Prof. Ruchi Khandelwal

MIS

MIS Concept“Right information to the right person

at the right place

at the right time

in the right form

at the right cost.”

Definition Of MISMIS is “an integrated user/machine system

for providing information to support the operations, management and decision making functions in an organization.”- G.B Davis

For this system utilizes Hardware and Software, Manual Procedures, Management Decision Model and Database.

'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

The MIS structure as a pyramidManagement Information System

Management Information System StructureMIS structure support for decision

makingMIS structure based on management

ActivityMIS structure based on organizational

function

MIS structure support for decision making

StructuredUnstructuredSemi Structure

MIS structure based on management ActivityStrategic planning

Acquisition of companyAddition of new product lineEntry into new marketNew organization of company

Management Control and Tactical PlanningAcquisition and organization of resourcesStructuring of work and formulate new decision rulesMeasure performanceFormulation of budget

Operational Planning & controlInventory reorder decisionSelection of vendorsHiring of new supervisor

Management Control and tactical planning

Operational planning &

Control

Transaction Processing and inquiry response

Low

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evel

Man

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ent an

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Cle

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l

Hig

her

Leve

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anag

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Unstructur

ed

Structured Decision

Act

ion &

M

onit

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ecision

Support

MIS Pyramid

Structure

Concepts The concept of MIS in today’s world is a system

which handles the databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system.

The concept of MIS gives high regard to the individual and his ability to use the information.

An MIS gives information through data analysis. While analyzing the data, it relies on many academic disciplines.

These include the theories, principle and concept from the Management Science, Management Accounting, Operations Research, Organizational Behavior, Engineering, Computer Science, Psychology and Human Behavior, making the MIS more effective and useful.

These academic disciplines are used in designing the MIS.

MIS uses the concept of management control in its design

Characteristics of Management Information system

Management oriented and directed

Business Driven/Justified

Common Data Flow

Heavy Planning Element

Reliable

Integrated

Characteristics of Management Information system

Subsystem Concept

Flexibility and Ease of Use

Distributed System

Secure

Common Data Base

Information as Resource

Requirements of MISDatabasesQualified System and management staffTop management supportActive participation of operating

managementControl and maintenance of MISEvaluation of MIS

Take the feedback from the usersEvaluate whether flexibility exists in the

system

Components of MIS

Software Hardware

Databases

People Procedure

Architecture of an MIS

Outputs of a Management Information System

Scheduled reports Produced periodically, or on a schedule (daily,

weekly, monthly)

Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day

Demand report Gives certain information at a manager’s request

Exception report Automatically produced when a situation is

unusual or requires management action

Scheduled Report Example

Daily Sales Detail ReportPrepared: 08/10/xx

Order#

CustomerID

Sales Rep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $3,214

P12453 C89321 CAR 08/12/96 288 P3214 $5,660

P12453 C03214 GWA 08/13/96 12 P4902 $1,224

P12455 C52313 SAK 08/12/96 24 P4012 $2,448

P12456 C34123 JMW 08J/13/96 144 P3214 $720

Key Indicator Report Example

Daily Sales Key Indicator Report

ThisMonth

LastMonth

LastYear

Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608

Demand Report Example

Daily Sales by Sales Rep Summary ReportPrepared: 08/10/xx

Sales Rep ID Amount

CAR $42,345

GWA $38,950

SAK $22,100

JWN $12,350

Exception Report Example

Daily Sales Exception Report – ORDERS OVER $10,000Prepared: 08/10/xx

Order#

CustomerID

Sales Rep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $13,214

P12453 C89321 CAR 08/12/96 288 P3214 $15,660

P12453 C03214 GWA 08/13/96 12 P4902 $11,224

… … … … … … …

… … … … … … …

Outputs of a Management Information System

Earnings by Quarter (Millions)

Actual Forecast Variance

2ND Qtr 1999 $12.6 $11.8 6.8%

1st Qtr 1999 $10.8 $10.7 0.9%

4th Qtr 1998 $14.3 $14.5 -1.4%

3rd Qtr 1998 $12.8 $13.3 -3.0%

Etc. See Figure 9.2

Drill Down ReportsProvide detailed data about a situation.

Management Information Systems for Competitive Advantage

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

An organization’s MIS

MIS is an integrated collection of functional information systems, each supporting particular functional areas.

Schematic

An Organization’sMIS

FinancialMIS

MarketingMIS

Manufacturing MIS

Etc.

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Etc.

HumanResources

MIS

Other MIS

Organization's MIS

Information Systems Today: Managing in the Digital World 7-25

Business Processes Supported by Functional Area Information Systems

7-26

Organizational Functions and Representative Information Systems

Benefits of MISIt provide timely, accurate, scientific, reliable

information.It avoids duplication of effortsCoordinated the whole organization.It provides information in form and formats a

required by the information seekers.It helps in making better and scientific decision

by the management.Speed of processing and fast retrieval of data is

possible.The scope for the use of information system has

expanded.

Limitations of MIS The quality of input process.Not substitute for effective management.It may not have requisite flexibility to quickly

update itself with the changing needs of time, especially in fast changing and complex environment.

It cannot consider the qualitative factors like moral and attitude of managers.

It is less useful in non-programmed decision.It also affected in case of change in top

management, organizational structure and operational team.

It is less effective in organizations where information is not being shared with others.