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What are the basic six elements of a Computer-based information System
If we will going to explore the computer based information system so we will come to know that the whole idea is depend upon the six basic elements and all these six element are interconnected with each other which means if anyone of the element is missing then there is no concept of Computer-based information will remain.Lets have a look towards its six basic elements in which include:Hardware Software Data/Information People Procedures Communication
The term computer describers a device which is made up of a combination of electronic and electromechanical ( part of electronic; and part of mechanical).Bt itself a computer is nothing or we can say that it has no intelligence and it is referred to as Hardware, which means simply the physical equipment’s. The hardware cannot be used until it is connected to other elements all of which constitute the 6 parts of a computer based information system Software:- If talking about the Software part then it is the term which is used to describe the instructions that tell the hardware how to perform a task. Without software there is no concept of utilizing hardware and there is no use of any hardware. Data / Information: - The Primary purpose of Computer systems in most businesses today is to transform data into information that be used by people to make their decisions, to sell their products and perform a varieties of other activities . So it is so important that we must know what is Data and what is information .Actually a data can be considered the raw material – whether in paper, in electronic or in any other form that is processed by the Computer. In simple words a data consist of the raw facts and figures that are processed into information. On other end if we talk about information so the Information is summarized data or otherwise manipulated processed data. for instance, the raw data of employs hours worked and wage rates
is processed by a computer into the information of paychecks and payrolls. But keep in mind that information s not same as the knowledge Information is a data that has been organized and communicated, but a knowledge requires the application of reason. People:- By the name it is clear that an individual who operates the Computer system, create and use the software applications, as well as people will face the ethical issues and decisions regarding the use of information technology. In short peoples are the most important component of Computer system Procedures:- These are the descriptions of how things are done, and these are the steps for accomplishing a result. Procedures for computer systems appear in documentation manuals and it is also known as reference manuals and user guides which contain instructions, rules and guidance to follow when using hardware and software. Communications:- It is also called connectivity, when one computer system is set up to share data and information electronically with another computer then a communication take place. In other words the manner in which the various individual systems are connected , for example by phone lines,or satellite
COMPONTES OF A COMPUTER SYSTEM
Historically, a computer is any device that can store and process data. Today it usually refers to an electronic device with circuits that allow for data to be manipulated in binary form. So the main components are software (memory and programs to process data) and hardware (devices used for the storing and processing of that data). And, lastly, an array of components for humans to interact with the electronic data 'machine.' Modern personal computers usually contain the following components: •
A Motherboard - The backbone of the computer, designed to transfer information and power to and from all of the major components. Other components are usually plugged into this device, and it is almost always the largest board in the computer. Also called a "Mainboard" or "mobo". The motherboard contain the BIOS (Basic Input/Output System) that allows all the components to communicate with each other. CPU (Central Processing Unit) - The Central Processing Unit that is usually attached directly to the motherboard. It is comprised of a chip with usually dozens of pins which are connected to the motherboard. They are usually obscured by a large heat sink (large metal components which divert heat away from chips, which may or may not have an attached fan, depending on if it is a PC or a Mac).
