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Management Information System

. MIS is the system, which makes available the right information tothe right person, at the right place, at the right time, in the right

form and at the right cost.

. According to Davis & Olson MIS is an integrated user-machinesystem for providing information to support operations,

management & decision-making function in an organisation. The

system utilities computer hardware & software, manual

procedures/models for analysis, planning, control & decision

making & a database.

. According to Henry C. Lucas MIS is a set of procedures which

when executed provide information to support decision making.

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Concept of MIS

Processing Logic

Computers

Human Being

Data Base

MIS

Data

DataIntelligence Design Choice

Decision Implementation

PerformanceMonitoring/Feedback

Decision

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Data Base Management System

Data Base

Strategic Planning

Management Control

Operational Control

Transaction processing

Mark

eting

Prod

.

pers

onnel

Loges

tic

Fin.&

Acc.

Info.p

rocessing

TopMa

nagement

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Characteristics of MIS

Strategic Planning:-Formulation of objective & strategic plans.

Management Control:-Formulation of budgets & resource

allocation.

Operational Control:-Scheduling of activities & performance

report.Transaction Processing:-Processing of orders, shipments &

receipts.

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Marketing:-Sales forecasting, planning, customer & sales analysis.

Production:-Production planning, scheduling & cost analysis.Logistic:-Planning & control of purchasing, inventories &

distribution.

Personnel:-Planning personnel requirement, analyzing

performance & salary distribution.Finance & Acc.:-Finance analysis, cost analysis, capital requirement

planning & income measurement.

Information Processing:-Information system planning, cost effective

analysis.

Top Management:-Strategic planning, resource allocation.

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Pre-requisites of MIS.

1) should be unified system.

2) Should support decision.

3) Should be compatible with the organisations structure &

culture.

4) Should have user involvement.

5) Should be cost effective/beneficial.

6) Should be responsive to changes around & within org.

7) Should be speedy & accurate.

8) Should provide validated & valid information.

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Contemporary Approaches to MIS

Information technology has become an integral part of

corporate as well as personal life style. information systembased on computers are now progressively used for acquiring,processing, sorting & dismaintaining information.

Over the years, the system development has ceased tobe purely technical activity. while developing information

system, attention is given to the related aspects likeorganisational structure, org. culture, people behavior , etc.

This approaches to MIS is divided into 3 types

1. The technical approach

2. The behavioral approach

3. The socio-technical approach

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1.The technical approach

This approach centered around mathematical & normative models tostudy information system. It also relies heavily on the physical technology &

the formal capabilities of these system. As such, computer science,management science & operations research disciplines contributesignificantly to the technical approach.

2.The behavioural approach

Information technology may heavily depend on technical aspects, thedeveloper has to consider the behavioural impact/response of people in theorganisation where information system would be implemented.

As information system has to address & take cognizance of behaviouralproblem & issue. It is imperative that behavioural factors are taken intoconsideration.

This approach, therefore, borrows heavily from the principle of politicalscience, psychology , sociology & O.B. among others. This approach focusesnot on technical solution but on the changes in attitudes, management &organisation policy.

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3.The socio-technical approach

The problem faced while developing and implementinginformation system are neither purely technical nor

behavioural.

The socio-technical approach does not opt for purely technical

nor behavioural approach, but it does attempt to borrowheavily from both the approach & synthesize so as to optimize

the performance of the information system as a whole.

This approach is now being increasingly accepted &

implemented.

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Information as a strategic resource.

With the increasing & intensifying trends towards

globalization, competition is increasing & become moreglobal. Global competition has increased performance

standards in many dimensions covering the whole gamut of

cost, price, quality, technology, productivity, product launch &

smooth operations.

Information has emerged as a strategic resource:-

resource that is scarce, has significant cost and has alternative

uses. Best owing competitive edge on the organisation which

possess it. Hence, in the present competitive environment

information has become critical organisational resource &increasingly consider as a valuable strategic resource.

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The probability of achieving strategic competitiveness in

the present competitive environment could be enhanced for

the organisation that realized that its survival, success &prosperity depends on the ability capture information,

transform it into usable knowledge through the organisation.

Organisation that accept this challenge, shift their focus from

OBTAINING the information to EXPLOITING the information, to

gain a strategic competitive advantage over competing / rival

firms.

