Management Information System

1. Management Information System

2. Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. According to Kenneth C. Laudon and Jane Price Laudon in their book Management Information Systems; A Contemporary Perspective, an information system is “a set of procedures that collects (or retrieves), processes, stores and disseminates information to support decision making and control.” In most cases, information systems are formal, computer based systems that play an integral role in organization.

3. A management information system (MIS) is a system that provides information needed to manage organizations effectively. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

4. - Management information systems (MIS) are a combination of hardware and software used to process information automatically. - MIS are used within organizations to allow many individuals to access and modify information.

5. MIS, actually describes specific systems that “provide managers with reports and, in some cases, on- line access to the organization's current performance and historical records, “Laudon and Laudon noted. Some of the other types of information systems include: transaction processing systems, which simply record the routine transactions needed to conduct business, like payroll, shipping, or sales orders; and office automation systems, which are intended to increase the productivity of office workers.

6. MIS can be classified as performing three functions: • To generate reports- for example, financial statements, inventory status reports, or performance reports needed for routine or non- routine purposes. • To answer what- if questions asked by management. For example, questions such as “what would happen to cash flow if the company changes it credit term for its customers?” can be answered by MIS.This type of MIS can be called Simulation. • To support decision making. This type of MIS is appropriately called Decision Support System (DSS). DSS attempts to integrate the decision maker, the data base, and the quantitative models being used.

7. A computer system used to process orders for a business could be considered a management information system because it is assisting users in automating processes related to orders. Other examples of modern management information systems are websites that process transactions for an organization or even those that serve support requests to users. A simple example of a management information system might be the support website for a product, because it automatically returns information to the end user after some initial input is provided.

8. Thank You! Prepared by: CHRISTIAN G. NITRO MAED- EM