Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization.
The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.
Applications of MIS
With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems.
However, there are several specific fields in which MIS has become invaluable.
* Strategy Support
While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.
MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy.
MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually.
MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems.
* Data Processing
Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.
Management by Objectives
While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool.
MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific.
The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress.
In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analysed by decision-makers.
Benefits of MIS
The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives.
Core Competencies
Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.
Enhance Supply Chain Management
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.
Quick Reflexes
As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.
Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasury’s MIS handbook, and an example of an organisational MIS division can be found at the Department of Social Services for the state of Connecticut.
Business Process Management Software
Rules-driven Business Process Management (BPM)
The latest generation of Pegasystems' industry-leading, rules-driven Business Process Management (BPM) is a comprehensive suite intended to help businesses plan, build, and manage process-management solutions through their entire lifecycle. SmartBPM® blends your process and practice rules and helps you rapidly deploy and update solutions in response to changing circumstances.
SmartBPM Suite Components
• PegaRULES Process Commander® — At the core of the SmartBPM Suite is PegaRULES Process Commander, a thin-client collaborative environment for both business and IT.
• Process Analyzer — Uses a data warehouse of both historical work and simulated data, with on-line analytic tools to continuously improve processes.
• Process Simulator — New business processes are simulated before they go live. Using "wizards," analysts can quantify and compare potential for increased service levels, as well as reductions in time, error, and cost.
• Enterprise Integration — Pegasystems' SmartBPM is built from the inside out with a services-oriented architecture (SOA). It offers an extensive library of enterprise connectors and adapters, including support for industry standards such as BPEL.
• Case Management — A smart case-management application is included as part of the SmartBPM Suite, and can be put to work immediately.
• Content Management Integration — The SmartBPM Suite can also integrate multiple image repositories and document- and content-management systems to manage global policies and processes for record retrieval and retention.
• Portal Integration — Businesses turn to web-portal technology to enable collaboration with their trading partners and to open up self-service to their customers.
Solaris, Java, and all Java-related products are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries.
• Caption Structure of organizational information systems
Information systems consist of three layers: operational support, support of knowledge work, and management support. Operational support forms the base of an information system and contains various transaction processing systems for designing, marketing, producing, and delivering products and services. Support of knowledge work forms the middle layer; it contains subsystems for sharing information within an organization. Management support, forming the top layer, contains subsystems for managing and evaluating an organization’s resources and goals.
Five Non-technical Principles for Developing Information Systems
Amazing how working eats into your blogging time. Off the top of my head:
1. Articulate user requirements to focus on the necessary.
2. Consider individual and organisational incentives for (not) sharing.
3. Map information flows within and between individuals/organisations.
4. Where possible, bind to existing processes as a starting point.
5. Keep tools simple, usability the focus and end users the goal.
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