Concept of Management Information System (MIS) – BMS NOTES

Concept of Management Information System (MIS)

1. An information system used for decision-making as well as for the coordination, control, analysis, and visualisation of data inside an organisation is known as a management information system (MIS).
2. the examination of management information systems within the framework of organisations, assessing personnel, procedures, and technology.
3. The term “management information systems” (MIS) describes how information technology, people, and business processes are combined to collect, store, and analyse data in order to provide insightful information that can be used for daily decision-making. MIS makes it easier to provide information that empowers decision-makers and fosters corporate success by pulling data from a variety of sources.
4. The need of Information Systems for Management (MIS)
5. Decision-makers need access to critical information in order to make wise decisions, and management information systems (MIS) are key to this process. Additionally, these tools make it easier for people to communicate both within and outside of the company. Employees may easily get the data they need for regular operations from inside the MIS system, while tools like email and short message service (SMS) facilitate external contact with clients and vendors.
6. Furthermore, MIS systems function as all-inclusive record-keeping instruments, accurately documenting every business transaction inside an enterprise. They serve as a trustworthy point of reference, offering a historical account and insightful information about previous actions and financial transactions.
7. Management Information Systems (MIS) components include:
8. People: Users, such as managers and staff, who communicate with the information system.
9. Data: The recorded information, such as transaction data and business records, that the system processes and keeps.
10. Business procedures: The system’s defined protocols and rules for gathering, storing, and analysing data.
11. Hardware: The actual parts of the system, such as workstations, servers, networking hardware, and printers.

1. Software: The applications and programmes, such as database systems and spreadsheet software, that are used to process and manage data.

Types of Information Systems

1. Transaction Processing Systems (TPS): Used to record and manage day-to-day business transactions. An example is a Point of Sale (POS) system, which tracks daily sales.
2. Management Information Systems (MIS): These systems guide middle-level managers in making semi-structured decisions. They use data from the Transaction Processing System as input.
3. Decision Support Systems (DSS): Utilized by top-level managers for semi-structured decision-making. DSS systems receive data from the Management Information System and external sources like market forces and competitors.