Management information system

Management
Information System
 Parth Desani

Index
 Management, Information and System
 What is Management Information System ?
 History of MIS.
 Types and Terminology of MIS.
 Advantages of MIS.
 Why study IS ?
 Enhancing productivity through workforce
management.

Management, Information And
System
 Management:
Management in all business and organizational activities is the
act of coordinating the efforts of people to accomplish desired
goals and objectives using available resources efficiently and
effectively.
 Information:
Information is a sequence of symbols that carries a message, a
set of items in which meaning is conveyed, or a specified
arrangement of complex structures that conveys a message to a
receiver. Information does not exist on its own.
 System:
A set of detailed methods, procedures and routines created to
carry out a specific activity, perform a duty, or solve a problem.

What is Management Information
System ?
 A Management Information System (MIS) provides
information that organizations require to manage
themselves efficiently and effectively.
 Management Information Systems are typically computer
systems used for managing five primary components:
1.) Hardware
2.) Software
3.) Data (information for decision making)
4.) Procedures (design, development and documentation)
5.) People (individuals, groups, or organizations).

 Management information systems are distinct from
other information systems, in that they are used to
analyze and facilitate strategic and operational
activities.
 Academically, the term is commonly used to refer to the
study of how individuals, groups, and organizations
evaluate, design, implement, manage, and utilize
systems to generate information to improve efficiency
and effectiveness of decision making, including systems
termed decision support systems, expert systems, and
executive information systems.
 Most business schools (or colleges of business
administration within universities) have an MIS
department, alongside departments of accounting,
finance, management, marketing, and sometimes
others, and grant degrees (at undergrad, masters, and

History of MIS
 Most business schools (or colleges of business administration
within universities) have an MIS department, alongside
departments of accounting, finance, management, marketing,
and sometimes others, and grant degrees (at undergrad,
masters, and PhD levels) in MIS.
 The first era (mainframe and minicomputer) was ruled by IBM
and their mainframe computers; these computers would often
take up whole rooms and require teams to run them - IBM
supplied the hardware and the software. As technology
advanced, these computers were able to handle greater
capacities and therefore reduce their cost. Smaller, more
affordable minicomputers allowed larger businesses to run their
own computing centers in-house.

 The second era (personal computer) began in 1965 as
microprocessors started to compete with mainframes and
minicomputers and accelerated the process of
decentralizing computing power from large data centers to
smaller offices. In the late 1970s minicomputer technology
gave way to personal computers and relatively low cost
computers were becoming mass market commodities,
allowing businesses to provide their employees access to
computing power that ten years before would have cost
tens of thousands of dollars. This proliferation of
computers created a ready market for interconnecting
networks and the popularization of the Internet.

 As technological complexity increased and
costs decreased, the need to share information
within an enterprise also grew—giving rise to
the third era (client/server), in which computers
on a common network access shared
information on a server. This lets thousands and
even millions of people access data
simultaneously. The fourth era (enterprise)
enabled by high speed networks, tied all
aspects of the business enterprise together
offering rich information access encompassing
the complete management structure.

Types and Terminology of
MIS
 The terms Management Information System
(MIS), information system, Enterprise Resource
Planning (ERP), and information technology
management are often confused. Information
systems and MIS are broader categories that
include ERP. Information technology
management concerns the operation and
organization of information technology
resources independent of their purpose.

 Most management information systems specialize in particular commercial
and industrial sectors, aspects of the enterprise, or management
substructure.
› Management information systems (MIS), produce fixed, regularly scheduled reports
based on data extracted and summarized from the firm’s underlying transaction
processing system to middle and operational level managers to identify and inform
structured and semi-structured decision problems.
› Decision Support Systems (DSS) are computer program applications used by
middle and higher management to compile information from a wide range of sources
to support problem solving and decision making. DSS is majorly used for semi-
structured and unstructured decision problems.
› Executive Information Systems(EIS) is a reporting tool that provides quick access to
summarized reports coming from all company levels and departments such as
accounting, human resources and operations.
› Marketing Information Systems (MIS) are Management Information Systems
designed specifically for managing the marketing aspects of the business.
› Office Automation Systems (OAS) support communication and productivity in the
enterprise by automating work flow and eliminating bottlenecks. OAS may be
implemented at any and all levels of management.
› School Information Management Systems (SIMS) cover school administration, and
often including teaching and learning materials.
› Enterprise Resource Planning (ERP) facilitates the flow of information between all
business functions inside the boundaries of the organization and manage the
connections to outside stakeholders.

Advantages of MIS
 The following are some of the benefits that can be
attained for different types of management information
systems.
› Companies are able to highlight their strengths and weaknesses
due to the presence of revenue reports, employees' performance
record etc. The identification of these aspects can help the
company improve their business processes and operations.
› Giving an overall picture of the company and acting as a
communication and planning tool.
› The availability of the customer data and feedback can help the
company to align their business processes according to the needs
of the customers. The effective management of customer data can
help the company to perform direct marketing and promotion
activities.
› Management Information Systems can help a company gain a
competitive advantage. Competitive advantage is a firm’s ability to
do something better, faster, cheaper, or uniquely, when compared
with rival firms in the market.

Why Study IS?
 Information Systems Careers
› Systems analyst, specialist in enterprise resource planning (ERP),
database administrator, telecommunications specialist, consulting,
etc.
 Knowledge Workers
› Managers and non-managers
› Employers seek computer-literate professionals who know how to
use information technology.
 Computer Literacy Replacing Traditional
Literacy
› Key to full participation in western society.

Enhancing productivity through
workforce management
 Leveraging effective workforce management solutions
allows organizations to have the correct number of skilled
staff to meet the desired staffing levels based on a
forecasted workload.
 In essence, a good Workforce Management Solution
would remove the guesswork from staff roistering by
leveraging analytics of payroll and timekeeping information
with business activity information. This approach would
allow for Continuous Labour Performance Management
and at the same time provide the key stakeholders with
key Workforce Management information.
 In order for a business to enhance productivity through
Workforce Management, every organisation needs to go
through a Workforce Performance Management Cycle as
illustrated.

 Central to achieving the objectives is having an effective and efficient Management
Information System.
 Workforce Management is complex in many organizations, in part due to the lack of
timely information and the demands of various key stakeholders for this important
and highly secure information.
 Some of the key stakeholders are Department Managers / Team Leaders who
actually roster staff and manage them day to day, Business Analysts whose primary
task is to provide the middle and senior management with staff utilization analysis
reports and the Human Resources (HR) Manager, whose primary focus would be to
recruit skilled staff and negotiate with various external agencies / agents on staff
contracts.
 These various stake holders demand an array of queries on data held in Payroll,
Timekeeping, and HR systems and Business Activity information systems to
manage the reporting / analysis requirements.
 In order for these key stakeholders to work together and achieve their objectives, it
is important that they source the information from one central system, to ensure that
all users can get one version of the truth.
 The key benefits of good Workforce Management Solution System are:
› Real Time Employee costs reporting and Analysis
› Single source for all information
› Scenario Modelling
› 'What If' analysis capability
› Real time KPI Measurement
› Proactive Labour KPI Management Reports
› Volume Forecasting Model
› Activity-Based Staff Rostering

 According to figure Company management
need to deal with each individual behavioural
factor in the development and operation of
Management Information System in an efficient
manner. Moreover, as it can be seen in Figure 1
there is interconnectedness amongst all
components of Management Information
System knowledge requirements and this
interconnectedness need to be maintained in
order to Management Information System to be
able to facilitate to its maximum capacity.

Management information system

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Management information system