MIS: Full Form & Meaning
The term MIS stands for Management Information System. It is an effective system that helps decision-makers make the right choice to grow their business. And MIS reports are one of the components of this well-organised system.
What is MIS Report?
An MIS report is a part of a management information system that provides summarised information about an organisation’s business operations.
The report includes sales, profits, expenses, and other key business performance indicators. It also provides information on the status of key projects and initiatives. It helps managers make informed decisions about the company’s current and future direction.
What is the need for MIS?
There is a growing need for MIS in today’s business world. Here’s why:
- Decision Making: When making decisions, managers need to access accurate and up-to-date information. That’s where management information systems (MIS) come into play. MIS report provides the data and insights decision-makers need to make informed decisions.
- Makes communication easier: MIS systems make communication within and outside the organisation easier. Employees can easily access the information they need for day-to-day operations.
- Tracking records: Keeping records in place is an essential function of management information systems. They provide an accurate record of all business transactions and act as a reference point for future transactions. This allows businesses to track their progress and performance over time, which is essential for making decisions.
Components of MIS
The following are the main elements of a management information system:
- Users: Individuals who use the management system.
- Info: Data about the business is stored in the system.
- Business Methodologies: Established practices for gathering, storing, and analysing data.
- Applications: Programs that handle the data are called software. These consist of applications like database software, spreadsheet programmes, etc.
- Hardware: Workstations, servers, networking hardware, and printers fall under this category.
Types of Information System
- Process Control:
This system monitors a business’s physical or industrial processes, such as automobile assembly, petroleum processes, or metal fabrication. The process control system gathers data continuously and then provides a report on the system’s performance.
- Management Reporting System
The management Reporting system is designed to help managers compare their company’s performance with the past year’s performance and with the expected performance. This helps managers to see if their company is doing well or not.
- Marketing and Sales
The Marketing and Sales system helps a business in the following ways:
- Understand about advertising, discounts and pricing
- Take appropriate quality management measures
- Monitor the advertising schedules and stores
- Generates reports that show which products are selling the most in different stores.
- Decision Support System
A decision support system gathers information from both internal and external sources. For example, a manager uses a decision support system to decide how much to spend on advertising and how products can be marketed effectively.
- Expert System
The AI-based expert system is built in such a way that it can take in, store, and use the knowledge of a human expert on a specific topic to help people with less expertise make decisions.
- Executive Information System
The executive information system provides information in tables and charts, making it easy for managers to analyse data and make business decisions.
- Transaction Process System
A transaction process system’s responsibility is to gather and handle the data generated by routine business operations such as reservations, deposits, payments, and orders.
- Local Databases
Local databases offer comprehensive data on the populations spread throughout a nation. These databases use data from public records, integrated local service offerings, open business listings, and social survey responses.
- School Information Management System
Updating and managing student attendance records has become easier with the school information system. The system completes this task and frees up teachers’ time for other beneficial pursuits.
- Human Resource
The HR system keeps track of funds for things like retirement, benefits, and payroll. It also allows communication between employees, HR, and management by offering legal compliance notices and mandatory training events.
How do MIS Reports work?
MIS report consists of analysis that helps leaders obtain better insights by integrating data. Basically, MIS reports are a snapshot of collected data that help understand what has happened in the past, what is happening now, and if any patterns are emerging. They are typically prepared once a month but could be done more often depending on the information being collected and analysed.
For instance, a product management team wants to launch a new product and needs collective information on what is trending and how their previous products are performing. An MIS report will help the team in this case. With everything in one place, it is easier for leaders to make the right decision.
MIS report provides a concise view of various important parameters, including key financial performance, HR indicators, order tracking, customer satisfaction, and churn rates. As a result, it can serve as a powerful tool for identifying opportunities and making decisions.
How to generate MIS Reports in Excel?
Creating MIS Reports demands excellence in MS Excel or other spreadsheet tools. The data is typically presented in a tabular format, and the user can manipulate the data to generate the desired reports.
Here are the steps to create an MIS report:
- Data compilation: To create an accurate and informative report, raw data must be collected from various departments. Once this data is compiled, it needs to be structured in a way that is readable and easy to follow. This includes deciding on row and column headings.
- Segregation: Segregate the raw data and put them under respective headings. Apply filters to eliminate irrelevant data that won’t help you make decisions. This helps organisations focus on the data most relevant to your decision and make a more informed choice.
- Template creation: The goal is to have a completed dashboard template. This can be done by using Excel formulas and pivot tables. A new sheet should be created in the report, and the data should be moved to the depository sheet. Formulas can then show the final results in the dashboard template.
Important point: While creating a MIS report, ensure that your headings are formatted correctly. For example, the column for revenue should be in currency form. Also, check your formulas multiple times to prevent any mistakes.
FAQs about MIS
What are the different types of MIS reports?
There are various kinds, such as Accounting, Inventory, Financial and Management Control reports.
What is MIS full form?
MIS stands for Management Information System, and MIS reports help businesses to make better growth decisions.
What is the idea behind MIS reports?
Management Information systems(MIS) reports help businesses run better. They help businesses learn more about what is happening in the business, who is doing what and how things are working. Information systems can help a business make more money or save money.