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RAM (Random Access Memory) - Usually Dual-Inline Memory Modules (DIMMs), they are plugged directly into the motherboard as well. Some high-performance versions are cased in metal which help cool the chips on them. There are usually 8 chips on a stick of RAM (random access memory), sometimes there is a 9th "parity" chip, which helps check for errors within the memory. ROM (Read Only Memory), usually on a Hard drive - This is usually a large metallic rectangular prism-shaped device about 3.5 inches wide. It stores data onto metal discs within the device and have recently come out with capacities as large as 1 TB (Terabyte, or 1000 Gigabytes, 1,000,000 Megabytes etc). In the 'old days' these were cards, ticker tape, or magnetic discs labeled as A drive or B drive. Now most computers have C drive, which is the hard drive mentioned earlier. A Power Supply - Computers need specific power voltages for each component and always have a power supply which takes power from the wall and outputs power at specific voltages on specific cable formats within the computer. The OS - This is the programmed Operating System that is the 'brain' of the computer. If it is a PC it will be a Microsoft derivative of the common Windows systems. It began its earlier days as DOS (Disk Operating System) which was developed by Bill Gates for IBM. If it is an Apple Mac (Macintosh) computer it will likely be using a Mac OS system developed by Apple Inc., which first developed the graphical user interface-based operating systems that we all use today. The other alternative operating systems include UNIX, and some others. A case to hold all the components, usually in a tower. Human Interface Devices (HID) - These are the components that allow a human being to interact with the computer and access and/or process data. These can include a keyboard, mouse, monitor (digital video screen, usually now an LED monitor), video cam, microphone, headphones/speakers, graphics tablet, or other devices.
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Accessories and Peripherals include: Optical Devices - It has become common for a computer to contain CD-ROM, DVD-ROM, BLU-RAY ROM or writing devices of the aforementioned types. LAN CARD - Known officially as a Network Interface Card (NIC), these devices connect a computer to a network, usually to a router or modem which establishes connectivity to the Internet. These are usually PCI expansion cards or built into a motherboard and output in RJ-45 format. The cable tips (RJ-45) look similar to a phone cable (RJ-11), but are larger. They are commonly called Ethernet Cables. USB ports Printers Flash Drives -
SPREAD SHEET SOFTWARE
A spreadsheet is a grid that organizes data into columns and rows. Spreadsheets make it easy to display information, and people can insert formulas to work with the data. For example, there is a particular icon that has a formula to sum up numbers that are given. This icon is called auto sum. Information can also be sorted and filtered. People use spreadsheet programs to learn about different kinds of things, and to make decisions. Spreadsheets are based on different varieties of subjects. This site will highlight the use of spreadsheets in the classroom. You will find ideas for every subject. On this website, we will be using Microsoft Excel.
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The Difference between Information System & Management Information System
computers network image by Orlando Florin Rosu from Fotolia.com
Information system (IS) and management information system (MIS) both are a part of the information technology infrastructure required to run a company. Although there are differences between IS and MIS, both work together to facilitate the IT infrastructure of a company or corporation.
Information Systems (IS)
1. IS refers to a set of data, computers, software and management methodologies
required to support the day-to-day "internal" operation of a company. The IS is unique to each company because the operational requirements are unique.
Management Information System (MIS)
2. MIS is often considered a subset of IS. This subset is most relevant when securing
and delivering information required to help corporate managers make operational, strategic and proactive decisions. In many cases, this information comes from outside of the company or from "external" sources such as data from suppliers or real-time sales data from retail outlets.
The Difference Between IS and MIS
3. IS refers to the information system required to run the day-to-day internal operations of a company. MIS refers to the information system responsible for securing both internal and external data that management can use to make operational decisions. Such decisions may lead to the design of a new product or service, which is different from the IS required to run the day-to-day internal operations.
Trends in Management Information Systems
Management information systems (MIS) are complex decision support systems used by companies to enhance and improve their business operations. Historically, an MIS was a
management tool to help company management make informed decisions for their business based on information gathered from all business departments. Technology has greatly improved the effectiveness of the MIS.
Enterprise Resource Planning
Enterprise resource planning (ERP) software is a form of MIS that is installed in all departments and locations of businesses to enhance the availability of company information. With the globalization of the economic marketplace, companies have sought ways to improve their ability to collect and report financial information to management for effective decision making. ERPs fill this void by allowing companies to use one computer system to effectively record all company information.
Networking
Another trend in MIS is the ability for companies to network with other companies for business purposes. Manufacturing firms can shorten their supply chain using electronic data interchange (EDI) to transfer the necessary information for ordering more products.
Networking also allows companies to transfer money through several bank accounts, creating a quicker process for paying bills and purchasing materials. An MIS ensures that management has all the pertinent information for these business operations, allowing them to review the effectiveness of their operations.
