MADE BY: Naman Jain Nitesh Kundlia Kanishk Surana Jagrat Aggarwal Shubham Agarwal Saurabh Aggarwal

Management Information System(MIS)

A Management Information System (MIS) provides

information that organizations require to manage themselves efficiently and effectively.

Management information systems are typically computer systems

used for managing.

MIS provides managers with information and support for

effective decision making, and provides feedback on daily operations.

Output, or reports are usually generated through accumulation of

transaction processing data.

Each MIS is an integrated collection of subsystems, which are

typically organized along functional lines within an organization.

Characteristics of MIS
System approach:

The information system follows a Systems approach. The systems approach implies a wholistic approach to the study of the system and its performance to achieve the objective for which it has been formed. Management oriented: For designing of MIS top-down approach should be followed. Topdown approach suggests that the system development starts from the determination of the management needs and overall business objectives. Management oriented characteristic of MIS also implies that the management actively directs the system development efforts. Need based: MIS design and development should be as per the information needs of managers at different levels that are strategic planning level, management control level and operational control level.

 Exception based:

MIS should be developed on the exception based reporting principle, which means an abnormal situation, that is the maximum, minimum or expected values vary beyond the limits. In such cases there should be exception reporting to the decision-maker at the required level. Future oriented: Besides exception based reporting, MIS should also look at the future. In other words MIS should not merely provide past or historical information, rather it should provide information on the basis of projections based on which actions may be initiated. Integrated: Integration is significant because of its ability to produce more meaningful information. For example, in order to develop an effective production scheduling system, it is necessary to balance such factors as: set-up costs, work force, overtime rates, production capacity, inventory level, capital requirements and customer services. Integration means taking a comprehensive view of the subsystems that operate within the company.

Intended Benefits of MIS

MIS investments pay off for a company in many ways
Core competency support Enhanced distribution channel management Increasing Brand equity Boosting production processes Impact mass customization production processes Leverage learning curve advantages Leverage IT investment in computer aided design Leverage stability Expand E-commerce Improve B2B commerce

Five Primary Components of MIS

Hardware
Software Data (information for decision making)

Procedures (design , development and

documentation) People (individuals, groups, or organizations)

Business Applications of MIS

Enterprise systems also known as enterprise resource

planning (ERP) systems,provide integrated software modules and a unified database that personnel use to plan, manage, and control core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management, and distribution.
Supply chain management (SCM) systems enable more efficient

management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturers, wholesalers, retailers, and final customers.

 Customer relationship management (CRM) systems help

businesses manage relationships with potential and current customers and business partners across marketing, sales, and service.
Knowledge management system (KMS) helps organizations

facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, unrecorded procedures, practices, and skills. Knowledge management (KM) as a system covers the process of knowledge creation and acquisition from internal processes and the external world. The collected knowledge is incorporated in organizational policies and procedures, and then disseminated to the stakeholders.

Five Elements of usable MIS

Data Accuracy

Accuracy of data is the degree to which data correctly reflects the real world object OR an event being described. Data Completeness Completeness of data is the extent to which the expected attributes of data are provided.It is the 'expected completeness. It is possible that data is not available, but it is still considered completed, as it meets the expectations of the user. Every data requirement has 'mandatory' and 'optional' aspects. Data Consistency Consistency of Data means that data across the enterprise should be in synch with each other.

 Data Timeliness

The timeliness of data is extremely important. The timeliness depends on user expectation. An online availability of data could be required for room allocation system in Hospitality, but an overnight data is fine for a billing system.
Data Auditability

Auditability means that any transaction, report, accounting entry, bank statement etc. can be tracked to its originating transaction. This would need a common identifier, which should stay with a transaction as it undergoes Transformation , aggregation and reporting.

MIS in Financial Management

Financial Management Information Systems accumulate and analyze

financial data in order to make good financial managementdecisions in running the business. FMIS is the acronym for the term Financial Management Information Systems.
The basic objective of the financial information system is to meet the

firm's financial obligations as they come due, using the minimal amount of financial resources consistent with an established margin of safety. Outputs generated by the system include accounting reports, operating and capital budgets, working capital reports, cash flow forecast, and various What-If Analysis reports. The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a Decision Support System (DSS).

