Introduction to MIS

A computer system comprising hardware and software that serves as the backbone of an organization’s operation is called a management information system (MIS). A MIS gathers data from multiple online systems to assist in management decision-making, analyses it, and provides the results.
It is used for information control, coordination, analysis, and visualization inside an organization. An organizational management information systems study involves people, processes, and technology. It gives companies and organizations access to technology that improves information flow and communication, aids in problem resolution, and gives an organization a competitive edge.

A more thorough and precise definition of MIS may be found in its three constituent parts: System, which implies integration and a comprehensive perspective; Information, which denotes processed data; and Management, which is the final user and decision-maker.

Therefore, the management information system can be examined as follows:

Management :

Management includes organizing, supervising, and managing a company’s activities. Planning is the responsibility of the top management, controlling is the focus of the middle management, and real administration is the domain of the lower management.

Information:

Information in MIS refers to processed data that aids management in operations, planning, and control. All of the facts resulting from the business’s operations are referred to as data. The process of processing data involves recording, summarising, comparing, and ultimately presenting MIS reports to management.

System :

A system helps to transform system data into information. Inputs, processing, output, and feedback or control comprise a system.
MIS, therefore, refers to a data processing system that provides appropriate information to management so that it can carry out its duties.

MIS components:

A typical long-form MIS (Management Information System) consists of the following main parts:

• People:  These are the people who use the system to record everyday business transactions. Professionals with formal education, such as accountants and human resource managers, are usually the users.
• Data:  All of the recorded daily business transactions. Banks collect data through transactions such as withdrawals and deposits.
• Business procedures:  These are industry-accepted best practices that guide all other components and users on how to function efficiently. Business procedures are developed by consultants, users, and other individuals.
• Hardware: Hardware is made up of things like computers, printers, networking hardware, and other devices. The data processing capability is provided by the hardware. Networking and printing capabilities are also included.
• Software: Software refers to the programs that manage the data. These comprise applications like database software and spreadsheet programs, among others.

Objectives of MIS:

Implementing the enterprise’s dynamics and organizational structure is the aim of a management information system (MIS), which also aims to leverage the information system’s potential for competitive advantage.

The fundamental goals of a MIS are as follows –

• Gathering Information – Gathering operational or contextual data from different organizational internal and external sources to use in decision-making.
• Data Processing: Information required for organizing, coordinating, directing, and controlling functionality at the strategic, tactical, and operational levels is generated from the captured data. Data processing entails −
  1. using the data to perform computations
  2. data sorting
  3. categorizing information and
  4. data summarization
• Information Storage: To be used later, information or processed data must be kept.
• Information Retrieval: Depending on when different users need the information, the system should be able to pull it from the storage.
• Information Propagation: Using the organizational network, information or the completed product of the MIS should be distributed to its consumers regularly.

Features of the Management Information System:

• System approach: MIS follows the system approach, which is a methodical process for analyzing a system’s performance about its intended purpose. It requires having a thorough understanding of the workings of organizational subsystems.
• Management-oriented: A top-down MIS design technique is required due to the management-oriented nature of MIS. A top-down method determines management requirements and business goals before system development even begins. To achieve management decision completeness, MIS recommends management that collaborates dynamically with system development.
• Requirements: The data that managers require should serve as the foundation for the MIS’s design and development. The relevant design and development information can be accessed at three different levels: strategic planning, management control, and operational control. As a result, MIS needs to take into account the special needs of managers at different organizational levels.
• Future-focused: MIS should not be restricted to offering just historical data; instead, it should be planned and developed with the future in mind.
• Integrated: To provide the necessary information to make an informed choice, a complete MIS integrates all of its sub-components. An integrated system that integrates data from multiple operating domains is a crucial component of MIS.
• Common data flows: This concept serves as the foundation for several essential viewpoints on system analysis, such as eliminating redundancy, combining similar jobs, and simplifying procedures. Increasing the flow of common data is a wise and economical decision.
• Long-term planning: MIS should always be established as a long-term plan since it requires rational planning for the success of an organization. When developing MIS, the analyst should take the needs of the business and future-focused assessments into account.
• Relationships that are pertinent to subsystem planning: It is necessary to dissect the MIS’s development into the related subsystems. Thorough planning is necessary for these supporting systems to be beneficial.
• Central database: The central database displays data in tabular form. Data about inventory, personnel, clients, and other information sources are all included in this database. The insertion, deletion, and updating of records are handled by the database.