Management information systems (mis)

To provide lower and middle management with
printed or electronic reports with inquiry
capabilities so that they can control, organize and
plan more effectively and efficiently.
Computerized MISs typically extract and
summarize data from TPSs to allow managers to
monitor and direct the organization


Internal Data Sources
Organization’s TPS and ERP systems
Related Databases.
External Data Sources
Customers.
Suppliers.
Competitors and stock holders (not already
captured by TPS).
Internet and Extranets.


MIS uses the input data and processes
it into information for the use of
managers primarily in the form of pre-
determined reports.


Collection of reports (scheduled
reports, key-indicator reports and
demand reports, exception reports and
drill-down reports.) that are distributed
to managers.


Provide reports with fixed and standard
formats.
Produce hard-copy and soft-copy reports.
Use internal data stored in the computer
system.
Allow end users to develop their own custom
reports.
Require user requests for reports developed
by systems personnel.


Scheduled (Periodic) reports :- Reports produced
periodically (daily, weekly or monthly etc) depending on the
decision making need.
For Examples:-
Daily or weekly sales analysis reports
Monthly financial reports.
Key-indicator reports :- Provide a summary of the previous
day’s critical activities and typically available at the beginning
of each work day. They summarize inventory levels,
production activity, sales volume etc.


Demand reports :- Reports or screen outputs developed to
give relevant information at someone’s request (adhoc).
Suppliers & customers use demand reports.
Example :-
Inventory level of certain product

Exception reports :- Reports which are automatically
produced when a situation is unusual or requires management
action.

Drill-down reports :- Reports which provide detail data about
a situation.

Demand Report

 Push Reporting


Financial MIS :- Provides financial information to accountants, broader set
of people who need to make better decisions on a daily basis.
Financial MISs perform the following functions.
Integrate financial and operational information from multiple sources,
including the Internet, into a single system.
Provide easy access to data for both financial and non financial users.
Make financial data immediately available to shorten analysis turnaround
time.
Enable analysis of financial data among multiple dimensions-time,
geography, product, plant, customer
Analyze historical and current financial activity. Monitor and control the
use of funds over time


Profit/Loss and Cost systems :- Organize revenue and cost data for
the company. The internal input to the MIS.
Profit center :- Department within an organization that tracks
total expenses and net profits.
Example - investment division of a large insurance company.
Revenue center :- Division within a company that tracks sales or
revenues.
Example - marketing or sales department
Cost center :- Division within a company that does not directly
generate revenue.
Example - manufacturing, research and development


Auditing :- Analyzing the financial condition of an organization and
determining whether financial statements and reports produced by
financial MIS are accurate.
Types of auditing are
Internal auditing :- Auditing performed by individuals within
the organization.
External auditing :- Auditing performed by an outside group.


Funds Usage and Management :- Assist with funds usage and
management..
Internal uses of funds
Purchasing additional inventory and machinery
Hiring new employees
Buying new office equipment
Increasing marketing and advertising
Investing in new products
Increasing research and Development.
External uses of funds
They are typically investment (investing in banks, stocks, bonds, bills,
notes, futures, foreign currency) related


A marketing MIS supports managerial
activities related to product
development, distribution, pricing
decisions, promotions, and sales
forecasting.


Overview of a marketing MIS


Market research :- Market research is a formal study of the
market and customer preferences. Tools used for market
research include surveys, questionnaires, pilot studies and
interviews.
Product development :- This involves the conversion of raw
materials into finished goods and services.
Promotion and advertising :- To improves their sales.
Richness and reach are important measures of effective
advertising.
Product pricing :- Product or service pricing is another
important and complex marketing function. With relation to a
product, retail price, whole-sale price, and price discounts must
be set.

A human resource MIS, also called the
personnel MIS, is concerned with
activities related to employees and
potential employee of the organization.


Activities performed :- Workforce analysis
and planning, hiring, training, job and task
management, other personnel related issues.
Outputs :- Some organizations have
computer systems to assist with human
resource planning, hiring, training, skills
inventorying, wage and salary administration.


Human resource planning :- Overall purpose: Put the right number and
kinds of employees in the right jobs when they are needed.
Personnel selection and Recruiting :- If the human resource plan
reveals that additional personnel are required, the next step is to recruit and
select personnel. Management information systems can also be used to
help rank and select potential
Employees Training and skills inventory :- For some jobs very specific
training should be given to new employees. Other jobs may require general
training about the organizational culture, orientation, dress standards and
the expectations of the organization.
Employee schedules :- developed for each employee, showing his/her
job assignment over the next week or month.
Job placements :- often determined based on skills inventory
reports, which show which employee might be best suited to a particular job.
Wage and salary administration :- This MIS subsystem involves
determining wages, salaries and benefits (medical payments, saving
plans, retirement accounts).
Outplacement :- Employees leave companies for various reasons.


Design and engineering.
Master production schedule and inventory
control.
Process control.
Quality control and testing.


Accounting MISs :- An information system
provides aggregate information on accounts payable,
accounts receivable, payroll and many other
applications.
Geographical Information Systems :- A computer
system is capable of assembling, storing,
manipulating and displaying geographically
referenced information, that is data identified
according to its location.


Management information systems (mis)

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