Data Mining
An important trend in MIS is the ability for companies to use data mining tools to collect information regarding consumer purchases and other economic trends. This allows management to translate this information into goals and directions for future business operations. Most MIS software also has trending or forecasting models that allow companies to project emerging consumer markets for profitable operations. Companies can use their internal figures in the MIS to measure the effectivess of their external data mining techniques.
Education
As MIS software becomes more prevalent in businesses, many colleges and universities have developed educational programs to train
students on these programs. Most degrees are four-year baccalaureate programs that combine general business courses with a mix of computer programming and management classes. This helps students to develop a well-rounded education in the development and implantation of MIS software. Advanced degrees are also offered.
Careers
Computerized MIS programs have led to a new career in database management and consulting. According to the U.S. Bureau of Labor Statistics (BLS), the growth rate for jobs in the MIS field is expected to grow 21 percent or more from 2006 to 2016. Incomes can range from $83,000 to $109,000 depending on the industry or position, according to the BLS.
Role of Management Information Systems
Role of Management Information SystemsMicrosoft clip art.Management Information Systems (MIS) provide regular information to managers to allow them to make decisions based on data rather than guesses. Certain data and analysis can play a very useful role in making good decisions about where and when to use human and other resources to achieve the mission of an organization. Managers with quality MIS are able to make decisions from an informed stance rather than a haphazard one. MIS can answer questions such as: Would it be better to add staff
at the beginning or end of a manufacturing process? How do we choose the most efficient way to use our space? Do we need more patient exam rooms or a bigger lab? How much inventory should I store and when do I order more stock? What hours have the most customers, so I'll have an adequate staff to serve them?
MANAGEMENT INFORMATION SYSTEM
Definition:
Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.
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 decisionmakers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems. * Data Processing Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.
Management by Objectives
While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress. In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyzed by decision-makers.
Benefits of MIS
The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.
Core Competencies
Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.
Enhance Supply Chain Management
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.
Quick Reflexes
As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasury’s MIS handbook, and an example of an organizational MIS division can be found at the Department of Social Services for the state of Connecticut.
HOW MIS is helpful in finance?
•Management Information Systems (MIS) in Finance have been widely adopted both by corporations as well as governments. They are information systems with capacity to maintain large data bases enabling organizations to store, organize and access financial information easily. These systems are primarily used for accounting operations and generation of financial reports.. Increasingly they are also used to support budgetary, planning and decision making processes. These systems are credited with increasing financial transparency, efficiency and accountability. . General Ledger •The main use of a management information System (MIS) in finance is that it automatically updates all the transactions in the General Ledger. The General Ledger is the core component of all financial information systems. Financial transactions are simultaneously posted on the various accounts that comprise the organization's "Chart of Accounts". Simultaneous updating of accounts such as sales, inventory and accounts receivable, reduces errors. It also provides an accurate and permanent record of all historical transactions. Cash Management
•Cash flow management is an important use of MIS in Finance. Cash Management refers to the control, monitoring and forecasting of cash for financing needs. Use of MIS in Finance helps companies track the flow of cash through accounts receivable and accounts payable accurately. Accurate records also help in monitoring cost of goods sold. This can help pin point areas that eat up cash flow such as inventory costs, high raw material costs or unreliable sales. Budget Planning •Financial budget planning uses proforma or projected financial statements that serve as as formal documents of management's expectations regarding sales, expenses and other financial transactions. Thus financial budgets are tools used both for planning as well as control. MIS in finance helps organizations evaluate "what if" scenarios. By modifying the financial ratios, management can foresee the effects of various scenarios on the financial statements. MIS thus serves as a decision making tool, helping in choosing appropriate financial goals. Financial Reporting •The use of MIS systems in Finance enables companies to generate multiple financial reports accurately and consistently. Generation of financial statements both for internal reports as well as for shareholder information takes less effort because of the automatic updating of the General Ledger. Compliance with Government regulations as well as auditing requirements is also easier because the records are accurate and provide a permanent historical map of transactions that can be verified. Financial Modeling •A financial model is a system that incorporates mathematics, logic and data in the form of a large database. The model is used to manipulate the financial variables that affect earnings thus enabling planners to view the implications of their planning decisions. MIS in Finance enables organizations to store a large amount of data. This helps managers develop accurate models of the external environment and thus incorporate realistic "what if" scenarios into their long-range planning goals.
