MIS

Presenter Name Presentation Date

Management Information System

Systematic Process of Providing relevant Information in right time in right format to right people . Objectives of MIS
To provide the managers at all levels with timely and accurate information for control of business activities To highlight the critical factors in the operation of the business for appropriate decision making To develop a systematic and regular process of communication within the organization on performance in different functional areas To use the tools and techniques available under the system for programmed decision making To provide best services to customers To gain competitive advantage To provide information support for business planning for future

Features of MIS
Management Oriented Timeliness Integrated Simplicity Reliability Consistency Relevance Flexibility

How to Implement a MIS System

Analytical Study of Information requirement Determine the Source of Information Establishment of right kind of Data processing Environment Selection of Software Database Design Support from Top Management Manpower Integration of Information Evaluation, Maintenance and Control

How to Implement a MIS System

Top Down Approach Bottom Up Approach Integrative Approach

Constraints in Operating MIS

Non-Availability of Experts Technical Knowledge gap between Mangement and Technical Expert Non-Cooperation High Turnover of MIS Expert Short Coming in Design Frequent Changes Non-standard requirements Difficulty in quantifying the benefits of MIS Heavy investment

Limitations of MIS
Effectiveness of MIS depends on efficiency of the management in using it and it is not a substitute of Management MIS only provides information and non-programmed decision making is in the hand of management Frequent changes in the information need of management reduces efficiency of MIS Success depends on quality of output and their effective use Effectiveness is greatly affected where culture of hoarding and not sharing information is there Problem of perception of utility Lack of proper training and awareness of both operation staff and the users on the use of MIS With the change in technology and business environment, management need of information changes thereby suggesting periodic review and continuous monitoring Cost Benefit assessment depends on many subjective assessments

Information Requirements of Management

Operational functions
Information requirement for Various department Varies

Type of Decision Making

Programmed Decisions Non-Programmed decisions

Level of Management
Top Management Mid Management Operational Management

Information Requirements of Management

Information Top Middle Resource Management Internal Operational Day-to-day Activities Internal Focus of Planning & Strategic Planning Management Boundary Volume Internal & External Summary with Analysis

Report of Variances Reports of Detailed Activities

Integration among functional Areas

Comparison with time frame

Highly Integrated
1-5 Years

Moderately Integrated
Previous Year or month to month Moderately Structured problems

Restricted to Functional Area

Day to Day Structured problems

Support to decision Relatively Making Unstructured Problems

Information Requirements of Management

Effective Decision Making Review the results of BPR Competetive Intelligence through Competitors performance Capturing Market Information on products Market Trend Analysis Designing Products with the help of CAD Tools

MIS Reports
Personnel Management
Top Level Skill Information Long term HR Requirement Policies Middle Level Deployment Pattern in Different Departments Personnel Deployment Policy Performance Appraisal Operational Level Performance Leave/Absentism Punctuality

MIS Reports
Production Management
Top-level (Strategic information)
Policy on production priority of different products etc. Yearly and monthly comparative results on production of different items Information on new technology Information on capacity utilization

Middle Level (tactical information)

Actual performance with target Variance and their causes Breakdown and maintenance information

Operational Level (Operational information)

Performance details Preventive maintenance schedule Machine performance etc.

MIS Reports
Sales Management Top-level (Strategic information)
Information on new product or new market Information on market share Analysis of competitors strategy Sales growth or fall

Middle Level (tactical information)

Actual sales product wise with targets Sales Variance and their causes Performance of different sales offices

Operational Level (operational information)

Sales details branch wise product wise Individuals sales personnel performance Sales expenses details

Components of Business Information System

Transaction Processing System Management Information System Expert System Decision Support System Executive Information System

Transaction Processing System

Examples
Payroll Accounts Recievable/Payable Bank Reconciliation Purchase Order Processing Sales Order Processing Inventory Control Job Costing etc.

On-line Transaction Processing (OLTP) On-line Analytical Processing (OLAP)

Integration of Information

Models Information
Iconic Scale Model
Three Dimensional View of the process

Analytical Model
Model for a Physical System but model differs from the actual System

Mathematical Model
Represents the Data Set in Graph, Picture etc.

Executive Management System

Special Type MIS meant for top management DSS for Executives