Chapter-1

Introduction of MIS
MIS

MIS is Broadly refers to a computer-based system

that provides managers with the tools to organize,
evaluate and efficiently manages departments
within an organization.

The three components of MIS provide a more

complete and focused definition,
where System suggests integration and holistic
view, Information stands for processed data,
and Management is the ultimate user, the decision
makers.
M – 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.

Management in MIS process include Business

Functions or process, organization and Human
behavior
I – 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.

In information, MIS contents three different stage Data,

Information and Knowledge and on every stage process will
implement.

Processes: create, Gather/Capture, Elicit, Store, Organize,

Consolidate, Filter, Deliver and Share
S- System (Information System/ Information technology)

Data is processed into information with the help of a

system. A system is made up of inputs, processing, output
and feedback or control. Thus MIS means a system for
processing data in order to give proper information to the
management for performing its functions.

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.
 MIS Architecture
Environment

Information system (Producer)

Data Provider
Input Process Output
Data Sources/
Business Events
Main
Control Memory
Data Storage
Secondary
Procedure storage

Boundary of
Information
System
Like what are the hardware options, Information Destination
Or input/ output options and structure, Consumer, Users , Organization
Processing and Functionality and different Units
kinds of storages?
Objective 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.

1) Capturing Data: Capturing contextual data, or

operational information that will contribute in decision
making from various internal and external sources of
organization.
 2) 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:
making calculations with the data
sorting data
classifying data and
summarizing data
3) Information Storage: Information or processed data need to be
stored for future use.
4) Information Retrieval: The system should be able to retrieve
this information from the storage as and when required by
various users.
5) Information Propagation: Information or the finished product
of the MIS should be circulated to its users periodically using the
organizational network.
Characteristics of 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

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.
Nature & Scope of MIS