Types of Management Information System for Bangladesh Users
Is it possible for a company to track data of 5000 employees and 400,000 customers and analyze their data manually in a short span of time? It will kill valuable times and most importantly you can never make the right decision on time. In this modern era, you need to grab more data faster than anyone. In the business decision making process, information is the king. The more accurate timely information you get, the better.
What is a Management Information System?
Management information system can help you with that. It is a system that covers a large number of specialized systems. It allows you to get a well sorted dataset of customers, employees, competitors and many other things to make a well planned strategy and to supervise the project.
Companies are using MIS to outperform their competitors. It is widely used in different industries. So to penetrate into a new market or to survive the competition in this challenging world, any sort of company needs MIS support.
You may get confused with ERP, MIS, ITES and IT. They are all connected with one another in different dimensions.
Enterprise Resource Planning: ERP ensures that all departmental systems are integrated. MIS uses ERP to get access to data security sites and to create reports.
IT Management: The purpose of Information Technology is the installation and maintenance of hardware and software that are parts of the MIS.
ERP, IT and MIS influence the decision of E-Commerce. E-Commerce itself creates valuable data of which product category is the most successful, customer preference, how much time did it take to ship the product, how much costly is it to ship the product. It also indirectly says whether the customer service is good or not. MIS helps create these reports and also show the area to improve.
Management information systems deals with computers and computing in a business environment. Computer science focuses on the machine. Management Information Systems focuses on how Information Technology can support the strategy and operation of the
This concept explains what computers can do in MIS, how people process information, and how to make it accessible and up-to-date in the best possible way.
Besides computer science, there are fields of study that are deeply connected with MIS, both at the theoretical and practical levels:
- Information Systems (IS): Information Systems puts a greater emphasis on tools, while MIS gives more emphasis on business processes and operations.
- Information Technology (IT): IT focuses solely on computers unlike various software.
- Informatics: It is a discipline that comprises software engineering, information systems development, and networking.
- Electrical Engineering and Computer Engineering: These fields pay attention to the development and improvement of hardware and software. MIS helps the management to determine the practical and theoretical implications of these changes.
History of Management Information Systems
The tools and technology used in MIS has undergone several evolutions. MIS Is well-known on this topic, have identified six eras in the field.
After the end of an era, the previous era’s hardware continued to be used. For instance, mainframes are still used today.
From Ledgers to Flash Memory:
When business transactions were all recorded in a bound ledger, tallying and tracking took a lot of time. In the late 1800s, punch cards brought a dramatic change as it was the beginning of process automation. Associated machines tabulated the punch card data and printed results, which enable easy capture of transactions. IBM was founded in the early 1900s and became a leader in business machines and punch cards. These cards evolved from a solution to automated pattern creation into weaving machines. The company adopted the idea to store and input data for applications for simple to complex usage. After the 2nd world war general purpose computers became available. Then punch cards became an input method and a way to store output.
Later, tapes and floppy disks took over the storage of input and output and computers could read and write directly to their own memory. In the next phase, CDs and DVDs was introduced which could store much more data. Now we are adapting the flash memory. Flash memory has a higher capacity and is less volatile. You can reuse it with little degradation in quality.
Each of these periods brought an increase in storage capacity and made the use of technology more affordable. As the computing power of computers is increasing, more powerful software’s, almost ubiquitous connectivity via Wi-Fi and mobile devices, and ever expanding networking that evolved into the internet, work that took many hours before these evolution now takes little time or human effort.
Information technology and MIS were used interchangeably. Task automation expanded the area of work which fell under MIS. At the same time, the area of IT expanded more, and now it encompases beyond MIS, such as cyber security and network administration.
Categories of Management Information Systems:
Management information systems comprise several specialized systems. 10 major types are given below:
- Executive Information System (EIS): It gives easy access to internal and external information relevant to organizational goals with graphical display and easy-to-use user interfaces for senior management which helps them to make decisions that affect the organization.
- Marketing Information System(MkIS): Marketing teams use MkIS to report on the performance of the past and current campaigns and use the lessons to plan better for future campaigns.
- Business Intelligence System (BIS): It gives easy and in depth access to internal information relevant to organizational goals to the lower level of managers and senior managers. It allows to make decisions based on the collection, integration and analysis of the collected data and information.
- Customer Relationship Management System(CRM): A CRM system stores information about customers. It collects information about customers, sales, contact information etc the criteria of which are pre-determined. Marketing, Customer Service, Sales and Business Development Teams are the users of CRM.
- Sales Force Automation System (SFA): An automated specialized component of a CRM system that is manually done by a sales team such as lead tracking, contact management, order management etc.
- Transaction Processing System(TPS): An MIS that deals with business transactions involving the collection, modification and retrieval of all transaction data.
- Knowledge Management System(KMS): It is a system that enables employees and customers to create, share and find relevant information quickly. Customer service often uses it to answer questions and troubleshoot problems.
- Financial Accounting System (FAS): It is specific to departments dealing with finances and accounting, such as accounts payable (AP) and accounts receivable (AR).
- Human Resource Management System (HRMS): The employee performance record and payroll data are tracked by this system.
- Supply Chain Management System (SCM): SCM tracks the flow of resources, materials, and services from purchase until final products are handed over to the customers.
Types of MIS Reports
MIA was created to store data and create reports that business professionals can use to analyze and make decisions. There are three major types of MIS reports:
Scheduled: It is created on a regular basis. It allows businesses to analyze data and make decisions over time. For example: An airline can see the percentage of lost luggage by month; a retail chain can compare sales figures from different stores.
Ad-hoc: These reports are created by a user to answer a question. Depending on the usefulness, these reports can be turned into scheduled reports.
Real-time: You can monitor the live performance every second. A manager can take necessary decisions before it is too late.
Couple of years ago, many companies survived and did very well without MIS but now computer based information systems are essential to the survival of any organization.
There are some key advantages of effective use of MIS:
- It gives a proper overview of the entire operation.
- Manager will get the feedback and track their performance.
- Business can figure out which segment of their business is working and which is not. It helps to make timely decisions.
- Managers can find the difference between expected results and real results.
Management Information Systems in Healthcare Organizations
Healthcare companies are evolving. Now there are many competitors. Without right data, these companies won’t be able to bring the right service to the customers. They need treatment data, patient information etc. Healthcare organizations need to gain access into more critical information anytime anywhere from one system to avoid complexity. The companies must abide by privacy acts and other regulatory requirements. They organization must ensure that their MIS is secured and the entire process must be transparent.
Benefits of Using Management Information Systems
Benefit of MIS:
Payroll Bangladesh uses MIS to deal with taxation, timely payment, attendance and leave management, fund management, loan management etc.
MIS reduces the unproductive but harmful burden of the HR Department. Without timely payment employee satisfaction reduces to zero level.
Payroll Bangladesh uses biometric and app based automated attendance systems.
As Payroll Bangladesh uses MIS, top managers can get access to this information in one point.
Payroll Service in MIS
Payroll service is a part of MIS. Payroll deals with taxation, employee recognition, attendance and leave, loan management, salary payment, fund management etc. All employees may not be able to calculate their income tax properly. In this case, Payroll service becomes a great help. Payroll service ease the burden of the HR Department which improves employee satisfaction. MIS integrates Payroll Service with another database which allows integrated and well coordinated decision making from the decision makers.