History of management information system
Although great strides in MIS systems were made in the 1980s, the core designs were created in the 1960s, after President Kennedy challenged the United States find a way to send an American to the moon and return him safely. His dream was realized before the end of the decade, as the Apollo program accomplished the goal.
IBM, at the time the undisputed leader in the computer industry, faced the challenge by designing the first major MIS system to help the NASA achieve its objective. Originally titled ICS (information control system), it was renamed IMS (information management system) in 1968. Shortly after NASA implemented the system, IBM released it to the IT and business community. True database management and MIS systems were born and, although expensive, were available to business, government and other entities.
functionof management information system
The function of all MIS systems is identical: manage, massage and manipulate data (or groups of data) in a fashion that enables good decision-making. In the first half of the 20th century, businesses managed information on paper, with detailed filing systems and hand calculated reports.Contemporary MIS systems involve one or more computers, working in concert, to achieve the stated goals of an organization. The function is always the same, but the desired results fluctuate with the specific goals and needs of individual organizations. Since the universal language of commerce is numbers, using the incredible speed of computers, MIS systems achieve their function amazingly well.
Types of management information system
There are as many types (and subtypes) of management information systems as there are business functions. Some of the most popular types of MIS are as follows: --Customer relationship management --Marketing, particularly target marketing efforts, directed at specific groups of potential customers or selling niche products --Financial management --Strategic plan development --Inventory management systems --Optimal investing strategy creation --Projected sales volume --Projected operating expenses and cost control Other types of MIS systems calculate projected tax revenue for governments; statistical evaluations of all types for business, researchers and universities; scientific purposes in all disciplines; and cost/benefit relationships for decision-making purposes.
Benefits of management information system
The benefits of MIS systems to businesses, governments, scientists, universities, students, nonprofits and all other entities are diversified. Some examples of the most often realized benefits include the following:
--Implementation of Management by Objectives (MBO) techniques: MIS allows all participants, both management and staff, to view, analyze, and interpret useful data to set goals and objectives. --Generates competitive advantages: Businesses succeed or fail based on how they face competitive challenges. MIS, if implemented properly, provides a wealth of information to allow management to construct effective plans to meet, and beat, their competition. --Fast reaction to market changes: The victory often goes to the quick, not necessarily the best. MIS can deliver facts, data and trends to businesses with lightning speed. Having this information allows companies to react quickly to market changes, regardless of the type (positive or negative) of volatility.
Features of management information system
The most important features of contemporary MIS systems involve flexibility and reasonable cost. In the world of business, it matters little what industry you are in, how large or small the company may be and how computer savvy the management is. There are MIS systems that are easy to use, affordably priced and immensely reliable available to all businesses. Unlike earlier MIS systems, an entity does not even need to make a large investment in computer hardware or exotic software. Whether a company is in the Fortune 200 or the momand-pop category, it can take advantage of an MIS system that fits its budget and needs. For example, if an entity needs an MIS system that serves as a customer relationship and marketing database management tool, it need not invest in financial, strategy or scientific software. Likewise, a government, without a profit focus, can install an MIS system that predominantly tracks "customers" (auto licenses, property owners, pet owners, and so forth) or manages tax and fee income as it relates to their budgets. The objective of an MIS system--to provide useful information, data and analysis--remains constant, but the features and uses are customizable to suit the preferences and needs of every business, individual or government.
