M i s

Ravindra_pujari@yahoo.com
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MIS is the acronym for Management Information Systems.
As the name implies, MIS is a System that generates and
provides Information to Management, for the purpose of
managing and improving the business processes.
In a nutshell, MIS is a collection of systems, hardware,
procedures and people, that all work together to process,
store, and produce information that is useful to the
organization.
It is a component based system, that provides data and
required information to management for supporting and
enabling them in their decision making process.
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Components of MIS
The major components of a typical Management Information
System are:
People – people who use the information system.
Data – the data that the information system records.
Business Procedures – procedures put in place on how to
record, store and analyze data.
Hardware – these include servers, workstations, networking
equipment, printers, etc.
Software – these are programs used to handle the data.
These include programs such as spreadsheet programs,
database software, etc.Ravindra_pujari@yahoo.com
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To accomplish the task, any Management Information
System needs the following components:
Hardware: Connects with the core processes and
captures and stores all required relevant data
Software: Processes the data, converts them into
usable information and reports
Data: Is required by the management to generate
reports and analyze the processes
People: At different levels of authorization to view and
modify records or information to represent sensible
and interpretable information.
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Characteristics of Management Information System:
System Approach
It is concerned with the whole of the system and its
performance is measured with the objectives for which it
has been made by taking a comprehensive view. It is a step
by step procedure to study the whole system along with its
subsystems.
Management Oriented/Relevance
The system should be designed by keeping the
organizational objectives in the mind. For designing of MIS
top-down approach should be followed. The top-down
approach means the system development should start from
the determination of the management needs and overall
objectives of the business.
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Need-Based
The system should be able to serve to a specific
needs of managers at different levels that are
strategic planning level, management control level
and operational control level. So, it should be
designed accordingly to present that criteria.
Exception Based
MIS should also be exception based. In some
abnormal cases, the expected value may vary
beyond the sufferance limits. In those cases, there
should be exception reporting to the decision makers
at the required level.
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Future Oriented
An MIS also should be future oriented. MIS should also
look to the future. In other words, It should not only
provide past or historical information that already exists. It
has to provide information on the idea of projections that
are to be initiated in future.
Long-Term Planning
Long-term planning is another important characteristic of
MIS that should have. It should not get obsolete very
soon. At the time of designing of MIS, the system
analyser should keep in mind that the design should be a
future-oriented and future effectiveness.
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Common Data Flows/Common Databases
Common data flow is a logical cost-effective concept of
making an MIS more meaningful. There should be some
common data flows in the system in order to avoid data
redundancy and duplicity.
Sub System Concept
Subsystem concept is another characteristic of MIS
which says that the system must be broken down into
subsystems so that the work can be completed easily
and on time. Although a system is considered as a
single entity, a big system should be divided into
subsystems so that one subsystem can be implemented
at a time for better effectiveness.
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Flexibility
Flexibility also important for an MIS. A system must be
able to adopt changes and should also be dynamic. It
should be designed in such a way that it can be
modified to changing circumstances. It must be capable
of expansion, accommodate, growth or a new type of
processing activities.
Reliability & Accuracy
Reliability and accuracy is another key point of an
effective MIS. MIS whole improves the efficiency of the
complete organisation. So, the information provided
should be reliable and accurate in all aspects.
Inadequate or incorrect information generally leads to
the decision of poor quality.
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Integrated
A management information system should be
integrated. An MIS is a logically integrated system
comprising of subsystems. Where all the activities of
each subsystem are inter-related. Integration is
possible by the rotation of the data among those
subsystems. Integration is significant because of its
ability to produce more meaningful information. It is
important to have an integrated system because to
make an effective decision, information may be
required from different areas or within the different
parts of the organization. In order to provide a total
solution of the plan, a complete and integrated
information is needed which can only be provided by
an integrated system.
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Complete
An incomplete or partial presentation of data will result
in a call that doesn’t have the expected results.
Information should be complete and contain all the
facts that are necessary for the decision makers to
satisfactorily solve the problem.
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MIS Functionality & Benefits
A Management Information System collects and stores
data from various sources including hardware;
Processes data as per the programmed instructions
Generates reports required as per management’s
requirement.
Provide access to selective information to different
levels of authority
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Having a sound and robust Management Information
System that can produce any reports required by
management, reduces time spent on producing and
validating reports.
A huge amount of effort is spent on analyzing the data and
representing reports in a useful manner. This saved time
can be spent in useful manner such as, identifying the root
cause and improvement opportunities for the business.
