Management Information System - Concept

The foundation of MIS is the principles of management and its practices. MIS uses the concept of management control in its design. The concept of Management Information System gives high regards to the individual and his ability to use the information. MIS gives information through data analysis. A Management Information System relies heavily on the system theory. It uses the principles of the System Design, viz., an open system or a closed system. An open system of the MIS offers an ability of continuous adjustment or correction in the system in line with the environment changes in which the MIS operates. Such a design helps to keep the MIS tuned with the business management need of the organization. The conceptual view, therefore, is a blend of principles, theories and practices of the Management, Information and System. The physical view of the MIS can be seen as an assembly of several subsystem based on the databases in the organization. These subsystems range from data collection, transaction processing and validating, processing, analyzing and storing the information in databases.

MIS : Definition
The MIS has more than one definition, some of which are given below:1. The MIS is defined as a system which provides information support for decision-making in the organization. 2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organization. 3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. 4. The MIS is defined as a Computer-based information System. Hence, the MIS is a computerized business processing system generating information for the people in the organization to meet the information needs for decision-making to achieve the corporate objectives of the organization.

Role of Management Information System

The role of the MIS in an organization can be compared to the role of

the heart in the body. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries; the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS plays the role of information generation, communication, problem identification and helps in the process of decision-making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.

Impact of the Management Information System

Since the MIS plays a very important role in the organization, it creates an impact on the organizations functions, performance and productivity. The impact of MIS on the functions is in its management. With the good MIS support, the management of marketing, finance, production and personnel becomes more efficient. The tracking and monitoring of the functional targets become easy. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The MIS creates another impact on the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses dictionary of data, entity and attributes, respectively, designed for information generation in the organization. The MIS calls for a systemization of the business operations for an effective system design. This leads to streamlining of the operations which complicates the system design. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems and procedures. A well designed system with a focus on the manager makes an impact on the managerial efficiency. The use of computers enables him to use the tools and techniques which are impossible to use manually. The readymade packages make this task simpler. The impact is on the managerial ability to perform.

MIS : A Support to the Management

The management process is executed through a variety of decisions taken at each step of planning, organizing, staffing, coordinating and control. The decisions required to be taken in these steps are tabulated below:Steps in Management Planning Organization Staffing Directing Coordinating Controlling Decision A selection from various alternatives strategies, resources, methods etc. A selection of a combination out of several combinations of the goals, people, resources, method and authority. Providing a proper manpower complement. Choosing a method from the various methods of directing the efforts in the organization. Choice of the tools and the techniques for coordinating the efforts for optimum results. A selection of the exceptional conditions and providing the decision guidance to deal with them.

The objective of the MIS is to provide information for a decision support in the process of management. The MIS is expected to Management Information System.

MIS for a Digital Firm

Twenty first century organizations are E-enterprises, that run their major operations on Interne/WEB and WAN, spread over large area. The term E-Business enterprise was coined to convey the use of Internet and IT in key resource management processes and to transact the business with the customers, suppliers and business partners. ERP, SCM, CRM, PLM are the main applications in the business. The Internet and IT are used for computing, collaboration, communication, storage information in all kinds of format. The extent of use of these technologies is so much across the boundaries of the organization that E-Business enterprise has become completely digitalised all its operations and hence is now called as a Digital Firm. Digital describes electronic technology that generates, captures, validates and stores, and processes data in terms of two states: positive and non-positive. Digital firms use extensively computing, convergence, and content management technologies on Internet platform for all E-business processes, transactional and relational. Supply Chain Management systems, Customer Relationship Management systems, Enterprise Resource Planning systems (ERP) and the Knowledge Management System (KMS), Content Management systems are the main systems which drive the function of a digital firm. In a digital firm, relationships with customers, suppliers and employees are digital, meaning all transactions, communications, pictures, images, data and information are exchanged through digital medium.

The MIS design for a digital firm has to focus on business strategy, key result areas, critical success factors, monitoring key performance indicators and key business measures. The focus of MIS in a digital firm needs to shift from just in time information to just in time actionable information. The MIS in a digital firm is a Strategic Design of the MIS.