What is Management Information System?
Management Information System or commonly known as MIS is a computerised database that is built for storing financial information. The information is then organised and processed in such a way that it starts producing steady reports regarding every single level of management in the company.
Definition of Management Information System or MIS
In other words, management information system can be defined as:
Management information system is a computerised study of people, technology, organsiations, businesses and the relations between them.
Apart from that; Management Information System can also be used to effectively gather special reports from within the system.
Significance and Usage of Management Information System
The core purpose of Management Information System is to let managers know how they are performing. As for the top tier managers, they can effectively manage the entire company as a whole. The information that gets displayed by Management Information System (MIS) is actual data instead of planned data, this means that management information system is good for providing data that is accurate instead of data that is planned.
Data Gathering and Report Generation Process in MIS
Management Information System is known for receiving data from several different company units and functions. A lot of data gets collected automatically from computer-monitored counters, as for the other data; it gets identified later at occasional intervals. Everyday reports are programmed beforehand and then are executed at different set of intervals on demand. However, other reports are gathered through query languages that are built-in already. Managers are given access to several built-in functions so they can check statuses of the reports using their computers which are connected to management information system. Several complex computers are also connected for the purpose of overseeing and displaying the performance of company’s stock.
History of Management Information System
- Minicomputer and mainframe computing.
- Personal computers.
- Server or client networks.
- Enterprise computing.
- Cloud computing.
1. Minicomputers and Mainframe Computing
The first era was entirely controlled by IBM (International Business Machines) and their mainframe computers. For those who are not aware, mainframe computers are massive enough to occupy an entire room, apart from their humongous size, these computers require a team of highly proficient and coordinated people since it was impossible for a single person to operate. Everything from hardware and proper software that required to run these mainframes was provided by IBM itself.
As the technology kept advancing; mainframe computers started to become more and more advanced. This resulted in higher capacities for the computers and lower cost. As the technology progressed further; minicomputers started taking over and helping organisations to run their businesses with great ease and portability.
2. Personal Computers
Then came the second era somewhere in 1965, the biggest revolution in this era was how small sized microprocessors started competing with giants such as the mainframes as well as minicomputers. The invention of microprocessors was a technological revolution as it helped in reducing the computers from large mainframes that would take entire rooms to fit in to small computers that would fit easily on a desk.
Then came the late 70’s, microprocessors went mainstream at that time and thus personal computers (PC) were invented. They were comparatively cheaper, this allowed consumers to buy them as well. This wide popularity and availability created a market that was ready for new technologies such as the internet but do keep in mind that the first microprocessor was used back in ’71 and even after that, the microprocessors weren’t readily available in mass quantity for years.
The first widely known microprocessor was MITS Altair 8800, Apple stepped into the game after that and brought Apple I and Apple II to the table. It is debatable that systems based on microprocessors didn’t make any sort of invasion into the minicomputers till 1979. However, in 1981, IBM came with IBM PC that broadened the spectrum of business computers. Technology soon started to grow like wildfire in a jungle, with the growth we also witnessed tremendous price drops.
3. Server and Client Networks
Technology was getting more and more advanced and the prices were dropping like crazy. This trend also gave the need for sharing information a great hike and ended up bringing in the third generation of clients and servers.
4. Enterprise Computing
Clients and servers allowed the computers to access networks from which they had the ability to access information that has been shared with everyone who has the ability to access the network. This generation can be called revolutionary as it allowed thousands of users to access information with just the click of the button and today that number that was once in thousands spanned across billions of users simultaneously accessing packets of data with great ease from their computers or their phones.
5. Cloud Computing
The fifth generation is something called cloud computing, this is the latest generation of Management Information System as well as computing. Cloud computing largely relies on networking technology and is capable of transmitting data as well as information depending on the needs of users. Cloud computing also depends on the speed of the network and processing power of your computer and cellphone; the faster the network the powerful your PC or cellphone. Managers can now simply access management information system remotely using their mobile phones, laptops or other handheld devices that support cloud computing.
[Related: Knowledge management process ]
Types of Terminologies of Management System Information
Management Information System often gets confused with information system, enterprise resource planning (ERP) as and information technology management. Despite sharing some factors in common; There are still some types and terminologies that are used in management information system that we are going to discuss.
- Management Information System: Marketing Information System is a system which is used for acquiring fixed amount of reports. These reports are scheduled and are about the extract data as well as the business’ transaction processes.
- Decision Support System: Is the type of system which can be both computer based and human based, it is used by managers of middle and higher level management. The purpose of DSS is to help the management with decision makings at several different levels.
- Executive Information System: The EIS is the closest system to management information system. Executive Information System is basically a reporting tool that has the purpose of giving away quick access to summarised reports that are being flown in from all known levels as well as departments of a company or a business.
- Office Automation System: OAS is for providing support for communication as well as productivity in any business making sure that the all the work-flow is automated and doesn’t suffer from any kinds of bottleneck. Office automation system is usually applied at all the levels of management.
- School Information Management System: The name is quite suggestive as SIMSis used to deal with all kinds of tasks that are presented to school’s administration, these tasks could range from low level, ordinary tasks to high level tasks.
- Enterprise Resource Planning: The last on the list is ERP, this is used to manage and monitor how the information is being flowed in and out between all the functions of any business or organisation and whether are not the flow is inside the boundaries of a business.
Advantages of Management Information System
We are going to discuss some of the benefits that come with the management information system. Let’s take a look at them below:
- With the help of management information system; companies around the world are able to properly identify their strengths and weaknesses. This is because management information system is able to generate revenue support. It can also be used to find out the performance reports of the employees. Identifying these facets can help the company have better understanding of its own business processes as well as operations.
- Management information system is also really good when it comes to presenting the image of where the company stands.
- Management information system is also extremely efficient as a communication as well as a planning tool.
- The constant access to customer data and customer feedback can provide really useful for the company in order to ordinate company’s business processes. This is done while keeping the needs of customers in mind and can be really useful.
- Management information systems are also really useful when it comes to helping the company have a competitive advantage over other companies. For those who don’t know; competitive advantage is a company’s ability to do things better, faster, cheaper as well as unambiguously as compare to the other competitive firms in the market.
Enterprise Uses of Management Information System
Management information system also has several uses in enterprises, let’s take a look at them in detail.
- Enterprise Systems: This is also known as ERP (Enterprise Resource Planning) systems. These systems are known for providing integrated software modules as well as merged databases that management can easily use in order to plan, manage and control all the basic business processes spanning across different levels.
- Knowledge Management System: This system is popular by its abbreviated form KMS. The reason behind the popularity is mainly because this system aids any business or organisation in gathering, recording, organising and retrieving knowledge. The knowledge includes all sorts of documents, procedures, accounting or other records, skills as well as practises.
- Customer Relationship Management: Customer relationship management or CRM is there to help the businesses and organisations to build better relationships with their customers across all the levels such as marketing, services and any other related fields.
- Supply Chain Management: This is the system that helps dealing with the supply management more efficient by incorporating several techniques such as creating links between suppliers, wholesalers, retailers and manufactures.