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INTRODUCTION 1.1 MANAGEMENT INFORMATION SYSTEM (MIS) CONCEPT The concept of the MIS has evolved over a period of time comprising many different facets of the organizational function. MIS is a necessity of all the organizations. The initial concept of MIS was to process data from the organization and present it in the for of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are information and not a mass of data. However, the data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept be an individual- oriented, as each individual may have a different orientation. Towards the information. This concept was further modified,

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INTRODUCTION1.1 MANAGEMENT INFORMATION SYSTEM (MIS) CONCEPTThe concept of the MIS has evolved over a period of time comprising many different facets of the organizational function. MIS is a necessity of all the organizations. The initial concept of MIS was to process data from the organization and present it in the for of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are information and not a mass of data. However, the data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept be an individual- oriented, as each individual may have a different orientation. Towards the information. This concept was further modified, that the system should present information in such a form and format that it creates an impact on its user, provoking a decision or an investigation. It was later realized then even though such an impact was a welcome modification, some sort of selective approach was necessary in the analysis and reporting. Hence, the concept of exception reporting was imbibed in MIS. The norm for an exception. Was necessary to evolve in the organization. The concept remained valid till and to the extent that the norm for an exception remained true and effective. Since the Environment turns competitive and is ever changing, fixation of the norm for an exception becomes ka futile exercise at least for the people in the higher echelons of the organization. The concept was then evolved that the system should be capable of handling a need based exception reporting. This need maybe either of an individual or a group of people. This called for keeping all data together in such a form that it can be

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accessed by anybody and can be processed to suit his needs. The concept is that the data is one but it can be viewed by different individuals in different ways. This gave rise to the concept the MIS based on the DATABASE proved much more effective. Over a period of time, when this user of the information becoming independent of computer professionals. When this becomes a reality, the concept of MIS changed to a decision making system. The job in a computer department is to manage the information resource and leave the task of information processing to the user. The concept of MIS in today’s world is a system which handles the databases, databases, provides com-putting facilities to the end user and gives a variety of decision making tools to the user of the system. The concept of MIS gives high regard to the individual and his ability to use information. An MIS gives information through data analysis. While analyzing the data, it relies on many cadmic disciplines. These include the theories, principles and concepts from the managements Science, Psychology and Human Behavior, making the MID more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modeling and decision - making. The foundation of MIS is the principles of management and if its practices. MIS uses the concept of management Information System can be evolved for a specific objective if it is evolved after systematic planning and design. It calls for an analysis of a business, management views and policies, organization culture and the culture and the management style. The information should be generated in this setting and must be useful in managing the business. This is possible only when it in conceptualized as system with an appropriate design. The MIS, therefore, relies heavily on the systems theory offers solutions to handle the complex situations of the input and output flows. It uses theories of communication which helps to evolve a system design capable of handling data inputs, process, and outputs with the lest possible noise or distortion in transmitting the information form a source to a destination. It uses the principles of system Design, Viz., an ability of continuous adjustment or correction in the system in line with the environmental change in which the MIS operates. Such a design help to keep the MIS tuned with the business managements needs of the

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organization e conceptual developments were taking place, the concept of the end user computing using multiple databases emerged. This concept brought a fundamental charge in MIS.

1.2 MIS DEFINITION H. Weihrich and H.Koontz define MIS as a formal system of gathering , integrating, comparing and analyzing, and dispersing information inter and external to the enterprise in a timely, effective, and efficient manner.

HistoryKenneth and Jane Laudon identify five eras of Management Information System evolution corresponding to the 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

The first era (mainframe and minicomputer) 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 era (personal computer) 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

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a ready market for interconnecting networks and the popularization of the Internet.

As technological complexity increased and costs decreased, the need to share information within an enterprise also grew—giving rise to the third era (client/server), in which computers on a common network access shared information on a server. This lets thousands and even millions of people access data simultaneously. The fourth era (enterprise) enabled by high speed networks, tied all aspects of the business enterprise together offering rich information access encompassing the complete management structure. Every computer is utilized.

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

Since the MIS plays a very important role in the organization, it creates an impact on the organizations functions, performance and productivity. The impact of MIS on the functions is in its management. With a good support, the management of marking, finance, production and personnel become more efficient. The tracking and monitoring of the functional targets becomes easy. The functional, managers are informed about the progress, achievements and shortfalls in the probable trends in the various aspects of business. This helps in forecasting andlong- term perspective planning. The managers attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured data and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending analysis, saving the managers valuable time. The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary if

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data, entity and attributes, respectively, designed for information generation in the organization. Since all the information system use the dictionary, there is common understanding of terms and terminologyin the organization brining clarity in the communication and a similar understanding an even of the organization. The MIS calls for a systemization of the business operation for an affective system design.A well designed system with a focus on the manger makes an impact on the managerial efficiency. The fund of information motivates an enlightened manger to use a variety of tools of the management. It helps him to resort to such exercises as experimentation and modeling. The use of computers enables him to use the tools techniques which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improves the decision making ability considerably.

