importance of management information system

You can use information systems to gain a cost advantage over competitors or to differentiate yourself by offering better customer service. It must be obtained processed, stored, manipulated and analyzed, distributed etc. For each possibility, the system can calculate key indicators such as sales, costs and profits to help you determine which alternative gives the most beneficial result. Communication: With a comprehensive information system, you should be able to communicate with others through various formats, from chat to video chats and even hold conference calls. The importance of management information systems lies in its ability to serve as a database for all company information. This has further enhanced the necessity for such a system. Information is one of the most useful resources of a business organization. The objective of post-retirement life should be to lead an active an meaningful, healthy life, without suffering from the consequences of scarcity of resources. Each business activity of a particular business process requires generating inputted data to provide some form of output or convert to something usable. MIS has assumed all the more important role in today’s environment because a manager has to take decisions under two main challenges: First, because of the liberalization and globalization, in which organizations are required to compete not locally but globally, a manager has to take quick decisions, otherwise his business will be taken away by his competitors. It has been well understood that MIS enables even small organizations to more than offset the economies of scale enjoyed by their bigger competitors and thus helps in providing a competitive edge over other organizations. A good records management program (e.g. [Multiply that by 30% to 50% of the records in an office that doesn't have a records management program in place], and there is an opportunity to effect some cost savings in space and equipment, and an opportunity to utilize staff more productively - just by implementing a records management program. More recently, after starting his own business in IT, he helped organize an online community for which he wrote and edited articles as managing editor, business and economics. @media(min-width:300px) {.flip_top {width:300px;height:250px;}} Since the decision-making is not restricted to a particular level, the MIS is expected to support all the levels of the management in conducting the business operations. The MIS are subsystem of business system and by themselves serve the function of feedback and control in business system. MIS is not new, only the computerization is new , before computers MIS techniques existed to supply managers with the information that would permit them to plan and control business operations. This MIS has a direct impact on this overhead. Unless the MIS becomes a management aid, it is not useful to the organization. A business office with files, documents and financial data askew, stacked on top of file cabinets and in boxes everywhere, creates a poor working environment. (adsbygoogle = window.adsbygoogle || []).push({}); There is no doubt that computers and information systems have become essential parts of every business today to provide timely, accurate and updated information which facilitates greatly in the smooth functioning of a business as well as effective decision making process. Information is viewed as a resource much like land, labor and capital. Every business day, you create the records, which could become background data for future management decisions and planning. The system ensures that an appropriate data is collected from the various sources, processed and send further to all the needy destinations. Effective communication skills are very much required in every domain of the business and the same goes for accounting. For example, a consistently applied records management program can reduce the liabilities associated with document disposal by providing for their systematic, routine disposal in the normal course of business. The Positive Impact of Information Systems. In other words, organizations today just cannot survive and grow without properly planned, designed, implemented and maintained MIS. Organizations have multiple functional systems, such as, financial systems, inventory systems, sales systems, hr management system or logistic system etc. The need and importance of management information systems may be understood in the fact that in the absence of latest and accurate information, the growth and smooth functioning state of a business organization can be highly affected. If the management is able to spell out the decision required to be taken, then the MIS is designed suitably. A decision involves choosing a course of action from several alternatives and carrying out the corresponding tasks. Information systems can offer more complete and more recent information, allowing you to operate your company more efficiently. And so the updated information is essential in business for various purposes. 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