Management Information System Dr. Kapil Pandla

Management Information System 2 MIS- An Introduction The term Management Information System (MIS) implies a profession that is responsible for developing computer application for the rest of enterprise

Management Information System 3 Elements of MIS Management Information System

Management Information System 4 Management It can be defined as the activities that describe, what managers do in order to run the organisation i.e. MIS defines management as planning, organising, initiating and controlling of operations

Management Information System 5 Information 1/4 When raw data is processed (classified and arranged), it can be used for decision making, this processed data can be termed as information

Management Information System 6 Information 2/4 Information can be classified into a)Internal Information: It is generated as by product of the normal business operations of the organisation eg. Financial plans, supply factors, manpower details etc. b)External Information: Where source is outside organisation eg. Government policies, trends of the market, economic trends etc.

Management Information System 7 Information 3/4 Another classification a)Structured Information: tends to be rythmic it follows a repetitive pattern, that occurs at prescribed time period eg. Monthly sales figure, absence of an employee b)Unstructured Information: It is non rythmic in nature and doesn’t have any fixed interval on which it gets generated eg. Competitor launching a new product in next month

Management Information System 8 Information 4/4 Elements associated with information a)Surprise b)Cost c)Value

Management Information System 9 System 1/3 A set or arrangement of things so related or connected to form a unity or organisation A system can be defined as different components working together for achieving a common objective Eg. Blood circulatory system, sales system, computer system

Management Information System 10 System 2/3 Input Process Output Feedback / Control

Management Information System 11 System 3/3 a)Organisation as an open system: Department functions without being governed by the requirement of other departments b)As closed system: In this information of one department is utilised by other department in order to perform duties

Management Information System 12 MIS and levels of management Top level : Strategic Planning Middle Level: Management Control Lower Level : Operational Control

Management Information System 13 Objectives of MIS To provide information for decision making on planning, organising and controlling the operations of the subsystem of the firm and to provide synergistic organisation in the process.

Management Information System 14 Characteristics of MIS 1/2 It is management oriented It is integrated : Extracts information from data pool Common data is used for variety of problem It is based on subsystem concept It is productive Based on informational needs

Management Information System 15 Characteristics of MIS 2/2 It is decision oriented Business Driven Heavy planning element Flexibility and ease of use Distributed system Information is used as resource

Management Information System 16 MIS Organisation Telecom App. Development Data & ops

Management Information System 17 MIS Planning Planning is setting the objectives/ goals to be achieved in specific time frame. The need of planning is to formulate the direction and strategy of MIS function to support and run the business

Management Information System 18 Steps of MIS Planning Problem Identification Finding the main objectives Feasibility study System analysis System designing Testing Implementation User’s Training

Management Information System 19 Long range MIS Planning (Points to be kept in mind) Planning is a continuous process The MIS plan must be consistent with the corporate business plan Management involvement and commitment are essential Planning is everybody’s job It takes several cycles to implement a planning process

Management Information System 20 contentMIS.doc

Management Information System 21 Reporting System It triggers a periodical flow of communication from the control to controller A non-computerised MIS in a big organisation can be viewed on a reporting system

Management Information System 22 Executive Information System Vs Expert System EIS is artificial intelligence while expert system is based on past data

Management Information System 23 MIS Vs networking No processing is done in networking while MIS is collection of network communication channels and data processing system which provide time bound periodical information

Management Information System 24 Transactions and Integration Central Computer Sales Reports POS Cash Registers Customers EDI Supplier Bank Process Control Additional Stores Strategy Tactics Operations Warehouse Inventory Management CEO Information

Management Information System 25 Building an MIS Business Strategy Business Model Business Process Organizations MIS Database

Management Information System 26 Accounting Financial data and reports What do things really cost? The accounting cycle Inventory Checks and balances –Double-entry –Separation of duties –Audit trails

Management Information System 27 Accounting Suppliers Customers Management Shareholders Banks and Creditors Departments & Employees Sales & Accounts Receivable Produce Management Accounting Reports Produce Shareholder Reports Sales & Receivables Inventory Changes Purchases & Payables Loans & Notes Expenses Equity Shareholder Reports Management Reports Product Inventory Orders & Accounts Payable Inventory Management, & Fixed Asset & Cost Acct. Payroll & Employee Benefits Cash Management, Investments, Foreign Exchange Supply & In-process Inventory Governments Tax Filing & Planning Strategic & Tactical Planning Inventory Changes Payables Capital Acct Sales Tax Tax Filings Tax data Receivables Inventory & Assets Payroll Planning Reports Planning Data

Management Information System 28 Human Resources Management Management Managers Employees Customers Government Process Payroll Benefits Vacation Compile Merit Evaluations & Salary Changes Job Applicants Produce Management Employee Reports Screen Jobs & Applications Produce Government Reports Employee Data Files Employee Data Evaluations Salary Merit & Salary Sales Data & Commission Employee Data Merit Applicant Data Employee Summaries Job & Applicant Data EEO Data Government Reports Management Reports

Management Information System s & 1970s MIS Pieces Purchasing: Orders Sales: Orders Production: MRP Marketing: Forecasts Accounting: Integrated Data Separate Reports

Management Information System 30 Changes sales data 3 reports (printed) weekly reports 1970s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Secretary: type & revise Management sales data 3 reports (printed) weekly reports 1980s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Management personal computer sales data 1990s Sales Terminals Sales Terminals DBMS: On-line data Personal Computer Weekly reports & ad hoc queries (applications) Management query data

Management Information System 31 Integration in 2000s sales data Sales Terminals Sales Terminals DBMS Executive Information System Personal Computer Or Browser Management query data Suppliers Banks Production/ Service Enterprise Resource Planning