LECTURE TWO

What is MIS?

• The MIS is defined as a system which provides information support for decision making in the organization.

• The MIS is defined as a computer - based Information System.

Goals of MIS

• Provide managers with information regular

• Routine operational control

• Organize and plan better

ROLE OF THE 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 impure blood, processes it and sends it to the destination in the quantity needed.

continued• 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 and the top management.

• The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents.

• The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation.

continued• The MIS helps the middle management in short them

planning, target setting and controlling the business functions.

• The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.

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

• The MIS, therefore, plays a vita role in the management, administration and operations of an organization.

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

• Since the MIS plays a very important role in the organization, it creates an impact on the organization’s functions, performance and productivity.

• The impact of MIS on the functions is in its management.

• With a good support, the management of marketing, finance, production and personnel become more efficient.

continued• The tracking and monitoring of the functional

targets becomes easy.

• The functional managers are informed about the progress, achievements and shortfalls in the probable trends in the various aspects of business.

• This helps in forecasting and long- term perspective planning.

What is management?

• Management as defined by Mary Follett is ‘the art of getting things done through people’.

• A manger is defined as a person who achieves the organization’s goals by motivating others to perform, not by performing himself.

• Management for the purpose of management information systems (MIS) is defined as the process of planning, organizing, staffing, coordinating and controlling the efforts of the members of the organization to achieve common stated goals of the organization.

continued

• In the process of management, a manager uses human skills, material resources and scientific methods to perform all the activities leading to the achievement of goals.

• In the management of any activity, a manager comes across human conflict, conflict of goals, between alternative resources, conflict of time, conflict of approach or method and the conflict of choice.

• The manager uses a variety of tools, techniques and skills while executing the management process of planning, organizing, staffing, coordinating and controlling.

• An effective way of handling this process is to treat the organization as a system.

Information Systems in Organizations

• An information system can be defined technically as a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization.

• Information system consists of data, hardware, software, telecommunications, people, and procedures

• Computer-based Information system: system with one or more computers at center

• Organizations lag behind and lose competitiveness if they do not use information systems

continued

• Trends that have made information systems important in business:– Growing power and decreasing cost of computers– Growing capacity and decreasing costs of data

storage devices– Increasing variety and ingenuity of computer

programs– Available, reliable, affordable, and fast

communications links to the Internet– Growth of the Internet– Increasing computer literacy of the workforce

Types of Information Systems

• Different types of information systems serve different functions

• Capabilities of applications have been combined and merged

Supply Chain Management Systems

• Supply chain: sequence of activities involved in producing and selling products or services– For products, activities include marketing,

purchasing raw materials, manufacturing and assembly, packing and shipping, billing, collection, and after-sale services

– For services, activities include marketing, document management, and monitoring customer portfolios

Supply Chain Management Systems (continued)

• Supply chain management (SCM) systems: systems that support these activities

• Also known as enterprise resource planning systems

• SCM systems eliminate the need to reenter data that was captured elsewhere in the organization

Customer Relationship Management Systems

• Customer relationship management (CRM) systems: systems for managing relations with customers– Used in combination with telephones to provide

customer service– Often linked to Web applications that track online

transactions• Retaining loyal customers is less expensive than

acquiring new ones

Decision Support Systems(DSS)

DSS are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making.– Relies on models to produce tables– Extrapolates data to predict outcomes– Helps answer “What if?” questions

Accounting

• Accounting information systems:– Help record transactions– Produce periodic statements– Create required reports for law– Create supplemental reports for managers– Contain controls to guarantee adherence to

standards

Human Resources

• Human resource management systems aid record-keeping– Must keep accurate records– Aids recruiting, selection, placement, benefits

analysis, requirement projections• Performance evaluation systems provide

grading utilities

Web-Empowered Enterprises

• E-commerce: buying and selling goods and services through Internet

• Internet is a vast network of computers connected globally

• Web has a profound impact on information systems– An emerging advertising medium– A place to conduct e-commerce

Chief Security Officer

• Chief security officer (CSO): supervises security of information system

• Position exists due to growing threat to information security

• Usually reports to chief information officer (CIO)

Chief Information Officer and Chief Technology Officer

• Chief information officer (CIO): responsible for all aspects of information system– Often a corporate vice president– Must have technical understanding of information

technologies as well as business knowledge• Chief technology officer (CTO): has similar

duties as CIO