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
er L
evel
Man
agem
ent an
d
Cle
rica
l
Hig
her
Leve
l M
anag
emen
t
Unstructur
ed
Structured Decision
Act
ion &
M
onit
orin
gD
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.