8 Characteristics of Good Management Information Systems

1. Understandable:

Since information is already in a summarized form, it must be understood by the receiver so that he will interpret it correctly. He must be able to decode any abbreviations, shorthand notations or any other acronyms contained in the information.

2. Relevant:

Information is good only if it is relevant. This means that it should be pertinent and meaningful to the decision maker and should be in his area of responsibility.

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3. COMPONENTS

MIS IS a computer system used for managing five primary components:

1. Hardware

2. Software

3. Data (information for decision making )

4. Procedures (design, development and documentation)

5. People (individuals, groups, or organizations)

4Complete:

It should contain all the facts that are necessary for the decision maker to satisfactorily solve the problem at hand using such information. Nothing important should be left out. Although information cannot always be complete, every reasonable effort should be made to obtain it.

5. Available:

Information may be useless if it is not readily accessible ‘ in the desired form, when it is needed. Advances in technology have made information more accessible today than ever before.

6. Reliable:

The information should be counted on to be trustworthy. It should be accurate, consistent with facts and verifiable. Inadequate or incorrect information generally leads to decisions of poor quality. For example,

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sales figures that have not been adjusted for returns and refunds are not reliable.

7 Concise:

Too much information is a big burden on management and cannot be processed in time and accurately due to “bounded rationality”. Bounded rationality determines the limits of the thinking process which cannot sort out and process large amounts of information. Accordingly, information should be to the point and just enough – no more, no less.

8. Timely:

Information must be delivered at the right time and the right place to the right person. Premature information can become obsolete or be forgotten by the time it is actually needed.

Similarly, some crucial decisions can be delayed because proper and necessary information is not available in time, resulting in missed opportunities. Accordingly the time gap between collection of data and the presentation of the proper information to the decision maker must be reduced as much as possible.

9.Professional Approach: There is a need to adopt professional approach towards MIS. The organization must select and train the MIS staff. The MIS data must be collected, classified, combined, compared analyzed and transmitted systematically to managers to take appropriate decisions relating to product

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Benefits of Management Information System for Business Development

Often the intangible benefits of system information management are the critical point in the course of business of a company's wheel. Because it is intangible, the following aspects are often overlooked or not detected.1. Increased customer satisfactionGood management information system will speed up the process so that, the time required to serve a customer can be faster.

2. Improved quantity and quality of informationInformation is an important component of business today. Who controls the information would act more responsive to changes and trends in the future.

Application of good information system will certainly generate reports compilation of data that is managed by qualified and comprehensive database. This can be achieved for each of the reporting process is executed automatically by computer machines.

3. Improved quality and quantity management decisionsIt is inevitable that any decision-making relies heavily on information that supports the policy to be taken. It can only be realized if information systems can provide information that is relevant, accurate, current and can be retrieved at any time

4. Improved quality and responsiveness number of the competitors'

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conditionAspects of business intelligence is very important since a long time with a variety of formats and needs. To reach the point of rapid and appropriate response on the dynamics of the competition will require information systems that can collect, analyze and compile the information needed by decision makers in the company.

5. Improved operational efficiency and flexibilityAll business owners would want these. The more efficient and flexibly an operational then this indicate the low cost to run it. This can be achieved due to cut the bureaucracy in the company after the implementation of good information systems.

6. Improved quality of internal and external communicationsA good information system must be supported by electronic data communication network systems that are reliable as well. With the application of good information systems, each party both inside and outside the company can exchange information more effectively and efficiently.

7. Improved quality of planningPlanning is an essential process for businesses. However, any plan that will be made then of course needed the support of adequate information into practice. If not then the plan may be disoriented and did not reach its target because of mistake information into its base.

8. Improved quality control and supervision.With the information system is built and maintained properly then any activity within the business environment can be constantly monitored. Monitoring is certainly an impact on improving control over every procedure and activities occurring within the company.

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Ten Tips to Building Competitive Advantage

1. Exercise Strategic Leadership: The top management team leading your company must develop a vision for the organization; obtain employee commitment to achieving that vision; and build effective relationships with key stakeholders (e.g., partners, customers and suppliers). At the same time, management must be a catalyst for change.

