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A management information system (MIS) is an
information system An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. From a sociotechnical perspective, information systems are composed by four components: task, people ...
used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. The study of the management information systems involves people, processes and technology in an organizational context. In a corporate setting, the ultimate goal of using management information system is to increase the value and profits of the business.


History

While it can be contested that the history of management information system dates as far back as companies using ledgers to keep track of accounting, the modern history of MIS can be divided into five ''eras'' originally identified by Kenneth C. Laudon and Jane Laudon in their seminal textbook ''Management Information Systems.'' * First Era – Mainframe and minicomputer computing * Second Era –
Personal computer A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or tec ...
s * Third Era – Client/server networks * Fourth Era –
Enterprise computing Enterprise software, also known as enterprise application software (EAS), is computer software used to satisfy the needs of an organization rather than individual users. Such organizations include businesses, schools, interest-based user groups, ...
* Fifth Era –
Cloud computing Cloud computing is the on-demand availability of computer system resources, especially data storage ( cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over mu ...
The ''first era'' (mainframe and minicomputer computing) was ruled by IBM and their mainframe computers for which they supplied both the hardware and software. These computers would often take up whole rooms and require teams to run them. As technology advanced, these computers were able to handle greater capacities and therefore reduce their cost. Smaller, more affordable minicomputers allowed larger businesses to run their own computing centers in-house / on-site / on-premises. The ''second era'' (
personal computers A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or tec ...
) began in 1965 as microprocessors started to compete with mainframes and minicomputers and accelerated the process of decentralizing computing power from large data centers to smaller offices. In the late 1970s, minicomputer technology gave way to personal computers and relatively low-cost computers were becoming mass market commodities, allowing businesses to provide their employees access to computing power that ten years before would have cost tens of thousands of dollars. This proliferation of computers created a ready market for interconnecting networks and the popularization of the Internet. (The first microprocessor—a four-bit device intended for a programmable calculator—was introduced in 1971, and microprocessor-based systems were not readily available for several years. The MITS Altair 8800 was the first commonly known microprocessor-based system, followed closely by the Apple I and II. It is arguable that the microprocessor-based system did not make significant inroads into minicomputer use until 1979, when
VisiCalc VisiCalc (for "visible calculator") is the first spreadsheet computer program for personal computers, originally released for Apple II by VisiCorp on 17 October 1979. It is often considered the application that turned the microcomputer from a hob ...
prompted record sales of the Apple II on which it ran. The IBM PC introduced in 1981 was more broadly palatable to business, but its limitations gated its ability to challenge minicomputer systems until perhaps the late 1980s to early 1990s.) The ''third era'' (client/server networks) arose as technological complexity increased, costs decreased, and the end-user (now the ordinary employee) required a system to share information with other employees within an enterprise. Computers on a common network shared information on a server. This lets thousands and even millions of people access data simultaneously on networks referred to as Intranets. The ''fourth era'' (
enterprise computing Enterprise software, also known as enterprise application software (EAS), is computer software used to satisfy the needs of an organization rather than individual users. Such organizations include businesses, schools, interest-based user groups, ...
) enabled by high speed networks, consolidated the original department specific software applications into integrated software platforms referred to as
enterprise software Enterprise software, also known as enterprise application software (EAS), is computer software used to satisfy the needs of an organization rather than individual users. Such organizations include businesses, schools, interest-based user groups, ...
. This new platform tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure.


Technology

The terms management information system (MIS),
Information management system The IBM Information Management System (IMS) is a joint hierarchical database and information management system that supports transaction processing. History IBM designed the IMS with Rockwell and Caterpillar starting in 1966 for the Apollo ...
(IMS),
information system An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, store, and distribute information. From a sociotechnical perspective, information systems are composed by four components: task, people ...
(IS),
enterprise resource planning Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a sui ...
(ERP),
computer science Computer science is the study of computation, automation, and information. Computer science spans theoretical disciplines (such as algorithms, theory of computation, information theory, and automation) to practical disciplines (includi ...
, electrical computer engineering, and information technology management (IT) are often confused. MIS is a hierarchical subset of information systems. MIS are more organization-focused narrowing in on leveraging information technology to increase business value. Computer science is more software-focused dealing with the applications that may be used in MIS. Electrical computer engineering is product-focused mainly dealing with the hardware architecture behind computer systems. ERP software is a subset of MIS and IT management refers to the technical management of an IT department which may include MIS. A career in MIS focuses on understanding and projecting the practical use of management information systems. It studies the interaction, organization and processes among technology, people and information to solve problems.


Management

While management information systems can be used by any or every level of management, the decision of which systems to implement generally falls upon the chief information officers (CIO) and chief technology officers (CTO). These officers are generally responsible for the overall technology strategy of an organization including evaluating how new technology can help their organization. They act as decision-makers in the implementation process of new MIS. Once decisions have been made, IT directors, including MIS directors, are in charge of the technical implementation of the system. They are also in charge of implementing the policies affecting the MIS (either new specific policies passed down by the CIOs or CTOs or policies that align the new systems with the organization's overall IT policy). It is also their role to ensure the availability of data and network services as well as the security of the data involved by coordinating IT activities. Upon implementation, the assigned users will have the appropriate access to relevant information. It is important to note that not everyone inputting data into MIS need necessarily be management level. It is common practice to have inputs to MIS be inputted by non-managerial employees though they rarely have access to the reports and decision support platforms offered by these systems.


