Management Information System or 'MIS' is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management.
What is MIS?
A management information system (MIS) is a computerized database of financial information organized and programmed in such a way that it produces regular reports on operations for every level of management in a company.
What DTS-MIS provide:
DTS-MIS provides information that organizations requires to manage themselves efficiently and effectively. It is used to analyze and facilitate strategic and operational activities.
DTS-MIS provides a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data, and Management is the ultimate user, the decision makers.
Objectives of MIS:
To implement the organizational structure and dynamics of the enterprise for the purpose of managing the organization in a better way and capturing the potential of the information system for competitive advantage.
Following are the basic objectives 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 captured 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 calculations 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 users.
Information Propagation: Information or the finished product of the MIS should be circulated to its users periodically using the organizational network
Characteristics of MIS:
Following are the characteristics of an MIS: It should be based on a long-term planning.
It should provide a holistic view of the dynamics and the structure of the organization.
It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization.
It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the 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 situations by reporting such situations.
It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage.
It should create linkage between all sub-systems within the organization.
It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of data. It should simplify the operations with as much practicability 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-systems as and when required.
A central database is the backbone of a well-built MIS.
How it helps:
A management information system is an integrated man – machine systems that provides information to support the planning and control function of manager in an organization.
It Facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.
In Minimizes information overload: MIS change the larger amount of data in to summarize form and there by avoids the confusion which may arise when managers are flooded with detailed facts.
MIS Encourages Decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.
It brings Coordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization.
It makes control easier: MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost.