Importance Of Management Information System

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MANAGEMENT INFORMATION SYSTEM 1. Management information system is an organized portfolio of a formal system for obtaining, processing, and delivering information in support of the business operations and management of an organization. Types of Management system that is able to employ competitive advantage: • Transaction processing system for operational data processing that is desired, for example, to register consumer orders and to outturn invoices and payroll. • Management reporting systems competent of making reports for limited time periods, designed for managers culpable for limited functions in a firm. • Decision support system expressly designed for the support of individual and conjoint decision making. • Executive information…show more content…
Figure 1: level of management decision making 3. Value of Management Information System to companies The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of providing pure blood to all the elements of the body including the brain. The MIS plays exactly the same role in the organization. The system makes sure that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information required of an individual, a collective of individuals, the management functionaries: the managers and the top management. The MIS assist the clerical personnel in the transaction processing and answer their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS assist the middle management in short them planning, target setting and controlling the business functions. It is anchored by the use of the management tools of planning and…show more content…
With a good MIS support, the management of marketing, finance, yielding and personnel becomes more efficient, the finding and monitoring the functional targets becomes easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by producing certain information showing the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The manager'' attention is brought to a situation which is unique in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending and analysis, saving the manager's valuable time. The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is common understanding of terms and terminology in the organization bringing clarity in the communication and a similar understanding of an event in the
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