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To able to grab & retain the strategic competitive edge, its

important for the org. to be able to raise & answer the

question likei) What business the organisation should be in?

ii) What existing business activities should be spoon off?

iii) What new activities should be undertaken?

iv) How to protect the org. from business cycles/swings?

v) What are the competitors doing & can do?

vi) What are the competitors capabilities?

Information about this issue would help an org. prepare an

anticipated Response Profile of each competitor in

following aspects.

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a)What will competitor do in future?

b)W

here does the organisation hold advantage over itscompetitors?

c) How will this change the organisations relationship with itscompetitors?

All these questions could be answered by undertaking Competitors

Analysis or Competitive IntelligenceTo survive, succeed in this competitive environment, corporate org.

have to be cost/price/technology/quality competitive. Theyhave to be more profitable, be able to respond quickly & offerbetter quality products/services ahead of the competitors & at

price lower than competitors.Those organisations that will have information, would gain the

strategic competitive edge & proceed to the finish line towinners.

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Use of Information for Competitive Advantage.

What is competitive advantage?

competitive advantage is about changing the balance of power

between a firm & its competitors in the industry, in the firms

favor.

competitive advantage is an internal system that delivers benefits

to a firm, not enjoyed its competition

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Role of Information in Competitive Environment.

According to Poster-Miller theory.

a) It changer industry structure

i) The bargaining power of customer.

ii) The bargaining power of suppliers.

iii) Threat of new entrants in the firms market.iv) Pressure from substitute products.

b) It spawns/creates whole new business.

i) Information revolution makes new business technologicallyfeasible.

ii) Information also creates new business by creating deriveddemand for new product.

iii) Information & information technology helps to createbusiness within old ones.

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The specific use of information for competitive advantage, for thispurpose, we would consider the uses under 2 types.

i) Functional use

ii) Strategic use

i) Functional use:-Competitive advantage is considered as afunction of cost/value chain

1)Information & information system helps in

a) Facilitating product delivery.b) Adding value to quality.

c) Improving product quality.

2)Information helps org. with speed & ability to move quickly intothe market.

3) Information helps org. to enhance

a) Quality of their operations.

b) Quality of their products.

c) Quality of their services.

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4)Information can help to specify.

a) Products

b) Product processc) Production cycle time.

5) Information helps organisations

a) Meet benchmarking standards.

b) Improve customer services.c) Improve quality of design & product.

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2) Strategic uses:

i)Information gives organisations new ways to out performtheir rivals.

ii)A firm can use following basic competitive strategies todeal with competitive forces.

a)Product differentiation.

b) Developing right linkage to customers & suppliers.

c) The new intensity of information makes it possible formore precise development of strategies, planning, forecasting &monitoring.

d) Information facilitates availability of extensive data,both internal & external for problem solving & decision making.

e) Information & I.T. help improve an org. abilities to co-ordinates its activities regionally, nationally & globally

f) Information enables org. to think globally , act locally.

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MIS as an Instrument for Organisational Change.

Organisation & Change.

Organisation will have to address or will have to come to terms with

following changes.

1)A larger global market place made smaller by enhanced technologies &

completions from abroad.

2)A worldwide recognition of the environment as an influencing variable

& government attempts to draw back from environmental calamity.3)Health consciousness among all groups through the world.

4)Change in life style trends affecting the ways in which people view

work, purchase, society.

5)The changing work place & need for non traditional employees.

6)The knowledge asset of org., its people, becoming increasingly crucial

to its competitive well being, thanks to I.T.

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MIS & Organisational Change.

MIS would help about organisational change in following manner.

1)MIS/IT will have a significant effect on the internal appearance of

organisations of future. MIS will lead to reduced hierarchy asfewer managers would be required to act as conduits ofinformation.

2)The organisations would not be functioning based on corneredinformation but would have shared information.

3)MIS would accelerate restructuring of work flows, giving newpowers to both line & staff functionaries.

4)The power/authority would be based more on knowledge & meritthan seniority.

5)Bcos of MIS, the culture of MIS of organisation, would tend tobecome result/performance oriented.

6)MIS would, Thus make organisational culture more open &competitive & the organisational structure more flexible.

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MIS is Instrumental in change.

MIS would be instrumental in bringing about organisational change.

In fact MIS would keep on issuing wake-up calls. It is true that

MIS has traditionally been a change agent, where as line & staff

functionaries have been change target. It is also true that MIS

professionals generally posses a problem solving, multi-

dimensional & multi- disciplinary way of thinking that makes

them the strongest candidates for the role of Corporate re-

engineer.