20.14
Nadia Erlina Marfianti
Management Information System (MIS) is 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.
The first (mainframe and minicomputer) era was ruled by IBM and their mainframe computers, these computers would often take up whole rooms and require teams to run them, IBM supplied the hardware and the software. 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.
The second (personal computer) era 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.
As the complexity of the technology increased and the costs decreased, the need to share information within an enterprise also grew, giving rise to the third (client/server) era in which computers on a common network were able to access shared information on a server. This allowed for large amounts of data to be accessed by thousands and even millions of people simultaneously.
The fourth (enterprise) era enabled by high speed networks, tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure.
The fifth and latest (cloud computing) era of information systems employs networking technology to deliver applications as well as data storage independent of the configuration, location or nature of the hardware. This, along with high speed cellphone and wifi networks, led to new levels of mobility in which managers access the MIS remotely with laptops, tablet pcs, and smartphones.
Conversion is the process of changing or converting the old system into the new. This can be done in four ways:
History
Kenneth and Jane Laudon identify five eras of MIS evolution corresponding to five phases in the development of computing technology: 1) mainframe and minicomputer computing, 2) personal computers, 3) client/server networks, 4) enterprise computing, and 5) cloud computing.[3]The first (mainframe and minicomputer) era was ruled by IBM and their mainframe computers, these computers would often take up whole rooms and require teams to run them, IBM supplied the hardware and the software. 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.
The second (personal computer) era 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.
As the complexity of the technology increased and the costs decreased, the need to share information within an enterprise also grew, giving rise to the third (client/server) era in which computers on a common network were able to access shared information on a server. This allowed for large amounts of data to be accessed by thousands and even millions of people simultaneously.
The fourth (enterprise) era enabled by high speed networks, tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure.
The fifth and latest (cloud computing) era of information systems employs networking technology to deliver applications as well as data storage independent of the configuration, location or nature of the hardware. This, along with high speed cellphone and wifi networks, led to new levels of mobility in which managers access the MIS remotely with laptops, tablet pcs, and smartphones.
Types
Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure.- Management information systems (MIS), per se, produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems[4] to middle and operational level managers to identify and inform structured and semi-structured decision problems.
- Decision support systems (DSS) are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making.
- Executive information systems (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 systems are MIS designed specifically for managing the marketing aspects of the business.
- Office automation systems (OAS) support communication and productivity in the enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of management.
- School management information systems (MIS) cover school administration, often including teaching and learning materials.
Advantages
The following are some of the benefits that can be attained for different types of management information systems.[5]- Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. The identification of these aspects can help the company improve their business processes and operations.
- Giving an overall picture of the company and acting as a communication and planning tool.
- The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities.
- Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company.
Enterprise applications
- Enterprise systems, also known as enterprise resource planning (ERP) systems provide an organization with integrated software modules and a unified database which enable efficient planning, managing, and controlling of all 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, manufacturer, wholesalers, retailers and final customers.
- Customer relationship management (CRM) systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service.
- Knowledge management system (KMS) helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, and unrecorded procedures, practices and skills.
Developing Information Systems
"The actions that are taken to create an information system that solves an organizational problem are called system development"[6]. These include system analysis, system design, programming/implementation, testing, conversion, production and finally maintenance. These actions usually take place in that specified order but some may need to repeat or be accomplished concurrently.Conversion is the process of changing or converting the old system into the new. This can be done in four ways:
- Direct cutover – The new system replaces the old at an appointed time.
- Pilot study – Introducing the new system to a small portion of the operation to see how it fares. If good then the new system expands to the rest of the company.
- Phased approach – New system is introduced in stages.
