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MIS Unit 1

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8 views

MIS Unit 1

Uploaded by

neha9cgpyadav
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit -1

Management

Management covers the planning, control, and administration of the operations of a concern. The
top management handles planning; the middle management concentrates on controlling; and the
lower management is concerned with actual administration.

Information

Information, in MIS, means the processed data that helps the management in planning,
controlling and operations. Data means all the facts arising out of the operations of the concern.
Data is processed i.e. recorded, summarized, compared and finally presented to the management
in the form of MIS report.

System

Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.

Definition

Management Information System or 'MIS' is a planned system of collecting, storing, and


disseminating data in the form of information needed to carry out the functions of management.

Objectives of MIS

The goals of an MIS are to implement the organizational structure and dynamics of the enterprise
for the purpose of managing the organization in a better way and capturing the potential of the
information system for competitive advantage.
Following are the basic objectives of an MIS −
 Capturing Data − Capturing contextual data, or operational information that will
contribute in decision making from various internal and external sources of organization.
 Processing Data − The captured data is processed into information needed for planning,
organizing, coordinating, directing and controlling functionalities at strategic, tactical
and operational level. Processing data means −
o making calculations with the data
o sorting data
o classifying data and
o summarizing data
 Information Storage − Information or processed data need to be stored for future use.
 Information Retrieval − The system should be able to retrieve this information from the
storage as and when required by various users.
 Information Propagation − Information or the finished product of the MIS should be
circulated to its users periodically using the organizational network.

Characteristics of MIS

Following are the characteristics of an MIS −


 It should be based on a long-term planning.
 It should provide a holistic view of the dynamics and the structure of the organization.
 It should work as a complete and comprehensive system covering all interconnecting sub-
systems within the organization.
 It should be planned in a top-down way, as the decision makers or the management
should actively take part and provide clear direction at the development stage of the MIS.
 It should be based on need of strategic, operational and tactical information of managers
of an organization.
 It should also take care of exceptional situations by reporting such situations.
 It should be able to make forecasts and estimates, and generate advanced information,
thus providing a competitive advantage. Decision makers can take actions on the basis of
such predictions.
 It should create linkage between all sub-systems within the organization, so that the
decision makers can take the right decision based on an integrated view.
 It should allow easy flow of information through various sub-systems, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practicability as possible.
 Although the MIS is an integrated, complete system, it should be made in such a flexible
way that it could be easily split into smaller sub-systems as and when required.
 A central database is the backbone of a well-built MIS.

Characteristics of Computerized MIS

Following are the characteristics of a well-designed computerized MIS −


 It should be able to process data accurately and with high speed, using various techniques
like operations research, simulation, heuristics, etc.
 It should be able to collect, organize, manipulate, and update large amount of raw data of
both related and unrelated nature, coming from various internal and external sources at
different periods of time.
 It should provide real time information on ongoing events without any delay.
 It should support various output formats and follow latest rules and regulations in
practice.
 It should provide organized and relevant information for all levels of management:
strategic, operational, and tactical.
 It should aim at extreme flexibility in data storage and retrieval.

ERP is an integrated, real-time, cross-functional enterprise application, an enterprise-wide


transaction framework that supports all the internal business processes of a company.
It supports all core business processes such as sales order processing, inventory management and
control, production and distribution planning, and finance.

Why of ERP?

ERP is very helpful in the follwoing areas −


 Business integration and automated data update
 Linkage between all core business processes and easy flow of integration
 Flexibility in business operations and more agility to the company
 Better analysis and planning capabilities
 Critical decision-making
 Competitive advantage
 Use of latest technologies

Features of ERP

The following diagram illustrates the features of ERP −

Scope of ERP

 Finance − Financial accounting, Managerial accounting, treasury management, asset


management, budget control, costing, and enterprise control.
 Logistics − Production planning, material management, plant maintenance, project
management, events management, etc.
 Human resource − Personnel management, training and development, etc.
 Supply Chain − Inventory control, purchase and order control, supplier scheduling,
planning, etc.
 Work flow − Integrate the entire organization with the flexible assignment of tasks and
responsibility to locations, position, jobs, etc.

Advantages of ERP

 Reduction of lead time


 Reduction of cycle time
 Better customer satisfaction
 Increased flexibility, quality, and efficiency
 Improved information accuracy and decision making capability
 Onetime shipment
 Improved resource utilization
 Improve supplier performance
 Reduced quality costs
 Quick decision-making
 Forecasting and optimization
 Better transparency

Disadvantage of ERP

 Expense and time in implementation


 Difficulty in integration with other system
 Risk of implementation failure
 Difficulty in implementation change
 Risk in using one vendor

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Technical Approach: This approach emphasizes mathematically based models to study IS, as
well as physical technology and formal capabilities of these systems. The disciplines that
contribute to the technical approach are Computer Science which is concerned with establishing
theories of computability, methods of computation and methods of efficient data storage and
access.

Management Science emphasizes the development of models for decision making and
management practices. Operations Research focuses on mathematical technique for optimizing
selected parameters of organizations such as transportation, inventory control and transaction
costs.

Behavior Approach: Behavioral approach concentrates on changes in attitudes, management


and organizational policy, and behavior. The disciplines that contribute to Behavioral Approach
are:

Sociology study IS with an eye towards how groups and organizations shape the development of
systems and also how systems affect individuals, groups and organizations; Psychology involves
the study of ISs with an interest in how human decision makers perceive and use formal
information. Economy study ISs with an interest in what impact systems have on control and
cost structures within the firm and within markets.

Socio-Technical Systems: Management IS (MIS) combines both Technical Approach and


Behavioral Approach. Problems with systems and their solutions are rarely all technical or
behavioral. There is need to optimize a systems’ performance as a whole. Technology must be
changed and designed in such a way as to fit organizational and individual needs. Organizations
and individuals must also be changed through training, learning, and planned organization
change in order to facilitate the operation change to take advantage of new IT.

Information as a strategic resource:

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