Friday, July 8, 2011

Management Information System (MIS)

In an organization, usually there are huge amounts of information transferred among different management levels and decisions are being made everywhere. In fact, research has shown that inside a company, considerable time is spent on information processing and decision making. To solve this problem and to manage an organization more effectively, an idea about management information system has come up. A management information system (MIS) could be defined as a combination of people, machine and other procedures that deal with collecting, analyzing, storing, transmitting data and information for the purpose of making decisions by managements that are relevant and close to the overall objectives of the venture. Nowadays, most MIS are computer-based since technology makes it much easier to handle larger amount of information but MIS started off with simple manual system such as index cards. With the growing up of internet technology, computer-based MIS tend to move over the web. Web-based MIS is accessible every where, easier in installation and maintenance, making it becomes a popular trend. The result is less paper works, reducing document travel time, faster decision making process, improving company's resources co-operation and company operation as a whole.

The different types of MIS are identified below:

    * Transaction Processing System: mostly focus on daily transactions; involve large volume of data (e.g. receipts, bank payments, etc.)
    * Information Providing System: analyze data gathered and produce summarized reports to support decision-making process
    * Decision Support System: provide models to assist management in making decisions
    * Expert System: advanced system that could make decision by itself in a specific area

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Managing Information Systems

For centuries, information management system was not given much attention and this has led to the liquidation of many organizations. However, awareness of information technology in the present age has made information system more accessible, thus integrating organizational structures for the achievement of goals and objectives in within a relatively short period.

The emergence of the new technology science of electronic data processing has provided the impetus for study into the development of management information and a new approach in the study of control, feedback system and communication.

The introduction of electronic technology into the information management has made the information system more effective and efficient. But that is not to conclude that all organizations or managers have effective managerial capability to manage information system. It is evident that as organizations expand, the problem associated with data collection, recording, information retrieval and effective communication increase in proportion to the size of the organization. These are major areas where organizations or managers have to be more effective in managing information as this may have nothing to do with the number of technology acquired or money invested.

Ordinarily, information is not useful if it is not accurate,complete, relevant effective and efficient. In order to achieve all these, the management of information system in an organization needs to determine information needs, establish system goal,.determine hardware needs, acquire equipment,integrate hardware and operating system; install controls, develop documentation and train users, text system and made appropriate modification and monitor system effectiveness and make appropriate modification.
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Management Information System

Management Information System can be defined as a communication process wherein information is recorded, stored, processed and retrieved for decision regarding the managerial process of planning, organizing and controlling If we now defined decision-making as the process of selecting from among alternatives a course of action to achieve in objective the link between information and decision becomes clear. Indeed, decision-making and information processing are so inter-dependent that they become inseparable, if not identical, in practice.

Computerized MIS cannot technically make a decision but it can yield processed data and follow instructions to the extent of its capacity. For example, the computer can be properly instructed to compare inventory levels with programmed decision-rules on re-order level and re-order quantity, and generate purchase requisition, purchase enquiry and purchase order. This can resemble an automatic control of purchase documents.

The modern role of MIS for managerial decision-making in a complex organization has been compared to that of a military commander. Commanders often adopt a strategy built by direct observation of partial situations. This is the style used by the managers who track operations by periodic communications with remote sales depots, plant divisions and other offices. In a modern complex organization, the levels of information handling can be divided as decision support system, management information system, transaction processing system, and office (and other) automation system.

At the apex, the top level mangers may need decision support system (DSS). This would be an inter-active system that provides the user-manager with easy access to decision models and data in order to support semi-structured and non-structured decision-making tasks. Inputs for DSS can be some processed data and mostly management-originated data along with some unique models. The DSS would involve queries and responses, operations research models and simulation. The output from DSS would be special reports to resolve difficult questions and replies to management queries.

At the middle management level (if there exists one), MIS would deal with an organized set of procedures to provide information for middle managers to support their operations and decision-making within the origination. At this level, inputs for MIS would be both processed and raw-data and some management-originated data, along with preprogrammed models. The MIS process would involve report generator, data management, simple models and statistical methods. The outputs from MIS would be filtered and screened for semi-routine decisions and replies to simple management queries.

