The document discusses the relationship between Management Information Systems (MIS) and Business Performance Management (BPM), emphasizing the role of MIS in organizational control and decision-making processes. It outlines various types of information systems, including Transaction Processing Systems, Management Information Systems, and Decision Support Systems, highlighting their functions and importance for effective management. Additionally, it addresses the need for comprehensive MIS development, training, and data analysis for improving organizational performance and efficiency.

1. MANAGEMENT INFORMATION
SYSTEM AND CONTROL
SUBMITTED TO: SUBMITTED BY:
SHAVETA MAM SAKSHA SHARMA
5810, M.COM II

2. INTRODUCTION
• Business performance measurement is a
device which is used mostly to evaluate the
business processes and to control the
business operations in a manner traditional
accounting does not allow.
• Despite the growing use of BPM systems
there are a lot of limitations-
• a) excessive diversity in the field of study
• b) data quality
• c) information integration problem
• d) lack of linkage to strategy
• e) high levels of change in BPM systems
• f) judgment and decision bias etc.

3. MIS AND BPM
• A lot of control techniques which have
been discussed till now can be
performed with the help of computer
generated information systems.
• E.G.- Vendors that provide different
types of control systems:- SAP, SAP AG,
QPR, SIMPEL systems etc.
• There is a need to formulate these
systems, provide training to use these
systems, interact between the
different levels to get data, processing
of data, decision making, integrating
the different types of systems etc.

4. MIS AND CONTROL
• Information is required at every
level either to set up standards,
to know the actual performance,
to compare the results, find out
deviations and to take corrective
action, hence there is a need of a
management information
system.
• It also involves interactive
control i.e. communicating with
the employees directly and
hence information systems play a
significant role.

5. RELATION OF MIS AND BPM
• Concept of business performance management
is based upon management control systems.
Management control systems are regarded as
the subset of the internal control procedures in
an organization, which cover the application of
people, application , technology and procedure
used by the management accountants to solve
the business problems such as costing a
product, operations or a business wide strategy.
• MIS satisfies diversifies diverse needs through a
variety of systems such as query analysis,
modeling system, analysis system and decision
support system.

6. RELATIONSHIP
•Tracking and monitoring
functional targets.
•It helps in creating structured
database and knowledge base in
the organization.
• It brings clarity in
communication in the
organization.
• Pull the entire organization in
one direction.
• Impacts managerial efficiency.
• It helps in value creation and
differentiation.
• It helps in using MBO as an
effective measurement tool.

7. WHAT IS MIS
MANAGEMENT- Art of getting the things done effectively and efficiently
with the use of limited resources. It involves doing the right things in a
right manner.
INFORMATION- Processed form of data. It conveys a meaning to the user of
the same. It has an order, it is organized, precise, and is a result of
processing and refining data.
SYSTEM- It is a collection of people, machines, and methods organized to
accomplish set of specific tasks. It is a set of components that operate
together to achieve a common purpose.

8. DEFINITIONS
Data
Raw facts such as an employee’s name and number of hours
worked in a week, inventory part numbers or sales orders.
Information
A collection of facts organized in such a way that they have
additional value beyond the value of the facts themselves.
Data
Information
$35,000 12 Units $12,000
J. Jones Western Region
$100,000 100 Units
35 Units
Data Processing
Salesperson: J. Jones Sales
Territory: Western Region
Current Sales: 147 Units =
$147,000

9. EVOLUTION OF MIS
Electronic
data
processing
Transaction
processing
system
Management
Information
system
Decision
support
system
Enterprise
resource
planning

10. STEPS TO BUILD A MIS AND
REPORTING SYSTEM
• The objective and goal of MIS are guided by the objectives and
goals of organization.
Define the mission of the organization
• Identify external factors which impinge organization
Determine critical variable
• Study organization and responsibility centre
Examine the production process and marketing situation
Study system and record how information flows
Determine the information needs of the organization
Develop information and reporting system
Finalize systems after consulting the users

11. INFORMATION SYSTEMS IN BUSINESS

12. TYPES OF INFORMATION SYSTEMS
TRANSACTION PROCESSING
SYSTEM
• To record, validate and store
transactions that take place
in various functional areas.
e.g. recording of business
transactions.
• Transactions are processed
in same way each time. It is
a link between
organizational and external
entities.
MANAGEMENT INFORMATION
SYSTEM
• This uses the information
obtained from TPS or other
ERP systems and provides
managers insight into
operations to help in
decision making.
• It is the collection of various
reports which involve key
indicators.
• It is inclusive of a feedback
making process.

13. TYPES OF INFORMATION SYSTEMS
FINANCIAL MANAGEMENT
REPORTING SYSTEM
• It integrates both financial and
operational information from
both internal and external
systems. E.g. profit/loss and
cost accounting etc.
• An imp. Usage is fund
management, profit/loss and
cost systems and hence use
TPS information for enhancing
information quality for MIS.
DECISION SUPPORT SYSTEM
• Basic function is to track
and record costs and help in
it’s reduction. Also provide
drill down through data
facility.
• It involves what- if analysis,
goal seeking analysis,
simulation facility for all
types of decision makers.
• More flexible than MIS and
help in problem solving.

14. TYPES OF INFORMATION SYSTEMS
EXECUTIVE SUPPORT SYSTEM
• It helps executives in strategic
decision making and tracking
critical success factors. It is
specialized DSS and can be used
by employees and even BOD.
• They are tailored for particular
executives and involves mainly
external or internal data sources.
• Useful in situations having high
degree of uncertainty and is
future oriented. It is related to
value added business processes.
INFORMATION REPORTING
SYSTEM
• Also called management reporting
system. It obtains inputs from TPS
and produces feedback reports on
operations. It makes use of multiple
information systems for this
purpose.
• It is a planned , integrated system
for gathering data, converting it
into information and supplying to
executives for decision making.
• It generated periodic and exception
reports which support planning and
control function of the
organization. It minimizes
information overload.

15. TYPES OF INFORMATION SYSTEM
OFFICE AUTOMATION SYSTEM
• Aimed at improving the efficiency
and productivity of office
operations, include activities like
word processing, electronic filing,
dairy management,
communication, including
electronic mail, telex and fax.
• Activities like word processing,
preparing excel spreadsheets,
database management, desk-top
publishing, graphics, project
management, calendar, electronic
mails etc. are done through this.
• This reduces the clerical errors and
the effort required at rectification.
EXPERT SYSTEMS
• It captures and stores the
knowledge of the expert and
imitates human reasoning and
decision making process for those
who have less expertise . It has 2
components – a knowledge base
and inference rules.
• They fall under the artificial
intelligence branch of computers.
They use very specific domain and
special programming languages.
Mainly useful for problem solving.
• They attempt to process
knowledge. It is designed to model
problem solving ability of a human
expert.

16. LEVELS OF MIS

17. NEED OF MIS
• Management Directed
• Business Driven
• Integrated
• Common Data Flow
• Heavy Planning element
• Subsystem Concept
• Flexibility and Ease of Use
• Data Base