Strategic Management: Formulation and Implementation

Management Information System (mis)

A management information system (MIS) is a computer based information system that produces routine reports and often allows online access to current and historical information needed by managers mainly at the middle and first line levels.

Researchers treat MIS as a broad concept including all of the organization systems that support the functional areas of the organization. However, Kenneth Laudon and Jane Price Laudon prefer to use computerbased information systems (CBIS) as the umbrella term for all information systems and to consider management information systems as those specifically dedicated to managementlevel functions.

Most contemporary organizations contain three kinds of MIS. The three different types of MIS are strategic business unit MIS, which support a single division or business unit, coordinating MIS; and policy/planning MIS. Figure 89 shows where each of these MIS fit into the organization.

Decision Support Systems (dds)

A decision support system (DDS) is a computerbased information system that supports the process of managerial decision making when these decisions are semistructured, unique, rapidly changing, and not specified easily in advance.

The difference between DSS and other systems and the ideal configuration of DSS systems are described in Figure 810.

Distinguishing between an MIS and a DSS is not always easy. A MIS usually reports summaries of basic business transactions; it uses simple analytical tools and solves structured, repetitive problems; its output is usually routine reports. A DSS, on the other hand, uses more sophisticated analytical and data modelling tools to solve semistructured problems. It provides data and models for decision making and provides interactive answers to nonroutine questions.