MANAGEMENT INFORMATION SYSTEM

MIS

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Definition
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MIS is an integrated man-machine system that provides information to support the planning and control functions of managers in an organization.

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MIS

Management information system (MIS) is a system or process that provides information needed to manage organizations effectively. are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.

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Management functions
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Planning
Devise short-range and long-range plans and set goals to help achieve the plans

Organizing
How to use resources

Staffing
Managing employees

Directing
Guiding employees to perform their work

Controlling
Monitoring progress towards goals

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Characteristics of Management Information System

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Comprehensive

Integrated
Coordinated Transformation of data into information

Relevant information
Conformation with managers styles and

characteristics Selective sharing of data Feedback

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Framework for MIS organization and management triangle

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COMPONENTS OF MIS
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Management Information System Architecture

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Subsystems of MIS can be identified on following bases: Levels of management Management functions Organizational functions MIS support facilities

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MIS architecture
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Overall management Organizational functions

Production, marketing, finance, personnel MIS Support facilities Hardware , software, database, MIS professionals

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MIS Professionals
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Chief Information Officer

System Analyst
Database Administrator Network Specialist

Programmer
Operator

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Need for MIS

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Decision making

Strategic planning
Management control Operational planning and control

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MIS REPORTING
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HISTORIC REPORTS

PERIODIC REPORTS
SUMMNARY REPORTS EXCEPTION

DETAILED

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Design of MIS
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Identifying information needs at all levels of

management Listing objectives of MIS and anticipated benefits Identifying system constraints (internal and external) Determining information needs and resources Developing alternative conceptual design and selecting one Implanting the design

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Organizations can judge how successful the implementation

of an MIS system has been by applying the following evaluations: High level of use - Is it actually used? Some systems dont become operational for reasons such as it taking too long to enter data. High level of user satisfaction - Do users like the systems? Accomplishment of original objectives - Have the objectives specified in the analysis stage been achieved? Appropriate nature of use - Is the software being correctly used? Has proper training been given? Institutionalization of the system - Has it been taken on board enthusiastically?
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Pitfalls in MIS
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Cost of Technology Upgrades Training Needs MIS as Distraction Misconceptions Too Much Information

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STEPS IN PLANNING 1. Selecting objectives 2. Identifying activities required to achieve the stipulated objectives 3. Describing the resources or skills, or both, necessary to perform the activities 4. Defining the duration of each activity to be undertaken 5. Determining the sequence of the activities
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STRATEGIES FOR DETERMINING MIS

DESIGN: Organization-chart approach Integrate-later approach Data-collection approach Database approach Top-down approach

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Strategies for determining MIS design

structure, and operations. Six strategies for determining MIS design have been suggested by Blumenthal (1969): Organization-chart approach: Using this approach, the MIS is designed based on the traditional functional areas, such as finance, administration, production, R&D and extension. These functional areas define current organizational boundaries and structure. Integrate-later approach: Largely a laissez faire approach, it does not conform to any specified formats as part of an overall design. There is no notion of how the MIS will evolve in the organization. Such an MIS becomes difficult to integrate. In today's environment where managers demand quick and repeated access to information from across sub-systems the integrate-later approach is becoming less and less popular. Data-collection approach: This approach involves collection of all data which might be relevant to MIS design. The collected data are then classified. This classification influences the way the data can be exploited usefully at a later stage. The classification therefore needs MIS to be done extremely carefully. 5/31/2013
MIS design should be specific to an organization, respecting its age,
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Database approach: A large and detailed database is amassed,

stored and maintained. The database approach is more and more accepted for two main reasons: first, because of data independence it allows for easier system development, even without attempting a complete MIS; and second, it provides management with immediate access to information required. Top-down approach: The top-down approach involves defining the information needs for successive layers of management. If information required at the top remains relatively stable in terms of level of detail, content and frequency, the system could fulfill MIS requirements (Zani, 1970). The usefulness of this approach depends on the nature of the organization. It can be suitable for those organizations where there is a difference in the type of information required at the various levels. Total-system approach: In this approach the interrelationships of the basic information are defined prior to implementation. Data collection, storage and processing are designed and done within the framework of the total system. This approach can be successfully implemented in organizations which are developing.
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Why an MIS Might Fail

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MIS systems are complex and expensive pieces of software, and many people are involved with the design both within the organization and from outside. MIS failures can be expensive and bring bad publicity to all parties. They can arise due to:
Inadequate analysis - problems, needs and constraints

arent understood in the early stages. Lack of management involved in the design wrong expectations of a new system / no-one understands the system. Emphasis on the computer system Need procedures for handling input and output / select the right hardware and software Concentration on low-level data processing Information must be easily accessible and understood
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Lack of management knowledge of ICT

systems and capabilities managers know what they want from the system but dont understand the technology Lack of teamwork An ICT manager must coordinate the accounts, marketing, sales etc. departments and help everyone understand the benefits of the system Lack of professional standards All systems need clear documentation that all users can understand (not just the ICT literate)
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