIS in an organization can be compared to the role of heart in the body.
 The information is the blood and MIS is the heart. In the body the heart plays the role of
supplying pure blood to all the elements of the body including the brain.
 The MIS plays exactly the same role in the organization.
 The system ensures that an appropriate data is collected from the various sources,
processed, and sent further to all the needy destinations.

Components of MIS
1) Marketing Research System (MRS)
Marketing research can be seen as the systematic and objective search for and analysis of
data and information relevant to the identification and solution of any problem in the field
of marketing.

2) Marketing Intelligence System (MIS)
The process of acquiring and analyzing information in order to understand the market (both
existing and potential customers); to determine the current and future needs and
preferences, attitudes and behavior of the market; and to assess changes in the business
environment that may affect the size and nature of the market in the future.

3) Internal Record System (IRS)
Marketing managers rely on internal reports on orders, sales, prices, costs, inventory levels,
receivables, payables, and so on. By analyzing this information, they can spot important
opportunities and problems.

4) Decision Support System(DSS)
A decision support system (DSS) is a computer-based information system that supports
business or organizational decision-making activities. DSSs serve the management,
operations, and planning levels of an organization and help to make decisions, which may
be rapidly changing and not easily specified in advance.

Types or Classification of MIS
 Transaction processing systems: These systems process a large volume of routine,
recurring transactions.
 Operations information systems: These systems gather comprehensive data, organize it
and summarize it in a form that is useful for managers.
 Decision support systems: These systems help mangers with the necessary information to
make intelligent decisions.
 Expert systems: They are meant to mimic humans in making decisions in a specific field.

Structure of MIS
 Physical Components – hardware, software, database, procedures and
input & output.
 Information System Processing Functions
- to process transactions, to produce reports and process enquiries.
 Decision Support- structured, unstructured and semi-structured.
 Levels of Management Activities
 Organizational Functions

Strategic Planning for MIS
Strategic planning for an organization involves long-term policy decisions, like
location of a new plant, a new product, diversification etc. Strategic planning
is mostly influenced by:
• Decision of diversification i.e., expansion or integration of business
• Market dynamics, demand and supply
• Technological changes
• Competitive forces
• Various other threats, challenges and opportunities

Strategic planning sets targets for the workings and references for taking such
long-term policy decisions
and transforms the business objectives into functional and operational units.
Strategic planning generally follows one of the four-way paths:
• Overall Company Strategy
• Growth orientation
• Product orientation
• Market orientation

Strategic Planning for MIS with regard
to following aspects of business:
 Operational Excellence
- to achieve higher profitability.
- to get maximum reach to the customers and exposure.
 New Products, Services and Business Models
- to establish, consolidate and maintain a leadership in the existing market as
well as provide a competitive edge in the industry.
 Services and Business Models
 Customer and Supplier Intimacy
 Improved Decision-making
- to provide the right information at the right time to the right person, for
making an informed decision.
 Competitive Advantage, and Survival

MIS in various levels of management
 High level (strategic)
 Long-range view
 Planning
 Middle level (tactical)
 Carry out the plan
 Assemble the material
 Hire the resources
 Organize and staff
 Low level (operational)
 Supervisor
 Directing and controlling

Management Information System

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