Management information systems (MIS)Tesic (2003, p. 3) and Harsh (nd, p.1) explain the concept of management information systems as being one that shows how people use systems to generate and create information designed for the improvement of the effectiveness and efficiency of operations in an organization. Management information systems can be used by individuals as well as institutions. Management of a certain company, organization or business utilizes this concept to generate crucial information and data that they use to make certain informed decisions affecting their businesses. Management utilizes this data in a number of formats to make specific decisions regarding the operations of their businesses.
Management information systems provide intrinsic details of a business in all avenues and tenets of a business venture. For instance, management information systems provide information regarding sales, inventories, and other relevant data in a business. There are many management information systems that are available in the market for pick by managers. These systems come in form of softwares that adeptly examine data in a company and generate results. These results are then used in assisting management in making decisions that affect the way their businesses are operated.
Initially, management information systems were just narrowed down to sales, inventories and other basic aspects of business. With time, this concept of management information systems has evolved to encompass other avenues of business operations such human resource departments, operations departments, performance management among other business acumen. Management information systems provide intrinsic details concerning the performance of a business. As such there are a number of advantages that are accrued to using these management information systems to a company as shall be described in the ensuing paragraph. One of the notable advantages of management information systems on a basic level is the ability of systems to deliver information that is useful for the organizations.
Such information regarding the inventories allows the management to track down how the inventories are behaving. It allows the management to note when the volumes are low, prompting restocking. In this form, the company will always have a sense of how the stock is moving, see which stock is not moving and make informed decisions pertaining to this matter.
Management information systems also allow management to figure out how sales volumes of business are behaving. For instance, the system tracks down how inventories are sold. This allows management of a business to note how goods are being sold and calculate profit margin automatically. On another level, through skimming the comprehensive reports that the management information systems deliver, management of a particular company is able to note strengths as well as weaknesses of a business. This is done through reports on revenues, performance track records of employees in a company as well as the effectiveness of supply chain management.
Management is then placed in a position where it can improve on strengths and find means to take care of weaknesses in a business. Reports that management information systems give could also be used by potential investors to evaluate financial standing of a company. Through the use of the reports generated by the MIS, the investors would be in a position to make informed choices regarding whether they shall invest in the company or not. On other levels, some management systems even offer data concerning the customer.
The data is important in that it allows the management to evaluate the trends and the customer tastes. This information is vital in that it allow management of a company to predict consumer behavior and as such make informed decisions pertaining to the products that they should avail to their customers. To this regard, management can be able to promote their products in a way that appeals to these customers and increase their revenue positions.