MIS is short for management information system or management information services.

Management information system, or MIS, broadly refers to a computer-based system that provides
managers with the tools to organize, evaluate and efficiently manage departments within an
organization. In order to provide past, present and prediction information, a management information
system can include software that helps in decision making, data resources such as databases, the
Object 2

hardware resources of a system, decision support systems, people management and project
management applications, and any computerized processes that enable the department to run
efficiently.

Management Information System Managers

Object 1

The role of the management information system (MIS) manager is to focus on the organization's
information and technology systems. The MIS manager typically analyzes business problems and then
designs and maintains computer applications to solve the organization's problems.

What is MIS? Intoduction & Definition

Object 3

What is MIS?
MIS is the use of information technology, people, and business processes to record, store and process
data to produce information that decision makers can use to make day to day decisions.
MIS is the acronym for Management Information Systems. In a nutshell, MIS is a collection of
systems, hardware, procedures and people that all work together to process, store, and produce
information that is useful to the organization.
The need for MIS
The following are some of the justifications for having an MIS system
 • Decision makers need information to make effective decisions. Management Information
Systems (MIS) make this possible.
• MIS systems facilitate communication within and outside the organization – employees
within the organization are able to easily access the required information for the day to day
operations. Facilitates such as Short Message Service (SMS) & Email make it possible to
communicate with customers and suppliers from within the MIS system that an organization is
using.
• Record keeping – management information systems record all business transactions of an
organization and provide a reference point for the transactions.

Components of MIS
The major components of a typical management information system are;
• People – people who use the information system
• Data – the data that the information system records
• Business Procedures – procedures put in place on how to record, store and analyze data
• Hardware – these include servers, workstations, networking equipment, printers, etc.
• Software – these are programs used to handle the data. These include programs such as
spreadsheet programs, database software, etc.

Types of Information Systems

The type of information system that a user uses depends on their level in an organization. The
following diagram shows the three major levels of users in an organization and the type of information
system that they use.

Transaction Processing Systems (TPS)

This type of information system is used to record the day to day transactions of a business. An example
of a Transaction Processing System is a Point of Sale (POS) system. A POS system is used to record
the daily sales.
Management Information Systems (MIS)
Management Information Systems are used to guide tactic managers to make semi-structured decisions.
The output from the transaction processing system is used as input to the MIS system.
Decision Support Systems (DSS)
Decision support systems are used by top level managers to make semi-structured decisions. The
output from the Management Information System is used as input to the decision support system.DSS
systems also get data input from external sources such as current market forces, competition, etc.

Object 4
Manual Information Systems VS Computerized Information
Systems (MIS)
Data is the bloodstream of any business entity. Everyone in an organization needs information to make
decisions. An information system is an organized way of recording, storing data, and retrieving
information.
In this section, we will look at manual information systems vs. computerized information systems.
Manual Information System
A manual information system does not use any computerized devices. The recording, storing and
retrieving of data is done manually by the people, who are responsible for the information system.
The following are the major components of a manual information system
• People –people are the recipients of information system
• Business Procedures –these are measures put in place that define the rules for processing data,
storing it, analyzing it and producing information
• Data –these are the recorded day to day transactions
• Filing system – this is an organized way of storing information
• Reports –the reports are generated after manually analyzing the data from the filing system and
compiling it.
The following diagram illustrates how a typical manual information system works

Advantages and Dis-advantages of a manual information system

Advantages:
The following are the advantages of manual information systems
• Cost effective – it is cheaper compared to a computerized system because there is no need to
purchase expensive equipment such as servers, workstations, printers, etc.
• Flexible –evolving business requirements can easily be implemented into the business
procedures and implemented immediately
Disadvantages:
The following are some of the disadvantages of a manual information system.
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• Time consuming –all data entries need to be verified before filing, this is a time consuming
task when done by humans. Retrieving data from the filing system also takes a considerable
amount of time
• Prone to error – the accuracy of the data when verified and validated by human beings is more
prone to errors compared to verification and validation done by computerized systems.
• Lack of security – the security of manual systems is implemented by restricting access to the
file room. Experience shows unauthorized people can easily gain access to the filing room
• Duplication of data –most departments in an organization need to have access to the same data.
In a manual system, it is common to duplicate this data to make it easy to accessible to all
authorized users. The challenge comes in when the same data needs to be updated
• Data inconsistency – due to the duplication of data, it is very common to update data in one file
and not update the other files. This leads to data inconsistency
• Lack of backups – if the file get lost or mishandled, the chances of recovering the data are
almost zero.
Computerized information system
Computerized systems were developed to address the challenges of manual information systems. The
major difference between a manual and computerized information system is a computerized system
uses a combination of software and hardware to record, store, analyze and retrieve information.

