A Management Information System

Management Information SystemA management information system (MIS) is a system or process 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.At the start, works in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and instead of the collection of mass of data, important, and to the point data that is needed by the organization was stored.Early on, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time these applications became more complex and began to store increasing amounts of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data. The term MIS arose to describe these kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, ERP, SCM, CRM, project management and database retrieval application.The first true database system was developed by IBM in the 1960s in support of NASAs Apollo moon landing program. The number of components in the Saturn V launch vehicle, the Apollo Command and Service Module, and the Lunar Lander far exceeded anything that had been build up to that time. Every component had to be tested more exhaustively than anything had ever been tested before because they were all going to have to withstand the rigors of an environment that was more hostile and more unforgiving than any environment that humans had ever attempted to work in. Flat file systems were out of the question. IBMs solution, which it later transformed into a commercial database product named IMS, kept track of each individual component, as well its complete history. When the ill-fated Apollo 13s main oxygen tank ruptured on the way to the Moon, engineers worked frantically to come up with a plan to save the lives of the three astronauts onboard. The engineers succeeded and transmitted a plan to the astronauts that worked. After the crew had returned safely to Earth, querying IMS about the oxygen tank that failed showed that somewhere between its manufacture and its installation in Apollo 13, it had been dropped on the floor. It was retested for its ability to withstand the pressure it would have to contain during the mission, and then replaced in stock after passing the test. In this case, the test did not detect the hidden damage to the tank, but at least the history stored in IMS showed that passing a pressure test is not enough to assure that a dropped tank is undamaged. No dropped tanks were ever used on subsequent Apollo missions.1669For a collection of data to be useful, you must be able to easily and quickly retrieve the particular data you want, without having to wade through all the rest of the data. One way to make this happen is to store the data in a logical structure. Flat files dont have much structure, but databases do. Historically, the hierarchical database model and the network database model were developed before the relational model. Each one organizes data in a different way, but all three produce a highly structured result. As a result, starting in the 1970s, any new development projects were most likely to be done using one of three database models: either the hierarchical model, the network model, or the relational model. I explore database models further in the “Competing Database Models” section, later in this chapter. Of all the operations that people perform on a collection of data, the retrieval of specific elements out of the collection is the most important. This is because retrievals are performed more often than any other operation. Data entry is done only once. Changes to existing data are made infrequently, and data is deleted only once. Retrievals, on the other hand, are performed frequently, and the same data elements may be retrieved many times. Thus, if you could optimize only one operation performed on a collection of data, that one operation should be data retrieval. As a result, modern database management systems put a great deal of effort into making retrievals fast. Retrievals are performed by queries. A modern database managementsystem analyzes a query that is presented to it and decides how best to perform it. Generally there are multiple ways of performing a query, some much faster than others. A good DBMS consistently chooses a near-optimal execution plan. Of course, it helps if the query is formulated in an optimal manner to begin with. I discuss this subject in depth in Book VII, which covers database tuning.An MIS is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities that were planned and executed. According to Philip Kotler A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support.Any successful MIS must support a businesses Five Year Plan or its equivalent. It must provide for reports based up performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that indentifies individual accountability, and in virtual real-time.Professor Allen S. Lee states that .research in the information systems field examines more than the technological system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge when the two interact.A management information system should be effectively fulfill four functions:Collect the data storage of data update data processing dataIt is the value, the ability of management information systems, data, so that it can be accumulated by manipulating or processed into information. A computer program data processing, merger, selection, and sorting it according to the need of the management information system of the user. Once the computer to execute these functions, prepare the material, distributed management personnel.Collecting dataIn a management information system to produce information, someone must support its data. In determining whether a MIS system, the data are three questions to ask:1. Data accurate? 2. Timely data? 3. Data is too expensive?Inaccurate or obsolete date is useless. And some data, is accurate and timely may not be worth the cost of collecting. This data to determine the cost benefit analysis.Stored dataData storage is saved for later use. Once the collection, management information system of input data into the computer processing after the information into. The computer system can store data in two places in the main memory, or auxiliary storage devices, such as tape, hard disk or diskette. As mentioned above, the main memory has programs and data of computer is used. Permanent storage, use can depend on. Secondary storage devices as backup disks.The data type is used to decide the auxiliary storage equipment use of storage. Data, seldom visit, read or write, often stored on tape rather like the audio or video tapes. Tapes are used to access data retrieval sequence. In other words, if the user wants to find a particular file, the computer must read all the entries in front of the documents, then you can access the file. A