Management Information System is basically an extension of Transaction Processing System. To understand MIS, it is very important to understand what a TPS is. This is because a MIS can not exist without a TPS. In extension to TPS, MIS provides additional reports and information to the middle and lower level managers of an entity.

MIS analyses past data and the current data to provide meaningful information to the user. Its basic function is to provide accurate and timely data to the managers which improves their quality of decision making in the day to day operations of the entity.

MIS are more often packaged based softwares (website based) rather than Proprietary Application Softwares.

Examples of MIS include Tally ERP, SAP-ERP, websites like flipkart and BookMyShow etc

Additional Reports Provided by MIS

MIS provides various additional reports to the user. These include:

Scheduled Reports

These are preselected information in a computer generated form in a timely manner. Examples of such reports can be monthly sales reports, quarterly employee turnover, and quarterly account statements of the entity.

Exceptional Reports

Exception refers to data which are outside the normal business perimeters and require the immediate action of the user.

For example, an MIS exception report could notify a store manager when his inventory is running low so that he can reorder supplies. For a large organization, a human resources exception report could flag unusual levels of sick days for certain employees and business units.

Key Indicator Reports

This information pertains to the money makers of an entity. These are critical information relating to a particular product, high ranking personnels, a particular market portion etc. This system gives a detailed report on the status of these Key indicators to take quick and effective decisions to the managers.

On demand Reports

On demand reports are as clear as it looks. This report can be used to use any information on the system at any time by the user. The user can view these reports instantly and thus proves very helpful for the manager to get practically any information he wants from the system and thus can take important decisions that ensures the smooth flow of operations in the entity.

Functions of MIS

MIS basically has the following functions:

• Capturing of Data
• Storage of Data
• Processing, calculation and analysis of Data
• Distribution of Data
• Prediction/ Forecasting of Data based on Trends

Thats all on MIS. If you have any queries, feel free to comment.

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