What are the steps in installing MIS?

Ans.

The steps are: 1. To know the needs regarding information 2. To explain the objectives of MIS 3. To determine the sources of information 4. To set the method of collection can classification of information 5. Method of giving information 6. Cost profit analysis 7. Evaluation.

1. To know the needs regarding information: First, an analytical study of that information is made which are needed for the external parties related to the organization viz., government, customers, suppliers, labor unions etc.

The needs of information are related with the size of organization, nature of business, financial position, state government policies and several other factors.

There are two methods to judge the needs of the information. First, the users of the information may be asked as to how much information they need to accomplish their task. Secondly, they should be asked as to how they take the decision and then judge what information should be provided to them.

2. To explain the objectives of MIS: The second step is to clearly define the objectives. Just monitoring to increase the efficiency is not sufficient. Objective should be clear in terms of what one will do with the information received by him. The size of the objectives is related with the planning, management control and continuous flow of information.

3. To determine the sources of information: After estimating the need of information and clearly defining the objectives, the third step in installation of MIS is to determine the sources of information. There are several sources. The internal sources of are accounts, files, statistical papers etc. and external sources are commercial and government publications. Information can also be collected by personal interviews and personal inspections.

4. To set the method of collection and classification of information: After determining the sources of information, the method of collection and classification of information is chalked out. It is decided what will be the source of information, frequency, quantity and time of information? After collection how it will be classified? Where computers are used the statistical information is feed into them, for which an outline is prepared?

5. Method of giving information: The next step is to determine the method of giving information. It is decided as to who the information is to be given, how many copies are to be prepared, when and what will be its frequency and in which form it is to be given. They can be communicated by reports, charts, statements or even orally.

6. Cost profit analysis: Finally, the cost to be incurred in information system should be assessed and the benefits should be estimated. The cost of information system includes the cost of its implementation, practicing it and its evaluation. These costs should be compared with the cost of present system of giving information.

7. Evaluation : Three to six months after implementation of management information system, it should be evaluated, so that, it can be judged whether the cost incurred in its implementation is less than the benefits derived from it and, also if it satisfies the needs of the persons using it. If it is not satisfactory, steps should be taken to make to more effective and useful.