The Evolution and Characteristics of MIS

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The Evolution of Management Information Systems (MIS)

A management information system (MIS) is a computer system that gathers data from multiple business
systems, analyzes the information, and provides reports that help guide management in decision-
making.

MIS started as a data capturing and processing system and evolved into a more complex and intelligent
system. Here’s how MIS evolved through the years.

1950-1960: Electronic Data Processing (EDP)

Electronic Data Processing (EDP) systems, also called Transaction Processing Systems (TPS), were
groundbreaking at the time. It was the first large-scale computer information system to centralize and
process day-to-day transactions and activities such as cash deposits, ATM transactions, and payment
orders. Shifting from manual to electronic made transaction processing and record-keeping a much
faster process.

1960-1970: Management Information Systems (MIS)

It wasn’t long before the EDP system was upgraded to a Management Information System (MIS) that
was able to generate reports from the data it collected. MIS pulled reports from historical data to
determine cost trends, do a sales analysis, keep track of inventory, and measure production
performance.

When managers evaluated the information in these reports, they could see which areas of the business
were underperforming and adjust decisions accordingly.

1970-1980: Decision Support Systems (DSS)

Decision Support System (DSS) provided historical and ad hoc reports on both internal and external
information. For example, internal sales reports and external market pricing.

This advancement brought a new level of decision-making to businesses. Management could more
accurately forecast sales, perform a risk analysis, and make bolder strategic decisions.

It was during this era that personal computers entered the workplace. PCs were connected to the main
server so information became accessible to employees throughout the company. This led to a significant
boost in productivity.

With this came the need for expert skills to manage these computer networks. Information technology
(IT) soon became a burgeoning career and a degree in Management Information Systems became
sought after.

1980-1990: Executive Information Systems (EIS)


As PCs put power in the hands of executives, they could purchase software tailored to their
department’s needs, such as accounting, project management, and HR systems. It resulted in multiple
systems within an organization working independently.

This led to Executive Information Systems (EIS), a more refined version of the DSS system. It allowed
executives to analyze their department’s output and how it impacted the business’s overall
performance.

1990-2000: Enterprise Resource Management (ERP) Systems

Multiple information systems that were not integrated resulted in employees wasting time duplicating
information across systems. MIS had to become efficient.

It did that by creating Enterprise Resource Management (ERP) systems that integrated knowledge
management systems and expert systems.

Knowledge-based systems organize and disseminate business knowledge within an organization.


Example: placing a best practices resource on the intranet.

Expert systems started to use artificial intelligence to provide advice and solutions. Example: proposing
faster delivery routes or assessing risk profiles for credit applications.

Following are the characteristics of MIS:

System Approach.

Management Oriented.

Need-Based.

Exception Based.

Future Oriented.

Integrated.

Long Term Planning.

Sub-System Concept.

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