What Does MIS stand for? MIS stands for M anagement I nformation S ystem alternatively known as M arketing I ntelligence S ystem.
Definition of MIS A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people , documents , technologies , and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy . Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.
Philip Kotler’s Definition of MIS A Marketing Information System consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
Origin of MIS At the start, in businesses and other organizations , internal reporting was made manually and only periodically , as a by-product of the accounting system and with some additional statistics , and gave limited and delayed information on management performance. In their infancy, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and accounts receivable . As applications were developed that provided managers with information about sales , inventories , and other data that would help in managing the enterprise, the term " MIS " arose to describe these kinds of applications Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems , resource and people management applications, project management and database retrieval application.
What is MIS Generally speaking MIS is nothing but collation & maintenance of data with the use of computers , at an organizational level, at a central location which can be made available to different departments and different levels of management as and when required . Lets see this in detail with the help of a diagram
Operational Managers (Bottom Level) Knowledge and Data Workers Middle Managers Senior Managers (Top Level) Sales & Marketing Manufacturing Finance Accounting Human Resources Centralized MIS Team ORGANISATION INFORMATION, REPORTS, DATA MIS
Advantages of MIS <ul><li>Availability of information at in a timely manner </li></ul><ul><li>Central coalition of information </li></ul><ul><li>Reduces Dependencies </li></ul><ul><li>Facilitates Data Analysis </li></ul><ul><ul><li>Pre-Post Analysis (process improvement) </li></ul></ul><ul><ul><li>Trend Analysis </li></ul></ul><ul><ul><li>Productivity & Quality Monitoring </li></ul></ul><ul><li>Sanctity of information </li></ul><ul><li>Increases organisational performance & efficiency </li></ul><ul><li>Increases overall Profitability </li></ul>
Limitations of MIS <ul><li>Takes time to setup </li></ul><ul><li>Involves a huge cost </li></ul><ul><li>Requires computer literate personal </li></ul><ul><li>Risk of Data loss </li></ul><ul><li>Dependency on machines (Computers) </li></ul><ul><li>Information Security Violation </li></ul>
Conclusion It is very important for any organisation to have a strong focus on M anagement I nformation S ystem to facilitate easy coalition, maintenance and availability of data in a timely fashion to increase efficiency and boost profitability .