Management Information Systems

By : Prof. Prakash M Soni

Topic No.: 3 Management Information System

Introduction
A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions MIS should have a clearly defined framework of guidelines, policies or practices, standards, and procedures for the organization. These should be followed throughout the institution in the development, maintenance, and use of all MIS MIS is viewed and used at many levels by management. It should be supportive of the institution's longer term strategic goals and objectives

Institutions Goal
Enhance communication among employees Deliver complex material throughout the institution Provide an objective system for recording and aggregating information Reduce expenses related to labor-intensive manual activities Support the organization's strategic goals and direction

Reasons of MIS Development

MIS supplies decision makers with facts, it supports and enhances the overall decision making process MIS also enhances job performance throughout an institution & should meet an institution's unique business goals and objectives At the most senior levels, it provides the data and information to help the board and management make strategic decisions At other levels, MIS provides the means through which the institution's activities are monitored and information is distributed to management, employees, and customers Effective MIS should ensure the appropriate presentation formats and time frames required by operations and senior management are met MIS can be maintained and developed by either manual or automated systems or a combination of both The effective deliveries of an institution's products and services are supported by the MIS. These systems should be accessible and useable at all appropriate levels of the organization

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Management Information Systems

By : Prof. Prakash M Soni MIS : Risk Management
MIS is a critical component of the institution's overall risk management strategy. MIS supports management's ability to perform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk management involves four main elements: Policies or practices Operational processes Staff and management Feedback devices

Assessing Vulnerability To MIS Risk

To function effectively as an interacting, interrelated, and interdependent feedback tool for management and staff, MIS must be "useable." The five elements of a useable MIS system are: Timeliness: MIS should be capable of providing and distributing current information to appropriate users. Accuracy: Information should receive appropriate editing, balancing, and internal control checks. Consistency: To be reliable, data should be processed and compiled consistently and uniformly and should include an effective monitoring system. Completeness: Reports should be designed to eliminate clutter and voluminous detail, thereby avoiding "information overload." Relevance: Information that is inappropriate, unnecessary, or too detailed for effective decision making has no value.

MIS?
Right Information always: To the right Person, At the right Place, At the right Time, In the right Form, At the right Cost MIS - Together bring out the focus Clearly & Effectively. Management focusing on the ultimate use of such information systems for managerial decision making Information stressing on processed data in the context in which it is used by end users System emphasizing a fair degree of integration and a holistic view An 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

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Management Information Systems

By : Prof. Prakash M Soni Purpose/Scope & Objective of MIS
Purpose or Scope of MIS: The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning. Objective of MIS: An MIS has several objectives like Planning, Organizing, Structuring and Controlling the various operations in different sections of an organization

Evolution in Concepts
EDP - Focus on Data OAS - Focus on Communication MIS - Focus on Information DSS - Focus on Decision Support EIS - Focus on Decision Support for Top Mgmt ES - Focus on Consultation AI - Focus on Self-Learning/Thinking Systems

Evolution of MIS

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Management Information Systems

By : Prof. Prakash M Soni Pre-Requisites of MIS
User Defined Support Decision Making Compatible with Organisation Structure & Culture User Involvement and Orientation Cost Effective Responsive to Change Speedy Accurate Information Validation Tool Management and NOT Manipulated Info System

Contemporary Approaches to MIS

Information Technology has now become an Integral part of corporate as well as personal life style. IS are used for Acquiring, Processing, Storing and Disseminating information. The Contemporary Approaches to ISD are classified as: Technical Approach: In this approach, focus is more on the Mathematical Models / Concepts, Physical Technology, Formal Capabilities of ISD . Ex: Computer Science, Management Science, Operation Research disciplines contribute more to Technical Approach. Behavioral Approach: Developer has to consider the Behavioral impact or response of the user in the Organisation where the ISD is implemented. Socio-Technical Approach: The Socio-Technical Approach does not opt purely technical / technological or Behavioral approach, but it does attempt to borrow heavily from both the approaches and synthesizes so as to optimize the Performance of the Information System as a whole.

Outputs of MIS
Scheduled Reports: Produced periodically, or on a schedule (Daily, Weekly, Monthly, Quarterly, Half Yearly, Yearly) 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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Management Information Systems

By : Prof. Prakash M Soni Information is a Resource
It is scarce Rare, Precious, Unusual It has a cost It has alternative uses There is an opportunity cost factor involved if one does not process information Hence, in the present competitive environment information has become a critical Organizational resource and is increasingly considered/accepted as a valuable strategic resource or as invaluable asset for Competitive Advantage.

MIS for Competitive Advantage

Changing the balance of power between a firm and its competitors in the industry, in the firms favour Most value added Product or Services which is unavailable from competitors in the industry Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement The new intensity of information makes it possible for more precise development of strategies, planning, forecasting and monitoring Strong Tool for Problem Solving & Decision Making Large coverage of geological area for sharing Think Globally, Act Locally On time response to change, corrective measures and focused Goals Provides support to managers as they work to achieve corporate goals Internal Benefits Not for Competitors

MIS & Organizational Change

Significant effect on the internal appearance of organisations of future Accelerate Restructuring of work flows with new powers Powers are based on Knowledge & Merit then seniority Focus on Responsibility and Accountability Result / Performance based Culture Organizational Culture more competitive and Organizational Structure more flexible Decisions are based on Analytical Data Records

Strategic Uses of MIS

Precise Development Of Strategies Planning, Forecasting And Monitoring Problem Solving & Decision-making Separate Work From Location Functional Aspects Human Resource MIS

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