What is MIS?

Management Information System is a concept of the last decade or two. It has been understood and described in a number way. It is also known as the Information System, the Information and Decision System, the Computer- based information System.

MIS is defined as a system which provides information support for decision making in the organisation.
MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organisation.

MIS is defined as a system based on the database of the organisation evolved for the purpose of providing information to the people in the organisation.

MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions.
MIS is the acronym for Management Information Systems.
Though there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making functions in the organisation. The difference lies in defining the elements of the MIS. However, in today‘s world MIS is a computerised, business processing system generating information for the people in the organisation to meet the information needs and assisting in taking decisions to achieve the corporate objective of the organisation and in the Public sector.

The Need for MIS

The following are some of the justifications for having an MIS system: i. Decision makers need information to make effective decisions.
ii. Management Information Systems make this possible.
iii. MIS systems facilitate communication within and outside the organization: Employees within the organisation are able to easily access the required information for the day to day operations.
Facilities such as Short Message Service & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.
iv. Record keeping: Management information systems record all business transactions of an organisation and provide a reference point for the transactions.
This framework depicted in fig 1.

Components of MIS

A management information system is made up of five major components namely people, business processes, data, hardware, and software. All of these components must work together to achieve business objects.
People: These are the users who use the information system to record the day to day business transactions. The users are usually qualified professionals such as accountants, human resource managers, etc. The ICT department usually has the support staff that ensures that the system is running properly.
Business Procedures: These are agreed upon best practices that guide the users and all other components on how to work efficiently. Business procedures are developed by the people i.e. users, consultants, etc.
Data: The recorded day to day business transactions. For a bank, data is collected from activities such as deposits, withdrawals, etc.
Hardware: Hardware is made up of the computers, printers, networking devices, servers, workstations, networking equipment, printers, keyboards, mouse, light pens, scanners, laptops, notebooks etc. The hardware provides the computing power for processing data. It also provides networking and printing capabilities. The hardware speeds up the processing of data into
Software: These are programs that run on the hardware. These are programs used to handle the data. These include programs such as spread sheet programs, database software, word processing programs, desktop publishing packages, graphics packages, communication packages, operating systems, language translators, utility programs etc. the software is broken down into two major categories namely system software and applications software. System software refers to the operating system i.e.
Windows, Mac OS, and Ubuntu, etc. Applications software refers to specialized software for accomplishing business tasks such as a Payroll program, banking system, point of sale system, etc.
Management information systems are distinct from other information systems because they are used to analyze and facilitate strategic and operational activities. Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems.

MIS Concepts

The concept of the MIS has evolved over a period of time comprising many different facets of the organisational functions. MIS is a necessity in all the organizations.
The initial concept of MIS was to process the data available in the organisation and present it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and Information is a product of an analysis of data. This concept is similar to a raw material and the finished product. However, data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept be individual- oriented, as each individual may have a different orientation towards the information.
This concept was further modified, that the system should present information in such a form and format that it creates an impact on its user, provoking a decision or an investigation. It was later realized then even though such an impact was a welcome modification, some sort of selective approach was necessary in analysis and reporting.
Hence, the concept of exception reporting was imbibed in MIS. The norm for an exception was necessary to evolve in the organisation. The concept remained valid till and to the extent that the norm for an exception remained true and effective. Since the environment turns competitive and is ever changing, fixation of the norm for an exception becomes a futile exercise at least for the people in the higher echelons of the organization. The concept was then evolved that the system should be capable of handling a need based exception reporting. This need may be either of an individual or a group of people. This called for keeping all data together in such a form that it can be accessed by anybody and can be processed to suit his needs. The concept is that the data is one but it can be viewed by different individuals in different ways.
Over a period of time, when these conceptual developments were taking place, the concept of end user computing using multiple databases emerged.
This concept brought a fundamental change in MIS. The change was decentralization of the system and the user of the information becoming independent of computer professionals. When this becomes a reality, the concept of MIS changed to a decision making system. The job in the computer department is to manage the information resource and leave the task of information processing to the user. The concept of MIS in today‘s world is a system which handles the databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system and also enable the citizens /beneficiaries to use the MIS from external source and connect with organisation.
The concept of MIS gives high regard to the individual and his ability to use information. MIS gives information through data analysis. While analyzing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Psychology and Human Behavior, making the MIS more effective and useful. These academic disciplines are used in designing MIS, evolving the decision support tools for modelling and decision making.
The foundation of MIS is the principles of management and its practices.
The concept of management Information System can be evolved for a specific objective if it is evolved after systematic planning and design. It calls for an analysis of a business, management views and policies, organization culture and the management style.
Information should be generated in this setting and must be useful in managing the business. This is possible only when it is conceptualized as a system with an appropriate design. MIS, therefore, relies heavily on the systems theory and offers solutions to handle the complex situations of the input and output flows. It uses theories of communication which helps to evolve a system design capable of handling data inputs, process, and outputs with the least possible noise or distortion in transmitting the information form a source to a destination. It uses the principles of system
Design, Viz., an ability of continuous adjustment or correction in the system in line with the environmental change in which the MIS operates.
Such a design help to keep the MIS tuned with the business managements needs of the organisation.

