Definition: Management Information Systems (MIS) is the term given to the discipline focused on

the integration of computer systems with the aims and objectives on an organisation.

The development and management of information technology tools assists executives and the
general workforce in performing any tasks related to the processing of information. MIS and
business systems are especially useful in the collation of business data and the production of reports
to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business that does
not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist management in
understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers
can provide financial statements and performance reports to assist in the planning, monitoring and
implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision makers. By
studying these reports decision-makers can identify patterns and trends that would have remained
unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a
range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide
predictions about the effect on sales that an alteration in price would have on a product. These
Decision Support Systems (DSS) enable more informed decision making within an enterprise than
would be possible without MIS systems.

* Data Processing

Not only do MIS systems allow for the collation of vast

amounts of business data, but they also provide a valuable time
saving benefit to the workforce. Where in the past business
information had to be manually processed for filing and
analysis it can now be entered quickly and easily onto a
computer by a data processor, allowing for faster decision
making and quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis they can
also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series of
objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using
the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-
Specific.

The aim of these objectives is to provide a set of key performance indicators by which an enterprise
can judge the performance of an employee or project. The success of any MBO objective depends
upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Since all
SMART objectives are by definition measurable they can be tracked through the generation of
management reports to be analysed by decision-makers.

Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert
organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly
continue to find and report new ways to use MIS to achieve business objectives.

Core Competencies

Every market leading enterprise will have at least one core competency – that is, a function they
perform better than their competition. By building an exceptional management information system
into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools
necessary to gain a better understanding of the market as well as a better understanding of the
enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined production

process. With better information on the production process comes the ability to improve the
management of the supply chain, including everything from the sourcing of materials to the
manufacturing and distribution of the finished product.

Quick Reflexes

As a corollary to improved supply chain management comes an improved ability to react to changes
in the market. Better MIS systems enable an enterprise to react more quickly to their environment,
enabling them to push out ahead of the competition and produce a better service and a larger piece
of the pie.

Further information about MIS can be found at the Bentley College Journal of MIS and the US
Treasury’s MIS handbook, and an example of an organisational MIS division can be found at the
Department of Social Services for the state of Connecticut.

Definition: Management Information Systems (MIS) is the term given to the discipline focused on
the integration of computer systems with the aims and objectives on an organisation.

The development and management of information technology tools assists executives and the
general workforce in performing any tasks related to the processing of information. MIS and
business systems are especially useful in the collation of business data and the production of reports
to be used as tools for decision making.

Applications of MIS
With computers being as ubiquitous as they are today, there's hardly any large business that does
not rely extensively on their IT systems.

However, there are several specific fields in which MIS has become invaluable.

* Strategy Support

While computers cannot create business strategies by themselves they can assist management in
understanding the effects of their strategies, and help enable effective decision-making.

MIS systems can be used to transform data into information useful for decision making. Computers
can provide financial statements and performance reports to assist in the planning, monitoring and
implementation of strategy.

MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision makers. By
studying these reports decision-makers can identify patterns and trends that would have remained
unseen if the raw data were consulted manually.

MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a
range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide
predictions about the effect on sales that an alteration in price would have on a product. These
Decision Support Systems (DSS) enable more informed decision making within an enterprise than
would be possible without MIS systems.

* Data Processing

Not only do MIS systems allow for the collation of vast

amounts of business data, but they also provide a valuable time
saving benefit to the workforce. Where in the past business
information had to be manually processed for filing and
analysis it can now be entered quickly and easily onto a
computer by a data processor, allowing for faster decision
making and quicker reflexes for the enterprise as a whole.

Management by Objectives

While MIS systems are extremely useful in generating statistical reports and data analysis they can
also be of use as a Management by Objectives (MBO) tool.

MBO is a management process by which managers and subordinates agree upon a series of
objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using
the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-
Specific.

