Define Management Information System and Explain the different components of MIS in detail according to the theoretical definition of a management information system?

Answer 1

Ans:- Meaning and Defination: 'MIS' is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. According to Phillip Kotler "A marketing information system consists of people, equipments, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support. Management information system would mean a set of computer based systems and procedures implemented to help managers in their crucial job of decision making. The actual process of MIS will involve the collection, organization, distribution and storage of organization-wide information for managerial analysis and control. It is better understood if these components are understood. Management Information Systems (MIS), sometimes referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures — collectively called information systems — to solving business problems. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, 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 application The following are the different types of components in MIS system. a. Concept of Management b. Information c.Information system A. Concept of Management Management information Systems (MIS), sometimes referred to as Information Management and Systems, are the discipline covering the application of people, technologies, and procedures — collectively called information systems — to solving business problems. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems. MIS - Management information System - a monthly (usually) generated by big companies to find out where they are standing out in the business. for example each department viz., Production, Marketing, HR, Finance etc will report & submit their reports according the requirement of the management as below Production: No. of Units reduced, Wastages, Target for the month Vs achieved. Reason & justification of any downfall. At last backlog & proposed date of shipment. Marketing: No. Orders procured/executed/lost - Reason viz price high or Discount could not be extended. A detailed report on pros & cons of marketability. HR: Monthly Manpower turnout with reasons Finance: Interest recd/paid, Interest Lost due to delayed receipts. Finance charges incurred and so on B. Information Information is otherway considered as collection of data. In fact the words are different. Data refers to facts. These facts may be expressed in numerical, text, image or voice. Data usually take the form of historical records. As businesses have evolved, the need for both fast access to quality intelligence and independence at the business unit level have made it imperative and challenging to manage information assets more effectively, efficiently and wisely. Developing and implementing a complete strategy for how information about suppliers, customers, competitors and global markets is obtained, validated, stored, managed, accessed, analyzed and distributed is now central to organizational survival and profitability. To make the most of opportunities, organizations must maximize the business value of information and leverage investments made in all data management technologies. The rewards will go beyond survival to quickness, compliance, innovation, and in the end, competitive advantage. The following are the several common ideas of information system in MIS a. It is the processed date b. It has an element of surprise value c. It has a value in decision making process. C. Information System: The next component of MIS is information system which is most loosely used in management literature. The information system is a system of group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organized transformation process. In this system there are three basic components or functions are involved. i.e., Input, Processing and Output. Input: It involves capturing and assembling elements that enter the system to be processed. In general what ever the date after collection to enter into the computing system for further processing is called input. For example. Raw Material, energy, data and human efforts must be secured and organized for further processing. Processing: After successful of input and involves transformation processes that convert into output. Example: Manufacturing process, human breathing process and mathematical calculations etc., Output: After successful of the processing and it involves transferring elements that have been produced by transformation process to their ultimate destination. Example: Finished products, human services and management information. Prepared: Mr. G. Lakshman Rao,M.com,M.Phil,E.Com,LLB Sastry Nagar, IInd Lane, Rayagada-765002 Orissa