BUS206 Management Information Systems

Management Information Systems

Management information system can be defined as the information system utilised for the decision-making process and for control, visualisation, coordination, and control of the information in the firm. This study of management information system included the technology and people procedures in the context of the company. In the organisational setting, the ultimate target of the utilisation of the management information system is to enhance the profits and value of the organisation. This is generally performed by giving the managers with appropriate and timely information enabling them to make efficient and effective decisions in the shorter time period. Kinds of MIS (Management Information System) There are various kinds of management information system and some of them are stated below: • Management reporting system: Such system is fabricated to generate the reports regarding the finances and operations of every level of the management in the organisation. This system enables the manager of the organisation to make comparison between the company’s recent performance with the performance of the last year and with the performance expected. In this manner, the top manager can assess their respective performance and operate on advancing the organisation’s performance. • Process control: This system generally keeps track of the industrial and physical procedure of the business such as metal fabrication, petroleum procedures, or automobile assembly. This system collects the data on a continuous basis and then make the report on system’s performance. It is among the most crucial kind of the management information system in any kind of manufacturing organisation. The report provide assistance to the manager to assess the overall performance of the procedure and inform regarding the occurrence of a particular event during a particular period of time. • Marketing and Sales: This system enables the top managers to implement and keep track of the efficiency and effectiveness of the sales and marketing functions of an organisation. Such reports generally communicates the sales of which good is more and which good is not performing well in distinct retail stores of the organisation. • Inventory control: Inventory of an organisation incorporates theft, sales, spoilage and inventory on hand. This system keeps track of all such things and then updates the top managers regarding them. In this manner, the top manager determines when the individual elements are just getting down and the time when they are needed to restock in the retail stores as well as the warehouse of the organisation. Such system traces the inventory movement in a warehouse from a warehouse to the department store, the elements sold and the returns on these elements. It is among the most crucial kinds of MIS in any kind of organisation which addresses the storage and stocking of the products. Products and goods stored are mainly cash and so they required MIS. • Decision support system: Such support system is fabricated in such a manner that it enables the manager to make the required decision when the situation actually arises. It collects the required data from both the internal and external sources. New house construction cost, interest rates and population trends are some of the instances of the external sources whereas the financial or inventory data, sales are the instances of the internal sources of the information. • Finance and accounting: Finance and accounting system track the assets and investments of an organisation. The data gathered from such reports are brought together for the financial reporting which is demanded by the law to address the functions such as pension, local taxes, payroll, federal, and state funds. This system generally produces the reports needed for the frequent financial audits and also produce the annual reports for the top managers. • Expert system: This system is fabricated in such a manner that it generally takes and then stores the expertise and knowledge of the individual expert on a specific subject and utilises that knowledge to provide assistance to the people with less skills to make adequate decisions. AI (artificial intelligence) is a significant element of the expert system. This system generally senses the actions based on the actions which the individual has taken in the past in similar kind of situations and take the decision based on the logical assumptions. Functions of management information system (MIS) Planning: It organizes plans reasonably of every functional department as per the limitations afforded by the companies and gives appropriate planning reports as per distinct management. Processing: It incorporates the transmission, collection, storage output and processing of the data. It generally simplifies the statistics and minimises the lowest cost by supplying the unified format. Control: It keeps track of and examines the overall operations of the plan and consists the distinction between plan and operations as per the data which is offered by each functional department and provide assistance to the managers so as to control every technique by evaluating the reasons why distinctions comes into existence in a timely manner. Assistance: It generally derives most effective answers of the similar issues instantly by applying to various mathematical mode and examining the plentiful data which are stored in the computer for utilising rationally material resource, finance resource, information resource, and human resource for the relative plentiful economic advantages. Significance of Management information system: • Integrated can be regarded as the ways in which distinct elements are blended together • It enables the manager in the decision-making procedure • It is useful in the planning procedure as each firm makes the short-term and long-term plans with the utilisation of the information such as capital investment, production & sales, stocks and so on, the top managers can effectively and easily plan. • MIS is management oriented and considers each level of the management and obtains the required information and data. • Efficient management information system enables the management to understand the deviations of the real performance from pre-set targets and administer the things. • It also plays a crucial role in enhancing the overall efficiency • It adds to the awareness, alertness, and intelligence of the managers by giving them information in the form of review and progress reports of the ongoing activity.