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.
IMPORTANCE OF MIS:
1. MIS is always management oriented and keeps in view every level of management and gets the desired information.
2. Integrated - refers to how diff components(sub systems) are actually tied up together. eg: diff departments of organization linked together.
3. Useful for planning - as every organization makes log-term and short-term plans with the help of information like sales & production, capital investments, stocks etc management can easily plan.
4. Effective MIS helps the management to know deviations of actual performance from pre-set targets and control things.
5. its important for increasing efficiency.
6.MIS provides updated results of various departments to management.
7.MIS is highly computerized so it provides accurate results.
8.MIS adds to the intelligence, alertness, awareness of managers by providing them information in the form of progress and review reports of an ongoing activity.
9.Helps managers in decision- making.
A system is a set of interacting or interdependent components forming an integrated whole or a set of elements and relationships which are different from relationships of the set or its elements to other elements or sets.
- A system has structure, it contains parts (or components) that are directly or indirectly related to each other;
- A system has behavior, it contains processes that transform inputs into outputs (material, energy or data);
- A systems has inter-connectivity: the parts and processes are connected by structural and/or behavioral relationships.
- A system's structure and behavior may be decomposed via subsystems and sub-processes to elementary parts and process steps.
An information system (IS) - is any combination of information technology and people's activities that support operations, management and decision making. In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes.
Some make a clear distinction between information systems, computer systems, and business processes. Information systems typically include an ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes.
Alter argues for an information system as a special type of work system. A work system is a system in which humans and/or machines perform work using resources to produce specific products and/or services for customers. An information system is a work system whose activities are devoted to processing (capturing, transmitting, storing, retrieving, manipulating and displaying) information.
Transaction Processing System(TPS)
•Whenever two people make an exchange, it is called a transaction. Transactions are important events for a company, and collecting data about them is called transaction processing. Examples of transactions include making a purchase at a store, withdrawing money from a checking account, making a payment to creditor, or paying an employee.
•Because transactions generally involve an exchange of money, it is critical that the data be protected during transmission and stored carefully so that it cannot be altered. It is also critical that the data be saved so that managers can verify the data if any conflicts arise. Also, the sales and purchase data from the foundation of the accounting and financial systems of every company, so the system must be able to produce the standard reports
What is MIS?
MIS or Management Information System is one of the major types of the computer systems because this system is the head of all the other systems in keeping and controlling them. The major constituent of this system are the employees. Managing the information that is strictly internal for any business and relating it with the employees and managing their functions in every aspect is the job of this system, that is done for the faultless performance of a business. This system is the most important one because of the reason that it helps in making the major decisions for the business and helps the decision makers in making future plans as well. And not only for this purpose, has MIS helped the business people in almost all the operational areas.
What is DSS?
A very important system for any large organization is the Decision Support System, abbreviated as DSS. This system, as the name suggests is ideal for making the right decisions for any business. Decision making is a critical process that involves considering all the major operations, forecasts, activities, planning and management of various functions. This system helps the senior management of an organization to get the required data in no time and process it further to make rapid, necessary decisions. This system not only helps the managers in making the decisions, but also in executing them rightfully. Just one major drawback is observed that is related to the fact that this system is not very good at handling large amounts of data and consequences.
Difference between MIS and DSS and EIS
The difference between the three systems lies in their functions. The main function of MIS is related to the managing the internal operations and the documents. The DSS helps employees in making decisions even for the daily tasks. The EIS assists the senior level managers in making serious decisions that are very important and critical to make. MIS and the other two systems are still interlinked because of the fact that MIS holds all the documentations that are used by the other two. In the same way, DSS and the EIS are similar in a way that both are focusing on the decision making. The MIS has the feature to be used by the intellectual group that includes the high level and middle level management, as compared to that the DSS is the only one among the three that is used at all the business levels and the information it uses is not only internal but also the external one. Summarizing, EIS is complicated as compared to the DSS and MIS.