Management information systems (MIS) provide information to support decision making and operations in organizations. An MIS combines human and computer resources to collect, store, retrieve, communicate, and use data. It serves various functions like strategic planning, management control, operational control, and transaction processing. An MIS benefits organizations by facilitating planning, minimizing information overload, encouraging decentralization, bringing coordination, and making control easier.

1. MIS – ManagementMIS – Management
Information SystemInformation System
Prof. Purvish ShahProf. Purvish Shah

2. MIS: It is a general term for the computer
Systems in an enterprise that provide
information about its business operations
⇒Management information system is study of
use of computer in business.

3. This is separate from Computer science or
Hardware and networking course and should
Not be confused with.
In MIS concentration is not on developing
Software, preparing programs or learning
About the networking solutions.

4. PURPOSE and SCOPE Of MIS:
The Purpose and Scope of MIS can be
defined as “The combination of human and
computer based resources that results in the
collection, storage, retrieval, communication
and use of data for the purpose of efficient
management of operations and for business
planning”.

5. FOR BETTER INFORMATION SYSTEM
BELOW
GIVEN NEEDS TO BE TAKEN CARE OF:
-Handling of a voluminous data.
-Confirmation of the validity of data & transaction.
-Complex processing of data and multi-dimensional
-analysis.
-Quick search & retrieval.
-Mass Storage.
-Communication of the information system to the user on
time.
-Fulfilling the changing needs of the information

6. MIS Definition:
MIS is system which provides information
support for decision making in organization
OR
It is considered to be integral system of man and
machine for providing the information to support
The operations, the management and the
decision making function of organization.
[ It is a system to support decision making]

7. EVOLUTION OF MIS:
-Usage was started in 1960’s but was limited only to very
large corporate.
-In 1970 Decision support system was introduced.
These were interactive systems and user could choose
between number of options and configurations.
-In 1980 was the time of decentralized computers. And
birth of “AI” along with expert systems.
- In 1990 strategic information system was in use.

8. EVOLUTION OF MIS:
- The initial concept of MIS was to process data from the
organization and present it in the
for of reports at regular intervals.
System was capable of only handling the data from
collection to processing.
-Each individual was required to choose the required
data and use it for his requirement.
- As the time has progressed concept of data collection
was changed to decision making system.

9. - Over the period of time MIS has started using concepts
of Principals of Management as its base.
- It has become dynamic concept which is subject to
change.
-Role of individual has reduced in data gathering part.

10. ROLE OF MANAGEMENT INFORMATION
SYSTEM:
The role of the MIS in an organization can be compared to the role
of heart in the body.
The MIS plays exactly the same role in the organization. The
system ensures that an appropriate data is collected from the
various sources, processed, and sent further to all the needy
destinations. The system is expected to fulfill the information needs
of an individual, a group of individuals, the management
functionaries: the managers and the top management.
The MIS satisfies the diverse needs through a variety of systems
such as Query Systems, Analysis Systems, Modeling Systems and
Decision Support Systems the MIS helps in Strategic Planning,
Management Control, Operational Control and Transaction
Processing.

11. - Over the period of time MIS has started using concepts
of Principals of Management as its base.
- It has become dynamic concept which is subject to
change.
-Role of individual has reduced in data gathering part.

12. ADVANTAGES:
1. It Facilitates planning : MIS improves the quality of plants by providing
relevant information for sound decision – making . Due to increase in the
size and complexity of organizations, managers have lost personal
contact with the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of
data in to summarized form and there by avoids the confusion which
may arise when managers are flooded with detailed facts.
3. 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.

13. Cont…
4. It brings Co ordination : 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 .
5. It makes control easier : MIS serves as a link between
managerial planning and control. It improves the ability of
management to evaluate and improve performance . The used
computers has increased the data processing and storage
capabilities and reduced the cost .
6. MIS assembles, process , stores , Retrieves , evaluates and
Disseminates the information

14. USER OF MIS IN ORGANIZATION:
EVERY ONE USES MIS IN AN ORGANIZATION
CLERK: clerk can use the MIS for a quick search and reporting the
same data to higher level.
ASSISTANT: With the help of MIS can collecting and organizing the
data, and conducting a rudimentary analysis of integrating the data.
MANAGER: MIS provides action oriented information can be used
as a strategic weapon to counter the threats to business, make
business more competitive

15. Five Elements of usableFive Elements of usable
MISMIS
 TimelinessTimeliness
 AccuracyAccuracy
 ConsistencyConsistency
 CompletenessCompleteness
 RelevanceRelevance

