MANAGEMENT

INFORMATION
SYSTEMS
INFORMATION SYSTEMS
 An information system can be
defined as a set of interrelated
components that collect, process,
store and distribute information to
support decision making
WHAT IS MANAGEMENT INFORMATION
SYSTEM

 MIS is an integrated man-machine system that provides

information to support the planning & control functions of
managers in an organization

 It is a combination of human & computer based resources

that results in the collection, storage, retrieval,
communication & use of data for efficient management of
operations & for business planning
 MIS is something more than just a computer
 Before evolution of computers, MIS techniques were
there
 Computer has added new dimensions like accuracy,
speed & processing of massive data

MIS

Management Information System

MANAGEMENT
 It is a function, a process, a profession

 It is an art & science

 As a function, Management refers to the kind of tasks &

activities (like planning, organizing, controlling, directing)
that are performed by managers

 “Management” is the process of achieving an organization’s

goals & objectives by making use of men, material,
machines, money and methods
FUNCTIONS OF MANAGEMENT

1) Planning
 The process of deciding in advance the courses
of action to be followed & when and how to
undertake these

 It is required so that we can allocate limited

resources in a best possible manner to achieve
objectives of the organization
2) Organizing
 Refers to the formal grouping of people & activities to
facilitate achievement of the firm’s objectives
 It includes, assigning responsibilities, jobs etc.

3) Controlling
 Means checking the progress of plans & correcting any
deviations

4) Directing
 The process of activating the plans, means how to carry
out certain task
MANAGEMENT LEVELS
INFORMATION

 Can be defined as the data which is organized

and presented at a time and place so that the
decision maker may take necessary action

 Managers require three kinds of information

 Environmental Information
 Competitive Information

 Internal Information
ENVIRONMENTAL INFORMATION

 Government policies: one should be aware about govt.

policies regarding tax affairs, duties etc

 Economic trends: employment, productivity, market trend,

income level etc.

 Technological information: New technology and new

products

 Factors of production: Information about source, cost,

accessibility & productivity of factors of production like
labor, materials, spare parts and capital
COMPETITIVE INFORMATION
 Industry demand: Demand for the product in whole
industry
 Firm demand: Firm’s capability & potential to meet
demand more than the competitors
 The competition: Information regarding policies &
strategies of competing firms
 Past performance: Info. about past profitability, return of
investment, market share will help to provide a yardstick for
setting performance objectives in future
 Future plans: Information for new product, availability of
raw materials etc
INTERNAL INFORMATION

 Sales forecast (information regarding sales plan)

 The financial plan (budget allocation and all)

 Supply factors (Plant and equipment, labour, capital)

 Policies (policies on product range, marketing, finance etc)

SYSTEM

 Is a group of elements or components joined

together to fulfill certain functions
 Examples :

 Economic system
 Computer system

 Communication system

 Transport system etc.

SYSTEMS FROM A FUNCTIONAL
PERSPECTIVE

 Salesand marketing systems

 Manufacturing and production systems

 Finance and accounting systems

 Human resource systems

SALES AND MARKETING SYSTEMS

 Sales and marketing function is responsible for selling

the organization’s products or services

 Marketing deals with identifying the customers for the

firm’s products or services, determining the need of the
customer, developing products or services to meet that
need, advertising and promoting the product

 These activities are supported by sales and marketing

information systems
MANUFACTURING AND PRODUCTION
SYSTEMS
 Manufacturing and production function is responsible for
producing firm’s goods and services

 Manufacturing & production systems deal with the

planning, development & maintenance of production
facilities, the establishment of production goals, storage,
availability of materials, labor required

 Information system will support these activities

FINANCE AND ACCOUNTING SYSTEMS
 The finance function is responsible for managing firm’s
financial assets, such as cash, stocks, bonds etc.

 To determine whether the firm is getting the best return on

investment, the finance function must obtain a considerable
amount of information from sources external to the firm

 The accounting function is responsible for maintaining and

managing the firm’s financial records-receipts, depreciation,
payroll etc.

