Management Information System or (MIS) is one of the mainstream Computer-Based Information Systems (CBIS). Here we have information systems that enhance the various processes on data, which makes it a useful asset for the growth of the organization as well as cater to the ever-growing needs of the users.
When we talk about management, we have to make specific tasks done at a correct cost, place, and schedule to direct and achieve all the managerial functions.
Elements of Management of information in chronological order are: –
We know that when facts get filtered by passing through specific processes, they give rise to information.
Information gets classified in many forms, and it is to us that how do we make comprehensive information.
A question arises of why one should study MIS. Anyone who aspires to be instrumental in the management, a vital component of any successful business lies in the application of MIS.
Management Information System gives a holistic report of processed information, which allows management to make crucial decisions useful for strategy and tactics.
It helps Organizations to formulate decision support systems, expert systems, and executive information systems.
Types of MIS are: –
- Decision Support Systems (DSS)
- Executive Information Systems (EIS)
- Marketing Information Systems
- Office Automation System (OAS)
MIS has a pyramidal structure and has four levels of information resources. Levels of information are dependent on the organizational structure, and here we see the hierarchy of making decisions.
- The top-level is entitled to strategic planning and policymaking at the apex level of any organization.
- The second level helps in tactical planning and decision making and oversees management control.
- The third level supports day-to-day operations and control.
- The fourth level consists of information and transaction processing.
We also have a criterion for MIS so that it is well suited for further use; these criteria are: –
- Relevance: – Relevance of information for decision-makers is the starting point for any policy to be formed and implemented.
- Management: – Precise information enhances decision-making capabilities among Managers.
- Accuracy: – Extracted information should be updated, relevant and validated
- Timeliness: – Information at the right timing should be provided for timely decisions.
- Adaptability: – Here, we require the information system to be capable of re-enforcing better and newer techniques to adapt to ever-changing requirements.
It is particular to notice what is the role of the Information System in current business scenarios. As we have seen, there is a race for businesses to go online to be more approachable to grab more prominent and better opportunities.
We have core business processes that get accomplished through digital networks, and these digital firms also offer greater flexibility in organization and management.
There has been an enormous boost in investment for the information system to achieve six strategic business objectives, namely: –
- Operational excellence
- New products, services, and business models
- Customer and supplier intimacy
- Improved decision making
- Competitive advantage
- Survival in the market through new prospects.
MIS is also fundamental in Major Enterprise Applications as provides a range of applications that includes:
- Online shopping, billing and payment processing
- Content Management
- Customer relationship management
- IT services management
- Interactive product catalog
- Business intelligence management
- Form automation
- Manufacturing and other business processes integration.
Now there is always a need to have an application to run Management Information System let us cover some of them: –
- Enterprise Resource Planning (ERP)
- Knowledge Management System (KMS)
- Executive Support System (ESS)
- Business Intelligence System (BIS)