A good top management team has varied expertise and knowledge. Most importantly, top managers must learn to think in a nonlinear manner, in order to develop successful strategies when faced with new – and possibly contradictory – information

2. Leverage Core Competencies: One key to sustaining a competitive advantage is to develop a core set of competencies that customers want and that are difficult for others to imitate. These competencies can be exploited and leveraged to develop new products or to go after new markets. The ability to leverage core competencies across geographic and product business units helps firms to achieve economies of scale and scope.

3. Know You’re Marketplace: Provide employees with strong information and decision-support systems that enable them to develop strategies in response to market conditions. Your

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organization must have superior knowledge and understanding of your competitors, your customers and your customers’ perceptions of your products and/or services. Defining and measuring criteria, and then interpreting and communicating results, is crucial to the process.

4. Develop Customer Loyalty: Every business seeks satisfied customers who return again and again because they trust a company’s product or service. Their repeat business comes at a much lower cost to you than that of a customer who must be constantly enticed to continue buying.

In addition to working on core product and service attributes to build customer loyalty (such as treating each customer as a valued individual), businesses must work on such issues as instilling a helpful staff attitude, delivering on advertising promises, developing a favorable return policy and providing accurate product information.

5. Innovate Strategically: Whether you are a first or late mover, innovation creates sustainable advantage. The pioneering company plays a central role in defining both the concept and buyer preferences for a category. But if the originator doesn’t understand the market, a late mover can identify a superior but overlooked product position and undercut the pioneer. The key is innovation based on the market’s needs.

6. Engage in Growth Strategies: Identify opportunities such as geographic expansion or new target markets that will enable your company to grow. Enter those markets using the most effective method (e.g., strategic alliance, outsourcing, direct). Where risks are high and/or adequate internal resources are unavailable, search for a partner who can join in developing a cooperative venture. Select partners with complementary resources and appropriate strategic intent.

7. Attract and Retain Human Capital: Companies must start by

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investing appropriately to recruit and select top-quality employees. Then they must invest in training and development to continuously build employee skills and develop a corporate culture that promotes loyalty, commitment and cohesion. Finally, employees must be rewarded for skill development.

8. Make Effective Use of New Technology: Identify the newest and most effective technology relevant to your business (e.g., information technology, manufacturing technology). Make a commitment and allocate the resources to have the newest and best technology – and employees with the skills to use it.

9. Protect Intellectual Property: Products, technologies, business methods, patents, trademarks, copyrights and other forms of intellectual property can significantly enhance a company's ability to secure and defend sources of marketplace advantage, even in times of rapid technological change. Intellectual property is a means of creating a proprietary, defensible market advantage.

10. Stay Flexible: Sustaining competitive advantage requires a continuous rethinking of current strategic actions, organization structure, communication systems, corporate culture, asset deployment and investment strategies. In short, every aspect of a firm's operations must be examined frequently in order to maximize their long-term health. Strategic flexibility gives any firm the ability to respond quickly to changing conditions and thereby develop and/or maintain a significant competitive advantage.

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Barriers To development Of Strategic MIS

1.Traditional Management Philosophy:

Traditional managers are reluctant to adopt MIS system. Generally, traditional managers are satisfied with status quo. They are reluctant to adopt modern management systems such as MIS. The traditional managers consider systems as waste of money, effort and time.

2. Resource Crunch: development of strategic MIS requires lot of funds for people, equipments and processes. Several organizations’ face resource crunch even in the case of professional managed companies. There is always a need to cut costs.

3. Lack of Trained manpower: Successful development of strategic MIS requires trained manpower to collect, store, retrieve, analyze and transmit accurate and timely data to decision-makers. There is often dearth of skilled manpower to handle MIS operations.

4.Hgh Costs of Employee Training:Properly trained employees form an vital element of an MIS data, management decides to changes a process, re- training employees will usually be required. The

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length and depth of the training may vary, making it difficult to estimate the cost of this training. Management will also have to account for the lost productivity during this training period.

5. MIS flexibility: once MIS is installed in a company, it may prove to be an inflexible system. Making changes quickly to reflect fluctuating business operations may not be possible depending on the MIS style and functionality. Major business changes will require major changes to the MIS, leading to increased costs and downtime of information reporting.

6. Information Overload: MIS processes are designed to gather and collect relevant data for business decisions. MIS that collects too much information can lead to the management problem knows as the “paralysis of analysis”. Information overload may lead to the delay and inability of making right and timely decisions.

7. Problem Of Data Collection and Analysis: There may be a possibility of gathering inaccurate and faulty data. The data collected may be outdates as well. Also, data analysis may be a problem, especially when there are large mounds of data. Data analysis is more at risk especially when the MIS analysis staff inadequately trained.

8. Time Factor: Lot of time is required for creating and

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updating MIS. This may create delays in decision making as timely data may not be presented to decision- makers.