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20BBA-0MI32T/ 20BBA-0MS32T
MANAGEMENT INFORMATION
SYSTEM (MIS)
Presented By :
FARHANA MARIYAM
MIS
Management Information System is a
computer based information system which
is basically concerned with processing
data into information which is then
communicated to the various departments
in an organization to support the
operations, the management and the
decision making function in the
organization.
Definition of MIS
• Management information system, or MIS,
broadly refers to a computer based system
that provides managers with the tools to
organize, evaluate and efficiently manage
departments within an organization
- Subhalakshmi Joshi
What does Management
Information System (MIS)
mean?
Fig. 1.1–Management Information System by Sunitha
Vanze
MANAGEMENT
• MANAGEMENT is the effective utilisation of
human and material resources to achieve the
enterprise objective
• It is a process consisting of the five basic
functions:
• 1 Planning
• 2 Organising
• 3 Staffing
• 4 Directing
• 5 Controlling
INFORMATI
ON
• Information: Information, in MIS, means the
processed data that helps the management in
planning, controlling and operations.
• Data means unstructured raw facts, observations or
unevaluated messages in isolation. Data involves
facts and figures. Information on the other hand is like
a finished product.
6
DATAV
INFORMATION
Dat
a
Processi
ng
Informatio
n
Fig 1.2- Management Information System by
Dr.P.Mohanan
7
SM001 North P001
475
SM002 East P002 500
………
Salesman Code
Zone It
SM001 North
em
Code
P001
Sales
475
SM002 East P002 500
……………………….
SYSTEM
. A system is an orderly grouping of
interdependent components linked together
according to a plan to achieve a specific
objective.
. Human body is a system composed of various
parts, which are working together towards a
common objective , that is to live
Information System
An information system is an
organized combination of people,
hardware, software, communications
network, and data resources that
collects, transforms, and disseminates
in an organization.
Components of Information
System
Input
Processor
Output
People
Hardware(physical devices)
Software (information processing
instructions)
Data
Network (communication channels)
Management Information
System
A management Information System is
 An integrated user-machine system
 For providing information
To support the operations, management, analysis,
and decision-making functions
 In an organization
The system utilizes
 Computer Hardware and Software
 Manual Procedures
Models for analysis, planning, control and decision
making and
 A database
Why MIS ?
• Manager makes decisions all the time.
• There is an overload of information.
• All information is not useful.
• Anything which helps manager
improve his
decision-making will obviously lead to
better result.
• MIS is a system, where data is the input,
which is processed to provide output in
the form of information reports,
summaries, etc . Which aid the
manager’s decision-making process.
Types of Management
Information
Systems
• Executive Support Systems ("ESS") -designed to help senior
management make strategic decisions. ESS typically involve lots
of data analysis and modeling tools to help strategic decision-
making.
• Decision-support systems ("DSS")-specifically designed to
help management make decisions in situations where there is
uncertainty about the possible outcomes of those decisions.
• Knowledge Management Systems ("KMS")-to help businesses
create and share information. These are typically used in a
business where employees create new knowledge and expertise
- which can then be shared by other people in the organization to
create further commercial opportunities.
13
Types of Management
Information Systems
Cont…..
• Transaction Processing Systems ("TPS")-designed to process routine
transactions efficiently and accurately. Managers often use these
systems to deal with such tasks as payroll, customer billing and
payments to suppliers.
• Office Automation Systems (“OAS”)-that try to improve the
productivity of employees who need to process data and information.
Wide range of software systems that exist to improve the productivity of
employees working in an office (e.g. Microsoft Office XP) or systems
that allow employees to work from home or whilst on the move.
14
How is a Management
Information System Useful
in Companies?
• Planning and Control : MIS improves the quality of plants by providing
relevant information for decision – making. MIS serves as a link between
managerial planning and control. It improves the ability of management
to evaluate and improve performance.
• MIS Minimizes Information Overload : MIS change the larger amount
of data into summarized form and therefore, avoids the confusion which
may arise when managers are flooded with detailed facts.
• MIS Encourages Decentralization : Decentralization of authority is
possibly when there is a system for monitoring operations at lower
levels. MIS is successfully used for measuring performance and making
necessary change in the organizational plans and procedures.
15
How is a Management
Information System Useful in
Companies? Cont.
