MIS Concepts, Definition, Roles

7/29/2019 MIS Concepts, Definition, Roles

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Management Information System - ConceptThe foundation of MIS is the principles of management and its practices. MIS

uses the concept of management control in its design.

The concept of Management Information System gives high regards to theindividual and his ability to use the information. MIS gives informationthrough data analysis.

A Management Information System relies heavily on the system theory. Ituses the principles of the System Design, viz., an open system or a closed

system. An open system of the MIS offers an ability of continuousadjustment or correction in the system in line with the environmentchanges in which the MIS operates. Such a design helps to keep the MIStuned with the business management need of the organization.

The conceptual view, therefore, is a blend of principles, theories and

practices of the Management, Information and System. The physical view of the MIS can be seen as an assembly of several

subsystem based on the databases in the organization. These subsystemsrange from data collection, transaction processing and validating,processing, analyzing and storing the information in databases.


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MIS : Definition

The MIS has more than one definition, some of which are given below:-

1. The MIS is defined as a system which provides information support fordecision-making in the organization.

2. The MIS is defined as an integrated system of man and machine forproviding the information to support the operations, the managementand the decision-making function in the organization.

3. The MIS is defined as a system based on the database of theorganization evolved for the purpose of providing information to the

people in the organization.

4. The MIS is defined as a Computer-based information System.

Hence, the MIS is a computerized business processing system generatinginformation for the people in the organization to meet theinformation needs for decision-making to achieve the corporateobjectives of the organization.


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Role of Management Information System

The role of the MIS in an organization can be compared to the role of

the heart in the body. The MIS plays exactly the same role in theorganization. The system ensures that an appropriate data is collectedfrom the various sources, processed, and sent further to all the needydestinations. The system is expected to fulfill the information needs ofan individual, a group of individuals, the management functionaries;

the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as

Query Systems, Analysis Systems, Modeling Systems and DecisionSupport Systems. The MIS helps in Strategic Planning, ManagementControl, Operational Control and Transaction Processing.

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.


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Impact of the Management Information SystemSince the MIS plays a very important role in the organization, it creates an

impact on the organizations functions, performance and productivity. The impact of MIS on the functions is in its management. With the good

MIS support, the management of marketing, finance, production andpersonnel becomes more efficient. The tracking and monitoring of thefunctional targets become easy. A disciplined information reporting systemcreates a structured database and a knowledge base for all the people in theorganization.

The MIS creates another impact on the organization which relates to theunderstanding of the business itself. The MIS begins with the definition ofa data entity and its attributes. It uses dictionary of data, entity andattributes, respectively, designed for information generation in theorganization.

The MIS calls for a systemization of the business operations for an effectivesystem design. This leads to streamlining of the operations whichcomplicates the system design. It improves the administration of the

business by bringing a discipline in its operations as everybody is requiredto follow and use systems and procedures. A well designed system with a focus on the manager makes an impact on

the managerial efficiency. The use of computers enables him to use thetools and techniques which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerialability to perform.


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MIS : A Support to the ManagementThe management process is executed through a variety of decisions taken

at each step of planning, organizing, staffing, coordinating and control.The decisions required to be taken in these steps are tabulated below:-

The objective of the MIS is to provide information for a decision supportin the process of management. The MIS is expected to Management

Information System.

Steps in Management Decision

Planning A selection from various alternatives strategies,resources, methods etc.

Organization A selection of a combination out of several combinationsof the goals, people, resources, method and authority.

Staffing Providing a proper manpower complement.

Directing Choosing a method from the various methods ofdirecting the efforts in the organization.

Coordinating Choice of the tools and the techniques for coordinatingthe efforts for optimum results.

Controlling A selection of the exceptional conditions and providingthe decision guidance to deal with them.


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MIS for a Digital Firm

Twenty first century organizations are E-enterprises, that run their major operationson Interne/WEB and WAN, spread over large area.

The term E-Business enterprise was coined to convey the use of Internet and IT inkey resource management processes and to transact the business with thecustomers, suppliers and business partners. ERP, SCM, CRM, PLM are the mainapplications in the business. The Internet and IT are used for computing,collaboration, communication, storage information in all kinds of format. Theextent of use of these technologies is so much across the boundaries of theorganization that E-Business enterprise has become completely digitalised all its

operations and hence is now called as a Digital Firm.Digital describes electronic technology that generates, captures, validates and stores,

and processes data in terms of two states: positive and non-positive. Digital firmsuse extensively computing, convergence, and content management technologies onInternet platform for all E-business processes, transactional and relational.

Supply Chain Management systems, Customer Relationship Management systems,

Enterprise Resource Planning systems (ERP) and the Knowledge ManagementSystem (KMS), Content Management systems are the main systems which drive thefunction of a digital firm. In a digital firm, relationships with customers, suppliersand employees are digital, meaning all transactions, communications, pictures,images, data and information are exchanged through digital medium.


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The MIS design for a digital firm has to focus on business strategy, key resultareas, critical success factors, monitoring key performance indicators and keybusiness measures. The focus of MIS in a digital firm needs to shift from just intime information to just in time actionable information. The MIS in a digitalfirm is a Strategic Design of the MIS.

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MIS Concepts, Definition, Roles