In complex businesses visualizing and performing some
calculations can be complex, prone to oversight errors
and time consuming. Using a Management Information
System makes any complex transaction easier and
generates accurate reports.
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With a Management Information System the number and
type of reports that can be generated are numerous
compared to manual reports. Thus slicing and dicing of
any process becomes easy and management is able to
identify useful information and use it as a competitive
advantage.
Having a Management Information System makes the
job of processing huge business data easier and
simpler. It simplifies the task of operations and other
processes and helps them concentrate in their core
business operations.
It assists management in assessing the performance of
organization towards its goals, assess the performance
of departments, and standardize the method of capturing
and reporting metrics across the organization.
It helps an organization in decision support, compare
alternatives and choose the best options.Ravindra_pujari@yahoo.com
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The need for MIS
1) MIS helps the decision makers, with the correct and
accurate information, to take the right decision in the
interest f the enterprise.
2) MIS facilitate communication within and outside the
organization – employees within the organization are
able to easily access the required information for the
day to day operations. Facilitates such as Short
Message Service (SMS) & Email make it possible to
communicate with customers and suppliers from within
the MIS system that an organization is using.
3) Record keeping – management information systems
record all business transactions of an organization and
provide a reference point for the transactions.
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Advantages and Disadvantages of MIS
Advantages:
The following are the advantages of computerized
information systems
Fast data processing and information retrieval – this is
one of the biggest advantages of a computerized
information system. It processes data and retrieves
information at a faster rate. This leads to improved
client/customer service
Improved data accuracy – easy to implement data
validation and verification checks in a computerized
system compared to a manual system.
Easy access to information – most business executives
need to travel and still be able to make a decision based
on the information. The web and Mobile technologies
make accessing data from anywhere possible.
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Improved security – in addition to restricting access to
the database server, the computerized information
system can implement other security controls such as
user’s authentication, biometric authentication systems,
access rights control, etc.
Reduced data duplication – database systems are
designed in such a way that minimized duplication of
data. This means updating data in one department
automatically makes it available to the other
departments
Improved backup systems – with modern day
technology, backups can be stored in the cloud which
makes it easy to recover the data if something
happened to the hardware and software used to store
the data
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Disadvantages:
It is expensive to set up and configure – the
organization has to buy hardware and the required
software to run the information system. In addition to
that, business procedures will need to be revised, and
the staff will need to be trained on how to use the
computerized information system.
Heavy reliance on technology – if something
happens to the hardware or software that makes it
stop functioning, then the information cannot be
accessed until the required hardware or software has
been replaced.
Risk of fraud – if proper controls and checks are not
in place, an intruder can post unauthorized
transactions such as an invoice for goods that were
never delivered, etc.
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The first (mainframe and minicomputer) era was
ruled by IBM and their mainframe computers, these
computers would often take up whole rooms and
require teams to run them, IBM supplied the
hardware and the software. As technology advanced
these computers were able to handle greater
capacities and therefore reduce their cost. Smaller,
more affordable minicomputers allowed larger
businesses to run their own computing centers in-
house.
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The second (personal computer) era began in 1965 as
microprocessors started to compete with mainframes
and minicomputers and accelerated the process of
decentralizing computing power from large data
centers to smaller offices.
In the late 1970s minicomputer technology gave way
to personal computers and relatively low cost
computers were becoming mass market commodities,
allowing businesses to provide their employees access
to computing power that ten years before would have
cost tens of thousands of dollars. This proliferation of
computers created a ready market for interconnecting
networks and the popularization of the Internet.
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As the complexity of the technology increased and
the costs decreased, the need to share
information within an enterprise also grew, giving
rise to the third (client/server) era in which
computers on a common network were able to
access shared information on a server.
This allowed for large amounts of data to be
accessed by thousands and even millions of
people simultaneously.
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The fourth (enterprise) era enabled by high speed
networks, tied all aspects of the business enterprise
together offering rich information access encompassing
the complete management structure.
The fifth and latest (cloud computing) era of information
systems employs networking technology to deliver
applications as well as data storage independent of the
configuration, location or nature of the hardware. This,
along with high speed cell-phone and wifi networks, led to
new levels of mobility in which managers access the MIS
remotely with laptops, tablet pcs, and smartphones.