The aim of these objectives is to provide a set of key performance indicators by which an enterprise
can judge the performance of an employee or project. The success of any MBO objective depends
upon the continuous tracking of progress.

In tracking this performance it can be extremely useful to make use of an MIS system. Since all
SMART objectives are by definition measurable they can be tracked through the generation of
management reports to be analysed by decision-makers.
Benefits of MIS

The field of MIS can deliver a great many benefits to enterprises in every industry. Expert
organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly
continue to find and report new ways to use MIS to achieve business objectives.

Core Competencies

Every market leading enterprise will have at least one core competency – that is, a function they
perform better than their competition. By building an exceptional management information system
into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools
necessary to gain a better understanding of the market as well as a better understanding of the
enterprise itself.

Enhance Supply Chain Management

Improved reporting of business processes leads inevitably to a more streamlined production

process. With better information on the production process comes the ability to improve the
management of the supply chain, including everything from the sourcing of materials to the
manufacturing and distribution of the finished product.

Quick Reflexes

As a corollary to improved supply chain management comes an improved ability to react to changes
in the market. Better MIS systems enable an enterprise to react more quickly to their environment,
enabling them to push out ahead of the competition and produce a better service and a larger piece
of the pie.

Further information about MIS can be found at the Bentley College Journal of MIS and the US
Treasury’s MIS handbook, and an example of an organisational MIS division can be found at the
Department of Social Services for the state of Connecticut.

A management information system (MIS) is a system that provides information needed to

manage organizations effectively.[1] Management information systems 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. Management information
systems are distinct from regular information systems in that they are used to analyze other
information systems applied in operational activities in the organization.[2] Academically, the term
is commonly used to refer to the group of information management methods tied to the automation
or support of human decision making, e.g. Decision Support Systems, Expert systems, and
Executive information systems.[2]

Overview
Initially in businesses and other organizations, internal reporting was made manually and only
periodically, as a by-product of the accounting system and with some additional statistic(s), and
gave limited and delayed information on management performance. Previously, data had to be
separated individually by the people as per the requirement and necessity of the organization. Later,
data was distinguished from information, and so instead of the collection of mass of data, important
and to the point data that is needed by the organization was stored.

Earlier, business computers were mostly used for relatively simple operations such as tracking sales
or payroll data, often without much detail. Over time, these applications became more complex and
began to store increasing amount of information while also interlinking with previously separate
information systems. As more and more data was stored and linked man began to analyze this
information into further detail, creating entire management reports from the raw, stored data. The
term "MIS" arose to describe these kinds of applications, which were developed to provide
managers with information about sales, inventories, and other data that would help in managing the
enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited
to): decision support systems, resource and people management applications, Enterprise Resource
Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM),
project management and database retrieval applications.

An 'MIS' is a planned system of the collection, processing, storage and dissemination of data in the
form of information needed to carry out the management functions. In a way, it is a documented
report of the activities that were planned and executed. According to Philip Kotler "A marketing
information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate,
and distribute needed, timely, and accurate information to marketing decision makers."[3]

The terms MIS and information system are often confused. Information systems include systems
that are not intended for decision making. The area of study called MIS is sometimes referred to, in
a restrictive sense, as information technology management. That area of study should not be
confused with computer science. IT service management is a practitioner-focused discipline. MIS
has also some differences with ERP which incorporates elements that are not necessarily focused on
decision support.

The successful MIS must support a business's Five Year Plan or its equivalent. It must provide for
reports based upon performance analysis in areas critical to that plan, with feedback loops that
allow for titivation of every aspect of the business, including recruitment and training regimens. In
effect, MIS must not only indicate how things are going, but why they are not going as well as
planned where that is the case. These reports would include performance relative to cost centers and
projects that drive profit or loss, and do so in such a way that identifies individual accountability,
and in virtual real-time.

Anytime a business is looking at implementing a new business system it is very important to use a
system development method such as System Development Life Cycle. The life cycle includes
Analysis, Requirements, Design, Development, Testing and Implementation.