Management Information System Notes

A computer-based system providing up-to-date information to management.
Linked via a network to share data and resources.
Designed to capture, transmit, store, retrieve, manipulate, and display information.
Outputs information usable at all organizational levels.
Management Information System (MIS) serves predictable management functions.
MIS administration falls under the MIS or IT department.
ERP and EIS offer enhanced functionality compared to traditional MIS.

Originally referred to the central processing unit of a large computer.
Designed for batch processing, later retrofitted for interactive use.
Experienced a resurgence in the 1990s due to superior performance, reliability and scalability.

Facilitates faster information exchange via web-based systems (intranets, extranets).
Enables real-time information exchange through web-casting and video conferencing.
Mobile computing technologies offer further modes of communication.

Design is based on factors like cost, number of users, modularity, ease of integration, information volume, and computing power.
Hardware should balance current needs with future requirements.
System downtime should be minimized to avoid costs and customer inconvenience.
User access to information should be controlled through user-level permissions and passwords.
The OSI Seven-Layer Model helps partition computer networks into independent modules.
Effective communication between IS staff and system users is crucial.
IS should have a centralized help desk for user assistance.

Crucial aspects include accounting, financial, manufacturing, marketing, and human resources data.
The system serves as a library, making stored data accessible and current.

Software or hardware for sharing data and information internally and externally.
Enable information exchange and resource searching.

Analyzing empirical data to extrapolate information for forecasting and trend identification.

Allow users to find needed information; a common weak point is communication between the MIS department and users.
Intelligent agents customize information flow through sorting and filtering to suit individual needs.

Use technology to support the business and facilitate communication.
Seek strategic advantages in areas like order placement and inventory management.
Use the system to measure and benchmark performance.
People are the most important component.
The system must be usable for the organization’s personnel.
Pairing the IS department with a training department can bridge the gap between technical staff and non-technical users.
Identify and train employees likely to adapt to the system.

Charles Xavier Thomas credited with starting the calculating machine industry in the 1870s.
Early innovators included Frank Baldwin and Williams S. Burroughs.
Mechanical and electronic adding machines dominated until the mid-1900s.
Examples include Unit record, Tabulating, Billing, and Calculating machines.
ATMs and POS devices added in the 1980s.
Computers integrated many devices, rendering older machines obsolete.

A tool managers can use to assist them in generating information.
An electronic device capable of accepting, interpreting, performing operations on, and reporting data.
John Von Newman (1946) summarized a modern computer:
- Processing of data instructions using programs.
- Binary codes to represent data and instructions.
Early accounting machines combined typewriters and calculators.
Newer machines are often computer-operated.

Computers encompass most mechanical machines into one efficient device.
$accurate\ record\ keeping$ is critical due to minute-by-minute financial changes.

Computerization allows same-day billing, prepares invoices, handles payments, and identifies delinquent customers.
Provides daily cases control and avoids billing errors.

Provides purchase order control, invoice processing, payment selection, cheque writing, and cash requirement forecasting.

Tracks inventory for costing and tax purposes, controls purchasing, and minimizes investment.

Processes payroll checks, including deductions, and integrates with the general ledger.

Captures sales information at the cash register, produces sales slips, and reports on items and customers.

Generates purchase orders, tracks fulfillment, and identifies vendor performance.

Reduces manual work, simplifies billing, and provides criteria to analyze staff performance.

Advancements in technology and information systems have transformed traditional business activities.
Reduces the pressure on departments like finance and accounting.
Operational costs have drastically reduced, especially for entities embracing IT.