Management Information Systems, which are often abbreviated to MIS are a subdivision of internal business controls that usually refer to documents, IT, people and procedures. An MIS is usually applied by management accountants who will be trying to solve a business problem or setting a price for how much a product should cost.
MIS are actually quite different from other information systems. This is because the MIS are used primarily to analyse other information systems that are used in the operational activities of any particular organisation.
So MIS is not a true information system in the sense of technology, but nor is it a true business function. In fact it straddles both these disciplines and is a way in which technology can be harnessed along with business so that people can function more effectively.
Within any given organisation there may well be MIS professionals, but they are actually employed as systems analysts or even project managers. They often will act as a means of communication between management and the staff on the ground and they are actually a very valuable asset to any firm, since MIS professionals have the ability to analyse vast amounts of data.
This is the real beauty of Management Information Systems, they allow personnel to effectively and efficiently analyse huge amounts of data that would otherwise be too enormous to be analysed by humans. This means that trends can be spotted or patterns start to emerge. The MIS systems can also show dips or peaks in performance that may not be readily available when using other information systems, so they are incredibly important.
Origins Of Management Information Systems
Initially computers were used to keep finances up to date word processing and in many cases accounting. But then more and more applications were invented all of which were geared towards providing management with useful and relevant information that would help them to manage their business and due to the nature of the information they contained, these applications became known as Management Information Systems.
Aim of Management Information Systems
The main aim of MIS systems is to inform management and help them make informed decisions about management and the way the business is run. This highlights the difference between an MIS and other types of information systems that do not necessarily contain information that will help managers make managerial decisions.
Further MIS Applications
One very interesting aspect of MIS systems is that they can be used to ‘predict’ the future. This means that a business can test out any differences that it may be planning to an existing strategy by running a Decision Support System, which is a programme that will run a simulation and look at the ‘what if?’ type scenario.
So if a company is thinking about putting its prices up then it can run a DSS to see what impact this would have on business. Obviously there can be no guarantees that this would be 100% accurate, since no one can predict the future, but what this can do is to let managers know the potential outcome.
The Decision Support System will have to look at, analyse, collate and interpret huge amounts of data to achieve this, but the important thing is that it can be done and the benefits that systems such as this can bring are indeed spectacular.
So if you think that someone who works in MIS is someone who is dealing with computers and IT support, then you are really only seeing a tiny part of the role. MIS systems, when used properly will actually help to shape and influence a company.
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