Management Information Systems and Its Importance

What you speak up attention of study Systems is and why it is important in todays agate line environment? Management Information Systems (MIS) is the term given to the subject area foc employ on the integ dimensionn of computer system of ruless with the aims and objectives on an organization. Modern headachees perk up been leveraging on MIS to manage, order, organize and manipulate the gigabytes and masses of information generated for sundry(a) purposes. MIS helps businesses optimize business processes, address information needs of employees and various s transferholders and take informed strategic finishs.The development and management of information technology tools assists executives and the full general readyforce in coiffeing any tasks related to the processing of information. MIS and business systems are especially designful in the collation of business information and the ware of roots to be used as tools for close making. With computers being as ubiquitous as they are today, theres hardly any large business that does non rely extensively on their IT systems (Kenneth C. Laudon).However, there are some(prenominal) specific fields in which MIS has become invaluable like in decision support systems, resource and people management applications, Enterprise pick mean (ERP), generate Chain Management (SCM), Customer Relationship Management (CRM), project management and database retrieval applications. 1) Support Strategy While computers gougenot raise business strategies by themselves they can assist management in correspondence the effects of their strategies, and help enable effective decision-making. MIS systems can be used to transform data into information useful for decision making.Computers can result financial statements and performance reports to assist in the homework, monitoring and implementation of strategy. MIS systems furnish a valuable function in that they can collate into tenacious reports unmanageable volumes of data that would new(prenominal)wise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the sensible data were consulted manually. MIS systems can also use these raw data to thresh simulations hypothetical scenarios that answer a range of what if questions regarding alterations in strategy.For instance, MIS systems can bequeath predictions about the effect on sales that an alteration in expenditure would have on a product. These Decision Support Systems (DSS) enable to a greater extent informed decision making within an enterprise than would be contingent without MIS systems (Obrien). The other area which MIs support is data processing. 2) Data Processing non only do MIS systems allow for the collation of vast amounts of business data, however they also provide a valuable time saving realize to the workforce.Where in the past business information had to be manually refined for filing and analysis it can now be entered quickly and slow onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole. 3) Management by Objectives While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. MBO is a management process by which managers and subordinates gybe upon a series of objectives for the subordinate to attempt to achieve within a set time frame.Objectives are set using the SMART ratio that is, objectives should be Specific, Measurable, Agreed, Realistic and Time-Specific. The aim of these objectives is to provide a set of unwrap performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous bring in of progress. In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analyze by decision-makers.Advantages of MIS The field of MIS can deliver a great more benefits to enterprises in every industry. Expert organizations such(prenominal) as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives. Better Planning and Control MIS has to be designed and managed in such way that it aggregates information, monitors the companys activities and trading operations and enhances communication and collaboration among employees (Obrien). This take ins etter planning for all activities and better ways to beat performance, manage resources and facilitate compliance with industry and government regulations. Control helps in forecasting, preparing accurate budgets and providing the tools and vital information to employees, top management and busi ness partners. nub Competencies Every market leading enterprise will have at least one core competency that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition.MIS systems provide the tools prerequisite to gain a better understanding of the market as hale as a better understanding of the enterprise itself. Enhance Supply Chain Management Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process, comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Disadvantages of MISDepending on organization deployment, usage and extraneous factors, some disadvantages related to Management Information Systems can come to the fore. Allocation of b udgets for MIS upgrades, modifications and other revisions can be kinda tricky at times. If budgets are not allocated uniformly or as per immediate requirements, key functionalities might get affected and benefits might not be realized consistently. Integration issues with legacy systems can affect the note of output and vital business intelligence reports (Kenneth C. Laudon). Risks Associated With MISRisk reflects the potential, the likelihood, or the prevision of events that could adversely affect earnings or capital. Management uses MIS to help in the taxment of venture within an institution. Management decisions based upon ineffective, inaccurate, or incomplete MIS may increase risk in a number of areas such as credit quality, liquidity, market/pricing, interest rate, or foreign currency. A flawed MIS causes operational risks and can adversely affect an organizations monitoring of its fiduciary, consumer, second-rate lending, Bank Secrecy Act, or other compliance-related a ctivities.Since management requires information to assess and monitor performance at all levels of the organization, MIS risk can overhaul to all levels of the operations. Additionally, poorly programmed or non-secure systems in which data can be manipulated and/or systems requiring ongoing repairs can easily disrupt routine work flow and can lead to incorrect decisions or impaired planning (Obrien). Constant Monitoring Issues Change in management, exits or departures of department managers and other senior executives have a broad effect on the works and monitoring of certain organization practices including MIS systems.Since MIS is a critical component of an organizations risk management strategy and allied systems, constant monitoring is necessary to ensure its effectiveness (Obrien). Quality of inputs into MIS needs to be monitored otherwise consistency in the quality of data and information generated gets affected. Managers are not able to run business, operational and decisio n-making activities with the requisite flexibility.Bibliography Kenneth C. Laudon, J. P. (n. d. ). Management Information Systems. Obrien, J. A. (n. d. ). Management Information Systems . 2006.