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The Emergence of MIS in Computers
When computers began to emerge in the 1940s and
1950s, punch cards were still a big part of information
systems. They continued to play a role until the 1970s
when they were replaced by magnetic storage media
like tapes and disks. These storage devices greatly
increased the speed of calculating data Consequently,
MIS began to develop for accounting. Calculating data
and compiling it into reports could now be done in a
fraction of the time it would have taken before.
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The Five Eras of MIS
In order to make sense of the evolution of management
information systems, it's helpful to break down the
history into four or five eras.
First Era (mid-1960s to mid-1970s)
During the first years of computerized MIS, information
systems were centralized and concerned solely with
governance and the needs of management. Most
information systems and their reports were under the
control of accounting departments. Technology included
third-generation mainframe computers, like the IBM 360.
Languages included Assembler, Fortran, COBO and,
Database e. Ethernet networks were developed during
this time.
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Second Era (mid-1970s to mid-1980s)
While MIS was still mainly concerned with governance
and the needs of management, more departments were
beginning to benefit from the technology. In many
companies, steering committees and user-led initiatives
determined the shape and scope of additional IS
projects. Technology included the first personal
computers (PCs), minicomputers and mid-range
computers.
Third Era (mid-1980s to late 1990s)
During the third era, centralized information systems
began to spread out and information became
decentralized. Each department had its own computer
system. Managing information was often referred to as
"herding cats." It was during this era that a new position
emerged in many companies to oversee the acquisition
and management of multiple information systems: the
Chief Information Officer, or CIO. Technology during this
era included internetworking and the beginning of the
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Types of Management Information Systems
Companies today usually have several types of information
systems useful for managing different aspects of their
business. Most of these work with transaction processing
systems and compile information that can be used to make
effective management decisions.
Transaction Processing System (TPS)
A TPS is usually at the base of any company's integrated
information system. It takes in raw data from sources inside
and outside of the company and stores it in a database.
Users are able to query the database for any information
they need.
Data can be processed in real-time as it is entered, or by
using batch processing, in which case information is
processed at specific times in the day. Sales and inventory
are usually processed in real-time, whereas payroll
information, which isn't as time-sensitive, is often processed
in batches, often after hours.Ravindra_pujari@yahoo.com
Cell 9303239020

Decision Support Systems (DSS)
Decision support systems assist managers in making
informed decisions using interactive computer models
that explore real-world processes. The DSS retrieves
specific data from the internal database that pertains to
the questions raised by the user. For example, if a
sales manager wanted to figure out which type of new
product would sell the fastest, she could use a DSS to
compare sales data and demographic information
about customers to determine what types of products
and what sales points would be most appealing to the
largest demographic groups.
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Executive Information Systems (EIS)
An executive information system works much the
same way as a DSS, however the software is
customized for specific executives so they can make
informed strategic decisions. As an example, a CEO
could use an EIS to compare his company's financial
data to its competitors, with the information
presented in spreadsheets or graphs.
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Expert Systems
Expert systems use artificial intelligence to provide
managers with advice that is similar to what a human
consultant would offer. The AI can learn to solve
problems using what-if reasoning. Because AI is still
relatively new, expert systems are expensive and take
a lot of time to program. However, this is a trend that is
still growing.
Advanced expert systems are used by airlines to
determine scheduling of aircraft and their crews,
significantly reducing expenses by eliminating idle time
on the tarmac and half-empty planes going into the air.
Expert systems are also useful in oil exploration,
scheduling employee shifts and even diagnosing
illnesses.
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Management Support Systems (MSS)
Once the TPS has gathered and stored needed
information, this information can then be accessed by a
management support system to analyze the data,
empowering managers to make informed decisions.
An example of an advanced MSS is a data warehousing
system. These systems extract information from multiple
databases throughout the company and store it in a
central database. Retailers use data warehousing to
collect information on customers to determine their
demographics and shopping patterns. Banks use data
warehousing to detect credit card fraud.
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A marketing information system (MKIS) is a
management information system (MIS) designed to
support marketing decision making. Jobber (2007)
defines it as a "system in which marketing data is
formally gathered, stored, analysed and distributed to
managers in accordance with their informational needs
on a regular basis."
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The top benefits of decision support systems include:
Speeding up the process of decision making,
Increasing organizational control,
Speeding up problem solving in an organization,
Helping automate managerial processes,
Improving personal efficiency,
Eliminating value chain activities.
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Marketing information system (MIS) is a set of
procedures and methods designed to generate,
analyze, disseminate, and store anticipated marketing
decision information on a regular, continuous basis. An
information system can be used operationally,
managerially, and strategically for several aspects of
marketing.
