The Benefits of a Management Information System
A management information system (MIS) is a business information system that collects and presents data in an easy-to-read format. The system generates internal reports that include all pertinent data and group them logically. For example, a corporate manager can view revenues by outlet and expenses per employee. A higher expense ratio than revenue or volume can signal theft or waste. An MIS can be used for many purposes, such as calculating the cost of production.
One of the most significant benefits of a management information system is its ability to eliminate redundant roles. When information is stored and accessed efficiently, it can be used to identify which parts of a system are unnecessary and make better use of available resources. However, this can have its drawbacks. Not all systems are equally effective and require special attention. It is therefore imperative to hire specialized personnel to maintain your system. If you don’t have the staff and resources necessary to properly maintain a management information system, it may not deliver the desired results.
The benefits of a management information system extend well beyond business operations. MISs can be used to facilitate manufacturing processes or computer assisted design. These systems can also transfer and communicate worldwide. Today, automated systems support virtually all major administrative functions. Today, many people file taxes online and have their refunds automatically deposited into their bank accounts. Many companies have begun leveraging MISs to increase the efficiency of their processes and operations. In fact, many businesses have aligned MIS with their business goals.
One of the primary benefits of an MIS is the ability to correlate multiple data points. This allows companies to strategize about how to improve operations. For example, comparing marketing expenditures with staffing levels, they can identify opportunities to increase revenue or reduce costs. These advanced data sets allow decision makers to take immediate action. By implementing an MIS, these advantages become more apparent and measurable. There are numerous benefits to a management information system, but the cost can be prohibitive if it’s not properly implemented.
MIS has seen five distinct eras. In the 1960s, computing was done with large mainframe computers, which had to be stored in specialized rooms with temperature control. The cost to maintain such machines was prohibitive, and most companies used them on a time-sharing basis. As minicomputers began to be more affordable, data entry replaced punch card operation. Users of minicomputers were assigned operators who input data into terminals and generated reports.
A management information system is a computerized database that organizes data and organizes it in a meaningful way. The information provided can be used by management to make decisions, resolve problems, supervise activities, and track progress. In addition to generating daily reports, the system also facilitates the creation of decision-making tools. For example, a manager might learn that Wednesdays are slow, and that he needs to increase staffing levels.