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Importance of MIS

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Page 1: Importance of MIS

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Page 2: Importance of MIS

MIS : A DEFINITION2

A Management Information System provides information that organizations require to manage themselves efficiently and effectively.

This 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.

A Management Information system gives the business managers the information that they need to make decisions.

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Characteristics of MIS3

Following are the characteristics of an MIS: It should be based on a long-term planning. It should provide a holistic view of the dynamics and 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. 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 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.

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History Of MIS

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Before the concept of management information systems was created , computer scientist was just programmer creating application for science and math calculation to computer usage evolved in field of business and data management ,software application were needed to process non scientific data. Five phases in development of computing technology.

i. Mainframe and Minicomputers computing

ii. Personal Computers

iii. Client Server network

iv. Enterprise Computing

v. Cloud Computing

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MIS IN AN ORGANIZATION5

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Importance of MIS6

Decision making (rational)– managerial function

Reliable, timely info – essential

MIS – a logical, well-structured method of info collection, processing, and disseminating to decision-makers

Era of liberalization and globalization

Era of computers and IT

MIS – nerve center

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ROLE OF MIS7

System ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destination.

MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

MIS plays the role of information generation, communication, problem identification and helps in the process of decision making

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Objectives8

List and describe the classic functions of managers –planning, organizing, staffing, directing, and controlling

Describe the purpose and components of a management information system (MIS)

Explain how computer networking and related software have flattened the classic management pyramid

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Objectives9

Describe how many companies use employees in task-oriented teams

Describe the purpose and function of sophisticated software for top managers

Explain the problems and solutions related to managing personal computers

Explain the concept of total cost of personal computer ownership

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Advantages Of MIS10

Globalisation : It has not only brought the world closer together ,but it has allowed the worlds economy to become a single interdependent sysem. This means that we can bring down barriers of linguistic and geographic boundaries.

Communication :With the help of this , communication has become cheaper , quicker and more efficient.

Cost effectiveness:It has helped to computerize business processes thus streamlining businesses to make them extremely cost effective money making machines.

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Disadvantages of MIS11

Lack of Job Security: Industry experts believe that the internet has made job security a big issue as technology keeps on changing with each day.

Dominant Culture: While information technology may have made the world a global village , it has also contributed to one culture dominating another weaker one.

Privacy: Though IT may have made communication quicker, easier and more convenient , it has also brought along privacy issues.

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MIS As A Career12

MIS professionals are leaders who initiate ,design and apply technology to transform business functions and produce innovative products and services.

MIS professionals have following career options:

Analyst

Consultant

Application Developer

Data Analyst

Project Leader

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Roles Of MIS Professionals13

MIS as a SYSTEM ANALYST study business problems and implement systems to solve them.

MIS as a CONSULTANT analyze problems and change business processes.

MIS as a APPLICATION DEVELOPER develop software to gather and store data

MIS as a DATA ANALYST extracts and analyzes organizational data.

MIS as a PROJECT LEADER organizes a team of analysts ,programmers and others to create an innovative solution.

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PEOPLE PURSUING MIS DEGREES14

People pursuing MIS degrees must possess following traits:

Good problem solving skills

Excellent communication skills

Ability to effectively manage time and resources

Ability to think strategically about technology.

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New perspective of Information15

MIS = MI + S

MIS must provide MI to managers for decision-making

MI-quality info

Timeliness

Accuracy

Completeness

Adequacy

MI-a subset of the entire available info

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MIS FUNCTIONS16

Data capturing

Processing of data

Storage

Retrieval

Dissemination of MI – finished product of MIS

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COMPONENTS OF MIS17

Input: Data to be arranged

- Sales in units by each salesman for a period.

- Estimated sales in units of competitors.

- Economic condition and trends

Processor: Classify , Sort , Summarize , calculate

- Conversion of input into outputs

Output: Arranged Data

- Sale by Product

- Sales by Salesman

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Managerial Functions18

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Managerial Functions19

Planning Devise short-range and long-range plans and set goals to help

achieve the plans

Organizing How to use resources

Staffing

Directing Guiding employees to perform their work

Controlling Monitoring progress towards goals

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Management Levels20

High level (strategic)-Long-range view-Planning

Middle level (tactical)-Carry out the plan-Assemble the material

1.Hire the resources2.Organize and staff

Low level (operational)-Supervisor-Directing and controlling

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Pitfalls of MIS21

Organization does not have a reliable management system .

Organization has not defined its mission clearly.

Organization’s objectives have not been specified.

Management lacks interest in MIS development process and relies solely on MIS development’s specification.

MIS development team is incompetent.

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Role of information in the decision process

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Bibliography23

Textbook Source

-M.Awadh

Internet Sources

-wikipedia

-www.mu.ac.in/mis.pdf

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Thanks

Vishal Joshi

+91-9099089387