Management, Information and System giving rise to single product known as Management Information System Cloud computing.
The first era was ruled by IBM and their mainframe computers. These computers would often take up whole rooms and require teams to run them - IBM supplied the hardware and the software. As technology advanced, these computers were able to handle greater capacities and therefore reduce their cost.
The second era began in 1965 as microprocessors started to compete with mainframes and minicomputers and accelerated the process of decentralizing computing power from large data centres to smaller offices. In the late 1970s minicomputer technology gave way to personal computers and relatively low-cost computers were becoming mass market commodities, allowing businesses to provide their employees access to computing power that ten years before would have cost millions of naira.
As technological complexity increased and costs decreased, the need to share information within an enterprise also grew, giving rise to the third era, in which computers on a common network access shared information on a server. This lets thousands and even millions of people access data simultaneously.
The fourth era enabled by high speed networks, tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure. Every computer is utilized.
The fifth era is the latest; and employs networking technology to deliver applications as well as data storage independent of the configuration, location or nature of the hardware. This, along with high speed cell phone and Wi- Fi networks, led to new levels of mobility in which managers access the MIS remotely with laptop and tablet computers, plus smart phones.

Physical view of MIS

The Physical view of the MIS can be seen as an assembly of several subsystems based on the databases in the organization. These subsystems range from data collection, transaction processing and validating, processing, analyzing and storing the information in databases. The subsystem could be at a functional level or a corporate level. The information is evolved through them for a functional or an operational management and it provides the information for the management of business at the corporate level and also analyzes and provides huge data for the governments in a systematic way for analysis and for designing welfare schemes.
MIS, therefore, is a dynamic concept subject to change, time and again, with a change in the business management process. It continuously interacts with the internal and the external environment of the business and provides a corrective mechanism in the system so that the changed needs of information are met effectively. MIS, therefore, is a dynamic design, the primary objective of which is to provide the information for decision making and it is developed considering the organisational fabric, giving due regard to the people in the organisation that handles the management functions and the managers and the managerial control.

Role of MIS in an Organization

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed.
It fulfils the needs of blood supply to human body in normal course and also in crisis. MIS plays exactly the same role in the organisation. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfil the information needs of an individual, a group of individuals, the management functionaries, the managers and the top management. MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modelling Systems and  Control, Operational Control and Transaction Processing.
MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation.
MIS helps the middle management in short term planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation. MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. MIS, therefore, plays a vital role in the management, administration and operations of an organisation.

Impact of MIS on an Organisation

Since the MIS plays a very important role in the organisation, it creates an impact on the organization‘s functions, performance and productivity. With good support, the management of marketing, finance, production and personnel become more efficient. The tracking and monitoring of the functional targets becomes easy. The functional, managers are informed about the progress, achievements and shortfalls in the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning.
The manager‘s attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured data and a knowledge base for all the people in the organisation. The information is available in such a form that it can be used straight away or by blending analysis, saving the manager‘s valuable time.
MIS creates another impact in the organisation which relates to the understanding of the business itself. MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organisation. Since all the information system use the dictionary, there is common understanding of terms and terminology in the organisation bringing clarity in the communication and a similar understanding throughout the organisation. MIS calls for a systemization of the business operation for an affective system design.
A well-designed system with focus on the manger makes an impact on the managerial efficiency. The fund of information motivates an enlightened manger to use a variety of tools of management. It helps him to resort to such exercises as experimentation and modelling. The use of computers enables him to use the tools techniques which are impossible to use manually.
Since the MIS works on the basic systems such as transaction processing and databases, the drudgery of the clerical work is transferred to the computerized system, relieving the human mind for better work. It is observed that a lot of manpower is engaged in this activity in the organisation. The study of the individual‘s time utilization and its application has revealed that seventy per cent of the time is spent in recording, searching, processing and communication. This is a large overhead in the organisation.
MIS has a direct impact on this overhead. It creates an information based work culture in the organisation.

MIS Objective

MIS is the use of hardware, software and telecommunication networks to achieve business objectives. The objective of the MIS is to provide information for a decision support in the process of management. It helps in such a way that the business goals are achieved in the most efficient manner. Since decision making is not restricted to a particular level, MIS is expected to support all the levels of the management in conducting the business operations. Unless MIS becomes a management aid, it is not useful to the organisation.