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What are the basic six elements of a Computer-based information System
If we will going to explore the computer based information system so we will come to know that the whole idea is depend upon the six basic elements and all these six element are interconnected with each other which means if anyone of the element is missing then there is no concept of Computer-based information will remain.Lets have a look towards its six basic elements in which include:Hardware Software Data/Information People Procedures Communication
The term computer describers a device which is made up of a combination of electronic and electromechanical ( part of electronic; and part of mechanical).Bt itself a computer is nothing or we can say that it has no intelligence and it is referred to as Hardware, which means simply the physical equipment’s. The hardware cannot be used until it is connected to other elements all of which constitute the 6 parts of a computer based information system Software:- If talking about the Software part then it is the term which is used to describe the instructions that tell the hardware how to perform a task. Without software there is no concept of utilizing hardware and there is no use of any hardware. Data / Information: - The Primary purpose of Computer systems in most businesses today is to transform data into information that be used by people to make their decisions, to sell their products and perform a varieties of other activities . So it is so important that we must know what is Data and what is information .Actually a data can be considered the raw material – whether in paper, in electronic or in any other form that is processed by the Computer. In simple words a data consist of the raw facts and figures that are processed into information. On other end if we talk about information so the Information is summarized data or otherwise manipulated processed data. for instance, the raw data of employs hours worked and wage rates
is processed by a computer into the information of paychecks and payrolls. But keep in mind that information s not same as the knowledge Information is a data that has been organized and communicated, but a knowledge requires the application of reason. People:- By the name it is clear that an individual who operates the Computer system, create and use the software applications, as well as people will face the ethical issues and decisions regarding the use of information technology. In short peoples are the most important component of Computer system Procedures:- These are the descriptions of how things are done, and these are the steps for accomplishing a result. Procedures for computer systems appear in documentation manuals and it is also known as reference manuals and user guides which contain instructions, rules and guidance to follow when using hardware and software. Communications:- It is also called connectivity, when one computer system is set up to share data and information electronically with another computer then a communication take place. In other words the manner in which the various individual systems are connected , for example by phone lines,or satellite
COMPONTES OF A COMPUTER SYSTEM
Historically, a computer is any device that can store and process data. Today it usually refers to an electronic device with circuits that allow for data to be manipulated in binary form. So the main components are software (memory and programs to process data) and hardware (devices used for the storing and processing of that data). And, lastly, an array of components for humans to interact with the electronic data 'machine.' Modern personal computers usually contain the following components: •
A Motherboard - The backbone of the computer, designed to transfer information and power to and from all of the major components. Other components are usually plugged into this device, and it is almost always the largest board in the computer. Also called a "Mainboard" or "mobo". The motherboard contain the BIOS (Basic Input/Output System) that allows all the components to communicate with each other. CPU (Central Processing Unit) - The Central Processing Unit that is usually attached directly to the motherboard. It is comprised of a chip with usually dozens of pins which are connected to the motherboard. They are usually obscured by a large heat sink (large metal components which divert heat away from chips, which may or may not have an attached fan, depending on if it is a PC or a Mac).
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RAM (Random Access Memory) - Usually Dual-Inline Memory Modules (DIMMs), they are plugged directly into the motherboard as well. Some high-performance versions are cased in metal which help cool the chips on them. There are usually 8 chips on a stick of RAM (random access memory), sometimes there is a 9th "parity" chip, which helps check for errors within the memory. ROM (Read Only Memory), usually on a Hard drive - This is usually a large metallic rectangular prism-shaped device about 3.5 inches wide. It stores data onto metal discs within the device and have recently come out with capacities as large as 1 TB (Terabyte, or 1000 Gigabytes, 1,000,000 Megabytes etc). In the 'old days' these were cards, ticker tape, or magnetic discs labeled as A drive or B drive. Now most computers have C drive, which is the hard drive mentioned earlier. A Power Supply - Computers need specific power voltages for each component and always have a power supply which takes power from the wall and outputs power at specific voltages on specific cable formats within the computer. The OS - This is the programmed Operating System that is the 'brain' of the computer. If it is a PC it will be a Microsoft derivative of the common Windows systems. It began its earlier days as DOS (Disk Operating System) which was developed by Bill Gates for IBM. If it is an Apple Mac (Macintosh) computer it will likely be using a Mac OS system developed by Apple Inc., which first developed the graphical user interface-based operating systems that we all use today. The other alternative operating systems include UNIX, and some others. A case to hold all the components, usually in a tower. Human Interface Devices (HID) - These are the components that allow a human being to interact with the computer and access and/or process data. These can include a keyboard, mouse, monitor (digital video screen, usually now an LED monitor), video cam, microphone, headphones/speakers, graphics tablet, or other devices.
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Accessories and Peripherals include: Optical Devices - It has become common for a computer to contain CD-ROM, DVD-ROM, BLU-RAY ROM or writing devices of the aforementioned types. LAN CARD - Known officially as a Network Interface Card (NIC), these devices connect a computer to a network, usually to a router or modem which establishes connectivity to the Internet. These are usually PCI expansion cards or built into a motherboard and output in RJ-45 format. The cable tips (RJ-45) look similar to a phone cable (RJ-11), but are larger. They are commonly called Ethernet Cables. USB ports Printers Flash Drives -
SPREAD SHEET SOFTWARE
A spreadsheet is a grid that organizes data into columns and rows. Spreadsheets make it easy to display information, and people can insert formulas to work with the data. For example, there is a particular icon that has a formula to sum up numbers that are given. This icon is called auto sum. Information can also be sorted and filtered. People use spreadsheet programs to learn about different kinds of things, and to make decisions. Spreadsheets are based on different varieties of subjects. This site will highlight the use of spreadsheets in the classroom. You will find ideas for every subject. On this website, we will be using Microsoft Excel.
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The Difference between Information System & Management Information System
computers network image by Orlando Florin Rosu from Fotolia.com
Information system (IS) and management information system (MIS) both are a part of the information technology infrastructure required to run a company. Although there are differences between IS and MIS, both work together to facilitate the IT infrastructure of a company or corporation.
Information Systems (IS)
1. IS refers to a set of data, computers, software and management methodologies
required to support the day-to-day "internal" operation of a company. The IS is unique to each company because the operational requirements are unique.
Management Information System (MIS)
2. MIS is often considered a subset of IS. This subset is most relevant when securing
and delivering information required to help corporate managers make operational, strategic and proactive decisions. In many cases, this information comes from outside of the company or from "external" sources such as data from suppliers or real-time sales data from retail outlets.
The Difference Between IS and MIS
3. IS refers to the information system required to run the day-to-day internal operations of a company. MIS refers to the information system responsible for securing both internal and external data that management can use to make operational decisions. Such decisions may lead to the design of a new product or service, which is different from the IS required to run the day-to-day internal operations.
Trends in Management Information Systems
Management information systems (MIS) are complex decision support systems used by companies to enhance and improve their business operations. Historically, an MIS was a
management tool to help company management make informed decisions for their business based on information gathered from all business departments. Technology has greatly improved the effectiveness of the MIS.
Enterprise Resource Planning
Enterprise resource planning (ERP) software is a form of MIS that is installed in all departments and locations of businesses to enhance the availability of company information. With the globalization of the economic marketplace, companies have sought ways to improve their ability to collect and report financial information to management for effective decision making. ERPs fill this void by allowing companies to use one computer system to effectively record all company information.
Networking
Another trend in MIS is the ability for companies to network with other companies for business purposes. Manufacturing firms can shorten their supply chain using electronic data interchange (EDI) to transfer the necessary information for ordering more products.
Networking also allows companies to transfer money through several bank accounts, creating a quicker process for paying bills and purchasing materials. An MIS ensures that management has all the pertinent information for these business operations, allowing them to review the effectiveness of their operations.