 Top managers use finance & account information systems to

establish long term investment goals
SYSTEMS FROM A CONSTITUENCY
PERSPECTIVE

 Transaction Processing System(TPS)

 Management Information System & Decision

Support System(DSS)

 Executive support systems

TRANSACTION PROCESSING SYSTEM(TPS)

 Operational managers need to keep track of the

elementary activities and transactions of the
organization, such as sales, reports, cash deposits,
payroll, credit decisions and the flow of materials in a
factory

 TPS is a computerized system that performs and records

daily transactions of the organization
MIS AND DECISION SUPPORT
SYSTEMS(DSS)
 DSS helps in improving the analytical capability of the
decision maker

 It tries to answer the questions such as: what would be

the impact on production schedules if we were to double
sales in the month of December?

 Voyage estimating system can answer the question like:

Given a customer delivery schedule and an offered
freight rate, which vessel should be assigned to
maximize profits?
EXECUTIVE SUPPORT SYSTEM(ESS)
 Senior managers need systems that address strategic and
long term trends

 They are concerned with questions such as: what will

employment levels be in five years?, what are the long
term industry cost trends?, how well the competitors are
performing? Which products to be made in five years?
etc.

 ESS will help senior management to make these

decisions. ESS will filter, compress and track critical
data, and display the important data
OTHER SYSTEMS IN AN ENTERPRISE

 Enterprise systems

 Supply chain management systems

 Customer relationship management systems

 Knowledge management systems

ENTERPRISE SYSTEMS
 In a large organization there are different kinds of
information systems for various functions

 Due to complexity, it is difficult for the managers to

track information

 Enterprise systems, known as Enterprise Resource

Planning(ERP) systems, solve this problem by collecting
data from various processes in the manufacturing and
production, finance and accounting, sales and marketing,
human resources and stores the data in a single central
data repository
 Enterprise systems speed communication of information
throughout the company

 They also give companies the flexibility to respond

rapidly to customer requests producing & stocking
inventory only with what is needed to fulfill existing
orders
SUPPLY CHAIN MANAGEMENT
SYSTEMS
 Supply Chain Management deals with all movement and
storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of
consumption

 SCM systems help businesses to manage relationships

with the suppliers

 These systems provide information to help suppliers,

purchasing firms and distributors to share information
about orders, production, inventory levels and delivery
of the products
 How information from SCM systems help firms:

 Decide when and what to produce

 Rapidly communicate orders
 Track the status of orders
 Check inventory availability
 Monitor inventory levels
 Plan production based on actual customer demand
CUSTOMER RELATIONSHIP
MANAGEMENT SYSTEMS
 CRM systems help firms manage their relationships with
customers

 CRM systems provide information to coordinate all of

the business processes that deal with customers in sales,
marketing and service to optimize revenue, customer
satisfaction and customer retention

 This information helps firms identify, attract and retain

the most profitable customers and to provide better
service to existing customers
KNOWLEDGE MANAGEMENT SYSTEMS
 The value of firm’s products and services is based not only
on its physical resources but also on intangible knowledge
assets

 Some firms perform better than others because they have

better knowledge about how to create, produce and deliver
products and services

 Knowledge management systems enable organizations to

better manage processes and management decisions
 Collects relevant knowledge and make it
available wherever and whenever it is needed
 Support business processes and management
decisions
 Also link the firm to external sources of
knowledge
 Support processes for acquiring, storing,
distributing, and applying knowledge
CHARACTERISTICS OF MIS
 Management oriented:
 The system provides info.to all levels of management
 Ex: Marketing information system: it provides information to
the top managers about market share of the company’s
product, competitor’s product, also the sales managers can
know the sales territory, size of order etc.

 Management Directed:
 The system should be continuously directed by management
 Means management should ensure that the system is effective
as per the specifications like, which information is required
for a particular decision making
 Integrated:
 All the subsystems, their objectives, information needs
should be integrated in order to improve the effectiveness of
the whole systems
 Common data flows:
 As all subsystems are integrated, there will not be any
repetition or overlapping in data collection or storage
 Heavy planning element:
 The system itself requires 3 to 5 years to be established in an
organization
 The long term planning is required for MIS development to
fulfill the future needs & objectives of the organization
BENEFITS OF MIS

 MIS can give operational excellence to the firm

 Helps in new product development

 Helps to understand customer requirement

 Helps managers to make decisions

 MIS can be a core competency(a function of performing

better than the competition) of the organization
 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.

 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.
THANK YOU