• Costs : Invest in a consultant to help define your core requirements
that include information for strategic planning and project
management. To be useful and successful, a management
information system should focus on company products and
services, customers, operating costs, marketing opportunities and
the company's exposure to risk.
• MIS brings Coordination : MIS facilities integration of specialized
activities by keeping each department aware of the problem and
requirements of other departments. It connects all decision centers in
the organization .
• MIS assembles, process , stores , retrieves , evaluates and
disseminates the information .
16
Impact of the Management
Information System
• With a good MIS support, the management of marketing ,
finance, production and personnel becomes more efficient.
• The MIS begins with the definition of a data entity and its
attributes, respectively, designed for information generation in
the organisation.
• The MIS calls for a systemisation of the business operations
for an effective system design.
• This leads to streamlining of the operations which complicate
the system design.
17
Impact of the Management
Information System Cont.
• MIS improves the administration of the business by
bringing a discipline in its operations as everybody is
required to follow and use systems & procedures.
• This process brings a high degree of professionalism in
the business operations.
• Since the goals and objectives of the MIS are the
products of business goals & objectives, it helps
indirectly to pull the entire organisation in one direction
towards the corporate goals and objectives by providing
the relevant information to the people in the
organisation.
18
BENEFITS OF MIS
• Data can easily be accessed and analyzed without time
consuming manipulation and processing.
• Decisions can be made more quickly and with confidence
that the data are both time-relevant and accurate.
• Integrated information can be also kept in categories that
are meaningful to profitable operation.
• Significant cost benefits, time savings, productivity gains and
process re-engineering opportunities are associated with the
use of data warehouse for information processing.
FUNCTIONAL INFORMATION SYSTEMS
• On the basis of specific functional areas,
MIS can be categorized as follows:
1. Marketing Management Information System
2. Human Resource Information System
3. Financial Management Information System
4. Production and Inventory
Management Information System
Companies that Use
Management
Information System
• Dell Company -This direct business model eliminates retailers
that add unnecessary time and cost, or who can diminish Dell's
understanding of customer expectations. They also use
transaction processing system.
• HDFC- Can reach more people by more efficient way. Employees can
easily connect with other branches, customer service get improved,
employees record maintained very well.
• World Health Organization (WHO)- Health Management
Information System uses an information system specially
designed to assist in the management and planning of health
programs, as opposed to delivery care.
29
Conclusi
on
• Through the Management Information System,
the information can be used as a strategic
weapon to counter the threats to business,
make businesses
organizational
transformatio
n
more competitive, and bring about the
through integration.
MIS provides support to managers as they work
to achieve corporate goals and enables
managers to compare results to established
company goals and identify problem areas and
opportunities for improvement.
30

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Lecture 1 MIS.pptx

  • 1. 20BBA-0MI32T/ 20BBA-0MS32T MANAGEMENT INFORMATION SYSTEM (MIS) Presented By : FARHANA MARIYAM
  • 2. MIS Management Information System is a computer based information system which is basically concerned with processing data into information which is then communicated to the various departments in an organization to support the operations, the management and the decision making function in the organization.
  • 3. Definition of MIS • Management information system, or MIS, broadly refers to a computer based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization - Subhalakshmi Joshi
  • 4. What does Management Information System (MIS) mean? Fig. 1.1–Management Information System by Sunitha Vanze
  • 5. MANAGEMENT • MANAGEMENT is the effective utilisation of human and material resources to achieve the enterprise objective • It is a process consisting of the five basic functions: • 1 Planning • 2 Organising • 3 Staffing • 4 Directing • 5 Controlling
  • 6. INFORMATI ON • Information: Information, in MIS, means the processed data that helps the management in planning, controlling and operations. • Data means unstructured raw facts, observations or unevaluated messages in isolation. Data involves facts and figures. Information on the other hand is like a finished product. 6
  • 7. DATAV INFORMATION Dat a Processi ng Informatio n Fig 1.2- Management Information System by Dr.P.Mohanan 7 SM001 North P001 475 SM002 East P002 500 ……… Salesman Code Zone It SM001 North em Code P001 Sales 475 SM002 East P002 500 ……………………….
