INFS21600 Management Information System

INFS21600 Management Information System

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Management Information System

A management information system (MIS) provides information that is needed to manage organizations efficiently and effectively. Management information systems are not only computer systems - these systems encompass three primary components: technology, people (individuals, groups, or organizations), and data/information for decision making. Management information systems are distinct from other information systems in that they are designed to be used to analyze and facilitate strategic and operational activities in the organization.

Management information systems (MIS) are methods of using technology to help organizations better manage people and make decisions. Managers use management information systems to gather and analyze information about various aspects of the organization, such as personnel, sales, inventory, production or other applicable factors.

Further you will read some related topics:

FNCE 20000 Business Finance

FIN 200 Corporate Financial Management

ECON 12200 Introduction to Economics

Types

Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure.

Management information systems (MIS), per se, produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems[4] to middle and operational level managers to identify and inform structured and semi-structured decision problems.

Decision support systems (DSS) are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making. Executive information systems (EIS) is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations. Marketing information systems are MIS designed specifically for managing the marketing aspects of the business.

Office automation systems (OAS) support communication and productivity in the enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of management. School management information systems (MIS) cover school administration,and often including teaching and learning materials.

Advantages

The following are some of the benefits that can be attained for different types of management information systems.

Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. The identification of these aspects can help the company improve their business processes and operations. Giving an overall picture of the company and acting as a communication and planning tool. The availability of the customer data and feedback 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. Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company.

Four stages of Processing

The data processing cycle is the order in which data is processed. There are four stages; * Data collection
* Data input
* Data processing and storage
* Data output

Decision Support System

Computer-based information system.
Supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization. DSS helps in decision making.
DSSs include knowledge-based systems.
Can be used to validate the decision by performing sensitivity analysis on various parameter of the problem.

The decision support system basically helps the information system in the intelligence phase where the objective is to identify the problem and then go to the design phase for solution. The choice of selection criterion varies from problem to problem. It is therefore, required to go through these phases again and again till a satisfactory solution is found. In the following three phase cycle, you may use inquiry, analysis, and models or accounting system to come to a rational solution. These systems can be used to validate the decision by performing sensitivity analysis on various parameter of the problem.

Two types:
Programmed.
Non programmed.

Characteristics
Handle large amounts of data from different sources.
Provide report and presentation flexibility.
Offer both textual and graphical orientation.
Support drill-down analysis.
Perform complex, sophisticated analysis and comparisons using advanced software packages.

Components
Database management system (DBMS).
A DBMS serves as a data bank for the DSS. It stores large quantities of data that are relevant to the class of problems for which the DSS has been designed and provides logical data structures (as opposed to the physical data structures) with which the users interact. A DBMS separates the users from the physical aspects of the database structure and processing. It should also be capable of informing the user of the types of data that are available and how to gain access to them. Model-base management system (MBMS).

The role of MBMS is analogous to that of a DBMS. Its primary function is providing independence between specific models that are used in a DSS from the applications that use them. The purpose of an MBMS is to transform data from the DBMS into information that is useful in decision making. Since many problems that the user of a DSS will cope with may be unstructured, the MBMS should also be capable of assisting the user in model building. Dialog generation and management system (DGMS).

The main product of an interaction with a DSS is insight. As their users are often managers who are not computer-trained, DSSs need to be equipped with intuitive and easy-to-use interfaces. These interfaces aid in model building, but also in interaction with the model, such as gaining insight and recommendations from it. The primary responsibility of a DGMS is to enhance the ability of the system user to utilize and benefit from the DSS. In the remainder of this article, we will use the broader term user interface rather than DGMS.

Type of Tools/Models
Behavioral models
These models are useful in understanding the behavior amongst the business variables. The decision maker can then make decisions giving due regard to such behavioral relationships. The trend analysis, forecasting, and the statistical analysis models belong to this category. The trend analysis indicates how different variable behave in trend setting in the past and hence in the future. A regression models shows the correlation between one or more variables. It also helps in identifying the influence of one variable on the other. These types of models are largely used in process control, manufacturing, agricultural sciences, medicines, psychology and marketing. The behavioral analysis can be used to set the points for alert, alarm and action for the decision maker.