If an MIS has to become successful then it should have all the features listed as Follows

MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. Adequate development resources are provided and the human and organisational barriers to progress are removed.
i.MIS is selected.
ii. MIS is oriented, defined and designed in terms of the user‘s requirements and its operational viability is ensured.
iii. MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs.
iv. MIS focuses on the results and goals, and highlights the factors and reasons for non-achievement.
v. MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.
vi. MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioural factors in the process of the management.
vii. MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and its non-use.
viii. MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design.
ix. MIS recognizes that the information needs become obsolete and new needs emerge. MIS design, therefore, has a basic potential capability to quickly meet new needs of information.
x. MIS concentrates on developing the information support to manage critical success factors. It concentrates on the mission critical applications serving the needs of top management.

The common factors which are responsible for MIS failures in Organizations are listed as follows:

i. MIS is conceived as a data processing tool and not as information processing tool and MIS does not provide that information which is needed by the managers but it tends to provide the information generating the function calls. In this case MIS becomes an impersonal system.
ii. Underestimating the complexity in the business systems and not recognizing it in the MIS design leads to problems during implementation.
iii. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS.
iv. MIS is developed without streamlining the transaction processing systems in the organisation and lack of training on MIS to stakeholders. Failing to appreciate that the users of the information and the generators of the data are different and not identifying that both of them have to play an important and responsible role in the
MIS.
v. MIS does not meet certain critical and key factors of its users such as, response to the query on the database, inability to get the processing done in a particular manner, lack of user-friendly system and dependence on the system personnel.
vi. A belief that the computerized MIS can solve all the management problems of planning and control of the business and lack of administrative discipline in following the standardized systems and procedures, faulty coding and deviating from the system specifications result in incomplete and incorrect information.

2 Advantages of MIS

The following are some of the benefits that can be attained from MIS.
Organizations are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance records etc. The identification of these aspects can help the company improve their business processes and operations. MIS gives an overall picture of the company and acts as a communication and planning tool.
The availability of customer data and feedback in the MIS can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities. MIS can help an organization to gain a competitive advantage.
Competitive advantage is a firm‘s ability to do something better, faster, cheaper, or uniquely, when compared with rival firms in the market.

MIS in Public Sector Organizations

Public administration in Government has changed considerably over the past few years as did the use of MIS. A ‗stage of growth frame work is developed and used to describe the relations between various government departments and use of MIS over a period of time.
Communication and Information are the lifeblood of any organisation.
Neither planning nor designing nor any other managerial process is possible without them. Communication may be viewed as the process of exchange of information; it provides the means of contact between organisational members and organisational decision centres.
In the recent times, government organizations are inundated with data and information that are either generated by internal government transactions or gathers from outside sources. Such data and information are needed for designing future welfare schemes by the government. The government officials must equip themselves to cope up with the phenomenon of information explosion, not to be buried in the avalanche of irrelevant data.
They must manage information, that is, a system or structure must be developed to collect, organise, process and disseminate the right type of information at the right time to the right person. Awareness of this need is very essential in the development of MIS for public sector organizations.
IT is transforming not only the functioning of the government organizations and its processes but is also redefining the existing systems in the bureaucratic setup at a very faster pace.
In the coming decade most of the citizens would become IT savvy and public- sector organizations must therefore be prepared to offer services tailored to the citizen‘s needs. MIS has evolved as an integration system for financial transactions, procuring, delivery of services online, auditing etc. It has become very essential for the staff in public sector organizations to use
MIS almost for every work. Under these circumstances, MIS is expected to provide the staff with various sets of information for decision making and better communication environment which can be used just on the computer terminal for every day’s work.
Furthermore, communication between the head office and regional offices has become more and more necessary in the recent times.
IT is a resource for any public-sector organization to use in the processes and activities of the organisation. But the similarity of IT with other technologies ends here. While other technologies tend to be applicable only in specific areas and in well-defined areas of operation, the potential uses for IT in government sector is universal. IT can be used both in operational and management processes in the organizations.

Information Systems

In dealing with information systems, public sector organizations have to cover eight main areas of responsibility: information systems planning, organizational structures and staffing, data management, computing and data management architecture, information systems development, information technology acquisition, training, and technical support.
Adopting a centralized approach to these responsibilities can bring efficiency benefits, but requires some severe constraints to be overcome.
Adopting a decentralized approach can help spread computing in the organization, but is often wasteful. A ‗core-periphery‘ approach to public information systems, combining both central and local action, is therefore considered as being most effective.
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