4. System
A set of things working together as parts of a mechanism or
an interconnecting network; a complex whole.
5. Meaning of Management Information System
1. Information systems are the foundation for conducting business today.
2. Information systems have become essential today to operate in a global economy.
3. In many industries, survival and even existence are difficult without extensive use of information
technology.
4. Modern businesses can’t survive for long without using some sort of MIS to manage massive
amounts of data.
5. Today businesses use information technology to achieve their primary and secondary objectives
mainly profit maximization, business expansion, competitive advantages, operational excellence,
healthy relations with suppliers, customers and worker unions etc.
6. This system stands for providing the right information at the right place, to the right person, in the
right form, at the right time and in the right cost.
6. Meaning of Management Information System
1. An information system can be defined technically as a set of interrelated components that collect,
store, process and distribute information to support decision making and control in an organization.
2. It is an organized combination of people, hardware software, communication network and data
resources that collect, transforms, store and disseminate information in an organization.
3. MIS being an information system makes use of available resources to provide managers at all levels
in all functions appropriate information in a prescribed manner from all relevant sources to enable
them to make timely and effective decisions for planning, organizing, directing, coordinating,
controlling and for all other activities for which they are responsible.
4. And in addition to this, it may also help managers and workers to analyze problems, visualize
complex subjects and create new products.
7. Components of Management Information System
1. People
2. Data Sources
3. Business Procedures
4. Hardware and Software
5. Data Communication Channels
8. People 1. It is the only living component of
MIS, which operate and control
all other components of MIS.
2. People enter, analyze and
interpret data so that useful and
relevant information is produced
and provided to the managers for
decision making.
9. Data Sources
Data is collected from relevant
sources
1. Social Networking Sites
2.ERP Systems
3.Surveys
for further analysis to derive
useful information.
11. Hardware & Software 1. The hardware usually consists of computers and
physical devices like servers, workstations,
networking equipment, printers, etc.;
2. On the other hand, software consists of
programmes of the computers. These are
programs used to handle the data. These include
programs such as spreadsheet programs,
database software, etc.
3. These hardware and software are used to collect,
store, process data into information, retrieve and
communicate information to managers.
12. Data Communication
Channels 1. Data and information may be communicated
orally
or
1. in the form of the written report through different
channels like Phone, SMS, Mail, Letter etc.
13. Features of Management Information System
1. It is a set of integrated systems or interrelated components or organized combination of People, Data Sources,
Business Procedures, Hardware Software, Data Communication Channels.
2. It is management-oriented as it is implemented after keeping in a view management needs and the overall objectives
of management.
3. It is a computer-based information system.
4. It is a system based on the database of the organization evolved to provide information to the people in the
organization.
5. These systems collect data from various data sources, process it into information, store data & information in storage
devices, these are retrieved and communicated to managers and workers, in an appropriate form, through
communication channels.
6. MIS tools move data and manage information.
7. It is a dynamic and flexible concept, in which changes can be made as per changes in the operations of business and
business environment.
14. Objectives of Management Information System
1. To give/report information for improved decision making by providing up-to-date, accurate data on a
variety of organizational assets.
2. To give managers feedback about their performance.
3. To provide reports giving information about the cost of idle time, Labor turnover, wastages, losses,
unused capacity, which will enable management to control cost.
4. To give reports about the performance of men, material, machine, money and management.
5. To point out strengths and weaknesses, to take advantages of strong points and take remedial actions
to remove weaknesses.
6. To report important statistical facts department wise for example report on production statistics
regarding rejection, defective and spoilage and their effect on costs and quality of the products,
allocation of resources as per the product demand.
15. Advantages of Management Information System
1. It plays a role of information generation, communication, problem & strength identification and helps
in the process of decision making by disseminating information to managers at all levels in all
departments.
2. MIS makes arrangements for data management.
3. It helps managers to analyze problems, visualize complex subjects, bring innovation and create new
products.
4. MIS plays a critical role in increasing productivity, efficiency, profitability.
5. It provides a foundation for new products, services and different ways of conducting business.
6. It helps managers in discharging their duties and responsibility as they can plan, organize, command,
coordinate and control their activities by making precise decisions based on factual information
received from MIS.
16. Advantages of Management Information System
1. It removes the lack of knowledge situation among managers, enriches the experience and improves
analytical abilities leading to better business decisions and judgment.
2. It produces regular reports on operations for every level of management in a company. MIS produce
data-driven reports that help businesses make the right decisions at the right time.
3. It provides reports on revenue generations, cost of production and running business, employees'
performance record, customer feedback & data etc.
4. MIS can help a company to gain a competitive advantage over other businesses.
5. MIS can help in practicing decentralization and Management by Objectives Techniques.
17. Challenges of Management Information System
1. The first challenge is in the cost of equipment.
2. Training of the workforce can also become a problem when applying Management Information
Systems in a company.
3. There is also a need for trained personnel to keep the system in good working order at all times.
4. Many companies end up purchasing systems that lack the features they need most.
5. Management Information Systems will result in the loss of employment for some employees in a
company.
18. Installation Procedure of Management Information System
1. Know needs first
2. Evaluate several vendors
3. Train employees well
4. Invest in reliable devices across the company
5. Get a system that only has the features that company need
6. Installation and Testing of the entire system
7. Evaluating the MIS
19. Types of MIS Reports
1. Scheduled Reports: Created regularly (daily, weekly, and monthly).
2. Demand Reports: These are prepared at the manager’s request.
3. Key-indicator Reports: These reports present a summary of previous days’ critical
activities, typically available at the beginning of each day.
4. Exception Reports: Automatically produced when the situation is unusual or requires
management action.
20. Types of Management Information System
1. Executive Information System (EIS)
2. Marketing Information System (MKIS)
3. Business Intelligence System (BIS)
4. Customer Relationship Management System (CRM)
5. Sales Force Automation System (SFA)
6. Transaction Processing System (TPS)
7. Knowledge Management System (KMS)
8. Financial Accounting System (FAS)
9. Human Resource Management System (HRMS)
10.Supply Chain Management System (SCM)
