MANAGEMENT INFORMATION SYSTEM (MIS) – DEFINITION

DEFINITION

An organized approach to the study of the information needs of an organization’s management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.

In a management Information system, modern, computerized systems continuously gather

relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose.

A MANAGEMENT INFORMATION SYSTEM (MIS) provides information that organizations need to manage themselves 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 used to analyze and facilitate strategic and operational activities.¹²–¹ Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems.¹²¹ Most business schools (or colleges of business administration within universities) have an MIS department, alongside departments of accounting, finance, management, marketing, and sometimes others, and grant degrees (at undergrad, masters, and PhD levels) in MIS.

A management information system gives the business managers the information that they need to make decisions. Early business computers were used for simple operations such as tracking inventory, billing, sales, or payroll data, with little detail or structure. Over time, these computer applications became more complex, hardware storage capacities grew, and technologies improved for connecting previously isolated applications. As more data was stored and linked, managers sought greater abstraction as well as greater detail with the aim of creating significant management reports from the raw, stored data. Originally, the term “MIS” described applications providing managers with information about sales, inventories, and other data that would help in managing the enterprise. Over time, the term broadened to include: decision support systems, resource management and human resource management, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management (CRM), project management and database retrieval applications.

An MIS supports a business’ long range plans, providing reports based upon performance analysis in areas critical to those plans, with feedback loops that improve guidance for every aspect of the enterprise, including recruitment and training, MIS not only indicates how various aspects of a business are performing, but also why and where. MIS reports include near-real-time performance of cost centers and projects with detail sufficient for individual accountability.

TERMINOLOGY

The terms MIS, Information system, ERP and, information technology management are often confused. Information systems and MIS are broader categories that include ERP. Information technology management concerns the operation and organization of information technology resources independent of their purpose.