Management Information Systems

Topics: Information systems, Management information system, Decision theory Pages: 5 (1023 words) Published: September 26, 2008

Management of Information Systems in an Organization
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.(1) In a recent survey article in The Economist, John Browning (1990) wrote: "Information technology is no longer a business resource; it is the business environment." His statement is not far from truth. Ongoing advances in information technology (IT), along with increasing global competition, are adding complexity and uncertainty of several orders of magnitude to the organizational environment.(2) The recognition of the role managers play in shaping the ways in which the technology is designed and used has prompted a more optimistic assessment of the implications of IT for managers, seeing its use as requiring new skills, freeing up more time for other valued activities such as people-management, providing better quality and more timely information to aid the decision-making process.(3)

An MIS provides the following advantages:
1. It Facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision – making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload: MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4. It brings co-ordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization. 5. It makes control easier: MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. The used computers has increased the data processing and storage capabilities and reduced the cost. 6. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information. (4) Few finance professionals would deny that information technology is vital to executing strategy and delivering value. Often regarded as the “operational backbone,” reliance upon hardware, software, and networks is second nature in the modern business environment. (5) Financial Management Information System (FMIS)

Financial MIS Provides financial information to all financial managers within an organization. It integrates financial & operational information from multiple sources. Financial MIS eases analysis by providing fast financial data. It enables financial analysis from different aspects; time, product, customer. With Financial MIS, one can analyze historical and current data. Also one can monitor use of funds. Few examples or functions of Financial MIS are Costing, P&L reporting, Auditing, Funds management, etc. Overview of a Financial MIS

Inputs to the Financial Information System
Strategic plan or corporate policies
oContains major financial objectives and often projects financial needs. •Transaction processing system (TPS)
oImportant financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. oExternal sources
oAnnual reports and financial statements of competitors and general news items. Financial MIS Subsystems and Outputs
Financial subsystems
oProfit/loss and cost systems
oInternal auditing
oExternal auditing
oUses and management of...
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