CHAPTER 2
THEORETICAL FOUNDATION
them, it is important to be able to fully differentiate MIS from AIS to understand
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each their essence, function, and purpose. The explanation covers the definition
and objectives of MIS, and their general relationship with AIS.
2.1.3.1. Definition of MIS
Based on
Laudon
and
Laudon
(2004,
p.
16),
MIS
is
the
study
of
information
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systems focusing on their use in business and management. They serve the
management
level
of
the organization,
like
providing
managers
with
reports of
the organization’s current performance and historical records. MIS are internally
oriented, not environmental nor external.
MIS principally serve the functions of planning, controlling, and decision-
making at the management level. In general, they depend on fundamental TPSs
for
their
data since MIS summarize
and
report on the
firm’s
basic
operations.
They have regular schedule in generating the reports, such as weekly, monthly,
and yearly results-not day-to-day activities. Most MIS use simple routines such
as summaries and comparisons, rather than sophisticated mathematical models or
statistical techniques. MIS report both non-financial and financial information.
2.1.3.2. Objectives of MIS
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