Group Members

Ronak Shah
Dhaval Shah
Bhavini Gala
Vrushali Gayakar
Viveik Mishra
Ankit Vithlani
Outline
DEFINITION OF MIS
A management information system (MIS) is a
system or process that provides the
information necessary to manage an
organization effectively.
The MIS is defined as an integrated system of
Man and Machine for providing the
information to support the operations, the
management and the decision making
function in the organization.
Goals of MIS
Enhance communication among employees.
Deliver complex material throughout the
institution.
 Provide an objective system for recording and
aggregating information
 Reduce expenses related to labor-intensive
manual activities.
 Support the organization's strategic goals
and direction.
Just like a “heart” to a
body is MIS to any
organization Role of MIS
Destination 1
Source 1
Source 2 Destination 2
M.I.S.
Source 3 Destination 3
Source 4
 MIS is expected to fulfill the
MIS information needs of:
• collects information from  an individual,
various sources,  a group of individuals and
• Processes & management functionaries:
• Sends it to the needy • the managers and
destinations
• the top management
Unstructured
decisions
• Top Level MIS &
•Top Manager
The user
More • Middle Manager Strategic
responsibility & Planning
Accountability
• Junior Manager
Long Term
– An Officer
Planning
– An Executive Officer

Less Short Term

Responsibility • Clerical Personnel
Planning
& accountability – An Assistant
– Clerk
No Planning
Structured Bottom Level
Decisions
Type of MIS helps in:
Role of MIS
people
Clerical Transaction processing, answers to queries,
Personnel status of records and various references

Junior Providing operation data for planning,

Management scheduling & control, Decision making at
operational level

Middle Short term planning, Target setting,

Management controlling the business functions. Use of
management tools of planning and control.

Top Goal setting, strategic planning, evolving the

Management business plans and their implementation
FINANCE
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC

MIS APPLICATIONS

• Strategic planning
• Management control
• Operation Control &
• Transaction Processing
 MIS & Support to Business
System Business System MIS
Components

Input Raw materials, plant & Transactions of purchase,

machinery, manufacturing, production & sales, receipts
selling, accounting & payments
Process Purchasing, manufacturing, Transaction processing &
selling, accounting data processing

Outputs Quantity of production, Computation of production

sales, stock, income & in numbers, sales in value,
profit stocks in weight, income &
profit in rupees
Sensor Profit Income less assigned cost
Comparison unit Expectation of profit Algebraic comparison
versus actual profit module to compare income
vs. budgeted income; profit
vs. budgeted profit
Standard Profit Budgeted profits of various
products
Feedback Balance sheet Exception reports after
analysis showing products
earning low profits
Corrective unit Managing Director Marketing Manager
Decision to correct Business decisions Pricing, advertising,
the situation promoting decisions
Goals & objectives Business goals & objectives Provide that information
which supports in achieving
the MIS goals & objectives
 MIS brings:
High degree of
Creates professionalism
a structural database
Knowledge base
Information Bank
Better Understanding of
business:
• Common terminology
• Common terms
• Wider view, perspective
• Understanding how ones work
affect the entire organisation
• Better sense of responsibility
Impact of MIS
All this information is made easily
available:
Saves Time & Money
MIS calls for:
• Systemisation of
Business Operations:
• Streamlines the
operations
• Every body to follow
system and procedure
• Thus Better discipline
What Is Financial
Management?
Definition
 Financial Management is
management of finances of an
organization in order to achieve its
objectives.
Introduction Of FMIS
 Definition
A financial management information
system, or integrated financial
management information system
(IFMIS), is an information system that
tracks financial events and summarizes
financial information.
Drawbacks of Manual system
Slow processing of payments

Slow processing of transaction

Inaccurate & untimely financial

information and reports i.e. information
is not recorded on real time
Overview of a FMIS
FMIS
Inputs
Strategic plan or corporate policies
Contains major financial objectives and often
projects financial needs.
Transaction processing system (TPS)
Important financial information collected from
almost every TPS - payroll, inventory control,
order processing, accounts payable, accounts
receivable, general ledger.
External sources
Annual reports and financial statements of
competitors and general news items.
FMIS
Outputs
Financial subsystems
Profit/loss and cost systems
Auditing
Internal auditing
External auditing
Uses and management of funds
Functions of FMIS
Functions of FMIS
Regulatory Requirements

Written Policies & Procedures

Documentation of Expenses

Provide a complete audit trail to facilitate

audits.

Facilitate financial statement preparation.

Functions of FMIS
 Provide information for budget planning,
analysis and government-wide reporting.
 Timely, accurate, and consistent data for
management and budget decision-making .

 Matching Requirements and In-kind
Contribution.
 Reporting.

