Information Need & Objective
Information processing beyond doubt is the dominant industry of the present century. Following factors states few common factors that reflect on the needs and objectives of information processing:
Increasing impact of information processing for organizational decision making.
Dependency of services sector including banking, financial organization, health care, entertainment, tourism and travel, education and numerous others on information.
Changing employment scene world over, shifting base from manual agricultural to machine-based manufacturing and other industry related jobs.
Information revolution and the overall development scenario.
Growth of IT industry and its strategic importance.
Strong growth of information services fuelled by increasing competition and reduced product life cycle.
Need for sustainable development and quality life.
Improvement in communication and transportation brought in by use of information processing.
Use of information processing in reduction of energy consumption, reduction in pollution and a better ecological balance in future.
Use of information processing in land record managements, legal delivery system, educational institutions, natural resource planning, customer relation management and so on.
In a nutshell:
Information is needed to survive in the modern competitive world.
Information is needed to create strong information systems and keep these systems up to date.
Implications of Information in Business
Information processing has transformed our society in numerous ways. From a business perspective, there have been huge shift towards increasingly automated business processes and communication. Access to information and capability of information processing has helped in achieving greater efficiency in accounting and other business processes.
A complete business information system, accomplish the following functionalities:
Collection and storage of data
Transform these data into business information useful for decision making
Provide controls to safeguard data
Automate and streamline reporting
The following list summarizes the five main uses of information by businesses and other organizations:
Planning - at the planning stage information is the most important ingredient in decision making.Information at planning stage includes that of business resources, assets, liabilities, plants and machineries, properties, suppliers, customers, competitors, market and market dynamics, fiscal policy changes of the Government, emerging technologies etc.
Recording - business processing these days involve recording information about each transaction or event.This is information collected, stored and updated regularly at the operational level.
Controlling - a business need to set up an information filter, so that only filtered data is presented to the middle and top management. This ensures efficiency at the operational level and effectiveness at the tactical and strategic level.
Measuring - a business measures its performance metrics by collecting and analyzing sales data, cost of manufacturing and profit earned.
Decision-making - MIS is primarily concerned with managerial decision making, theory of organizational behavior and underlying human behavior in organizational context. Decision-making information includes the socioeconomic impact of competition, globalization, democratization and effects of all these factors on organizational structure.
In short, this multi-dimensional information evolves from the following logical foundations:
Operations research and management science
Theory of organizational behavior
Data and file structure
Data theory design and implementation
Expert systems and artificial intelligence
Following factors arising as outcome of information processing helps in speed up of business events and achieves greater efficiency:
Directly and immediate linkage to the system
Faster communication of an order
Electronic transfer of funds for faster payment
Electronically solicited pricing (helps in determining the best price)
MIS Need for Information Systems
Managers make decisions. Decision making generally takes a four-fold path:
Understanding the need for decision or the opportunity
Preparing alternative course of actions
Evaluating all alternative course of actions
Deciding the right path for implementation
MIS or Management Information System is an information system that provides information in the form of standardized reports and displays for the managers. MIS is a broad class of information systems designed to provide information needed for effective decision making.
Data and information created from an accounting information system and the reports generated thereon is used to provide accurate, timely and relevant information needed for effective decision making by managers.
Management information systems provide information to support management decision making, with the following goals:
Pre-specified and preplanned reporting to managers
Interactive and ad-hoc support for decision making
Critical information for top management
MIS is of vital importance to any organization, because:
It emphasizes on the management decision making, not only processing of data generated by business operations
It emphasizes on the systems framework that should be used for organizing information systems applications.