MIS – Introduction to management in context of Information System

MIS – Introduction to management in context of IS

Management Information Systems, which are often abbreviated to MIS, are a subdivision of internal business controls that usually refer to documents, IT, people and procedures. An MIS is usually applied by management accountants who will be trying to solve a business problem or setting a price for how much a product should cost.

MIS are actually quite different from other information systems. This is because the MIS are used primarily to analyze other information systems that are used in the operational activities of any particular organization.
So MIS is not a true information system in the sense of technology, but nor is it a true business function. In fact it straddles both these disciplines and is a way in which technology can be harnessed along with business so that people can function more effectively.

Within any given organization there may well be MIS professionals, but they are actually employed as systems analysts or even project managers. They often will act as a means of communication between management and the staff on the ground and they are actually a very valuable asset to any firm, since MIS professionals have the ability to analyze vast amounts of data.

This is the real beauty of Management Information Systems; they allow personnel to effectively and efficiently analyze huge amounts of data that would otherwise be too enormous to be analyzed by humans. This means that trends can be spotted or patterns start to emerge. The MIS systems can also show dips or peaks in performance that may not be readily available when using other information systems, so they are incredibly important.

Origins of Management Information Systems

Initially computers were used to keep finances up to date by using word processing and in many cases accounting. But then more and more applications were invented all of which were geared towards providing management with useful and relevant information that would help them to manage their business and due to the nature of the information they contained, these applications became known as Management Information Systems.

Aim of Management Information Systems

The main aim of MIS systems is to inform management and help them make informed decisions about management and the way the business is run. This highlights the difference between an MIS and other types of information systems that do not necessarily contain information that will help managers make managerial decisions.

MIS, or management information systems, are used to manage the data created within the structure of a particular business. These systems store the data and allow the business to manipulate, analyze and compile the data through the use of software applications. Reports and analysis pulled from an information system can assist in the directing, planning and decision making needs of managers.

Component of MIS in context of IS

1. Information Management
2. Structures
3. Data
4. Tools
5. Output

1. Information Management

 Businesses gather information every day in the form of invoices, proposals, daily sales figures and time cards. This information can provide a business insight into their operations, create a platform for decision making and reveal ideas that feed strategic planning. Gathering the information requires a consistent and reliable process in order for the information to be useful. Information management requires a system that supports the business model the information comes from.

2. Structures

Management information structures provide a central location in which to store and manage the information from. The structure or system is fed by people (employees, vendors, suppliers, customers) who input (provide) the data and output the data (creating reports and disseminating the data). Software and hardware supply the equipment needed to process, store and control access to the data. Business rules (how production cost is figured, formulas for vacation time, how accounts payable are processed for payment) dictate how the software should operate.

3. Data

 Data found in information management systems is gathered by hand or electronically. Documents can provide data that is then input into the system or data can be gathered through conversation and input directly into the system via a form. Data can also be gathered using an electronic device such as a barcode scanner that is then downloaded into the management system. Delivering data into the system can occur from outside the system via customers, vendors or suppliers. Access to data may be controlled via a separate set of rules implemented by the business.

4. Tools

 Software programs designed to fit the business rules and its required documents are the entry points for an information system. Hardware is needed to operate the software and can include large computer networks or a simple single server with a small number of desktops. Each business department may have a separate software program that shares its data with other programs or all departments can enter data through a central software program. Oracle and Microsoft offer management information system software products for medium to large businesses.

5. Output

 Software applications allow the sorting and analyzing of data. Output typically comes in the form of reports. Reports can be disseminated electronically or by hand. A report can provide information about sales figures, production goals or even the financial value of the business as a whole. Annual reports and quarterly sales figures are created from data located in a management information system.