COMPUTERS - Information Technology in Perspective

11th Edition - Larry Long & Nancy Long

Chapter 10 - Information Systems

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Management Information Systems (MIS)

What is a Management of Information System?

A management information system, or MIS, is a computer-based system that optimizes the collection, transfer, and presentation of information throughout an organization by using an integrated structure of databases and information flow. (Reference - Long & Long)

An MIS has been called a method, a function, an approach, a process, an organization, a system, and a subsystem.

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The MIS versus the Data Processing System

Data processing systems, or DP systems, are concerned with transaction handling and record-keeping, usually for a particular functional area.

Here are a few differences between an MIS and a DP system:

1. The integrated database of an MIS enables greater flexibility in meeting the information needs of management.
2. An MIS integrates the information flow between functional areas (accounting, marketing, inventory management, etc.), whereas DP systems tend to support a single functional area.
3. An MIS caters to the information needs of all levels of management, whereas DP systems focus on the clerical and operational levels. 
4. Management's information needs are supported on a timelier basis with an MIS than they are with a DP system.  An MIS, for example, has online inquiry capability for the immediate generation of reports, whereas a DP system usually produces only scheduled reports.  (Reference - Long & Long)

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Characteristics of Management Information Systems

These are desirable characteristics of an MIS:

1. An MIS supports transaction handling and record keeping.
2. An MIS uses an integrated database and supports a variety of functional areas.
3. An MIS provides operational-, tactical-, and strategic-level managers with east access to timely but, for the most, structured information.
4. An MIS is somewhat flexible and can be adapted to meet the changing information needs of the organization.
5. An MIS can boost system security by limiting access to authorized personnel.  (Reference - Long & Long)

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The MIS in Action

• All major airlines rely on management information systems to assist in day-to-day operations and provide valuable information for short- and long-term planning. 
• At the core of such an MIS is the airline reservation subsystem.  Airline reservation agents and individuals scheduling their own flights interact with the MIS's integrated database via computer networks and/or the Internet to update the database the moment a seat on any flight is filled or becomes available.
• An airline MIS does much more than keep track of flight reservations.  It also closely monitors departure and arrival times so that ground crew activities can be coordinated.  The system even complies and produces many kinds of information needed by management such as the number of passengers, and profit per passenger on a particular flight.  (Reference - Long & Long)

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