MIS [Management Information System]

Prepared by : Prof Sneha Suman

INTRODUCTION TO MIS

MIS• Management :

Activities carried out by managers such as Planning, Controlling, Organising, Initiating etc…

• Information : Processed Data, A knowledge required for Decision

making. Information is prerequisite for sound decision making.

• System : A procedure to convert data in to useful information- Correct decision can be taken timely and easily.

What is MIS ?• Management information systems (MIS) – is the study of people, technology, organizations, and

the relationships among them.– MIS professionals help firms realize maximum benefit

from investment in personnel, equipment, and business processes.

– MIS is a people-oriented field with an emphasis on service through technology.

– Management information systems are typically computer systems used for data managing to make searching, analyzing data, and spring information easier.

Cont…

Cont…• Management information system, or MIS, broadly refers to a

computer-based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization.

• In order to provide past, present and prediction information,• A management information system can include software that

helps in decision making, data resources such as databases,• The hardware resources of a system, decision support

systems, people management and project management applications, and any computerized processes that enable the department to run efficiently.

Advantages of MIS • Companies are able to identify their strengths

and weaknesses due to revenue reports, employees' performance record.

• Giving an overall picture of the company.• Acting as a communication and planning tool.• The availability of customer data and feedback

can help the company.• MISs can help a company gain a competitive

advantage

Work

Example : Salary management

Tools of MIS

UNIT : 1[Information and Management]

Data and Information• DATA is a raw material with which we begin.

Collecting data costs money and hence one must collect necessary and sufficient data.

• Data is generally used by machines and is useless unless it is processed to create INFORMATION.

• INFORMATION is Processed data, used by managers to initiate actions and to run the organization efficiently.

• The data processed by machines gives information

Data and Information

Data• The word ‘Data’ is derived from the plural form

of latin word ‘Datum’, which means ‘to give’.• Originated at mid 17th century.• Data is a collection of raw facts.• May or may not be meaningful.• Input to any system may be treated as Data.• Understanding is difficult.• Data must be processed to understand.• Data may not be in the order.• Example: Statistics, numbers, characters, images.

Information• The word ‘Information’ is derived from latin word

‘Informare’, which means ‘to instruct’.• Originated at late middle time.• Information is the outcome derived after

processing the data.• Information is always meaningful.• Output after processing the system is

Information.• Understanding is easy.

Cont…• Information is already in understandable form, it

may be processed further to make it more understandable.

• Information should be in the order.• Example Reports, Knowledge.

Knowledge• Knowledge is the application of information.

Knowledge addresses how and why, in addition to who, what, where and when.

• The knowledge links all the information together to produce a comprehensive Policy, Process or Procedure.

• Knowledge allows management to gain an accurate and complete picture of the enterprise Policies, Processes, and Procedures. The Policies, Processes, and Procedures become transformed into an enterprise asset.

Knowledge

Wisdom• Wisdom is complete understanding of the effects

and outcomes of Knowledge. • Wisdom addresses how and why, in addition to

who, what, where and when at the Enterprise level.

• Enterprise Policies, Processes, and Procedures must be at this understanding level to be considered permanent,

• otherwise the Policy and Process may be considered Conditional.

Summary

Types of Information• Strategic Information :

is needed for long Range planning. It is less structured and difficult to obtain internally.eg: Information for new branch.

• Tactical Information : is used to take short range decision and for better control of the organization.eg: Profit and loss account.

Types of Information• Operational Information :

is used for day-to-day management of the organization.eg : list of stock per day

• Statutory Information :Information and reports which are required by law to be send to government authorities are normally clearly specified and require straightforward processing of data. eg : Sales Tax

Types of Information

Why a computer based information system?

• The size of organizations is becoming larger. • Same data can be processed in many ways with

computer based systems. • It can handle large volume of data and variety of

information for efficient management.• Organizations are distributed with many

branches.• Markets are becoming competitive.• The demand for up to date and more accurate

information.

Types of Information

Types of Information

Qualities of information• Accurate• Complete • Trustworthy• Timely• Up to date• Relevant• Summarized • Significant

Types of Information

Various departments• PRODUCTION • MARKETING• MATERIALS – purchase, stores• FINANCE –Accounts • HUMAN RESOURCE DEVELOPMENT(HRD)• RESEARCH AND DEVELOPMENT (R&D)