The document discusses management information systems (MIS) and their components and functions. An MIS processes data into information that is communicated to departments for decision making. It provides managers with reports, feedback, and decision support. Each MIS is an integrated collection of subsystems that support various organizational functions like finance, manufacturing, marketing, and human resources.

1. Management
Information Systems

2. • Management Information System (M.I.S.) is basically
concerned with processing data into information. which is
then communicated to the various Departments in an
organization for appropriate decision-making.
• Data collection involves the use of Information Technology (IT)
comprising: computers and telecommunications networks (E-
Mail, Voice Mail, Internet, telephone, etc.)
Data Information Communication Decisions

3. • An MIS provides managers with information
and support for effective decision making, and
provides feedback on daily operations
• Output, or reports, are usually generated
through accumulation of transaction processing
data
• Each MIS is an integrated collection of
subsystems, which are typically organized along
functional lines within an organization

4. • Timeliness
• Accuracy
• Consistency
• Completeness
• Relevance

6. Employees
Corporate
Databases Corporate
databases
of intranet
of
external
internal
data
data Decision
support
systems
Transaction Databases Management Executive
Business processing of information Application support
transactions systems valid systems databases systems
transactions
Drill-down reports Expert
Exception reports systems
Demand reports
Operational Key-indicator reports
databases
Input and Scheduled
error list reports

7. Outputs of a
Management Information System
• Scheduled reports
• Produced periodically, or on a schedule
(daily, weekly, monthly)
• Key-indicator report
• Summarizes the previous day’s critical activities
• Typically available at the beginning of each day
• Demand report
• Gives certain information at a manager’s request
• Exception report
• Automatically produced when a situation is unusual or
requires management action

8. Characteristics of a Management
Information System
• Provides reports with fixed and standard
formats
– Hard-copy and soft-copy reports
• Uses internal data stored in the computer
system
• End users can develop custom reports
• Requires formal requests from users

9. Management Information Systems for
Competitive Advantage
• Provides support to managers as they work to
achieve corporate goals
• Enables managers to compare results to
established company goals and identify
problem areas and opportunities for
improvement

10. MIS and IT
• Data may be made available from
management information systems on a
company’s intranet
• Employees can use browsers and their PC to
gain access to the data

11. Functional Aspects
• MIS is an integrated collection of functional
information systems, each supporting
particular functional areas.

12. Internet An Organization’s
MIS
Financial
MIS
Business
transactions
Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports
Business
transactions
Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.

13. Accounting Information System
• An AIS is a subset of an organization’s MIS that
provides:
– accounting and financial information
– other information obtained in the routine
processing of accounting transactions
– aggregated information on accounts
payable, accounts receivable, payroll, and
other applications.

14. Accounting Information System
journal Ledger
Accounts payable/
Accounts receivable
Cost Accounting
Accounting
Accounting
Accounting
Accounting
Information
Information
Information
Information
System
System
System Financial Reports
System
Sales information
from TPS Other Accounting
Functions

15. Uses of Accounting Information Systems
• Producing external reports
• Supporting routine activities
• Decision support
• Planning and control
• Implementing internal control

16. Financial MIS
• Provides financial information to all financial
managers within an organization.

17. Databases of Financial
Databases of
internal data external data DSS
Business
transactions
Transaction Databases
processing Financial
of valid
systems transactions MIS Financial
for each applications
TPS databases
Business
transactions
Financial statements
Financial
Operational Uses and management ES
Internet or databases of funds
Extranet Financial statistics
for control
Business Customers,
transactions Suppliers

18. Inputs to the Financial Information
System
• Strategic plan or corporate policies
– Contains major financial objectives and often projects
financial needs.
• Transaction processing system (TPS)
– Important financial information collected from almost
every TPS - payroll, inventory control, order processing,
accounts payable, accounts receivable, general ledger.
– External sources
– Annual reports and financial statements of competitors
and general news items.

19. Financial MIS Subsystems and Outputs
• Financial subsystems
– Profit/loss and cost systems
– Auditing
– Internal auditing
– External auditing
– Uses and management of funds

20. Manufacturing MIS

21. Databases of Manufacturing
Databases of
internal data external data DSS
Business
transactions
Transaction Databases
processing Manufacturing
of valid
systems transactions MIS Manufacturing
for each applications
TPS databases
Business Quality control reports
transactions
Process control reports Manufacturing
Operational ES
JIT reports
Internet or databases
MRP reports
Extranet
Production schedule
CAD output
Business Customers,
transactions Suppliers

22. Inputs to the Manufacturing MIS
• Strategic plan or corporate policies.
• The TPS:
– Order processing
– Inventory data
– Receiving and inspecting data
– Personnel data
– Production process
• External sources

23. Manufacturing MIS Subsystems and
Outputs
• Design and engineering
• Master production scheduling
• Inventory control
• Manufacturing resource planning
• Just-in-time inventory and manufacturing
• Process control
• Computer-integrated manufacturing (CIM)
• Quality control and testing

24. Support Activities by IT in
Manufacturing
• Scheduling plant activities
• Optimized used of machines, personnel,
tooling
• Planning material requirement based on
current and forecasted demand
• Reallocating material rapidly
• Inventory control in real time
• Grouping work orders by characteristics

25. Marketing MIS
• Supports managerial activities in product
development, distribution, pricing
decisions, and promotional effectiveness

26. Databases of Manufacturing
Databases of
internal data external data DSS
Transaction Databases
Business processing Marketing
of valid
transactions systems transactions MIS Marketing
for each applications
TPS databases
Sales by customer
Sales by salesperson Manufacturing
Operational Sales by product ES
databases Pricing report
Total service calls
Customer satisfaction

27. Inputs to Marketing MIS
• Strategic plan and corporate policies
• The TPS
• External sources:
– The competition
– The market

28. Marketing MIS Subsystems and
Outputs
• Marketing research
• Product development
• Promotion and advertising
• Product pricing

29. Human Resource MIS
• Concerned with all of the activities related to
employees and potential employees of the
organization

30. Databases of Manufacturing
Databases of
internal data external data DSS
Transaction Databases Human
Business processing of valid Resource Human
transactions systems transactions MIS resource
for each applications
TPS databases
Benefit reports
Salary surveys Manufacturing
Operational Scheduling reports ES
databases Training test scores
Job applicant profiles
Needs and planning
reports

31. Inputs to the Human Resource MIS
• Strategic plan or corporate policies
• The TPS:
– Payroll data
– Order processing data
– Personnel data
• External sources

32. Human Resource MIS Subsystems and
Outputs
• Human resource planning
• Personnel selection and recruiting
• Training and skills inventory
• Scheduling and job placement
• Wage and salary administration

33. Other MISs
• Accounting MISs
– Provides aggregated information on accounts
payable, accounts receivable, payroll, and other
applications.
• Geographic information systems (GISs)
– Enables managers to pair pre-drawn maps or
map outlines with tabular data to describe
aspects of a particular geographic region.