What are the five benefits of implementing an information system?

A managed information system (MIS) is simply a computerized database of monetary advice structured and programmed such a way it creates reviews on work details for every department inside any organization. It gives exceptional reviews from your work readily.

The primary aim of this MIS will always be to offer directors opinions regarding their very own operation; high direction may track the corporation for a complete. MIS typically shows “real” data over against “planned” results from a year before; thus, it measures progress against the agenda. Therefore, it steps growth from aims. Even the Managed Information System gets info from corporation functions and units.

A few of the info are accumulated instantly from computer-linked check-out counters; many others have been keyed at regular periods. Regular reports have been run and interrogate in intervals or on requirement while some have been accessed with built-in subject formats; exhibit purposes assembled in the machine have been employed by professionals to test rank in desk-side computers attached to the MIS through programs. Most complex methods additionally track and monitor the operation of the provider’s stock exchange.

What is the importance of MIS?

The following are some important points for having a Management Information System:

• Making an effective decision management information system makes it possible for all decision-makers.
• MIS systems can be used inside and outside the organization and employees inside the organization are able to easily access the required information in their everyday operations.
• SMS and Email in the organization make it possible to communicate with customers from the MIS systems.
• Record Management, all the business transactions of an organization are recorded by management information systems and provides a reference point for all transactions.

What are the features of MIS?

The major components of a typical management information system are;

• People — people who use the information system Data — the data that the information system records
• Business Procedures — procedures put in place on how to record, store and analyze data
• Hardware — these include servers, workstations, networking equipment, printers, etc.
• Software — these are programs that handle data. Programs such as spreadsheet programs, database software, etc are included.

Information System types:

The information that a user uses depends on the organization level. Below diagram depicts the three major levels of users in the organization:

Types of Management Information Systems

• Transaction Processing Systems (TPS):

TPS is used to document the day by day transactions of a business. Point of Sale (POS) system is a good example of a Transaction Processing System. A POS system can be utilized to record everyday earnings.

• Management Information Systems (MIS):

Management Information Systems have been utilized to direct managers to make semi-structured decisions. MIS system uses the output of the programs as input.

Decision support systems are traditionally utilized by leading managers to make semi-structured selections. Decision Support System techniques additionally secure info input signals from outside sources like economy forces, rivalry, etc.

Advantages and Disadvantages of Management Information Systems

• Helps to achieve a higher level of efficiency:

The managers who manage their team or the whole organization they usually have to identify organizations’ strengths and weaknesses.

• Improves the quality of decisions:

Managers could make more rational decisions based on raw and reliable information based on the data they have.

• Promotes better communications between departments in an organization:

When everyone in the company shares the same information, then the scope is they have better communication between them due to which they can identify problem areas and they can sort it out.

• Improves employee productivity:

Employees save their productivity time as they don’t have to gather the data asked by management

• Strengthens a company’s competitive advantage:

By removing all weaknesses and non-performing areas boosts the company’s competitiveness over its rivals.

• Reveals more data about customers:

The more the data about the requirements about the customers, management is better able to improve customer service and can think more effective marketing and promotional campaigns.

Disadvantages of Management Information System:

• Highly sensitive data or information requires constant monitoring.
• Budgeting of MIS extremely difficult.
• Quality of outputs governed by the quality of inputs.
• Lack of flexibility to update it.
• Effectiveness decreases if there are any frequent changes in top management.
• On account only qualitative factors and ignores non-qualitative factors like morale of the employee, the attitude of the employee, etc.
• Unemployment and lack of job security.
• Dominant culture.

Click to read more about the advantages and disadvantages of MIS

Escapade Technologies a software company based in Hyderabad has worked with many organizations and created customized tailor-made MIS applications for different departments.