Management Information System (MIS) is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management. A Management Information System is an information system that evaluates, analyzes, and processes an organization's data to produce meaningful and useful information based on which the management can take right decisions to ensure future growth of the organization.

1. MANAGEMENT INFORMATION
SYSTEM ( MIS)

2. Management Information System (MIS) is a
planned system of collecting, storing, and
disseminating data in the form of information
needed to carry out the functions of management.
A Management Information System is an
information system that evaluates, analyzes, and
processes an organization's data to produce
meaningful and useful information based on which
the management can take right decisions to ensure
future growth of the organization.

3. A Management Information System is an
integrated user-machine system, for providing
information, to support the operations,
management, analysis & decision-making functions
in an organization.
The System utilizes computer hardware &
software, manual procedures, models for analysis,
planning, control & decision making and a database.
MIS provides information to the users in the
form of reports and output from simulations by
mathematical models. The report and model output
can be provided in a tabular or graphic form.

4. Information Vs Data
Data can be described as unprocessed facts and
figures. Plain collected data as raw facts cannot help in
decision-making. However, data is the raw material that
is organized, structured, and interpreted to create useful
information systems.
Data is defined as 'groups of non-random symbols in
the form of text, images, voice representing quantities,
action and objects'. Information is interpreted data;
created from organized, structured, and processed data
in a particular context.
According to Davis and Olson: "Information is a data
that has been processed into a form that is meaningful to
recipient and is of real or perceived value in the current
or the prospective action or decision of recipient."

6. MIS Definition
The MIS has more than one definition, some of
which are give below.
1. The MIS is defined as a system which provides
information support for decision making in the
organization.
2. The MIS is defined as an integrated system of man
and machine for providing the information to support
the operations, the management and the decision
making function in the organization.
3. The MIS is defined as a system based on the
database of the organization evolved for the purpose of
providing information to the people in the organization.
4. The MIS is defined as a Computer based
Information System

7. The MIS is a system to support the decision
making function in the organization. The
difference lies in defining the elements of the
MIS. However, in today’s world MIS a
computerized business processing system
generating information for the people in the
organization to meet the information needs
decision making to achieve the corporate
objective of the organization.

8. The management information system uses computers
and communication technology to deal with
• Handling of a voluminous data.
• Confirmation of the validity of data and transaction.
• Complex processing of data and multidimensional
analysis.
• Quick search and retrieval.
• Mass storage.
• Communication of the information system to the
user on time.
• Fulfilling the changing needs of the information.

9. The role of the MIS in an organization can be
compared to the role of heart in the body. The MIS
satisfies the diverse needs through a variety of
systems such as Query Systems, Analysis Systems,
Modeling Systems and Decision Support Systems.
The MIS helps in Strategic Planning, Management
Control, Operational Control and Transaction
Processing.
The MIS helps the clerical personnel in the
transaction processing and answers their queries on
the data pertaining to the transaction, the status of a
particular record and references on a variety of
documents.
The MIS helps the junior management
personnel by providing the operational data for
planning, scheduling and control, and helps them
further in decision making at the operations level to
correct an out of control situation.

10. The MIS helps the middle management in short
them planning, target setting and controlling the
business functions. It is supported by the use of the
management tools of planning and control.
The MIS helps the top management in goal
setting, strategic planning and evolving the business
plans and their implementation.
The MIS plays the role of information
generation, communication, problem identification
and helps in the process of decision making. The
MIS, therefore, plays a vital role in the management,
administration and operations of an organization

11. IMPACT OF IMS
1. The impact of MIS on the functions is in its
management. With a good support, the management of
marketing, finance, production and personnel become
more efficient. A disciplined information reporting
system creates a structured data and a knowledge base
for all the people in the organization.
2. The MIS creates another impact in the
organization which relates to the understanding of the
business itself. The MIS calls for a systemization of the
business operation for an affective system design.
3. A well designed system with a focus on the
manager makes an impact on the managerial efficiency

12. Five main uses of information by
businesses and other organizations:
• Planning - At the planning stage, information is the
most important ingredient in decision making.
Information at planning stage includes that of
business resources, assets, liabilities, plants and
machineries, properties, suppliers, customers,
competitors, market and market dynamics, fiscal
policy changes of the Government, emerging
technologies, etc.
• Recording - Business processing these days involves
recording information about each transaction or
event. This information is collected, stored, and
updated regularly at the operational level.

13. • Controlling - A business need to set up an
information filter, so that only filtered data is
presented to the middle and top management. This
ensures efficiency at the operational level and
effectiveness at the tactical and strategic level.
• Measuring - A business measures its performance
metrics by collecting and analyzing sales data, cost
of manufacturing, and profit earned.
• Decision-making - MIS is primarily concerned with
managerial decision making, theory of
organizational behavior, and underlying human
behavior in organizational context. Decision-making
information includes the socio-economic impact of
competition, globalization, democratization, and the
effects of all these factors on an organizational
structure.

14. Management information systems provide
information to support management decision making,
with the following goals:
Pre-specified and preplanned reporting to managers.
 Interactive and ad-hoc support for decision making.
 Critical information for top management.
MIS is of vital importance to any organization,
because:
It emphasizes on the management decision making,
not only processing of data generated by business
operations.
 It emphasizes on the systems framework that should
be used for organizing information systems
applications.

15. Objectives of 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.
• 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.

16. 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.

17. • 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.

18. 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.

