DEPARTMENT OF HUMANITIES, SOCIAL SCIENCE AND MANAGEMENT NITK, SURATHKAL.

REPORT ON HOW MIS CAN BE APPLIED TO BUSINESS ORGANIZATIONS

SUBMITTED BY:MANDEEP KUMAR

11HM14

TITLE: MANAGEMENT INFORMATION SYSTEM

AUTHOR: MANDEEP KUMAR

REGISTRATION NO: - 11HM14

Abstract:
MIS called as MANAGEMENT INFORMATION SYSTEM. Information is the basis for every decision taken in the organization. The efficieny of management depends upon the avalability of relevant and regular available informations. The main objective of management information system is to obtain the required information and store that information and make that useful for future planning and control. The old techniques which were being used in earlier days like intuition, rule of thumb, personal whim and prestige, etc. Now seems to be old and are not much helpful in the process of decision taking. Today its the nee for such quantitative and such information, which can help in analyzing the proposed alternative actions and choosing one as its decision. Thats why it is demand of time for modern management functions to be information oriented and these are popularly known as management by information .and the system through which the informations are collected are called as management information system. Management information system can be helpful for management to take decisions smoothly and effectively. Management information system can be analyzed thus: 1. 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. 2. 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.

3. System: 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.

INTRODUCTION:
Today it has become very complex for business organizations to manage their day to day data. Firms have to collect masses of data, convert that data into information, form conclusions about that information and make decisions leading to the achievement of business objectives. Difficulties in collecting, storing, organizing and distributing large amounts of data and information were one of the biggest challenges for business firms. So for overcoming this system is developed called MIS. MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. MIS can help organizations in the processing of data into accurate, well- presented, up-to-date and cost-effective information. Information provided through MIS will depend largely on the capabilities of the people involved in its processing and selection. The MIS program is intended to be the first step in a life-long learning experience in the exciting and dynamic field of information technology. It provides a strong foundation for advancement and success in IT careers and ventures. Basically, Management Information Systems is the study of the use of computers in business. This tells how Information Systems are used to support critical business operations and achieve strategic objectives. In the beginning, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and receivable. As

applications were developed that provided managers with information about sales, inventories, and other data that would help in managing the enterprise, the term MIS arose to describe these kinds of applications. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management, and database retrieval applications.

Purpose & Scope of Management Information System:The Purpose and Scope of MIS can be defined as The combination of human and computer based resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points: Handling of a voluminous data. Confirmation of the validity of data & transaction. Complex processing of data and multi-dimensional analysis. Quick search & retrieval. Mass Storage. Communication of the information system to the user on time. Fulfilling the changing needs of the information. The management information system uses computers and communication technology to deal with these points of supreme importance.

Role of Management Information System:The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming pure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers & the top management. 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.

DISCUSSION:A Management Information System (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions.

The importance of maintaining a consistent approach to the development, use, and review of MIS systems within the institution must be an ongoing concern of both bank management and OCC examiners. MIS should have a clearly defined framework of guidelines, policies or practices, standards, and procedures for the organization. These should be followed throughout the institution in the development, maintenance, and use of all MIS. MIS is viewed and used at many levels by management. It should be supportive of the institution's longer term strategic goals and objectives. Or we can say that several MIS in an organization should support to main MIS. An institution's MIS should be designed to achieve the following goals: Enhance communication among employees. Deliver complex material throughout the institution. Provide an objective system for recording and aggregating information. Reduce expenses related to labor-intensive manual activities. Support the organization's strategic goals and direction. Because MIS supplies decision makers with facts, it supports and enhances the overall decision making process. MIS also enhances job performance throughout an institution. At the most senior levels, it provides the data and information to help the board and management make strategic decisions. At other levels, MIS provides the means through which the institution's activities are monitored and information is distributed to management, employees, and customers. Effective MIS should ensure the appropriate presentation formats and time frames required by operations and senior management is met. MIS can be maintained and developed by either manual or automated systems or a combination of both. It should always be sufficient to meet an institution's unique business goals and objectives. MIS is a critical component of the institution's overall risk management strategy. MIS supports management's ability to perform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk management involves four main elements: Policies or practices. Operational processes. Staff and management. Feedback devices.

