A management information system, or MIS, helps companies to manage their assets and employees effectively.
You’ve probably used a management information system in your personal life to keep track of your finances or your holiday shopping list. For example, you may use Microsoft Excel to record where you spent each dollar and make sure that you don’t overspend on holiday gifts.
As you can see, even if you aren’t running your own business, a management information system can help you in many ways. A company’s MIS helps it to do the same things that you do with your own MIS.
A management information system is an IT-based software used in the decision-making and problem-solving processes of organizations. From the definition, it sounds like an overly complicated thing, but in fact it’s something so simple and ubiquitous that you probably use it every day without even realizing it!
Management Information Systems
A management information system, often called MIS or MIS, provides information to the people who manage an organization. These managers use the data and analyses in the MIS to decide what they need to do and how they need to do it. This helps them make informed decisions about how their business should grow and change over time.
An MIS uses software that stores, analyzes, and presents data about everything going on in an organization. It includes all of the aspects of a company’s operations: finance, human resources, production, marketing/sales, customer service/support, etc.
An MIS includes two important groups of applications: those that help management with day-to-day tasks, such as running payroll, scheduling meetings and managing project deadlines; and those that help monitor an organization’s performance so problems can be identified early on.
The first group is referred to as back-office applications because they help keep the day-to-day operations running smoothly.
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A management information system (MIS) tracks and provides metrics for the performance of an organization. It’s divided into three areas: data processing, transaction processing, and decision support. The Data Processing area calculates metrics from raw data to provide insight into the company’s operations.
The Transaction Processing area records transactions, such as sales or payrolls, to make sure they are complete and accurate. Decision Support helps business managers understand how to allocate resources in order to maximize profits or minimize costs by analyzing the data in both the Data Processing and Transaction Processing areas.
It’s difficult to take appropriate action without good data, says James Allen, chief technology officer at Allegis Global Solutions. An MIS enables you to drill down into the root cause of an issue.
A Data Warehouse stores vast amounts of company data in one place. This information can be used for analysis and decision-making purposes by companies, governments, universities and other organizations.
The Data Warehouse may also provide reports and analytical tools to be used by the various stakeholders within an organization. These tools can include pivot tables, queries and graphs. A variety of statistical techniques are used with these reports and graphs.
One technique is linear regression which compares two or more variables while determining the strength of their relationship. Another technique is correlation which evaluates how closely two or more variables move together over time.
A Data Warehouse includes detailed information about customers, products, services, suppliers and so on from both business operations and customer interactions with the company.
The goal is that all of this information can be combined into one database accessible by multiple departments for better understanding about what needs improvement as well as what does well in terms of customer service.
There are many different kinds of data mining. One kind of data mining is known as data dredging. Data dredging, or sloppy data mining, involves looking for relationships in your data without making any assumptions about what type of relationship you’re looking for. Another way to find relationships in your data is by using the chi-squared statistic.
This statistical method can be used when you want to see if there’s a relationship between two categorical variables, like gender and geography. You’ll calculate the chi-squared statistic and then look at how high it is; this tells you how likely it is that there really is a relationship. The higher the value, the more likely it would be that there’s actually some sort of connection.
An information system can be defined as a process or set of procedures used to collect and store data and then use it for decision-making, problem solving, and evaluation. The five stages of the information system include: Collection, Processing, Storage, Retrieval and Presentation.
The management information systems are an extension of these processes. They are more specific in nature than general information systems. Data collected and analyzed by the management information systems are often numbers, statistics and charts which present company’s performance.
The benefits of having a management information system include better financial reporting, increased efficiency in operations, improved understanding of customer behavior with regard to sales volume and profitability; reduced inventory costs; less time needed for operations research; better projections about the future demand for products or services; improved employee training through reports on performance trends; improved customer service; and faster response times to changing market conditions.
Decision Support Systems (DSS)
DSS are systems that provide managers with information and insights to help them make decisions. These systems are designed to meet the needs of the managers in their particular organization, typically by enabling them to better see and understand their organization’s capabilities, resources, and constraints.
The systems are also designed to be adaptable so they can respond quickly to changing demands on the organization. A key feature of DSS is data mining, which enables managers to search for patterns or trends in data that would otherwise go unnoticed.
The management information system (MIS) can be broken down into two components: the hardware, and the software. Hardware includes the server and its supporting infrastructure such as networking equipment, storage arrays, cooling systems, and power supplies. The software component of an MIS includes popular operating systems like Windows Server 2012 R2 or Red Hat Linux.
This software handles all operations that are executed by the hardware to run your business applications. These might include finance applications for accounting, human resources for recruiting and hiring employees, or product management for merchandising items on your shelves. But how do you know if your performance monitoring program is running well?
One way to find out is to monitor disk I/O and memory usage over time with tools like PerfMon or PowerShell. You could also use resource utilization reports in Systems Center Operations Manager to check the status of these important resources.
A management information system (MIS) can be used to describe any computer system that an organization uses to organize, store, analyze and communicate information needed to run the business or make informed decisions about the organization’s direction.
Information systems support organizations in managing their resources and maximizing their profits by using data gathered from different sources within the company as well as from outside sources such as customers, suppliers and partners. Management information systems are also commonly referred to as enterprise resource planning or ERP systems, a term typically used in larger organizations.