Data Mining
An important trend in MIS is the ability for companies to use data mining tools to collect information regarding consumer purchases and other economic trends. This allows management to translate this information into goals and directions for future business operations. Most MIS software also has trending or forecasting models that allow companies to project emerging consumer markets for profitable operations. Companies can use their internal figures in the MIS to measure the effectivess of their external data mining techniques.
Education
As MIS software becomes more prevalent in businesses, many colleges and universities have developed educational programs to train
students on these programs. Most degrees are four-year baccalaureate programs that combine general business courses with a mix of computer programming and management classes. This helps students to develop a well-rounded education in the development and implantation of MIS software. Advanced degrees are also offered.
Careers
Computerized MIS programs have led to a new career in database management and consulting. According to the U.S. Bureau of Labor Statistics (BLS), the growth rate for jobs in the MIS field is expected to grow 21 percent or more from 2006 to 2016. Incomes can range from $83,000 to $109,000 depending on the industry or position, according to the BLS.
Role of Management Information Systems
Role of Management Information SystemsMicrosoft clip art.Management Information Systems (MIS) provide regular information to managers to allow them to make decisions based on data rather than guesses. Certain data and analysis can play a very useful role in making good decisions about where and when to use human and other resources to achieve the mission of an organization. Managers with quality MIS are able to make decisions from an informed stance rather than a haphazard one. MIS can answer questions such as: Would it be better to add staff
at the beginning or end of a manufacturing process? How do we choose the most efficient way to use our space? Do we need more patient exam rooms or a bigger lab? How much inventory should I store and when do I order more stock? What hours have the most customers, so I'll have an adequate staff to serve them?
MANAGEMENT INFORMATION SYSTEM
Definition:
Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.
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 decisionmakers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems. * Data Processing Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.
Management by Objectives
While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress. In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyzed by decision-makers.
Benefits of MIS
The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.
Core Competencies
Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.
Enhance Supply Chain Management
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.
Quick Reflexes
As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasury’s MIS handbook, and an example of an organizational MIS division can be found at the Department of Social Services for the state of Connecticut.
HOW MIS is helpful in finance?
•Management Information Systems (MIS) in Finance have been widely adopted both by corporations as well as governments. They are information systems with capacity to maintain large data bases enabling organizations to store, organize and access financial information easily. These systems are primarily used for accounting operations and generation of financial reports.. Increasingly they are also used to support budgetary, planning and decision making processes. These systems are credited with increasing financial transparency, efficiency and accountability. . General Ledger •The main use of a management information System (MIS) in finance is that it automatically updates all the transactions in the General Ledger. The General Ledger is the core component of all financial information systems. Financial transactions are simultaneously posted on the various accounts that comprise the organization's "Chart of Accounts". Simultaneous updating of accounts such as sales, inventory and accounts receivable, reduces errors. It also provides an accurate and permanent record of all historical transactions. Cash Management
•Cash flow management is an important use of MIS in Finance. Cash Management refers to the control, monitoring and forecasting of cash for financing needs. Use of MIS in Finance helps companies track the flow of cash through accounts receivable and accounts payable accurately. Accurate records also help in monitoring cost of goods sold. This can help pin point areas that eat up cash flow such as inventory costs, high raw material costs or unreliable sales. Budget Planning •Financial budget planning uses proforma or projected financial statements that serve as as formal documents of management's expectations regarding sales, expenses and other financial transactions. Thus financial budgets are tools used both for planning as well as control. MIS in finance helps organizations evaluate "what if" scenarios. By modifying the financial ratios, management can foresee the effects of various scenarios on the financial statements. MIS thus serves as a decision making tool, helping in choosing appropriate financial goals. Financial Reporting •The use of MIS systems in Finance enables companies to generate multiple financial reports accurately and consistently. Generation of financial statements both for internal reports as well as for shareholder information takes less effort because of the automatic updating of the General Ledger. Compliance with Government regulations as well as auditing requirements is also easier because the records are accurate and provide a permanent historical map of transactions that can be verified. Financial Modeling •A financial model is a system that incorporates mathematics, logic and data in the form of a large database. The model is used to manipulate the financial variables that affect earnings thus enabling planners to view the implications of their planning decisions. MIS in Finance enables organizations to store a large amount of data. This helps managers develop accurate models of the external environment and thus incorporate realistic "what if" scenarios into their long-range planning goals.