Frequently, operational processes and feedback devices are intertwined and cannot easily be viewed separately. The most efficient and useable MIS should be both operational and informational. As such, management can use MIS to measure performance, manage resources, and help an institution comply with regulatory requirements. One example of this would be the managing and reporting of loans to insiders. MIS can also be used by management to provide feedback on the effectiveness of risk controls. Controls are developed to support the proper management of risk through the institution's policies or practices, operational processes, and the assignment of duties and responsibilities to staff and managers. Technology advances have increased both the availability and volume of information management and the directors have available for both planning and decision making. Correspondingly, technology also increases the potential for inaccurate reporting and flawed decision making. Because data can be extracted from many financial and transaction systems, appropriate control procedures must be set up to ensure that information is correct and relevant. All institutions must set up a framework of sound fundamental principles that identify risk, establish controls, and provide for effective MIS review and monitoring systems throughout the organization. Sound fundamental principles for MIS review include proper internal controls, operating procedures and safeguards, and audit coverage.

The Functional Support Role in MIS

It can also be called Data Base Management System (DBMS) wherein maximum utilization in an efficient manner based on the organizational needs is obtained by analyzing, processing and referencing of Data Base. Not only for the business, but for all kinds of organizations such as Disaster Management Organization for using it as Disaster Management Information System. Business processes and operations support function are the most basic. They involve collecting, recording, storing, and basic processing of data. Information systems support business processes and operations and this can be used in following areas in an organization
Recording and storing accounting records

 Processing such records into financial statements such as income statements, balance

sheets, ledgers, and management reports, etc.

Recording and storing inventory data, Recording and storing such human resource records as personnel data, salary data, and

employment histories.
Recording and storing market data, customer profiles, and customer purchase histories,

marketing research data, advertising data, and other marketing records.

Recording and storing business intelligence data, competitor analysis data, industry

data, corporate objectives, and other strategic management records. The bottom line is that the information systems use all of the above to implement, control, and monitor plans, strategies, tactics, new products, new business models or new business venture.

How MIS can help an Organization Potential:Investing in information systems can pay off for a company in many ways. Such an investment can support a core competency. And IT investment in a company's core competency can create a significant barrier to entry for other companies, defending the organization's primary turf and protecting its markets and profits. It can build supply chain networks. Firms that are a part of an integrated supply chain system have established relationships of trust with suppliers. This means faster delivery times, problem-free delivery and an assured supply. It can also mean price discounts and other preferential treatment. It can enhance distribution channel management. As with supplier networks, investment in distribution channel management systems can ensure quicker delivery times, problem free delivery, and preferential treatments Such an IT investment can help build brand equity. To build a brand, firms often invest huge sums in advertising. A huge brand name is a formidable barrier to enter and sustaining it can be facilitated by investment in marketing information systems and customer relationship management system.

 Information systems can mean better production processes. Automated systems are the most cost efficient way to organize large scale production. These can produce economies of scale in promotion, purchasing, and production; economies of scope in distribution and promotion; reduced overhead allocation per unit; and shorter break-even times more easily Implementing IT experience can leverage learning curve advantages. As a company gains experience using IT systems, it becomes familiar with a set of best practices that are more or less known to other firms in the industry. Firms outside the industry are generally not familiar with the industry specific aspects of using these systems IT investment can impact mass customization production processes. IT controlled production technology can facilitate collaborative, adaptive, transparent, or cosmetic customization. This flexibility can increase margins and increase customer satisfaction. It means expanded E-commerce. Company web sites can be personalized to each customers interests, expectations, and commercial needs. They can also be used to create a sense of community. Both of these tend to increase customer loyalty. Customer loyalty is an important barrier to entry. The simple fact that IT investment takes a significant amount of money makes it a barrier to entry. Anything that increases capital requirements is -- guess what? -- A barrier to entry.

Scope of the study:

Identify the changes taking place in the form and use of decision support in E-business enterprises. Identify the role and reporting alternatives of management information systems.

Describe how online analytical processing can meet key information needs of managers. Explain the decision support system concept and how it differs from traditional management information systems. Explain how executive information systems can support the information needs of executives and managers. Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business.

Conclusion:Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make businesses more competitive, and bring about the organisational transformation through integration. A good MIS also makes an organisation seamless by removing all the communication barriers.

Bibliography
Wikipedia Online Encyclopedia Microsoft Encarta Reference Library Google Search Engine AltaVista Search Engine Ask.com Search Engine.