Advantages and Disadvantages of a computerized information

system (MIS)
The following are some of the disadvantages of a computerized information system.
Advantages:
The following are the advantages of computerized information systems
• Fast data processing and information retrieval – this is one of the biggest advantages of a
computerized information system. It processes data and retrieves information at a faster rate.
This leads to improved client/customer service
• Improved data accuracy – easy to implement data validation and verification checks in a
computerized system compared to a manual system.
• Improved security – in addition to restricting access to the database server, the computerized
 information system can implement other security controls such as user’s authentication,
biometric authentication systems, access rights control, etc.
• Reduced data duplication – database systems are designed in such a way that minimized
duplication of data. This means updating data in one department automatically makes it
available to the other departments
• Improved backup systems – with modern day technology, backups can be stored in the cloud
which makes it easy to recover the data if something happened to the hardware and software
used to store the data
• Easy access to information – most business executives need to travel and still be able to make
a decision based on the information. The web and Mobile technologies make accessing data
from anywhere possible.
Disadvantages:
• It is expensive to set up and configure – the organization has to buy hardware and the required
software to run the information system. In addition to that, business procedures will need to be
revised, and the staff will need to be trained on how to use the computerized information
system.
• Heavy reliance on technology – if something happens to the hardware or software that makes
it stop functioning, then the information cannot be accessed until the required hardware or
software has been replaced.
• Risk of fraud – if proper controls and checks are not in place, an intruder can post unauthorized
transactions such as an invoice for goods that were never delivered, etc.
Summary
• MIS is the acronym for Management Information System. It is a collection of people,
procedures, data, and information technology that aids managers to make informed decisions.
• Computerized information systems are more efficient compared to manual information systems.
Manual information systems are cheaper compared to computerized information systems.
• Transaction processing systems (TPS) are by operational staff to record day to day business
transactions, and they are used to make structured decisions
• Management Information Systems (MIS) are used by middle-level managers to make semi-
structured decisions
• Decision Support Systems are used by top level managers, and they help top level managers to
make unstructured decisions.

What is Management Information Systems

(MIS)?
Home » Accounting Dictionary » What is Management Information Systems (MIS)?
Definition: A Management Information System is a set of combined procedures that gathers and
produces reliable, relevant, and properly organized data that supports the decision making
process of an organization. To sum up, it is a group of processes through which data is obtained,
sorted, and displayed in a useful way for decision-making purposes.
What Does Management Information Systems Mean?
What is the definition of MIS? Management Information Systems are very useful tools for the
purpose of reviewing and controlling company’s operations. The main goal of these systems is to
organize all data collected from every level of the company, summarize it, and present it in a way that
facilitates and improve the quality of the decisions being made to increase the company’s profitability
and productivity.
These systems are typically are computer-based including either simple excel sheets or more complex
platforms. The information being collected and gathered for the system normally comes from both
inside and outside sources.
Let’s look an example and see how MIS works.

Example
Mr. Parson is the Chief Operations Officer (COO) at Bermuda Fabrics LLC. As part of his job, he
needs to forecast the next quarterly production plan, which includes an expected production quantity
for each of the products that the company sells. He needs a lot of information and statistics to come up
with a useful and reliable projection that captures the current business environment the company is
facing and the company’s capacity to manufacture within those parameters. How could a MIS help Mr.
Parson to develop these forecasts properly?
The system can provide all the different variables Mr. Parson needs to develop the forecast. He will
need to review production patterns, past sales, current equipment, and current suppliers. By the system
displaying all this information in a useful way, Mr. Parson will be able to design a forecasting model
(which can also be included on the system) that will allow him to plan for next quarter production.

Summary Definition
Define MIS: Management information system means a computer system designed to gather
information and display it in useful ways to aid decision makers.