16. Characteristics ofCharacteristics of
Management InformationManagement Information
SystemSystem
 Provides reports with fixed andProvides reports with fixed and
standard formatsstandard formats
– Hard-copy and soft-copy reportsHard-copy and soft-copy reports
 Uses internal data stored in theUses internal data stored in the
computer systemcomputer system
 End user can develop custom reportsEnd user can develop custom reports
 Requires formal requests from usersRequires formal requests from users

17. MIS for CompetitiveMIS for Competitive
AdvantageAdvantage
 Provides support to managers as theyProvides support to managers as they
work to achieve corporate goalswork to achieve corporate goals
 Enables managers to compare resultsEnables managers to compare results
to establish company goals andto establish company goals and
identify problem areas andidentify problem areas and
opportunities for improvementopportunities for improvement

18. MIS and WebMIS and Web
TechnologyTechnology
 Data may be made available fromData may be made available from
management information systems on amanagement information systems on a
company’s internetcompany’s internet
 Employees can use browsers andEmployees can use browsers and
their PC to gain access to the data.their PC to gain access to the data.

19. Functional AspectsFunctional Aspects
 MIS is an integral collection ofMIS is an integral collection of
functional information systems, eachfunctional information systems, each
supporting particular functional areas.supporting particular functional areas.

21. Financial MISFinancial MIS
 Provides financial information to allProvides financial information to all
financial managers within anfinancial managers within an
organizationorganization

23. Inputs to the FinancialInputs to the Financial
Information SystemInformation System
 Strategic plan or corporate policiesStrategic plan or corporate policies
– Contains major financial objectivesContains major financial objectives andand
often projects financial needsoften projects financial needs
 Transaction processing system (TPS)Transaction processing system (TPS)
– Important financial information collected forImportant financial information collected for
almost every TPS – payroll, inventory control,almost every TPS – payroll, inventory control,
order processing, accounts payable, accountsorder processing, accounts payable, accounts
receivable, general ledger.receivable, general ledger.
– External sourcesExternal sources
– Annual reports and financial statements ofAnnual reports and financial statements of
competitors and general news items.competitors and general news items.

24. Financial MIS SubsystemsFinancial MIS Subsystems
and Outputsand Outputs
 Financial subsystemsFinancial subsystems
– Profit/loss and cost systemsProfit/loss and cost systems
– AuditingAuditing
– Internal auditingInternal auditing
– External auditingExternal auditing
– Uses and management of fundsUses and management of funds

25. Manufacturing MISManufacturing MIS

27. Inputs to theInputs to the
Manufacturing MISManufacturing MIS
 Strategic plan or corporate policiesStrategic plan or corporate policies
 The TPS:The TPS:
– Order processingOrder processing
– Inventory dataInventory data
– Receiving and inspecting dataReceiving and inspecting data
– Personnel dataPersonnel data
– Production processProduction process
 External sourcesExternal sources

28. Manufacturing MISManufacturing MIS
Subsystems and OutputsSubsystems and Outputs
 Design and engineeringDesign and engineering
 Master production schedulingMaster production scheduling
 Inventory controlInventory control
 Manufacturing resource planning3Manufacturing resource planning3
 Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing
 Process controlProcess control
 Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM)
 Quality control and testingQuality control and testing

29. Marketing MISMarketing MIS
 Support managerial activities inSupport managerial activities in
product development, distribution,product development, distribution,
pricing decisions, and promotionalpricing decisions, and promotional
effectivenesseffectiveness

31. Inputs of Marketing MISInputs of Marketing MIS
 Strategic plan and corporate policiesStrategic plan and corporate policies
 The TPSThe TPS
 External sources:External sources:
– The competitionThe competition
– The marketThe market

32. Marketing MIS SubsystemsMarketing MIS Subsystems
and Outputsand Outputs
 Market researchMarket research
 Product developmentProduct development
 Promotion and advertisingPromotion and advertising
 Product pricingProduct pricing

33. Human Resource MISHuman Resource MIS
Subsystems and OutputsSubsystems and Outputs
 Human resource planningHuman resource planning
 Personnel selection and recruitingPersonnel selection and recruiting
 Training and skills inventoryTraining and skills inventory
 Scheduling and job placementScheduling and job placement
 Wage and salary administrationWage and salary administration

34. Other MISsOther MISs
 Accounting MISsAccounting MISs
– Provides aggregated information onProvides aggregated information on
accounts payable, account receivable,accounts payable, account receivable,
payroll, and other applicationspayroll, and other applications
 Geographical information systemsGeographical information systems
(GISs)(GISs)
– Enables managers to pair pre-drawnEnables managers to pair pre-drawn
maps or map outlines with tabular data tomaps or map outlines with tabular data to
describe aspects of a particulardescribe aspects of a particular
geographical region.geographical region.