19. MIS MODEL

20. General model of MIS plan
i] The corporate information focuses on the current operations and
the environment position
ii] Corporate philosophy defines the policy, guidelines which form
the work culture in the organization.
iii] Corporate mission, goals, objectives defines the long term
aspects of the system .
iv] Business risk and rewards defines the trade of between these
factors to give the clear quantitative factors.
v] Business strategy and policy focuses on the key areas of
information system.
vi] Information needs focuses on the critical information as well as
how do we achieve the goals and the objectives in the system.
vii] Architecture of plan focuses on the tools for the achievement.
viii] System development schedule focuses on the details of system
and sub-systems with their linkages charted against the
timescale.
ix] Organization and execution of the plan focuses on the
individual toll in the system.
x] Budget focus on its cost investment schedule.

21. MIS and Decision Making

23. Concept Of MIS

24. Information requirements for MIS
1. Assessing information needs
2. Levels of information requirements
-Organization level
-Application Level
-User level
3. Strategies for determining information
requirements

25. Types of MIS
• Databank information systems refer to creation of a
database by classifying and storing data which might be
potentially useful to the decision maker.
• Predictive information systems provide source and data
along with predictions and inferences.
• Decision making information systems provide expert
advice to the decision maker either in the form of a
single recommended course of action or as criteria for
choice, given the value system prevailing in the
organization.
• Decision taking information systems integrate
predictive information and decision making systems.

26. Process of MIS
1. First establish management information needs
and formulate broad systems objectives so as to
delineate important decision areas.
2. Develop a general description of a possible MIS
as a coarse design.
3. Once the information units needed have been
determined and a systems design developed,
decide how information will be collected.
4. Develop a network showing information flows.
5. Test the system until it meets the operational
requirements, considering the specifications
stipulated for performance and the specified
organizational constraints.

27. 6. Recheck that all the critical data pertaining to
various subsystems and for the organization as a
whole are fully captured. Ensure that
information is generated in a timely manner.
7. Monitor actual implementation of the MIS and
its functioning from time to time.

28. Methodology for implementing MIS
1. Understand the organization
2. Analyze the information requirements of the
organization
3. Plan overall strategy
4. Review
5. Preliminary analysis
6. Feasibility assessment
7. Detailed fact finding
8. Analysis
9. Design
10. Development
11. Cutover

29. 12. Obtain conceptual schema
13. Recruit database administrator
14. Obtain logical schema
15. Create data dictionary
16. Obtain physical schema
17. Create database
18. Modify data dictionary
19. Develop sub-schemas
20. Modify database
21. Amend database

30. Criteria for MIS
• Relevance:- Information should be relevant to the
individual decision makers at their level of
management.
• Management by exception:- Managers should get
precise information pertaining to factors critical to
their decision making.
• Accuracy:- The database from which information is
extracted should be uptodate, contextually relevant
and validated.
• Timeliness:- The information should be provided at
the time required.
• Adaptability:- The information system should have
an inbuilt capability for redesign so that it can suitably
adapt to environmental changes and changing
information requirements.

31. Strategies for determining MIS design
• Organization-chart approach:- Using this approach,
the MIS is designed based on the traditional functional
areas, such as finance, administration, production,
R&D and extension.
• Integrate-later approach:- Largely a laissez faire
approach, it does not conform to any specified formats
as part of an overall design.
• Data-collection approach:- This approach involves
collection of all data which might be relevant to MIS
design. The collected data are then classified.
• Database approach:- A large and detailed database is
amassed, stored and maintained.
• Top-down approach:- The top-down approach
involves defining the information needs for successive
layers of management.
• Total-system approach In this approach the
interrelationships of the basic information are defined
prior to implementation.

32. PARAMETERS OF MANAGEMENT OF QUALITY IN
MIS
Complete data of all the transaction achieves the
integrity of data with respect to the period.
Valid transaction input data ensures the validity
of data and in turn assumes the valid information.
Accuracy & precision assures that results are
accurate & precisely correct based on rules.
Relevance to user is appropriate in the quality of
decision making.
If the information is received late it becomes
useless with the view of decision making.
Information should be complete & meaningful. It
should be represented in proper format with
references.

33. MIS- THE FACTORS CONTRIBUTING TO SUCCESS:
i] MIS should have the adequate development resource for
organisation.
ii] An appropriate information processing technology
requires meeting the data processing & analysis is need of
the users.
iii] MIS should be defined & designed in terms of user‘s
requirement and the operational feasibility is ensured.
iv] MIS should be the open system in nature to modify the
information needs.
v] MIS should focus on the result and the goals and highlight
the factors & reasons for non-achievement.
vi] MIS should collect the complete information to avoid the
noise in the information.
vii] MIS must consider the factors in the management
process according to the human behaviour.
viii] MIS should be easy to operate & user friendly.
ix] MIS should concentrate on all the level of information
needs.

34. MIS-FACTORS CONTRIBUTING TO THE FAILURE:
i] MIS is conceived as a data processing not as
information processing.
ii] MIS doesn‘t provide the managerial information.
iii] Underestimating the complexity in business system
and not recognizing.
iv] Adequate attentions not given to the quality control
aspects of inputs , process and output.
v] MIS is developed without streamlining the
transaction processing in the organization.
vi] MIS does not meet certain critical factors for data
processing.
vii] Administrative in discipline, wrong coding &
deviation in system specification also cause failure.
viii] MIS does not give the perfect information.

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