Management Information System Dr. Kapil Pandla. Management Information System 2 MIS- An Introduction The term Management Information System (MIS) implies.

Management Management Information Information

SystemSystemDr. Kapil PandlaDr. Kapil Pandla

Management Information System

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MIS- An IntroductionMIS- An IntroductionThe term Management Information

System (MIS) implies a profession that is responsible for developing computer application for the rest of enterprise


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Elements of MISElements of MIS• Management• Information • System


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ManagementManagementIt can be defined as the activities that

describe, what managers do in order to run the organisation i.e. MIS defines management as planning, organising, initiating and controlling of operations


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Information 1/4Information 1/4When raw data is processed (classified

and arranged), it can be used for decision making, this processed data can be termed as information


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Information 2/4Information 2/4Information can be classified intoa) Internal Information: It is generated as by

product of the normal business operations of the organisation eg. Financial plans, supply factors, manpower details etc.

b) External Information: Where source is outside organisation eg. Government policies, trends of the market, economic trends etc.


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Information 3/4Information 3/4Another classificationa) Structured Information: tends to be

rythmic it follows a repetitive pattern, that occurs at prescribed time period eg. Monthly sales figure, absence of an employee

b) Unstructured Information: It is non rythmic in nature and doesn’t have any fixed interval on which it gets generated eg. Competitor launching a new product in next month


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Information 4/4Information 4/4Elements associated with informationa) Surpriseb) Costc) Value


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System 1/3System 1/3A set or arrangement of things so

related or connected to form a unity or organisation

A system can be defined as different components working together for achieving a common objective

Eg. Blood circulatory system, sales system, computer system


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System 2/3System 2/3Input Process Output

Feedback / Control


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System 3/3System 3/3a) Organisation as an open system:

Department functions without being governed by the requirement of other departments

b) As closed system: In this information of one department is utilised by other department in order to perform duties


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MIS and levels of MIS and levels of managementmanagement

• Top level : Strategic Planning• Middle Level: Management Control• Lower Level : Operational Control


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Objectives of MISObjectives of MISTo provide information for decision

making on planning, organising and controlling the operations of the subsystem of the firm and to provide synergistic organisation in the process.


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Characteristics of MIS 1/2Characteristics of MIS 1/2• It is management oriented• It is integrated : Extracts information

from data pool• Common data is used for variety of

problem• It is based on subsystem concept• It is productive• Based on informational needs


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Characteristics of MIS 2/2Characteristics of MIS 2/2• It is decision oriented• Business Driven• Heavy planning element• Flexibility and ease of use• Distributed system• Information is used as resource


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MIS OrganisationMIS Organisation

CEO

Mfg. CIO Mkt

TelecomApp. Development Data & ops


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MIS PlanningMIS PlanningPlanning is setting the objectives/

goals to be achieved in specific time frame. The need of planning is to formulate the direction and strategy of MIS function to support and run the business


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Steps of MIS PlanningSteps of MIS Planning• Problem Identification• Finding the main objectives• Feasibility study• System analysis• System designing• Testing• Implementation• User’s Training


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Long range MIS Planning Long range MIS Planning (Points to be kept in mind)(Points to be kept in mind)

• Planning is a continuous process• The MIS plan must be consistent with

the corporate business plan• Management involvement and

commitment are essential• Planning is everybody’s job• It takes several cycles to implement

a planning process


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contentMIS.doc


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Reporting SystemReporting System• It triggers a periodical flow of

communication from the control to controller

• A non-computerised MIS in a big organisation can be viewed on a reporting system


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Executive Information Executive Information System Vs Expert SystemSystem Vs Expert System

• EIS is artificial intelligence while expert system is based on past data


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MIS Vs networkingMIS Vs networking• No processing is done in networking

while MIS is collection of network communication channels and data processing system which provide time bound periodical information


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Transactions and IntegrationTransactions and Integration

Central Computer

Sales ReportsPOSCashRegisters

Customers

EDI

Supplier

Bank

Process Control

AdditionalStores Strategy

Tactics

Operations

Warehouse InventoryManagement

CEO Information


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Building an MISBuilding an MIS

Business Strategy

Business Model

Business Process

Organizations

MIS

Database


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AccountingAccounting• Financial data and reports• What do things really cost?• The accounting cycle• Inventory• Checks and balances

– Double-entry– Separation of duties– Audit trails


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AccountingAccounting

Suppliers

Customers

Management

Shareholders

Banksand

Creditors

Departments& Employees

Sales &Accounts

Receivable

ProduceManagementAccounting

Reports

ProduceShareholder

Reports

Sales & Receivables

Inventory ChangesPurchases &Payables

Loans & Notes

Expenses Equity

ShareholderReports

ManagementReports

ProductInventory

Orders &Accounts Payable

InventoryManagement,& Fixed Asset& Cost Acct.

Payroll &EmployeeBenefits

CashManagement,Investments,

ForeignExchange

Supply &In-processInventory

Governments

TaxFiling &

Planning

Strategic& TacticalPlanning

Inventory Changes

Payables

Capital Acct

Sales Tax

Tax Filings

Tax data

ReceivablesInventory &Assets

Payroll

Planning Reports

PlanningData


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Human Resources ManagementHuman Resources ManagementManagement

Managers

Employees

Customers

Government

ProcessPayrollBenefitsVacation

CompileMerit

Evaluations& SalaryChanges

JobApplicants

ProduceManagement

EmployeeReports

ScreenJobs &

Applications

ProduceGovernment

Reports

Employee Data Files

EmployeeData

Evaluations

Salary

Merit &Salary

Sales Data &Commission

EmployeeData

Merit

Applicant Data

EmployeeSummaries

Job &ApplicantData

EEO Data

GovernmentReports

Management Reports


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ChangesChangessalesdata

3 reports(printed) weekly reports

1970sSalesTerminals

SalesTerminals

Centralcomputer:

create reports

Manager:Integrate, graph

analyze Secretary:type & revise

Management

salesdata

3 reports(printed) weekly reports

1980sSalesTerminals

SalesTerminals

Centralcomputer:

create reports

Manager:Integrate, graph

analyze

Management

personal computer

salesdata

1990sSalesTerminals

SalesTerminals

DBMS:On-line data

Personal ComputerWeekly reports &ad hoc queries(applications)

Managementquery

data


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Integration in 2000sIntegration in 2000s

salesdata

SalesTerminals

SalesTerminals

DBMS

Executive InformationSystem

Personal ComputerOr Browser

Management

query

data

Suppliers

Banks

Production/Service

Enterprise Resource Planning

Management Information System Dr. Kapil Pandla. Management Information System 2 MIS- An Introduction The term Management Information System (MIS) implies.

Documents

external information

extracts information

intointernal information

management orientedit

management controllower

sales system

open system

organisationa system