A marketing information system can be used
operationally, managerially, and strategically for several
aspects of marketing.
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We all know that no marketing activity can be carried out in
isolation, know when we say it doesn’t work in isolation that
means there are various forces could be external or
internal, controllable or uncontrollable which are working on
it. Thus to know which forces are acting on it and its impact
the marketer needs to gathering the data through its own
resources which in terms of marketing we can say he is
trying to gather the market information or form a marketing
information system.
This collection of information is a continuous process that
gathers data from a variety of sources synthesizes it and
sends it to those responsible for meeting the market places
needs. The effectiveness of marketing decision is proved if
it has a strong information system offering the firm
a Competitive advantage. Marketing Information should not
be approached in an infrequent manner. If research is done
this way, a firm could face these risks:
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1.Opportunities may be missed.
2.There may be a lack of awareness of environmental
changes and competitors’ actions.
3.Data collection may be difficult to analyze over
several time periods.
4.Marketing plans and decisions may not be properly
reviewed.
5.Data collection may be disjointed.
6.Previous studies may not be stored in an easy to use
format.
7.Time lags may result if a new study is required.
8.Actions may be reactionary rather than anticipatory.
The total information needs of the marketing
department can be specified and satisfied via a
marketing intelligence network, which contains three
components.
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Related: Indirect Reference Groups
An Marketing Information System offers many
advantages:
1. Organized data collection.
2. A broad perspective.
3. The storage of important data.
4. An avoidance of crises.
5. Coordinated marketing plans.
6. Speed in obtaining sufficient information to make
decisions.
7. Data amassed and kept over several time periods.
8. The ability to do a cost-benefit analysis.
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Continuous monitoring is the procedure by which the
changing environment is regularly viewed.
2. Marketing research is used to obtain information
on particular marketing issues.
3. Data warehousing involves the retention of all
types of relevant company records, as well as the
information collected through continuous monitoring
and marketing research that is kept by the
organization.
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Depending on a firm’s resources and the complexity of its needs, a
marketing intelligence network may or may not be fully
computerized. The ingredients for a good MIS are consistency,
completeness, and orderliness. Marketing plans should be
implemented on the basis of information obtained from the
intelligence network. The disadvantages of a Marketing information
system are high initial time and labor costs and the complexity of
setting up an information system. Marketers often complain that
they lack enough marketing information or the right kind or have too
much of the wrong kind. The solution is an effective marketing
information system.
The information needed by marketing managers comes from three
main sources:
1) Internal company information – E.g. sales, orders, customer
profiles, stocks, customer service reports etc
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2) Marketing intelligence – This can be information gathered from many
sources, including suppliers, customers, and distributors. Marketing
intelligence is a catchall term to include all the everyday information about
developments in the market that helps a business prepare and adjust its
marketing plans. It is possible to buy intelligence information from outside
suppliers (e.g. IDC, ORG, MARG) who set up data gathering systems to
support commercial intelligence products that can be profitably sold to all
players in a market.
(3) Market research – Management cannot always wait for information to
arrive in bits and pieces from internal sources. Also, sources of market
intelligence cannot always be relied upon to provide relevant or up-to-
date information (particularly for smaller or niche market segments). In
such circumstances, businesses often need to undertake specific studies
to support their marketing strategy – this is market research.
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There are four main financial statements.
They are:
(1) balance sheets;
(2) Income statements;
(3) cash flow statements; and
(4) statements of shareholders' equity.
Balance sheets show what a company owns and
what it owes at a fixed point in time.
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Financial data analysis may be conducted through trend
evaluations, ratio analyses and financial planning
modeling. Data outputs that are produced by FIS can
include
Operating and capital budgets
Working capital reports
Accounting reports
Cash flow forecasts
The predictive analytics included in these applications may
also narrow down exactly what could be expected from a
business interaction or transaction that has yet to take
place.
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The management of financial information in an e-
commerce business is paramount in order to gain
maximum operating results in the shortest amount of time.
An FIS can also yield huge amounts of data for daily
business operations. Financial markets traders and
salespeople have the greatest demand for FIS because
they work in very fast environments and their on-demand
computing systems must keep up with real-time activities
in order to allow these professionals to operate in real
time. Broker investigating, investment and trade data along
with fiscal asset classes can be relayed through an FIS.
This also works for smaller businesses that need to obtain
financial data about local markets. FIS is a form of real-
time operating system that works to enhance financial
information exchanges.
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