History of management information system
Although great strides in MIS systems were made in the 1980s, the core designs were created in the 1960s, after President Kennedy challenged the United States find a way to send an American to the moon and return him safely. His dream was realized before the end of the decade, as the Apollo program accomplished the goal.
IBM, at the time the undisputed leader in the computer industry, faced the challenge by designing the first major MIS system to help the NASA achieve its objective. Originally titled ICS (information control system), it was renamed IMS (information management system) in 1968. Shortly after NASA implemented the system, IBM released it to the IT and business community. True database management and MIS systems were born and, although expensive, were available to business, government and other entities.
functionof management information system
The function of all MIS systems is identical: manage, massage and manipulate data (or groups of data) in a fashion that enables good decision-making. In the first half of the 20th century, businesses managed information on paper, with detailed filing systems and hand calculated reports.Contemporary MIS systems involve one or more computers, working in concert, to achieve the stated goals of an organization. The function is always the same, but the desired results fluctuate with the specific goals and needs of individual organizations. Since the universal language of commerce is numbers, using the incredible speed of computers, MIS systems achieve their function amazingly well.
Types of management information system
There are as many types (and subtypes) of management information systems as there are business functions. Some of the most popular types of MIS are as follows: --Customer relationship management --Marketing, particularly target marketing efforts, directed at specific groups of potential customers or selling niche products --Financial management --Strategic plan development --Inventory management systems --Optimal investing strategy creation --Projected sales volume --Projected operating expenses and cost control Other types of MIS systems calculate projected tax revenue for governments; statistical evaluations of all types for business, researchers and universities; scientific purposes in all disciplines; and cost/benefit relationships for decision-making purposes.
Benefits of management information system
The benefits of MIS systems to businesses, governments, scientists, universities, students, nonprofits and all other entities are diversified. Some examples of the most often realized benefits include the following:
--Implementation of Management by Objectives (MBO) techniques: MIS allows all participants, both management and staff, to view, analyze, and interpret useful data to set goals and objectives. --Generates competitive advantages: Businesses succeed or fail based on how they face competitive challenges. MIS, if implemented properly, provides a wealth of information to allow management to construct effective plans to meet, and beat, their competition. --Fast reaction to market changes: The victory often goes to the quick, not necessarily the best. MIS can deliver facts, data and trends to businesses with lightning speed. Having this information allows companies to react quickly to market changes, regardless of the type (positive or negative) of volatility.
Features of management information system
The most important features of contemporary MIS systems involve flexibility and reasonable cost. In the world of business, it matters little what industry you are in, how large or small the company may be and how computer savvy the management is. There are MIS systems that are easy to use, affordably priced and immensely reliable available to all businesses. Unlike earlier MIS systems, an entity does not even need to make a large investment in computer hardware or exotic software. Whether a company is in the Fortune 200 or the momand-pop category, it can take advantage of an MIS system that fits its budget and needs. For example, if an entity needs an MIS system that serves as a customer relationship and marketing database management tool, it need not invest in financial, strategy or scientific software. Likewise, a government, without a profit focus, can install an MIS system that predominantly tracks "customers" (auto licenses, property owners, pet owners, and so forth) or manages tax and fee income as it relates to their budgets. The objective of an MIS system--to provide useful information, data and analysis--remains constant, but the features and uses are customizable to suit the preferences and needs of every business, individual or government.
