Management Information System

1.1 MIS DEFINED

Management Information Systems, which are often abbreviated to MIS are a subdivision of internal business controls that usually refer to documents, IT, people and procedures. An MIS is usually applied by management accountants who will try to solve a business problem or setting a price for how much a product should cost.

 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

1.2 DIFFERENCE OF MIS FROM OTHER IS

MIS is not a true information system in the sense of technology, but nor is it a true business function. It straddles both these disciplines and is a way in which technology can be harnessed along with business so that people can function more effectively.

Characteristics of a Management Information System Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

1.3 ORIGINS OF MIS

Initially computers were used to keep finances up to date, word processing and in many cases accounting. Over the years more and more applications were invented all of which were geared towards providing management with useful and relevant information that would help them to manage their business and due to the nature of the information they contained, these applications became known as

Management Information Systems.

Five Eras of MIS Evolution

1. 2. 3. 4. 5. Mainframe and Minicomputer Computing Personal Computers Client/Server Networks Enterprise Computing Cloud Computing

1.4 PURPOSE OF MIS

The main aim of MIS systems is to inform management and help them make informed decisions about management and the way the business is run.

This highlights the difference between an MIS and other types of information systems that do not necessarily contain information that will help managers make managerial decisions.

Role of MIS
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.

1.5 MIS APPLICATIONS

One very interesting aspect of MIS systems is that they can be used to 'predict' the future. This means that a business can test out any differences that it may be planning to an existing strategy by running a Decision Support System, which is a program that will run a simulation and look at the 'what if?' type scenario. Obviously there can be no guarantees that this would be 100% accurate, since no one can predict the future, but what this can do is to let managers know the potential outcome.

1.6 CLASSES OF MIS

Financial Reporting Systems (FRS) encompass highly recognized financial reports such as Income Statements, Balance Sheets, Cash Flow, "Registers" such as Accounts Receivable Register, and other business-specific reports. Operating Information Systems (OIS) are the crucial information of a non-financial nature that businesses require to manage and monitor vital information.

Topics for Research and Reporting

Sales and Marketing Systems Transaction Processing Systems Executive Support Systems Enterprise Systems Supply Chain Management Systems Customer Relationship Management Knowledge Management Systems