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Definition: A Management Information System is a set of combined procedures that gathers and produces reliable, relevant, and properly organized data that supports the decision making process of an organization. To sum up, it is a group of processes through which data is obtained, sorted, and displayed in a useful way for decision-making purposes. What Does Management Information Systems Mean?What is the definition of MIS? Management Information Systems are very useful tools for the purpose of reviewing and controlling company’s operations. The main goal of these systems is to organize all data collected from every level of the company, summarize it, and present it in a way that facilitates and improve the quality of the decisions being made to increase the company’s profitability and productivity. These systems are typically are computer-based including either simple excel sheets or more complex platforms. The information being collected and gathered for the system normally comes from both inside and outside sources. Let’s look an example and see how MIS works. ExampleMr. Parson is the Chief Operations Officer (COO) at Bermuda Fabrics LLC. As part of his job, he needs to forecast the next quarterly production plan, which includes an expected production quantity for each of the products that the company sells. He needs a lot of information and statistics to come up with a useful and reliable projection that captures the current business environment the company is facing and the company’s capacity to manufacture within those parameters. How could a MIS help Mr. Parson to develop these forecasts properly? The system can provide all the different variables Mr. Parson needs to develop the forecast. He will need to review production patterns, past sales, current equipment, and current suppliers. By the system displaying all this information in a useful way, Mr. Parson will be able to design a forecasting model (which can also be included on the system) that will allow him to plan for next quarter production. Summary DefinitionDefine MIS: Management information system means a computer system designed to gather information and display it in useful ways to aid decision makers.
A Management Information System (MIS) is an information system that provides managers with the tools to effectively organize, evaluate, and manage departments within an organization. It’s used for decision making and the coordination, control, analysis, and visualization of information in an organization. When used in a corporate context, a MIS is used to increase the value and profits of a business by providing managers with the relevant and appropriate information needed to make important decisions quickly. When implemented properly, a MIS helps achieve a high level of efficiency in a company’s management operations. MIS software providers include Microsoft Dynamics, Fleetmatics WORK, Clarity Professional MIS, and Tharstern Limited. What are the components of a MIS?A MIS needs to have the necessary components in order to collect, process, store, and retrieve the needed information to deliver to leaders. Below are four important components of a MIS:
Benefits of a management information systemCompanies invest in a MIS for the following reasons:
MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. The full form of MIS is Management Information Systems. The purpose of MIS is to extract data from varied sources and derive insights that drive business growth. In this tutorial, we will learn, The need for MIS The following are some of the justifications for having an MIS system.
Components of MISThe major components of a typical MIS long-form (Management Information System) are:
Types of Information SystemsThe type of information system that a user uses depends on their level in an organization. The following diagram shows the three major levels of users in an organization and the type of information system that they use. Transaction Processing Systems (TPS) This type of information system is used to record the day to day transactions of a business. An example of a Transaction Processing System is a Point of Sale (POS) system. A POS system is used to record the daily sales. Management Information Systems (MIS) Management Information Systems abbreviated as MIS, are used to guide tactic managers to make semi-structured decisions. The output from the transaction processing system is used as input to the MIS system. Decision Support Systems (DSS) Decision support systems are used by top level managers to make semi-structured decisions. The output from the Management Information System is used as input to the decision support system.DSS systems also get data input from external sources such as current market forces, competition, etc. Manual Information Systems VS Computerized Information Systems (MIS)Data is the bloodstream of any business entity. Everyone in an organization needs information to make decisions. An information system is an organized way of recording, storing data, and retrieving information. In this section, we will look at manual information systems vs. computerized information systems. Manual Information System A manual information system does not use any computerized devices. The recording, storing and retrieving of data is done manually by the people, who are responsible for the information system. The following are the major components of a manual information system
The following diagram illustrates how a typical manual information system works Advantages and Dis-advantages of a manual information systemAdvantages: The following are the advantages of manual information systems
Disadvantages: The following are some of the disadvantages of a manual information system.
Computerized information system Computerized systems were developed to address the challenges of manual information systems. The major difference between a manual and computerized information system is a computerized system uses a combination of software and hardware to record, store, analyze and retrieve information. Advantages and Disadvantages of a computerized information system (MIS)The following are some of the disadvantages of a computerized information system. Advantages: The following are the advantages of computerized information systems
Disadvantages:
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