At the shop-floor management level, (if there exists one), MIS would deal with an organized set of procedures to provide information for middle managers to support their operations and decisions-making within the organization. At this level, inputs for MIS would be both processed and raw-data and some management-originated data, along with preprogrammed models. The MIS process would involve report generatior data management, simple models and statistical methods. The outputs from MIS would be filtered and screened for semi-routine decisions and replies to simple management queries.

At the shop-floor management level, transaction processing system (TPS) is a computer-based system that would capture, classify, store, maintain, update and retrieve simple transaction data for record keeping and for feeding MIS and DSS. The TPS would have transaction data as inputs. The processing for TPS would involve classification, codification, sorting, merging, adding, deleting and updating. Outputs for TPS would be detailed reports relating to routine decisions and processed data.

At the clerical level, office and other automation control system can be in operation. Office automation system (OAS) is simple is an automated office having multiple functions, where the integrated and computer-aided system allows many office activities to be performed with electronic equipment. The OAS would be inputs such as appointments, documents addresses, etc. The OAS processing would be scheduling word-processor, data storage and retrieval. Outputs from OAS would be schedules, memoranda, bulk mail and administrative reports.
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Management Information Strategy

When building an online business, it is necessary to have a proper management information system. One of the most difficult situations to deal with is managing information online. If you do not manage information properly then you will become overloaded with dozens of emails everyday asking you to buy a new product or sending you a new report free, which you usually and gladly accept.

The next step is, when you get inside the free report, you are already paying attention to a new system that tells you how successful your business will be with the new product. It is here that the danger resigns, because once you accept and start to read the new product presentation, (sometimes it is a video - which is becoming stronger every time and very convincing!), you are abandoning the one you have started with. This situation is quite common when you are beginning to invest your time or money in online marketing strategies.

The new product description has the ability to convince the new client to abandon the previous product. In addition, this new free report asks you to forget all the time you have put on learning the process and that their way is the only way and the best way! With this said, you automatically think that they are probably right, and then, you start to read that Google is always changing the ranking methods and so on.... So, be ware of the new information you read on.

You have to manage information and adopt a management information system to help you along the way in building your online business. A system that includes a mind map that will turn your day effective, productive and you will have the chance to reach a superior business productivity in building an online business. This way you are managing your precious time and leaving a lot of stress behind!
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Business Architecture & Management - Information Systems

Architecture is (normally) about buildings, cities and infrastructure (and the like). You can see it around you and everybody has an opinion about it. You either like the style of that building or you don't and all the nuances in between.

Between the Style of an organization and the goal it pursues (although not everybody shares this approach of goal-oriented organizations) unfolds the area of systems.

Systems are a response to functional needs. A library provides the function to exhibit the public word. Accessibility is therefore an additional non-functional requirement.
Once you or your organization is aware of the functional requirements it can start building Systems providing the appropriate Construction.

This Function-and-Construction matching exists of three pairs, like the three pairs of wings of a building:

    * The organization (human resources and organizational structure) that responds to the business process.
    * The information and functions that are accommodated with systems.
    * And the non-functional requirements that are solved with infrastructure.

The metaphor of a building is not exactly appropriate, because between the different wings and each floor there are many connections...

In that way, the systems that companies use are accommodated on the middle floor and play a central role in the organization. The structure of the systems exhibits much of the style and the business priorities.

This is a list of the systems of which one or more could be present in your organization:

    * ERP - Enterprise Resource Planning. Systems that manage the internal operation.
    * SCM - Supply Chain Management. Dedicated to the management of information with third parties.
    * DMS - Document Management System. Controlling the flow of documents.
    * CMS - Content Management System. Organize content that is to be shared by everyone.
    * HRM - Human Resource Management. Systems that are to manage the human resources.
    * CMS - Contact Management System (e-mail responders for example).
    * DWH - A Warehouse of corporate client and product data.
    * TCS - Telecom Systems. A wide area of systems that manage telephone traffic.
    * ...etc.

If you think that this list represents the left or right wing on the second floor, you can imagine that many powers influence this area. Every company, with whatever size, struggles with area. First because it is prominent and eye-catching; everybody is dealing with it. Managing information systems is like managing politics; everybody has an opinion about how it should be. The challenge is about managing new business and taking these systems with you...on your way...

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