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Introduction

In the 1970s, Managers realized that they can use Computer-based Information

Systems for

Planning,
n Controlling,
n Decision Making and
n Problem Solving,
Rather than for just recording the transactions.
n

In Todays date, any Information System that helps managers and other
professionals perform the above mentioned activities comes under the umbrella
of Management Information System.

MISs are more thanTPSs.


MISs complexity levels vary and depends upon ones management level.

MIS CONCEPT

Therefore,

Outputs of a Management
Information System

MIS FUNCTION

Functions of MIS

The MIS is effective since it is supported by


strong systems like:
n On Demand Output,
n Decision Support System,
n Executive Information System,
n Expert System, &
n Geographic Information System.

To provide information for planning (through effective decision


making), initiating, organizing and controlling the operations of
the subsystems of a firm and provide a synergistic
organization in the process.

The MIS is effective since it is supported by strong systems like:


n
n
n
n
n

On Demand Output
Decision Support System,
Executive Information System,
Expert System, &
Geographic Information System.

On Demand Output One of the greatest improvements in using MISs is in


the reporting methodology. Now managers can obtain current standings
online in form of on-screen readouts. They can customize the reports as per
the requirement. The reports are no more time bounded reports.

Decision Support System DSS help managers find the optimal course of
action from many alternatives. Since managers have scarcity of time &
resources to study long & detailed reports, organizations started to build
Information Systems which can help managers take decisions.

Executive Information System EIS deals in providing the executives


with the most specific and relevant information required for the conduct
of the process so that these executives do not experience the
Information Overload.

Expert System The managers may need a support system having


expertise to make certain decisions rather than just knowing the formulas
and equations. In todays date, Information Systems are developed that
incorporate human expertise. These ISs are known as Expert Systems.

Geographic Information System In some cases, the information decision


makers need is related to a map. In such cases, special Information
Systems called Geographical Information Systems can be used to tie data
to physical locations.

Building Blocks of Management Information


System:

Data & Information The unorganized / Organized collection of facts and


figures that can be used for decision making.

Hardware & Software The physical and logical IT infrastructure that supports
the IS implementation.

Telecommunications The basic structure that facilitates the flow of


information.

Users The management / people responsible for carrying out the functions of
an organization for the fulfillment of the objectives.

Procedures The rules, regulations and methodology set up by the


management for effective working towards achievement of the prime goal.

Information System in Functional Business Areas :


n
Finance & Accounting,
n
Production,
n
Marketing,
n
Human Resource.
Different types of Information Systems serve different
purposes throughout an organization in what are known as
Functional Business Areas, i.e. the in house services that
support an organizations main business. Functional
Business Areas include, but are not limited to, Accounting,
Finance, Marketing, and Human Resource. Information
Systems exists in most companies in one form or other
controlling these Business Functional Areas.

Finance & Accounting IS help record business


transactions, produce periodic financial statements and
create legal reports such as balance sheets and P&L
statements. They help organize budgets, manage
cashflow, analyze investments, and make decisions that
could reduce interest payments and increase revenues
from financial transactions.
They adhere to standards and also generate the reports
that helps managers understand changes in an
organizations finances.

MIS IN AN ORGANISATION

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