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Management Information System (MIS)

MIS is a computerized system that uses hardware, software, and people to collect, store, and analyze data to provide information to support decision making. It has several advantages over manual systems like increased speed, accuracy, security, and easy access to information from anywhere. However, it also has disadvantages such as high setup costs and reliance on technology. Contemporary approaches to information systems design take a multidisciplinary perspective to optimize both the social and technical aspects for best performance.

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Shreya Dikshit
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81 views27 pages

Management Information System (MIS)

MIS is a computerized system that uses hardware, software, and people to collect, store, and analyze data to provide information to support decision making. It has several advantages over manual systems like increased speed, accuracy, security, and easy access to information from anywhere. However, it also has disadvantages such as high setup costs and reliance on technology. Contemporary approaches to information systems design take a multidisciplinary perspective to optimize both the social and technical aspects for best performance.

Uploaded by

Shreya Dikshit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Management

Information
System(MIS)
What is MIS?

MIS is the use of information technology, people, and business processes to


record, store and process data to produce information that decision makers
can use to make day to day decisions.
The full form of MIS is Management Information Systems.
The purpose of MIS is to extract data from varied sources and derive insights
that drive business growth.
The need for MIS
• Decision makers need information to make effective decisions. Management Information
Systems (MIS) make this possible.

• MIS systems facilitate communication within and outside the organization – employees
within the organization are able to easily access the required information for the day to day
operations. Facilitates such as Short Message Service (SMS) & Email make it possible to
communicate with customers and suppliers from within the MIS system that an organization is
using.

• Record keeping – management information systems record all business transactions of an


organization and provide a reference point for the transactions.
Components of MIS

• People – people who use the information system


• Data – the data that the information system records
• Business Procedures – procedures put in place on how to record, store and
analyze data
• Hardware – these include servers, workstations, networking equipment,
printers, etc.
• Software – these are programs used to handle the data. These include
programs such as spreadsheet programs, database software, etc.
Types of Information Systems
Transaction Processing Systems (TPS)
This type of information system is used to record the day to day transactions of
a business. An example of a Transaction Processing System is a Point of Sale
(POS) system. A POS system is used to record the daily sales.

Management Information Systems (MIS)


Management Information Systems abbreviated as MIS, are used to guide tactic
managers to make semi-structured decisions. The output from the transaction
processing system is used as input to the MIS system.

Decision Support Systems (DSS)


Decision support systems are used by top level managers to make semi-
structured decisions. The output from the Management Information System is
used as input to the decision support system.DSS systems also get data input
from external sources such as current market forces, competition, etc.
Manual Information Systems VS
Computerized Information Systems (MIS)

Data is the bloodstream of any business entity. Everyone in an organization needs


information to make decisions. An information system is an organized way of recording,
storing data, and retrieving information.
Manual Information System

A manual information system does not use any computerized devices. The
recording, storing and retrieving of data is done manually by the people, who
are responsible for the information system.
The following are the major components of a manual information system
• People –people are the recipients of information system
• Business Procedures –these are measures put in place that define the rules for
processing data, storing it, analyzing it and producing information
• Data –these are the recorded day to day transactions
• Filing system – this is an organized way of storing information
• Reports –the reports are generated after manually analyzing the data from the
filing system and compiling it.
Advantages and Dis-advantages of a
manual information system
Advantages:
The following are the advantages of manual information systems
• Cost effective – it is cheaper compared to a computerized system because
there is no need to purchase expensive equipment such as servers,
workstations, printers, etc.
• Flexible –evolving business requirements can easily be implemented into the
business procedures and implemented immediately
Disadvantages:
• Time consuming –all data entries need to be verified before filing, this is a time
consuming task when done by humans. Retrieving data from the filing system also
takes a considerable amount of time
• Prone to error – the accuracy of the data when verified and validated by human
beings is more prone to errors compared to verification and validation done by
computerized systems.
• Lack of security – the security of manual systems is implemented by restricting
access to the file room. Experience shows unauthorized people can easily gain
access to the filing room
• Duplication of data –most departments in an organization need to have access to
the same data. In a manual system, it is common to duplicate this data to make it
easy to accessible to all authorized users. The challenge comes in when the same
data needs to be updated
• Data inconsistency – due to the duplication of data, it is very common to update
data in one file and not update the other files. This leads to data inconsistency
• Lack of backups – if the file get lost or mishandled, the chances of recovering the
data are almost zero.
Computerized information system

Computerized systems were developed to address the challenges of manual


information systems.
The major difference between a manual and computerized information system
is a computerized system uses a combination of software and hardware to
record, store, analyze and retrieve information.
Advantages and Disadvantages of a
computerized information system (MIS)
Advantages:
• Fast data processing and information retrieval – this is one of the biggest advantages of a computerized
information system. It processes data and retrieves information at a faster rate. This leads to improved
client/customer service
• Improved data accuracy – easy to implement data validation and verification checks in a computerized
system compared to a manual system.
• Improved security – in addition to restricting access to the database server, the computerized information
system can implement other security controls such as user’s authentication, biometric authentication
systems, access rights control, etc.
• Reduced data duplication – database systems are designed in such a way that minimized duplication of
data. This means updating data in one department automatically makes it available to the other
departments
• Improved backup systems – with modern day technology, backups can be stored in the cloud which
makes it easy to recover the data if something happened to the hardware and software used to store the
data
• Easy access to information – most business executives need to travel and still be able to make a decision
based on the information. The web and Mobile technologies make accessing data from anywhere possible.
Disadvantages:
• It is expensive to set up and configure – the organization has to buy hardware
and the required software to run the information system. In addition to that,
business procedures will need to be revised, and the staff will need to be
trained on how to use the computerized information system.
• Heavy reliance on technology – if something happens to the hardware or
software that makes it stop functioning, then the information cannot be
accessed until the required hardware or software has been replaced.
• Risk of fraud – if proper controls and checks are not in place, an intruder can
post unauthorized transactions such as an invoice for goods that were never
delivered, etc.
Contemporary Approaches to
Information Systems
Information systems are sociotechnical systems.
Although they are composed of machines, devices, and "hard"
physical technology, they require substantial social,
organizational, and intellectual investments to make them work
properly.
Since problems with information systems—and their solutions—
are rarely all technical or behavioral, a multidisciplinary approach
is needed.
Types of Contemporary
Approaches
1. Technical Approach
Emphasizes mathematically based models to study IS
2. Behavioral Approach
Emphasis on the use of the technology by society
3. The Sociological Approach
IS performance is optimized when both the organization and the
technology adjust to each other, until a good fit is obtained
1. Socio-Technical Systems
Optimize systems performance:
Socio- Technical System

Technology must be changed and designed, sometimes even "de-optimized," to fit


organizational and individual needs. Organizations and individuals must also be changed
through training, learning, and planned organizational change to allow technology to
operate and prosper.

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