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Prof. Ruchi Khandelwal
MIS
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MIS ConceptRight information to the right person
at the right place
at the right time
in the right form
at the right cost.
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Definition Of MISMIS is an integrated user/machine system for providing
information to support the operations, management anddecision making functions in an organization.- G.B Davis
For this system utilizes Hardware and Software , ManualProcedures , Management Decision Model and Database .
'MIS' is a planned system of the collecting, processing,
storing and disseminating data in the form of informationneeded to carry out the functions of management
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he MIS structure he MIS structure s a pyramid s a pyramidManagement Information System
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Management Information SystemStructure
MIS structure support for decision makingMIS structure based on management ActivityMIS structure based on organizational function
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MIS structure support for decision making
StructuredUnstructuredSemi Structure
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MIS structure based on management Activity
Strategic planningAcquisition of companyAddition of new product lineEntry into new marketNew organization of company
Management Control and Tactical PlanningAcquisition and organization of resourcesStructuring of work and formulate new decision rulesMeasure performanceFormulation of budget
Operational Planning & controlInventory reorder decisionSelection of vendorsHiring of new supervisor
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L o w e
r L e v e l
M a n a
g e m e
n t
a n d
C l e r i
c a l
H i g h
e r
L e v e
l
M a n a
g e m e
n t
U n s t r u c t u r e
d
S t r u c t u r e d D e c i s
i o n
&
A c t i
o n
M o n i t o
r i n g
D e c i s i o n
S u p p o r t
MIS Pyramid Stru
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ConceptsThe concept of MIS in todays world is a system which handles
the databases, provides computing facilities to the end user andgives a variety of decision making tools to the user of thesystem.
The concept of MIS gives high regard to the individual and hisability to use the information.
An MIS gives information through data analysis. Whileanalyzing the data, it relies on many academic disciplines.
These include the theories, principle and concept from theManagement Science, Management Accounting, Operations
Research, Organizational Behavior, Engineering, ComputerScience, Psychology and Human Behavior, making the MISmore effective and useful.
These academic disciplines are used in designing the MIS.MIS uses the concept of management control in its design
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Characteristics of ManagementInformation system
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Characteristics of ManagementInformation system
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Requirements of MISDatabasesQualified System and management staff Top management supportActive participation of operating managementControl and maintenance of MISEvaluation of MIS
Take the feedback from the users
Evaluate whether flexibility exists in the system
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Components of MIS
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Architecture of an MIS
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Outputs of aManagement Information System
Scheduled reportsProduced periodically, or on a schedule (daily, weekly,
monthly)
Key-indicator reportSummarizes the previous days critical activitiesTypically available at the beginning of each day
Demand reportGives certain information at a managers request
Exception reportAutomatically produced when a situation is unusual or
requires management action
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Scheduled Report Example
Daily Sales Detail ReportPrepared: 08/10/xx
Order # Customer ID Sales RepID ShipDate Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
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Key Indicator Report Example
Daily Sales Key Indicator Report
ThisMonth LastMonth LastYear Total Orders Month to Date $1,808 $1,694 $1,014
Forecasted Sales for the Month $2,406 $2,224 $2,608
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Demand Report Example
Daily Sales by Sales Rep Summary ReportPrepared: 08/10/xxSales Rep ID Amount
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
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Exception Report Example
Daily Sales Exception Report ORDERS OVER $10,000Prepared: 08/10/xx
Order # Customer ID Sales RepID ShipDate Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $13,214
P12453 C89321 CAR 08/12/96 288 P3214 $15,660
P12453 C03214 GWA 08/13/96 12 P4902 $11,224
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Outputs of a ManagementInformation System
Earnings by Quarter (Millions)
Actual Forecast Variance
2ND Qtr 1999 $12.6 $11.8 6.8%
1st Qtr 1999 $10.8 $10.7 0.9%
4th Qtr 1998 $14.3 $14.5 -1.4%
3rd Qtr 1998 $12.8 $13.3 -3.0%
. .Etc See Figure 9 2
ri l l DownReports
Provide detailed data about a
.situation
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Management Information Systems
for Competitive AdvantageProvides support to managers as they work to achieve
corporate goals
Enables managers to compare results to establishedcompany goals and identify problem areas andopportunities for improvement
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An organizations MISMIS is an integrated collection of functional
information systems, each supporting particularfunctional areas.
Schematic
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An Organization sMIS
FinancialMIS
MarketingMIS
Manufacturi ng MIS
.Etc
AccountingMIS Drill down reports
Exception reports
Demand reports
-Key indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransaction
s
Transaction
processingsystems
Businesstransactions
Businesstransactions
.Etc
HumanResources
MIS
Other MIS
Organization's MIS
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Information Systems Today: Managing in the Digital World 25
Business Processes Supported by FunctionalArea Information Systems
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Organizational Functions and RepresentativeInformation Systems
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Benefits of MISIt provide timely, accurate, scientific, reliableinformation.
It avoids duplication of efforts
Coordinated the whole organization.
It provides information in form and formats arequired by the information seekers.
It helps in making better and scientificdecision by the management.
Speed of processing and fast retrieval of data
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Limitations of MISThe quality of input process.Not substitute for effective management.It may not have requisite flexibility to quickly update
itself with the changing needs of time, especially in fast
changing and complex environment.It cannot consider the qualitative factors like moral andattitude of managers.
It is less useful in non-programmed decision.
It also affected in case of change in top management,organizational structure and operational team.It is less effective in organizations where information is
not being shared with others.
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