 Internal Controls
Types of FMIS
CORE

NON-CORE

IFMIS
Benefits of FMIS
 Processes large number of transactions in
limited periods of time across a country wide
network of offices.
 Easy retrieval of financial information for
decision making e.g. financial information
can be viewed where transactions are
generated .
 Availability of basic data required for
economic management in a timely manner .
Role of Finance in Typical
Business Organization
LOW LEVEL FINANCIAL
MANAGER ROLES
Credit managers oversee the firm’s issuance of
credit, establishing credit-rating criteria,
determining credit ceilings, and monitoring the
collections of past-due accounts.
As a Corporate Inventory Manager (internally
knows as an Inventory Manager) you will be
responsible for maintaining optimum inventory
levels of assigned products as well as providing
information and support regarding inventory to all
areas of the company.
Capital budgeting Director deals with net
present value as the rule for budgeting decisions
LOW LEVEL FINANCIAL
MANAGER ROLES
 Cost Accounting Manager function is to work
closely with functional teams and provide support
with relevant Cost MIS, cost analysis and cost
projections.
 Financial Accounting Managers responsibilities
include to support the financial accounting manager
in ensuring to effectively manage payroll, accounts
payable, accounts receivable, treasury and
reconciliation. You will also support the development
and implementation of financial systems
 Taxation Accounting Managers are responsible for
operations & management audits & Indirect Taxes.
The core competencies lie in the area of reviews,
operational restructuring, due diligence audits,
accountings & Indirect Tax compliances, planning &
representation before authorities.
MIDDLE LEVEL FINANCIAL
MANAGER ROLES
The VP of Finance is responsible for all budgeting,
forecasting and financial reporting as well as the
development of financial processes and systems
for Finance Department’s future business needs.
This position is also responsible for the
management of professional relationships with
our Insurance, Banking, Investments, Auditors and
Tax Planning partners.
TOP LEVEL FINANCIAL
MANAGER ROLES
The Board of Directors is the highest governing
authority within the management structure at any
publicly traded company. It is the board's job to
select, evaluate, and approve appropriate
compensation for the company's chief executive
officer (CEO), evaluate the attractiveness of and
pay dividends, recommend stock splits, oversee
share repurchase programs, approve the
company's financial statements and recommend
or strongly discourage acquisitions and mergers.
 ROLES OF MANAGERS IN FMIS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS

