Daily Archives: October 11, 2011

Management Information Systems (MIS) Part-2

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Part-2

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Source of management information systems

Source of management information systems

Applications of Management Information System

With computers being as ubiquitous as they are today, there’s hardly any large business that does not rely extensively on their IT systems.
However, there are several specific fields in which MIS has become invaluable.

Strategy Support
While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.

Data Processing
not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

Types of management information systems

There are many types of management information systems in the market that provide a wide range of benefits for companies.

  • Transaction processing systems (TPS) collect and record the routine transactions of an organization. Examples of such systems are sales order entry, hotel reservations, payroll, employee record keeping, and shipping.
  • Management information systems (MIS) produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems (TPS) to middle and operational level managers to provide answers to structured and semi-structured decision problems.
  • Decision-support systems (DSS) are computer program applications used by middle management to compile information from a wide range of sources to solve problems and make decisions.
  • Executive support systems (ESS) is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations.
  • Expert system (ES) is a knowledge about a specific area to act as an expert consultant to the user. It is no the replacement of human being rather they help them in using their expertise more efficiently and effectively. When we join the concept of artificial intelligence with information system, the result is an Expert System.
  • Office automation systems (OAS) are meant for improving the communication and productivity of people in the enterprise. They attempt to automate office procedures and remove bottlenecks, lacuna in the secretarial work. These systems are helpful to all levels of management.

Benefits of Management Information System

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.

Core Competencies
Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.

Enhance Supply Chain Management
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.

Quick Reflexes
As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.

Further more:

  • Increased brand equity
  • Boost production processes
  • Impact mass customization production processes
  • Leverage learning curve advantages
  • Leverage IT investment in computer aided design
  • Leverage stability
  • Expand E-commerce
  • Improve B2B commerce

Five Elements of usable MIS

  • Timeliness
  • Accuracy
  • Consistency
  • Completeness
  • Relevance

Difference between MIS and Traditional Information system

Although Management Information Systems and  Information Systems are segments of Information Technology, both are entirely diverse streams. Management Information Systems deals with the overall in-house controls of an industry covering the employees, documents, know-how, and measures adapted by administration accountants to unravel business tribulations like estimating and pricing a product, service or a business-wide strategy. However, Computer Information Systems is concerned with the integration of computers, data, software packages and management techniques to carry out the day-to-day operations of an organization.

Source:

http://en.wikipedia.org/wiki/Management_information_system
http://www.bestpricecomputers.co.uk/glossary/management-information-system.htm
http://www.ehow.com/about_5180850_principles-management-information-systems.html
http://blog.maia-intelligence.com/2008/04/08/management-information-systems-mis/
http://entrance-exam.net/difference-between-management-information-systems-and-computer-information-systems/

Management Information Systems (MIS)

Posted in General by

Part-1

Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization

Management Information System's diagram

Diagram of Management Information systems

MIS  is a system that provides information needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: technology, information, and people. It’s important to recognize that while all three resources are key components when studying management information systems, the most important resource is peopleManagement information systems are regarded as a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems. Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

Principles of Management Information Systems

Management information systems (MIS) are a valuable tool that executives use to gauge the effectiveness of their business operations. MIS can provide valuable insight into a company’s financial health, and assist managers with making critical business decisions. The style and format of MIS have changed throughout the years, but managers still rely on these systems to perform their day-to-day activities.

A management information system focuses on how and what information should be retrieved so managers can make effective decisions. MIS reporting also provides information regarding a company’s major processes, such as internal controls, operating procedures and audit preparation. With these systems in place, managers can improve workplace safety, decreasing expenses and maintain client relationships.

Internal Controls
Internal controls are specific guidelines that direct the operation of a division or department. Employee responsibilities and work flow management are integral components of a company’s internal controls. Additional internal controls also are in effect in accounting departments, ensuring that all financial information is properly analyzed and recorded. Publicly held corporations must have strong financial internal controls in place to meet Securities and Exchange Commission (SEC) requirements. Failure to adhere to these financial guidelines may result in fines being issued by the SEC.
Operating Procedures
Operating procedures are the daily activities that involve company personnel and resources. MIS provides guidelines, or standard operating procedures, for personnel to follow when dealing with vendors, clients and government agencies. MIS help protect a company from any legal actions that can arise from daily operations. Department managers usually analyze and review the MIS to ensure the company’s mission is fulfilled and department goals are being met.

Audit Preparation
There are two types of workplace audits: financial and operational. Financial audits verify that companies are recording all financial information according to Generally Accepted Accounting Principles (GAAP). This enables them to assure investors and regulators of their financial stability. Operational audits test the effectiveness of division guidelines on a company’s operations. Management must ensure that employees are following policy when conducting business and that no safety violations are occurring. Some operational audits are required for government certifications.

Computerized MIS
Technology has greatly increased the functionality of traditional management information systems. Companies now have access to all major divisions and their reports in a shorter time span. This improves overall operations. In addition, with a companywide MIS, managers have the capability of creating reports quickly when a new division or process begins business operations.

Read Next:

Source:

http://en.wikipedia.org/wiki/Management_information_system
http://www.bestpricecomputers.co.uk/glossary/management-information-system.htm
http://www.ehow.com/about_5180850_principles-management-information-systems.html
http://blog.maia-intelligence.com/2008/04/08/management-information-systems-mis/
http://entrance-exam.net/difference-between-management-information-systems-and-computer-information-systems/