MANAGEMENT INFORMATION SYSTEM (MIS)

is a planned system of collecting, storing, and disseminating data in the form of

information needed to carry out the functions of management.

Management Information Systems helps firms in realizing maximum profits on their

investments. The whole system is designed with the aim of enhancing profits, exercising better
control and performance planning at all levels. Information systems are used at all the levels
of a business organization in order to collect, process or store data. However, this gathered
information needs to be carried out in an efficient manner which actually helps in business
growth. So, MIS professionals create information systems for data management.

To the managers, MIS is an implementation of the organizational systems and

procedures. To a programmer it is nothing but file structures and file processing. However, it
involves much more complexity.

The three components of MIS provide a more complete and focused definition, where
System suggest integration and holistic view, Information stands for processed data, and
Management is the ultimate user, the decision makers.

Management Information

System

Management information system can thus be analyzed as follows:

Management

Management covers the planning, control, and administration of the operation of concern. The
top management handles planning; the middle management concentrate on controlling; and
the lower management is concerned with actual information.
Information

Information, in MIS, means the processed data that helps the management in planning,
controlling and operation. Data means all the facts arising out of the operations of the concern.
Data is processed i.e. recorded, summarized, compared and finally presented to the
management in the form of MIS report.

System

Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper information to the
management for performing its functions.

Objective of MIS

The goals of an MIS are to implement the organizational structure and dynamics of the
enterprise for the purposes of managing the organization in better way and capturing the
potential of the information system for competitive advantage.

Following are the basic objective of an MIS:

Capturing Data: Capturing contextual data, or operational information

that will contribute in decision making from various internal and external
sources of organization.

Processing Data: The capture data is processed into information

needed for planning, organizing, coordinating, directing and controlling
functionalities at strategic, tactical and operational level. Processing data
means:
o Making calculation with the data
o Sorting data
o Classifying data and
o Summarizing data

Information Storage: Information or processed data need to be stored for future use.

Information Retrieval: The system should be able to retrieve this information from the storage
as and when required by various user.

Information Propagation: Information or the finish product of the MIS should be calculated to
its user periodically using the organizational network.
Characteristic of MIS

Following are the characteristic of an MIS:

 It should be based on a long-term planning

 It should provide a holistic view of the dynamics and the structures of the
organization.

 It should work as a complete and comprehensive system covering all interconnecting

sub-system within the organization.

 It should be planned in a top-down way, as a decision maker or the management should

be actively takes part and provide clear direction at the development stages of MIS.

 It should be based on need of strategic, operational and tactical information of

managers of an organization.

 It should also take care of exceptional situation by reporting situations.

 It should be able to make forecast and estimates, and generate advance information,
thus providing a competitive advantage. Decision maker can take actions on the basis of
such predictions

 It should create linkage between all sub-system within the organization, so that the
decision makers can take the right decision based on an integrated view.

 It should allow easy flow of information through various sub-system, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practically as possible.

 Although the MIS is an integrated, complete system, it should be made in such a flexible
way that it could be easily split into smaller sub-system as and when required.

 A central database is the backbone of a well-built MIS.

 Nature and Scope of MIS

The following diagram shows the nature and scope of MIS:

Stages of Management Information System (MIS)

1. Planning of MIS
Factors considered in this phase of MIS:

Strategic Planning, Information Requirement Analysis, Resources Allocation and Project

Planning

2. Structure of MIS
Components to determine the structure of MIS:

Operation Systems, Decision Support System, Activities of Management, Functions in an

organization
3. Implementation of MIS
The activities for implementation of MIS are:

Planning for implementation, Personnel Education and Training, Use of new system and
acceptance, equipment and software installation, documentation and file conversion.

Factors for Success and Failure

MIS development projects are high-risk, high-return projects. Following could be stated as
critical factors for success and failure in MIS development:

 It should cater to a specific, well-perceived business.

 The top management should be completely convinced, able and willing to such a
system. Ideally there should be a patron or a sponsor for the system in the
top management.

 All users including managers and other employees should be made an integral part of
the development, implementation, and use of the system.

 There should be an operational prototype of the system released as soon as possible, to

create interest among the users.

 There should be good support staff with necessary technical, business, and
interpersonal skills.

 The system should be simple, easy to understand without adding much complexity. It is
a best practice, not to add up an entity unless there is both a use and user for it.

 It should be easy to use and navigate with high response time.

 The implementation process should follow a definite goal and time.

 All the users including the top management should be given proper training, so that
they have a good knowledge of the content and function of the system, and can use it
fully for various managerial activities such as reporting, budgeting, controlling, planning,
monitoring, etc.

 It must produce useful outputs to be used by all managers.

 The system should be well integrated into the management processes of planning,
decision-making, and monitoring.
What is the Future of MIS?
As the world is embracing the digital wave, the future of MIS is surely vibrant. More and more
business are adapting AI technologies as well as digital systems to smoothen their workings and
that’s where the scope of MIS is quite bright. MIS jobs are bound to boost in the future as we
adapt to more and more digital tools in our businesses and we would need more proficient tech
professionals to operate such systems. Here are the major arenas where the future of MIS jobs
lies:

 Information Technology (IT)

 Risk Management
 Financial Management
 Business Analytics
 Digital Banking
 Healthcare Administration
 Hotel Management
 Hospital Management
 Digital Marketing and Analytics

An efficient information system creates an impact on the organization's function,

performance, and productivity. Nowadays, information system and information technology
have become a vital part of any successful business and is regarded as a major functional area
like any other functional areas such as marketing, finance, production and human resources,
etc. Thus, it is important to understand the functions of an information system just like any
other functional area in business. A well-maintained management information system supports
the organization at different levels.

The strategic role of Management Information System involves using it to develop products,
services, and capabilities that provides a company major advantages over competitive forces it
faces in the global market place. We need an MIS flexible enough to deal with changing
information needs of the organization. The designing of such a system is a complex task. It can
be achieved only if the MIS is planned. We understand this planning and implementation in
management development process. Decision support system is a major segment of
organizational information system, because of its influential role in taking business decisions. It
help all levels of managers to take various decisions.