MANAGEMENT LEVEL MIDDLE

MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS

OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES
 RELATION OF MIS & BUSINESS PLAN
Business Plan
Business goals & objectives
Business plan & strategy
Strategy planning & decisions
Management plan for
execution & control
Operation plan for the
execution
MIS Plan
Management information system, objectives,
consistent to the business goals & objectives
Information strategy for the business plan
implementation playing a supportive role
Architecture of the Management Information
system to support decisions
System development schedule, matching the
plan execution
Hardware & Software plan for the
procurement & implementation
Softwares for MIS
Oracle
SAP
Peoplesoft
Microsoft SQL
Tally
MS Excel
Swanp
Example of Spread Sheet
BEST PRACTICES TO
IMPLIMENTATION
STEP 1 – THE NEEDS ASSESSMENT
STEP 2 –CREATE A ROADMAP
STEP 3 – THE MODIFIED TENDER
APPROACH
STEP 4 – IMPLEMENTATION
CASE STUDY
Introduction of MFS Investment Management
As an established and respected provider of investment and
financial management services to mutual fund shareholders and
institutional pension and fund clients, Boston-based MFS
Investment Management believes IT network security is a top
priority. The pioneering spirit that led it to create America’s
first mutual fund in 1924 also has driven the firm to stay at the
forefront of network security and risk remediation (patching) –
even as threats rise steadily. Today, MFS offers a broad range
of investment styles that combine both fundamental and
quantitative research and portfolio management. With more
than $130 billion under MFS® management and control, the
stakes could hardly be higher.
The MFS IT Network & issue of Concern for the Company
 The enterprise network that serves MFS’ 2,400 employees – along with the
thousands of clients with whom the firm does business – includes just over
4,000 network devices. The network is made up of desktop computers,
servers, firewalls, switches and routers. Network needs are addressed by
teams in specific technology and platform areas that include:
 The network group
 The systems group
 The desktop group
 The telecom group
 The web support group
 The mail group
 The database group
Over time, MFS has developed a proven approach to making
networks, network devices and new enterprise applications
operational in a secure fashion. The approach requires careful
coordination among all of the operating units and technology
teams to ensure seamless deployment of security measures that
leave little room for exploits from hackers, viruses or malicious
users.
While the approach is proven, it is not static; the security risk
management process is constantly evolving, taking into
account the nature of new threats, new technologies, and new
strategies that can most effectively ensure the management of
available resources to mitigate security risk.
But the strategy became increasingly less effective as the
nature of the attacks on MFS systems became increasingly
more frequent and complex. The array of viruses, worms and
other malevolent entities attacking MFS’ systems were rising.
It became clear that MFS needed to adopt a more proactive
security risk management strategy by staying ahead of
gathering threats.
The heart of the MFS reporting system was a database that
required manual updating. As vulnerabilities came to light,
MFS IT managers from affected departments would meet to
develop mitigation plans. Managers ultimately determined that
the existing event/response system could be improved to meet
the increasing demands on their time and an ever changing
threat environment.
In December of 2002, the leadership of MFS’ IT organization
concluded that it needed to pursue a more proactive and
automated approach to detecting and responding to security
events so that staff and system resources could be better
deployed to address mission critical issues in a more effective
manner.
The MFS Financial Services with MIS
As MFS migrated to this strategy, it selected Foundstone Enterprise
Risk Solutions™ software to support a more proactive security risk
management strategy to not only provide an integrated platform for
scanning, reporting and managing the risk and remediation functions,
but also support the development of new more
effective security policies by:
Ensuring policy compliance
Facilitating asset discovery and prioritization
Accurately determining vulnerabilities
Identifying the threats that matter the most
Measuring risk
Remediation
Setting standards for measurement and tracking
MFS began the Foundstone Enterprise™ implementation with
a pilot effort. The initial installation of the Foundstone
scanning and reporting solutions required about one week to
reach operational status. MFS then worked with Foundstone
staff to take inventory of assets, determine their risk exposure
and establish internal procedures for effectively analyzing,
distributing and responding to the data presented by the
Foundstone system.
After the successful installation of the system in the pilot
phase, the MFS team began to integrate the system into
production across the enterprise. The first step in this process
transferred the lessons learned during the pilot phase to other
IT organizations across the enterprise. The full build up took
approximately one month.
The introduction of the new automated enterprise risk
management system has created new roles and responsibilities
for various players throughout the MFS IT organization. As
with any new initiative that requires people to change the way
they do business, MFS has applied significant emphasis to
educating and training administrators and users on the
implications of developing a more proactive security posture.
Education and training has consequently been an ongoing
focus at MFS. Even as users become familiar with the
Foundstone Enterprise solution, they have needed to invest
time to become proficient in effectively applying the many
different – and new – risk management capabilities of the
system.
The security team holds regular meetings to introduce the
Foundstone software solutions to other groups a responsible for
various network assets. In these meetings, the team describes
the value that the solution provides—in terms of efficiently
identifying and reporting on vulnerabilities and enhancing
patch management efforts
 Benefits: Identification, Prioritization, Reporting
 The new security risk management solution has produced a number
of benefits for MFS’ network. MFS began realizing benefits at the
pilot stage prior to full enterprise-wide deployment. The scanning
system was able to catalog the systems and applications on MFS’
network, as well as identify and prioritize vulnerabilities.
 In one instance, IT managers were concerned as to whether the
network had a vulnerability related to a specific application and if
so, if it had been patched. However, they were unsure if the
application was installed and operating on the MFS enterprise
network. The Foundstone solutions allowed MFS to quickly
identify and flag the applications’ location in the network, and
prioritize the critical assets for immediate attention. Prior to the
deployment of the Foundstone solution, MFS had in place a labor
intensive, manual search for finding and analyzing such “lost”
applications.
In other cases, the Foundstone solution has revealed software
and hardware installations that the centralized IT management
team was unaware of. Addressing vulnerabilities more quickly
has been another benefit.
The management level reporting system that tracks progress of
patch management initiatives also has been an important
benefit of the new system.
With Flood of Vulnerabilities, Prioritization Helps in IT
Resource Deployment
While the new Foundstone system significantly reduced the
instances of false alarms, it has also been able to identify
vulnerabilities that had previously gone unnoticed.
Consequently, MFS security analysts were surprised by the
flood of security events that needed to be analyzed.
Conclusion: System-Wide Intelligence, Patch Management
For MFS, simplification of the risk management process has
been an overarching benefit of the new system.
Key to that is the complete, enterprise-wide picture MFS
network managers now have of their enterprise system’s
security posture.
The comprehensive and prioritized reporting and management
system for vulnerabilities and patching—made possible by the
Foundstone solution—is redefining risk management and
security approaches at MFS.
MFS continues to improve its utilization of the new scanning
and enterprise risk management tools. Looking forward, MFS
plans to adopt and integrate new Foundstone capabilities for
threat correlation, threat remediation and enhanced reporting.