Types

The following are types of information systems used to create reports, extract data, and assist in the decision making processes of middle and operational level managers. * Decision support systems (DSSs) are computer program applications used by middle and higher management to compile information from a wide range of sources to support problem solving and decision making. A DSS is used mostly for semi-structured and unstructured decision problems. *
Executive information system An executive information system (EIS), also known as an executive support system (ESS), is a type of management support system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal ...
(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 system A marketing information system (MIS) is a management information system (MIS) designed to support marketing decision making. Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed and distributed to mana ...
s are management Information Systems designed specifically for managing the
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...
aspects of the business. *
Accounting information system An accounting as an information system (AIS) is a system of collecting, storing and processing financial and accounting data that are used by decision makers. An accounting information system is generally a computer-based method for tracking acco ...
s are focused accounting functions. *
Human resource management system A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management o ...
s are used for personnel aspects. * Office automation systems (OAS) support communication and productivity in the enterprise by automating
workflow A workflow consists of an orchestrated and repeatable pattern of activity, enabled by the systematic organization of resources into processes that transform materials, provide services, or process information. It can be depicted as a sequence o ...
and eliminating bottlenecks. OAS may be implemented at any and all levels of management. *
School Information Management System SIMS (School Information Management System) is a student information system, i.e. a school management information system, currently developed by Education Software Solutions. It is the most widely used MIS in UK schools, claiming over 80% mar ...
s (SIMS) cover school administration, often including teaching and learning materials. *
Enterprise resource planning Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a sui ...
(ERP) software facilitates the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. * Local databases, can be small, simplified tools for managers and are considered to be a primal or base level version of a MIS.


Advantages and disadvantages

The following are some of the benefits that can be attained using MIS: * Improve an organization's operational efficiency, add value to existing products, engender innovation and new product development, and help managers make better decisions. * Companies are able to identify their strengths and weaknesses due to the presence of revenue reports, employee performance records etc. Identifying these aspects can help a company improve its business processes and operations. * The availability of customer data and feedback can help the company to align its
business process A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...
es according to the needs of its customers. The effective management of customer data can help the company to perform direct marketing and promotion activities. *MIS can help a company gain a competitive advantage. *MIS reports can help with decision-making as well as reduce downtime for actionable items. Some of the disadvantages of MIS systems: * Retrieval and dissemination are dependent on technology hardware and software. * Potential for inaccurate information.


Enterprise applications

* ''Enterprise systems''—also known as ''
enterprise resource planning Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a sui ...
(ERP)'' systems—provide integrated software modules and a unified database that personnel use to plan, manage, and control core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management, and distribution. * '' Supply chain management (SCM)'' systems enable more efficient management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturers, wholesalers, retailers, and final customers. * ''
Customer relationship management Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study big data, large amounts of information. CRM systems data collectio ...
(CRM)'' systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service. * ''
Knowledge management Knowledge management (KM) is the collection of methods relating to creating, sharing, using and managing the knowledge and information of an organization. It refers to a multidisciplinary approach to achieve organisational objectives by making ...
system (KMS)'' helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, unrecorded procedures, practices, and skills. Knowledge management (KM) as a system covers the process of knowledge creation and acquisition from internal processes and the external world. The collected knowledge is incorporated in organizational policies and procedures, and then disseminated to the stakeholders.


See also

*
Bachelor of Computer Information Systems The Bachelor of Computer Information Systems, also known as Bachelor of Computer & Information Science by the University of Oregon and The Ohio State University, (abbreviated BSc CIS) is an undergraduate or bachelor's degree that focuses on practi ...
*
Business intelligence Business intelligence (BI) comprises the strategies and technologies used by enterprises for the data analysis and management of business information. Common functions of business intelligence technologies include reporting, online analytical p ...
* Business management tools *
Business performance management Business performance management (BPM), also known as corporate performance management (CPM) and enterprise performance management (EPM),) is a set of performance management and analytic processes that enables the management of an organization's p ...
* Business rule * Corporate governance of information technology * Data mining ** Predictive analytics ** Purchase order request * Enterprise architecture * Enterprise information system * Enterprise planning system *
Management by objectives Management by objectives (MBO), also known as management by planning (MBP), was first popularized by Peter Drucker in his 1954 book ''The Practice of Management''.Drucker, P., ''The Practice of Management'', Harper, New York, 1954; Heinemann, London ...
*
Online analytical processing Online analytical processing, or OLAP (), is an approach to answer multi-dimensional analytical (MDA) queries swiftly in computing. OLAP is part of the broader category of business intelligence, which also encompasses relational databases, repor ...
*
Online office suite An online office suite, online productivity suite or cloud office suite is an office suite offered in the form of a web application. It is accessed online using a web browser. This allows people to work together worldwide and at any time, thereby l ...
*
Real-time computing Real-time computing (RTC) is the computer science term for hardware and software systems subject to a "real-time constraint", for example from event to system response. Real-time programs must guarantee response within specified time constra ...
* Real-time marketing


References


External links


MIS Links
( University of York)
Executive Information Systems: Minimising the risk of development
{{DEFAULTSORT:Management Information System Business software Decision support systems Information systems Information technology management Management systems School-administration software