  • 8. SYSTEM . A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific objective. . Human body is a system composed of various parts, which are working together towards a common objective , that is to live
  • 9. Information System An information system is an organized combination of people, hardware, software, communications network, and data resources that collects, transforms, and disseminates in an organization.
  • 10. Components of Information System Input Processor Output People Hardware(physical devices) Software (information processing instructions) Data Network (communication channels)
  • 11. Management Information System A management Information System is  An integrated user-machine system  For providing information To support the operations, management, analysis, and decision-making functions  In an organization The system utilizes  Computer Hardware and Software  Manual Procedures Models for analysis, planning, control and decision making and  A database
  • 12. Why MIS ? • Manager makes decisions all the time. • There is an overload of information. • All information is not useful. • Anything which helps manager improve his decision-making will obviously lead to better result. • MIS is a system, where data is the input, which is processed to provide output in the form of information reports, summaries, etc . Which aid the manager’s decision-making process.
  • 13. Types of Management Information Systems • Executive Support Systems ("ESS") -designed to help senior management make strategic decisions. ESS typically involve lots of data analysis and modeling tools to help strategic decision- making. • Decision-support systems ("DSS")-specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. • Knowledge Management Systems ("KMS")-to help businesses create and share information. These are typically used in a business where employees create new knowledge and expertise - which can then be shared by other people in the organization to create further commercial opportunities. 13
  • 14. Types of Management Information Systems Cont….. • Transaction Processing Systems ("TPS")-designed to process routine transactions efficiently and accurately. Managers often use these systems to deal with such tasks as payroll, customer billing and payments to suppliers. • Office Automation Systems (“OAS”)-that try to improve the productivity of employees who need to process data and information. Wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move. 14
  • 15. How is a Management Information System Useful in Companies? • Planning and Control : MIS improves the quality of plants by providing relevant information for decision – making. MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. • MIS Minimizes Information Overload : MIS change the larger amount of data into summarized form and therefore, avoids the confusion which may arise when managers are flooded with detailed facts. • MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 15
  • 16. How is a Management Information System Useful in Companies? Cont. • Costs : Invest in a consultant to help define your core requirements that include information for strategic planning and project management. To be useful and successful, a management information system should focus on company products and services, customers, operating costs, marketing opportunities and the company's exposure to risk. • MIS brings Coordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . • MIS assembles, process , stores , retrieves , evaluates and disseminates the information . 16
  • 17. Impact of the Management Information System • With a good MIS support, the management of marketing , finance, production and personnel becomes more efficient. • The MIS begins with the definition of a data entity and its attributes, respectively, designed for information generation in the organisation. • The MIS calls for a systemisation of the business operations for an effective system design. • This leads to streamlining of the operations which complicate the system design. 17
  • 18. Impact of the Management Information System Cont. • MIS improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems & procedures. • This process brings a high degree of professionalism in the business operations. • Since the goals and objectives of the MIS are the products of business goals & objectives, it helps indirectly to pull the entire organisation in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organisation. 18
  • 19. BENEFITS OF MIS • Data can easily be accessed and analyzed without time consuming manipulation and processing. • Decisions can be made more quickly and with confidence that the data are both time-relevant and accurate. • Integrated information can be also kept in categories that are meaningful to profitable operation. • Significant cost benefits, time savings, productivity gains and process re-engineering opportunities are associated with the use of data warehouse for information processing.
  • 20. FUNCTIONAL INFORMATION SYSTEMS • On the basis of specific functional areas, MIS can be categorized as follows: 1. Marketing Management Information System 2. Human Resource Information System 3. Financial Management Information System 4. Production and Inventory Management Information System
  • 21. Companies that Use Management Information System • Dell Company -This direct business model eliminates retailers that add unnecessary time and cost, or who can diminish Dell's understanding of customer expectations. They also use transaction processing system. • HDFC- Can reach more people by more efficient way. Employees can easily connect with other branches, customer service get improved, employees record maintained very well. • World Health Organization (WHO)- Health Management Information System uses an information system specially designed to assist in the management and planning of health programs, as opposed to delivery care. 29
  • 22. Conclusi on • Through the Management Information System, the information can be used as a strategic weapon to counter the threats to business, make businesses organizational transformatio n more competitive, and bring about the through integration. MIS provides support to managers as they work to achieve corporate goals and enables managers to compare results to established company goals and identify problem areas and opportunities for improvement. 30