The Ultimate Deal On WHAT IS MANAGEMENT INFORMATION SYSTEM | Needs | Component

What is Management Information System (MIS)?

A management information system (MIS) is a computer system consisting of hardware and software that serves as the backbone of an organization's operations. An MIS gathers data from multiple online systems, analyzes the information, and reports data to aid in management decision-making.

MIS is also the study of how such systems work.

The need for MIS

The following are some of the justifications for having an MIS system

• Decision makers need information to make effective decisions. Management Information Systems (MIS) make this possible.

• MIS systems facilitate communication within and outside the organization – employees within the organization are able to easily access the required information for the day to day operations. Facilitates such as Short Message Service (SMS) & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.

• Record keeping – management information systems record all business transactions of an organization and provide a reference point for the transactions.

Components of MIS

The major components of a typical MIS long-form 

• 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 used to handle the data. These include programs such as spreadsheet programs, database software, etc.

Terminology

The terms management information systems (MIS), information management systems (IMS), information system (IS) , enterprise resource planning (ERP), computer science, electrical computer engineering, and information technology management (IT) are often confused. MIS is a hierarchical subset of information systems. MIS are more organization-focused narrowing in on leveraging information technology to increase business value. Computer science is more software-focused dealing with the applications that may be used in MIS. Electrical computer engineering is product-focused mainly dealing with the architecture behind computer systems. ERP software is a subset of MIS and IT management refers to the technical management of an IT department which may include MIS.

A career in MIS focuses on understanding and projecting the practical use of management information systems. It studies the interaction, organization and processes among technology, people and information to solve problems.

Management

While management information systems can be used by any and every level of management, the decision of which systems to implement generally falls upon the chief information officers (CIO) and chief technology officers (CTO). These officers are generally responsible for the overall technology strategy of an organization including evaluating how new technology can help their organization. They act as decision makers in the implementation process of new MIS.

Once decisions have been made, IT directors, including MIS directors, are in charge of the technical implementation of the system. They are also in charge of implementing the policies affecting the MIS (either new specific policies passed down by the CIOs or CTOs or policies that align the new systems with the organizations overall IT policy). It is also their role to ensure the availability of data and network services as well as the security of the data involved by coordinating IT activities.

Upon implementation, the assigned users will have the appropriate access to relevant information. It is important to note that not everyone inputting data into MIS need necessarily be management level. It is common practice to have inputs to MIS be inputted by non-managerial employees though they rarely have access to the reports and decision support platforms offered by these systems.

Enterprise applications

• Enterprise systems—also known as enterprise resource planning (ERP) systems—provide integrated software modules and a unified database that personnel use to plan, manage, and control core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management, and distribution.
• Supply chain management (SCM) systems enable more efficient management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturers, wholesalers, retailers, and final customers.
• Customer relationship management (CRM) systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service.
• Knowledge management system (KMS) helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, unrecorded procedures, practices, and skills. Knowledge management (KM) as a system covers the process of knowledge creation and acquisition from internal processes and the external world. The collected knowledge is incorporated in organizational policies and procedures, and then disseminated to the stakeholders