Financial management information system is: Information system that tracks financial events and summarizes information supports adequate management reporting, policy decisions, fiduciary responsibilities, and preparation of auditable financial statements Should be designed with good relationships between software, hardware, personnel, procedures, controls and data Generally, financial management information system refers to automating financial operations.

The Ideal FMIS Systems

An ideal or well-designed system should: Collect accurate, timely, complete, reliable, consistent information Provide adequate management reporting Support government-wide and agency policy decisions Support budget preparation and execution Facilitate financial statement preparation Provide information for central agency budgeting, analysis and government-wide reporting Provide complete audit trail to facilitate audits.

Inputs to the Financial Information System

Strategic plan or corporate policies Contains major financial objectives and oftenprojects financial needs Transaction processing system (TPS) Important financial information collected for almostevery 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.

Advantages of FMIS
There are many advantages of implementing an FMIS.

A few of them are listed below: Integrated financial information Flexibility of reporting and additional control over expenditure Less administration required within the business

General Uses of MIS In Finance

MONTHLY ACCOUNTS OF TRANASCTIONS
CASH FLOW SOURCES & USES OF FUNDS LEDGER & JOURNAL

MONTHLY RETURN AND STATEMENTPROCESSING

TRIAL BALANCE & BALANNCE SHEET PAY ROLE ACCOUNTING

Financial MIS Subsystems and Outputs

Financial subsystems Profit/loss and cost systems Auditing

Internal auditing
External auditing Uses and management of funds

Manufacturing MIS
Application in Manufacturing Sector

A typical information system primarily serves the needs of Functional levels such as Personnel, Finance, Production, Materials, Marketing and Corporate Business Management. Integrated systems provides data and information for: Business Planning At the Middle Management Level Strategic Planning At the Top Management Level

Inputs to the Manufacturing MIS

Strategic plan or corporate policies The TPS:

Order processing Inventory data Receiving and inspecting data Personnel data Production process External sources

Manufacturing MIS Sub systems and Outputs

Design and engineering Master production scheduling Inventory control Manufacturing resource planning3 Just-in-time inventory and manufacturing Process control

Computer-integrated manufacturing (CIM)

Quality control and testing

MIS In Marketing
A system that analyzes and assesses marketing information,

gathered continuously from sources inside and outside an organization. Timely marketing information provides basis for decisions such as product development or improvement, pricing, packaging, distribution, media selection, and promotion. Support managerial activities in product development, distribution, pricing decisions, and promotional effectiveness.
The Marketing Information System focuses on only the marketing

aspects of the management information system. It is an organized way of continually collecting, accessing and analyzing information that marketing managers need in order to make better decisions.

Marketing MIS Subsystems and Output

Market research

Product development
Promotion and advertising Product pricing

The Importance of MIS In Marketing:

Order Processing System: Computerized order processing system

Captures sales orders from customers and processes the orders for further action. It checks the inventory availability, pending orders, production details etc., before accepting the customer order. Computerized sales order processing generates control report daily on orders processed, details of back orders, etc.
Sales Management System: Computerized sales management

System uses the data from sales order processing system to generate various sales related reports. This system supports accounts management, direct marketing, sales forecasting and sales Presentations.

 Logistics Management: The physical distribution is a major

activity of marketing function. It uses computer based OR models to find optimum location of warehouses, shipment routes, quantity to be transported and stocked etc.
Consumer Research: Computerized transaction processing

systems capture huge quantity of data about customers and their buying patterns etc. It is used to generate vital information about consumer behaviour.
Sales Forecasting: Computer based mathematical and operations

research models are used to forecast sales and marketing expenses.

Human Resource MIS

Human Resource Information System (HRIS),

refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems envolve into standardized routines and packages of enterprise resource planning (ERP) software.

Data resources of HRIS

Personal application form
Appointment letter Attendance and leave record Appraisal form Wage and salary agreement Record of sources of recruitment Industry data on manpower skills performance.

Bio-data.
Production data.

Output In Terms of Report

Report on forecast of manpower requirement. Standing reports submitted to the government

agencies like income tax office, ESI authorities. Performance appraisal report , PF report . Report on training and development program conducted, their success and failure.

Inputs of Human Resource MIS

Strategic plan or corporate policies The TPS: Payroll data Order processing

Personnel data
External source