Shruti Speak's

Management information systems do not have to be computerized, but with today's large, multinational corporations, computerization is a must for a business to be successful. However, management information systems began with simple manual systems such as customer databases on index cards. As early as 1642, the French mathematician and philosopher Blaise Pascal invented the first mechanical adding machine so that figures could be added to provide information. Almost two hundred years later, Charles Babbage, a professor of mathematics at Cambridge University in England, wanted to make a machine that would compute mathematical tables. He attempted to build a computing machine during the 1880s. He failed because his ideas were beyond his technical capabilities, not because the idea was flawed. Babbage is often called the father of the computer. With the advent of the computer, management information systems became automated. In the late 1890s, because of the efforts of Herman Holleri...

Dictionary: management information system n. ( Abbr. MIS ) A computer system designed to help managers plan and direct business and organizational operations. Accounting Dictionary: Management Information System (MIS) Computer-based or manual system that transforms data into information useful in the support of decision making. MIS can be classified as performing three functions: (1) To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes. (2) To answer what-if questions asked by management. For example, questions such as "What would happen to cash flow if the company changes its credit term for its customers?" can be answered by MIS. This type of MIS can be called Simulation . (3) To support decision making. This type of MIS is appropriately called Decision Support System (DSS) . DSS attempts to integrate the decision maker, the data base, and the quantit...

Applications of MIS With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems. However, there are several specific fields in which MIS has become invaluable. Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data wer...

There are various types of management information systems. Mason and Swanson (1981) describe four categories of management information systems: 1. Databank Information System- The responsibility of this information system is to observe, classify, and store any item of data which might be potentially useful to the decision maker. 2. Predictive Information System- This system moves beyond pure data collection and the determination of trends over time. Predictive information systems provide for the drawing of inferences and predictions that are relevant to decision making. If data from the above examples were to be used in this way, it is possible to obtain information useful for making predictions or for drawing inferences. 3 .Decision-Making Information System- This system goes one step further in the process of decision making and incorporates the value system of the organization or its criteria for choosing among alternatives. An extension organization's values are many and va...

A Typical Management Information System is based on four major components: • Data Gathering The process of collecting required data from external and internal sources • Data Entry The collected data is imputed and stored in the database. Database is the core component used in information processing. • Data Transformation The data stored in the database is transformed into useful information through the application of computer programs and judgments made by the technical support staff and the end users. • Data Utilization The data that has been transformed into useful information is retrieved as needed by the management of the firm for managing operations and decision making.

Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: Marketing management information systems : A marketing management information system supports managerial activity in the area of distribution, product development, pricing decisions, promotional effectiveness, and sales forecasting . More than any other functional area, marketing systems rely on external sources of data. Human resources management information systems : Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities perfo...

Benefits of MIS MIS can deliver great benefits to enterprises in every industry. Better Planning and Control MIS is designed and managed in such way that it aggregates information, monitors the company's activities and operations and enhances communication and collaboration among employees. This ensures better planning for all activities and better ways to measure performance, manage resources and facilitate compliance with industry and government regulations. Control helps in forecasting, preparing accurate budgets and providing the tools and vital information to employees, top management and business partners. Aid Decision Making MIS can generate synthesized and processed information from computerized/automated and certain manual systems. Information distribution to all levels of corporate managers, professionals and key executives becomes quite seamless with streamlined MIS. Managers are able to make quick, timely and informed decisions. Top management and board mem...