Management Information System (MIS) is a system of procedures that provides the necessary information and data to the management of a company to take informed business decisions.
The MIS of a company usually comprises:
- Collecting appropriate data from several authoritative sources
- Processing this data to extract the most useful and highly relevant information to a specific company
- Making this information available to the concerned department of a company
Importance of MIS for businesses:
Today’s corporate environment is rife with risks and uncertainties. These risks and uncertainties cause businesses to take tough decisions to continue to hold their own in a competitive market. Since an organization’s basic goal is to become as profitable as possible and continue to be in business for as long as possible, it must take the help of MIS in its day-to-day functioning.
How is MIS data critical for making business decisions?
After making a thorough and accurate analysis of the data at hand and the trends prevailing in the market, an MIS report pertaining to a particular organization is created. Its basic purpose is to provide that critical information regarding their business to the management with which tough business decisions can be made.
An MIS report helps improve performance, profitability and productivity of an organization. It thus is the backbone of a company and helps it withstand the onslaught of competitors.
How MIS helps organizations—crucial advantages
- MIS helps manage data
MIS helps maintain and curate critical business data to assist managements take tough decisions. This information is organized and stored so that it is easily accessible by the administration.
- MIS analyses trends
For managements of companies to prepare forecasts for future goals, they need to have accurate reports on the prevailing market trends. With the help of precise mathematical tools, MIS can analyse the current market trends and predict future trends.
- MIS helps with strategic planning
Strategic planning is a critical role played within organizations. For effective strategic planning, MIS assists in determining a company’s future needs and formulates its goals and strategies based on data it receives. MIS reports also spot resources companies need to meet their business goals. Therefore, information contained in MIS reports always have to be accurate.
- MIS helps determine a company’s goals
For a company to set up business goals is extremely important and requires immense research and development. The information detailed in MIS reports is based on current market trends and data analysis, which makes it perfect to determine an enterprise’s goals. Besides, it can also predict future trends. These benefits make it very important for a company.
- MIS spots problems in an organization
A typical MIS report provides information on every aspect of activity that an organization engages in. Therefore, if the management faces any problem in future, they can be clarified by the data contained in MIS reports as they can also source these problems and find likely solutions for them.
- MIS increases work efficiency
The precise information that MIS reports carry can easily be used by organizations to formulate business goals and company strategy. An organization’s overall performance can also be accessed with the help of these records, and they play a significant role in increasing a company’s overall efficiency.
- MIS can be used to measure a company’s growth
Business data pertaining to a particular organization is stored in the MIS database. This database is accessible at any time, therefore the firm’s performance can be compared with earlier years to measure its true growth.
How MIS serves various departments of an organization
IT: MIS supports business activities using modern technology. It does this by managing collated systems that work to send data all over the organization. IT professionals convert this data into relevant and useful information, thereby enabling the organization to work seamlessly.
An IT department also stores data about employees, customers and vendors. The department ensures that these systems work well by understanding MIS well. An MIS report aims to increase employee efficiency and provide the organization with enough leverage over those that do not invest in it.
Security: Security is also an important aspect of MIS. All through the day, IT professionals monitor the computer systems to ensure that there are no leaks or breaches. With the help of MIS, companies that are information-intensive of a proprietary nature are saved from being the targets of hackers.
From this, you can imagine just how necessary and critical investing in MIS is for every company. While its role is never-ending, its scope can be extended to every department of an organization, to make it water-tight, more efficient and productive.