Operations research (OR) models
The Operations Research (OR) models are mathematical models. These models. These models represent a real life problem situation in terms of the variables, constants and parameters expressed in algebraic equations. Since, the models are mathematical; there is solution to these problems. In arriving the solution, methods of calculus, matrix algebra, probability, and set theory are used. These models have clarity to the extent that each of them has a set of assumptions which must be true in real life. Further, if the assumptions are valid, the solutions offered are realistic and practical; the model represents the real life problem situation

Design of a Drought Mitigation Decision Support System.
Three fundamental components of a DSS architecture are
the database (or knowledge base),
the model (i.e., the decision context and user criteria), and the user interface.
The users themselves are also important components of the architecture.[5][12]

DSS systems are not entirely different from other systems and require a structured approach. Such a framework includes people, technology, and the development approach.[10] DSS technology levels (of hardware and software) may include: The actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal, AIMMS, Analytica and iThink. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules An iterative developmental approach allows for the DSS to be changed and redesigned at various intervals. Once the system is designed, it will need to be tested and revised where necessary for the desired outcome.

Classification
There are several ways to classify DSS applications. Not every DSS fits neatly into one of the categories, but may be a mix of two or more architectures. Holsapple and Whinston[13] classify DSS into the following six frameworks: Text-oriented DSS, Database-oriented DSS, Spreadsheet-oriented DSS, Solver-oriented DSS, Rule-oriented DSS, and Compound DSS. A compound DSS is the most popular classification for a DSS. It is a hybrid system that includes two or more of the five basic structures described by Holsapple and Whinston.[13] The support given by DSS can be separated into three distinct, interrelated categories[14]: Personal Support, Group Support, and Organizational Support.

Benefits
Improves personal efficiency
Speed up the process of decision making
Increases organizational control
Encourages exploration and discovery on the part of the decision maker Speeds up problem solving in an organization
Facilitates interpersonal communication
Promotes learning or training
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the problem space
Helps automate managerial processes
Create Innovative ideas to speed up the performance

Executive information system
An executive information system (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of decision support system (DSS).[1] The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace. In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub areas of reporting, analytics, and digital dashboards).

Advantages of EIS
* Easy for upper-level executives to use, extensive computer experience is not required in operations * Provides timely delivery of company summary information * Information that is provided is better understood

* EIS provides timely delivery of information. Management can make * decisions more promptly.
* Improves tracking information
* Offers efficiency to decision makers

Disadvantages of EIS
* System dependent
* Limited functionality, by design
* Information overload for some managers
* Benefits hard to quantify
* High implementation costs
* System may become slow, large, and hard to manage
* Need good internal processes for data management
* May lead to less reliable and less secure data


Areas of Business Sector
Management Information Systems is a general name for the academic discipline covering the application of information technology to support the major functions and activities of either a private sector business or public sector institution. In business, information systems support the process of collection, manipulation, storage, distribution and utilization of an organization's information resources, business processes and operations.

As an area of study it is also referred to as information technology management. The study of information systems is usually a commerce and business administration discipline, and frequently involves software engineering, but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization.

Administrators, supervisors and managers need information, but they are often overloaded with data. Information management systems sustain these piles of data into comprehensible and concise descriptions and patterns of performance. Information systems are not just technological facilities - such as databases. They include methods of pondering about your organization that will aid in approaching issues more effectively and efficiently. Management information systems make use of resources that would assist in understanding and making better decisions about the mechanical and personal sides of information systems.

You are required to suggest: 

AFIN 252 Applied Financial Analysis And Management 

BUS 102 Introduction to Microeconomics

Significance

Using an MIS, an organization is able to establish its hierarchical structure and work-flow charts. Every employee in the organization knows the employees he has authority over and to whom he is responsible for work. The work then progresses without glitches. The company’s operating and procedures are listed by an MIS. The preparation of audits also gets simplified.