typical 24 feet a tape can be stored up to 150 million words.Hard disk to store millions of words, you can random access. Random access means a computer can retrieve data from the source of any period at the same time as any other pieces, and the time needed to enter the records will not greater than required. Therefore, random access is opposite order. For several years, flexible disk or CD, and the random access ability, has been one of the most common auxiliary storage device. Floppy disks can accommodate 1.2 megabytes, is quite cheap.Update the dataData will be no value, if it cannot be updated and improved. Updated three types: add, modify and delete. For example, a store of information management system will include its inventory. The shop will increase, the new type of merchandise inventory. It may also need to existing data. Finally, store can delete items from stock.Characteristics of Management Information System Comprehensive MIS has the following four criteria: to identify information needs, information can be collected and processed through the procedure to provide information for managers to manage the information. With the unified planning of the MIS database is an important indicator of maturity, it symbolizes the MIS is a product of software engineering. Value-added information through the MIS, statistical analysis of mathematical models with data in decision-making. MIS is the development and change, MIS life cycle. MIS development must be based on scientific management. Only at a reasonable management system, a sound regulatory framework, a stable production order, and scientific management methods and accurate based on the raw data in order to carry out the development of MIS. Therefore, in order to meet the demand for MIS development, enterprise management must be gradually improved the following: the management of the program, the department has the appropriate processes; the standardization of management, all departments have the appropriate operating rules; statements documents unified, fixed content, cycle, form; data and code of perfect.Management Information Systems division of (1) Based on the division of organization functions MIS can be divided by organizational functions for the office system, decision-making systems, production systems and information systems. (2)Based on the division of information processing levels MIS-based information processing is divided into levels for the implementation of the number of systems, value-oriented accounting systems, report control system, analysis of information systems, planning and decision-making system, the formation of bottom-up information pyramid. (3)Based on the history of the development division of MIS is the first generation of hand-operated tool is the use of filing cabinets, notebooks and so on. An increase of second-generation MIS mechanical office equipment, such as typewriters, cash registers, automatic billing and so on. The third generation of MIS using a computer, telex, telephone, printer and other electronic equipment. (4) Based on the scale of division As telecommunications technology and the rapid development of computer technology, the modern division of MIS from the geographical scope has been gradually shifting from local to wide-area scope. Integrated structure 5.MIS MIS can be divided into horizontal and vertical integrated structure of an integrated structure, horizontal structure refers to the same integrated management of various functional departments of the level of integrated, such as labor, personnel departments. Vertically integrated structure with a function refers to the management of the business together, as lower-level counterparts.The development of management information systems principles The principle of innovation, reflecting the advanced nature. Computer technology have developed rapidly, it is necessary to keep abreast of new technologies, the use of new technologies, so that the target system than the original system is a qualitative leap. General principle, embodied integrity. Corporate governance can be understood as a reasonable closed loop system. The target system should be the closed loop system to improve. Enterprises to achieve a complete computer management does not have to be in all aspects of business at the same time, but must complete all aspects of the design of the system. The continuous development of the principle embodied advanced. In order to improve the utilization and effective role played by MIS, we should pay attention to technology development and the environment changes. MIS in the development process should focus on awareness of ongoing development and advance.Economic principles, practical embodiment. All-inclusive and sophisticated MIS is not a measure of success. In fact many of the failure of MIS is the blind pursuit of high-tech as a result of the neglect of their practicality. Blind pursuit of a comprehensive MIS to the neglect of the technological level of the unit, management level and the quality of personnel.Management information system development methods MIS the way the development of self-development, commissioned by the development, joint development, the purchase of a second off-the-shelf packages to develop several forms. Generally speaking in accordance with technological strength, resources and external environment.Management Information System Development Strategy Development method is not feasible: the organizational structure of law, in accordance with the machinery division of the existing organization systems, not considering the development of the principles of MIS. Database law, the development of the database design from the beginning of the development of the existing system. Made to imagine the system, a developer based on the existing system as the basis for the development of imagination. The development of viable methods: top-down (Top_Down), the overall business management from the design, moving from the abstract to the concrete, from the outline design to detailed design, reflect the structure of the design idea. Bottom-up (Bottom_Up), the design of system components, the form of architecture in a building block of the entire system, is to ignore the shortcomings of the organic components associated system. A combination of both the development process is the actual method used. The system through an analysis of the logic of the system model, logic model and then find the best physical model. Logical model and physical model of such a spiral pattern of the cycle to optimize the design reflects the top-down, bottom-up combined with the design idea.Management Information System development methodology Complete documentation is a practical success of the Peugeot MIS. The dev