Management information system
A management information system ( MIS ) is a software implementation of an information system . It provides the company with information that can be used to steer the company or to operate the controlling (i.e. the production and sales sector). An MIS is usually business- oriented, while a management information system deals with the principles of corporate management ( personnel ). The business computer science concerned with designing, building and maintaining (management) information systems.
history
In the course of the 1960s , with the technical progress in computer technology, the need to use the new possibilities of data processing to prepare information for corporate management grew. During this time, the idea of a comprehensive management information system (hereinafter MIS) was born. The concept of the MIS was a very centralized approach, which tried to combine all company data of the operational systems in a data model and to condense it in real time for analysis. The term MIS has been in use again in a different form since the 1990s . In practice, MIS is used today as an umbrella term in the field of analytical information systems (such as Decision Support System (DSS), Executive Information System (EIS) and in some cases also for OLAP applications and electronic reporting ). A data warehouse usually serves as the database for a modern MIS .
Definition / scope of functions
In an MIS, the user is provided with information that is relevant to the execution of his tasks, e.g. B. who can support him in planning or making decisions . For this purpose, the actual information ( key figures of the company and the market), which provide a real image of the current state of the company, is summarized in key figure cockpits or reports for specific user groups (e.g. for the marketing department, purchasing , the board of directors , and others ). The information provided can also serve as a basis for further analyzes and forecasts (for example by setting up trends ). To create such a forecast, a management information system may also contain data by statistical derived methods or by estimates and opinions (subjective assumptions) are determined (so-called map data ).
There are two main theories that determine what an optimal management information system looks like:
- the contingency theory and
- the transaction cost economy .
Contingency theory claims that under certain situations or contingencies a certain design should be chosen, while under other conditions a certain different MIS design should be chosen.
Transaction cost economics asserts that different processes or activities cause certain distinguishable contract problems. Companies use different management information systems to deal with different contract issues.
management
While the management information systems can be used by any management level, the decision as to which systems to implement is mostly made by the head of IT and the technical director of a company. These are usually responsible for an organization's overall technology strategy, including assessing how new technologies can help their organization. You act as the decision maker when implementing new MIS.
As soon as the decision for certain systems has been made, IT is responsible for the technical implementation of the system in cooperation with the technical director. You are also responsible for the implementation of the guidelines that affect the MIS. It is also their job to ensure the availability of data and network services as well as the security of the data by coordinating IT activities.
Once implemented, the assigned users have the appropriate access to relevant information. It is important to note that not everyone entering data into MIS has to be a management level. It is common practice for non-executive employees to provide input to MIS, although they rarely have access to the reports and decision-making platforms offered by these systems.
Types
The following types of information systems are used to generate reports, extract data, and support decision-making processes for mid-level and operational managers.
- Decision support systems (Decision Support Systems, DSS) are computer software applications that are used by middle and senior management to information from a wide range of sources and gather to support problem solving and decision making. A DSS is mainly used for semi-structured and unstructured decision problems.
- Executive Information Systems (EIS) is a reporting tool that enables quick access to summarized reports from all company levels and departments such as accounting, human resources and operations.
- Marketing information systems are management information systems designed specifically to manage the marketing aspects of the company.
- Accounting information systems are concentrated accounting functions.
- Personnel management systems are used for personnel aspects.
- Office automation systems (OAS) support communication and productivity in the company by automating work processes and removing bottlenecks. OAS can be implemented at all levels of management.
- Enterprise Resource Planning (ERP) software facilitates the flow of information between all business functions within the confines of the organization and manages the connections to external stakeholders.
- Local databases can be used as small, simple management tools and are considered a basic version of an MIS.
advantages
The following are some of the advantages of using MIS:
- Companies are able to identify their strengths and weaknesses based on sales reports, employee performance data, etc. Identifying these aspects can help companies improve their business processes and operations.
- MIS gives an overall picture of the company.
- MIS can act as a communication and planning tool.
- The availability of customer data and feedback can help the company to align its business processes with the needs of its customers. Managing customer data effectively can help the company conduct direct marketing and promotional activities.
- MIS can give a company a competitive advantage.
- MIS reports can aid decision making and reduce downtime for actionable items.