Management Information Systems

DEFINITION OF MIS
MIS IS

INTEGRATED USER MACHINE SYSTEM FOR

PROVIDING THE INFORMATION TO SUPPORT THE OPERATION MANAGEMENT, ANALYSIS AND DECISION MAKING FUNCTIONS IN AN ORGANISATION.
THE SYSTEM UTILISES COMPUTER

HARDWARE AND SOFTWARE MANUAL PROCEDURES MODELS FOR ANALYSIS, PLANNING, CONTROL AND DECISION MAKING AND DATABASE.

Management Information Systems (MIS)

MIS provides managers with information and support for effective decision making, and provides feedback on daily operations. Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

CHANGING ENVIRONMENT AND IMPACT ON BUSINESS

Information systems are transforming business
Globalization opportunities and emergence of

internet into full blown international communication system. Emergence of digital firm- a firm in which nearly all of the organisations significant business relationships with customers, suppliers and employees are digitally enabled. Core business processes are accomplished through digital networks spanning the entire organisation or linking multiple organisations.

Digital firms
For the digital firms , business process and key

corporate assets are managed through digital means Time shift and space shift is a norm. Digital firms sense and respond to their environment far more rapidly and give them flexibility .

Strategic business objectives of information systems

Operational excellence New products and services and

business models Customer and supplier and intimacy Improved decision making Competitive advantage survival

Dimension of information system

Organisation- key elements being people, structure,

business process, culture. Management technology

Organisaton
STRUCTURE COMPOSED OF DIFFERENT LEVELS,

AUTHORITY AND RESPONSIBILITY ORGANISED IN HEIRARCHY.

SENIOR MANAGEMENT FOR LONG TERM DECISION, AND

FINANCIAL STABILITY MIDDLE MANAGEMENT CARRIES OUT THE PROGRAMMES AND PLANS OF SENIOR MANAGEMENT OPERATIONAL MANAGEMENT FOR MONITORING THE DAILY ACTIVITIES
KNOWLEDGE WORKERS DESIGN PRODUCTS OR

SERVICES DATA WORKERS ASSIST WITH THE PAPERWORK AT LOWER LEVELS PRODUCTION OR SERVICE WORKERS PRODUCE THE PRODUCT.

MANAGEMENT
MAKES DECISIONS AND FORMULATE ACTION

PLANS FOR SOLVING ORGANISATIONAL PROBLEMS ALLOCATE THE HUMAN AND FINANCIAL RESOURCES TO CORDINATE THE WORK. EXERCISE RESPONSIBLE LEADERSHIP. CREATIVE WORK DRIVEN BY NEW KNOWELDGE AND INFORMATION.

Technology
COMPUTER HARDWARE: COMPUTERS OF

VARIOUS SHAPES AND SIZES, VARIOUS INPUT, OUTPUT AND STORAGE DEVICES, TELECOMMUNICATION DEVICES COMPUTER SOFTWARE: OPERATING SYSTEM & APPLICATION PROGRAMMES DATAMANAGEMENT TECHNOLOGY: SOFTWARE GOVERNING THE ORGANISATION OF DATA ON PHYSICAL STORAGE MEDIA NETWORKING AND TELECOMMUNICATION TECHNOLOGY

INTERNET, INTRANET, EXTRANET

INTERNET: WORLDS LARGEST ANDMOST WIDELY

USED NET WORK. IT HAS CEATED NEW UNIVERSAL TECHNOLOGY PLATFORM TO BUILD NEW PRODUCTS, SERVICES AND BUSINESS MODELS INTRANETS: INTERNAL CORPORATE NETWORKS BASED ON INTERNET TECHNOLOGY ARE CALLED INTRANETS PRIVATE INTRANETS EXTENDED TO AUTHORISED USERS OUTSIDE THE ORGANISATON ARE CALLED EXTRANETS.

Sources of Management Information

Schematic

Sources and Outputs of MIS

Employees Corporate databases of internal data Databases of external data Corporate intranet Decision support systems Executive support systems

Business transactions

Transaction processing systems

Databases of valid transactions

Management information systems

Application databases

Drill-down reports Exception reports Demand reports

Expert systems

Operational databases

Key-indicator reports

Input and error list

Scheduled reports

Outputs of a Management Information System

Scheduled reports

Produced periodically, or on a schedule (daily, weekly, monthly) Summarizes the previous days critical activities Typically available at the beginning of each day Gives certain information at a managers request Automatically produced when a situation is unusual or requires management action

Key-indicator report

Demand report

Exception report

Scheduled Report Example

Daily Sales Detail Report
Prepared: 08/12/xx Order # P12453 P12453 P12453 P12455 P12456 Customer ID C89321 C89321 C03214 C52313 C34123 Sales Rep ID CAR CAR GWA SAK JMW Ship Date 08/12/96 08/12/96 08/13/96 08/12/96 08J/12/96 Quantity 144 288 12 24 144 Item # P1234 P3214 P4902 P4012 P3214 Amount $3,214 $5,660 $1,224 $2,448 $720

Key Indicator Report Example

Daily Sales Key Indicator Report This Month Total Orders Month to Date $1,808 Last Month $1,694 Last Year $1,014

Forecasted Sales for the Month

$2,406

$2,224

$2,608

Demand Report Example

Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID CAR Amount $42,345

GWA
SAK JWN

$38,950
$22,100 $12,350

Exception Report Example

Daily Sales Exception Report ORDERS OVER $10,000 Prepared: 08/10/xx
Order # P12453 P12453 P12453 Customer ID C89321 C89321 C03214 Sales Rep ID CAR CAR GWA Ship Date 08/12/96 08/12/96 08/13/96 Quantity 144 288 12 Item # P1234 P3214 P4902 Amount $13,214 $15,660 $11,224

Outputs of a Management Information System

Earnings by Quarter (Millions) Actual Forecast $11.8 $10.7 $14.5 $13.3 Variance 6.8% 0.9% -1.4% -3.0%

Drill Down Reports Provide detailed data about a situation.

2ND Qtr 1999 1st Qtr 1999 4th Qtr 1998 3rd Qtr 1998

$12.6 $10.8 $14.3 $12.8

Etc. See Figure 9.2

Characteristics of a Management Information System

Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system

End users can develop custom reports

Requires formal requests from users

Management Information Systems for Competitive Advantage

Provides support to managers as they work to achieve

corporate goals Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement

MIS and Web Technology

Data may be made available from management

information systems on a companys intranet Employees can use browsers and their PC to gain access to the data

Functional Aspects
MIS is an integrated collection of functional

information systems, each supporting particular functional areas.

Schematic

An Organizations MIS Financial MIS

Business transactions

Transaction processing systems

Databases of valid transactions

Accounting MIS

Drill down reports

Exception reports Demand reports

Marketing MIS

Key-indicator reports Scheduled reports

Business transactions

Databases of external data

Human Resources MIS Etc.

Etc.

Figure 9.3

Other MISs
Accounting MISs Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. Geographic information systems (GISs) Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographic region.