Notes #1 - MIS
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Transcript of Notes #1 - MIS
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8/9/2019 Notes #1 - MIS
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Definition of MIS
Management Information System is a system that aids management in making,
carrying out and controlling decisions. MIS consists of people, equipment and
procedure to gather, sort, analyze, evaluate and distribute timely and accurate
information to the decision maker.
Nature of MIS
Report orientation: Through MIS, every individual can perform their duty and
the system automatically produces performance reports to send for
evaluation to the next level of hierarchy according to the company and
system specifications and / or requirements.
Action oriented: MIS performs regulating and scheduled actions on behalf of
the user as the system is customized on the basis of need and requirements
at the users end.
Expectation oriented: The reports and automatic transactions are expected
from a CBS (Computer Based System).
Database oriented: Almost every MIS software is based on a Database
backbone to support efficient storage and retrieval of data to and from the
system respectively simultaneously and concurrently from more than one
workstation at a time.
End-user oriented: Main emphasis is given on the end-user, who uses the
system. The system must be understandable and easy to access for the enduser for a seamless operation of the system.
Benefits from MIS
It provides timely, accurate, scientific reliable and permanent information
It avoids duplication of efforts
Coordinates the whole organization
It provides the information in the form and format as required by the
information seeker
Helps in making better and scientific decisions by the management
Processing and retrieval speeds are increased considerably
The scope for the information technology is expanded
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Limitations of MIS
Quality of operation of MIS depends on quality of input
MIS is not a perfect substitute for an effective management
MIS may not have requisite flexibility to quickly update itself with the
changing needs of time, especially in complex environments
MIS cannot provide tailor made information packages suitable for the purpose
of every kind of decision making scenario
MIS takes only quantitative factors into account
It is not very effective in non-programmed decision making cases
Framework of MIS / Needs to have MIS
Input of MIS
Strategic plan or corporate policies
Contains major financial objectives and often projects financial needs.
Transaction processing system (TPS)
Important financial information collected from almost every TPS -
payroll, inventory control, order processing, accounts payable,
accounts receivable, general ledger.
External sources
Annual reports and financial statements of competitors and general
news items.
Output of MIS
Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Key-indicator report
Summarizes the previous days critical activities Typically available at the beginning of each day
Demand report
Gives certain information at a managers request
Exception report
Automatically produced when a situation is unusual or requires
management action
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Subsystems and Interconnected systems of MIS
Financial
o Provides financial information to all financial managers within an
organization
o Inputs
Strategic plan or corporate policies
Contains major financial objectives and often projects
financial needs.
Transaction processing system (TPS)
Important financial information collected from almost
every TPS - payroll, inventory control, order processing,
accounts payable, accounts receivable, general ledger.
External sources
Annual reports and financial statements of competitors
and general news items.
o Outputs
Profit/loss and cost systems
Auditing
Internal auditing
External auditing
Uses and management of funds
Manufacturing
o Inputs
Strategic plan or corporate policies. The TPS:
Order processing
Inventory data
Receiving and inspecting data
Personnel data
Production process
External sources
o Outputs
Design and engineering
Master production scheduling
Inventory control
Manufacturing resource planning
Just-in-time inventory and manufacturing
Process control
Computer-integrated manufacturing (CIM)
Quality control and testing
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Marketing
o Supports managerial activities in product development, distribution,
pricing decisions, and promotional effectiveness
o Inputs
Strategic plan and corporate policies
The TPS
External sources:
The competition
The market
o Outputs
Marketing research
Product development
Promotion and advertising
Product pricing
Human Resource
o Concerned with all of the activities related to employees and potential
employees of the organization
o Inputs
Strategic plan or corporate policies
The TPS:
Payroll data
Order processing data
Personnel data
External sources
o Outputs
Human resource planning
Personnel selection and recruiting
Training and skills inventory
Scheduling and job placement
Wage and salary administration
Accounting MISs
o Provides aggregated information on accounts payable, accounts
receivable, payroll, and other applications.
Geographic information systems (GISs)
o Enables managers to pair pre-drawn maps or map outlines with tabular
data to describe aspects of a particular geographic region.
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Difference between DSS and MIS
The terms MIS and DSS stand for Management Information Systems and Decision
Support Systems respectively.
MIS is basically a kind of link to facilitate communication between managers across
different areas in a business organization. MIS plays a pivotal role in enabling
communications across the floor of an organization, between various entities
therein.
DSS, many consider, is advancement from the original MIS. However, this is not the
sole difference between the two. While there may not be too much separating the
two, the difference is still there, as is apparent when we say DSS is an advancement
over MIS.
The essential difference between the two is in focus. DSS, as the term indicates, is
about leadership and senior management in an organization providing good,
reliable judgment as well as vision. MIS, on the other hand, is about focusing on the
actual flow of information itself.
It is often said that MIS and TPS are subsystems of a total CBIS that feeds data in
lateral and integrated manner to the DSS system. Where MIS is more strict and
format oriented in contract with DSS which is more flexible as the ultimate decision
maker after all is a human.
Transaction Processing Systems (TPS)
A Transaction Processing System is a set of information which processes the
data transaction in database system that monitors transaction programs (a special
kind of program). The essence of a transaction program is that it manages data that
must be left in a consistent state. E.g. if an electronic payment is made, the amount
must be either both withdrawn from one account and added to the other, or none at
all. In case of a failure preventing transaction completion, the partially executed
transaction must be 'rolled back' (undo) by the TPS.
Features
Rapid response
Reliability
Inflexibility
Controlled processing
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