Management Information System is the study of people, technology, organizations, and their relationships. MIS specialists assist businesses in getting the most out of their investments. MIS is a people-focused industry with a focus on providing services using technology.
Management information system(MIS) is used for decision-making, and coordination. It is also used to control, analyze, and visualize information inside an organization.
MIS is a tool for gathering, organizing, processing, and analyzing business data . This produces insight that can be used to make decisions. A company’s MIS is more sophisticated if its operations are complicated. MIS is utilized to increase the efficiency of report generation and data analysis. This is by gathering data gotten by staff members and keeping it in a uniform and accessible way.
The most recent MIS operations make use of cloud and are able to track productivity. They respond to data-related questions, and highlight data that matches current requirements. Depending on the size of the firm, it might have a MIS department with a group of skilled IT specialists. These specialists handle its complicated data management requirements. Many of the company’s other employees may be able to view and use the MIS data in addition to the decision-makers.
Objectives of Management Information System (MIS)
In this training, you will learn about the objectives of the MIS.
You will better understand the main goals of the MIS thanks to this training.
MIS, as its name suggests, is a system that controls all of all organization’s data and information. Planning, controlling, and overseeing an organization’s operations are all included in management. It aids management in operating, regulating, and planning. The main goal of MIS is to make information available to all corporate resources. This enables them to act immediately and without delay.
It is a system that collects data from an organization’s internal sources. It distributes information to the managers to help them with the decision-making.
Information or processed data must be kept on hand for future use.
When various users need it, the data should be accessed from storage devices.
Users of the corporate network should receive data on a regular basis.
MIS manages management functions to give management quick access to information. The method for making judgments is very efficient.
MIS combines the corporate organizational structure and business processes to enhance enterprise control. It optimizes the competitive advantage potential of the information system.
Graphical reports – give a sense of how the organization’s various resources are performing.
Controlling the organization
MIS controls the organization by supplying the most recent information and historical data.
Standard and budgeted performance
MIS highlights deviations that can be fixed by taking corrective action. This is by comparing actual performance to standards and budgets.
The ability of the organization’s management to use opportunities is informed by MIS.
The manager’s decision-making plays the main role. It lets management people make decisions based on the information being processed. Only input data change, it is an acceptable repeat to support forms of decision-making. Automation capabilities of MIS can improve your company’s performance.
MIS is the mechanism that provides the managers with the necessary data. It equips them with the tools they need to make decisions. Managers use MIS as a tool to pinpoint the problems they are facing. Managers can comprehend problems and develop solutions with the use of MIS.
MIS can to collect and store data from departments, producing reports that your staff can use . MIS enhance business performance and support decision-making
Benefits of Management Information System
The benefits of MIS in business can include the following:
- It generates analytical reports
MIS organizes and analyzes data and use it to generate informative reports. With these reports, the organization’s management can check its performance. It also identifies new business opportunities. MIS can form plans to improve organization’s processes and increase its production efficiency.
- It allows real-time performance reports
By receiving performance reports in real-time, the organization become dynamic in its operations. Its employees may be able to discover and respond to opportunities more . They may also detect potential threats and find appropriate solutions to avoid them. Additionally, work productivity improves when everyone is better-informed about the business operations.
- It compares projections and performances
Organizations set business goals and make business and financial forecasts. For that, they must compare them with actual performances. An MIS facilitates performance reviews and accurate comparisons with the projections. That can enable the management to make better business decisions.
- It improves internal communication
It can ease communication between different employees and departments of the organization. They can share relevant and timely business information, particularly about interdepartmental work. That can prevent work delays or misuse of resources due to any misunderstanding.
- It aids the work allocation process
MIS assists management to make better decisions on allocation of staff and resources. They can review the performance reports of employees and identify the best performer. They can transfer the best employees to the high-performing departments. This enhances work productivity and increases business results. They can also arrange for training programs to improve employee performance.
Types of MIS
Here are some that many companies use for their business operations. These MIS address information requirements of different organizations
Decision support system
A decision support system is a type of business intelligence system. It collects valuable industry information from surveys, research studies and user behavior analyses. An organization’s decision-makers review this data and use it to make accurate decisions. These decisions can lead to better business development in the future. If they want to buy the best raw materials at low prices, they refer to the decision support system. They can compare different suppliers and compile a list of those with lower prices.
Inventory control system
Inventory is concerned with the storage of raw materials for production purposes. It also ensures storage of manufactured goods ready for sale. Success of every product-based business depends on the proper management of its inventory. The inventory control system facilitates this process. It can help organizations keep track of their purchases and stored raw materials. It can arrange raw materials according to type, expiry date, use and price. It can track the total number of products manufactured in a given time and the warehousing. It also tracks storage of finished goods, sales turnover, refunds and reorders
Sales and marketing systems
Organizations use sales and marketing systems to stay informed about product development. It assists in sales distribution channels, marketing strategies, marketing costs and product pricing. They can track existing and new clients and sales for a given timeframe and specific region. Based on these, they can also make future sales predictions.
Human resource system
Organization’s employees are an important resource that help a firm to stay competitive. Human resource system assists the HR department to store relevant data on employees. This makes it easier to track their skills, job positions, duties, work performances. salaries, bonuses and other details. It can also enable managers to communicate with the employees. Additionally, it can aid them in undertaking new recruitment drives by storing information. It also short-lists the ones with the desired skills and schedule interviews.
Transaction processing system
A transaction process system is invaluable for collecting, storing and modifying data. It also retrieves large amounts of business transactional data. It can undertake transaction processing in real-time and maintain it for years. Organizations calculate and track their expenses and profits. This is as a result of having ready access to all their transactional data. They can also keep track of their orders, reorders, cancelled orders and refunds. The payroll systems are an example of a transaction processing system
Enterprise resource planning system
Enterprise resource planning system assists product-based organizations to function It acts as an organization’s main information centre. It makes use of a central database to collect, store, process, update and share information. This allows its management to access, standardize and synchronize all the relevant information.
They can use this system to develop new products and divide raw materials. and human resources. It also helps restock the inventory improve the manufacturing process and boost productivity.
Executive information system
Top executives and managers use an executive information system to view existing data. This data stored in a database is relevant for executive decision-making. The system has a simple interface and is easy to use. Executive information system presents data in a graphical form. This helps users analyze data and predict market trends well.