Management Information System Part 2
Managers require information to help them in making vital appropriate decisions and forecasts for upcoming strategies and plans. In looking at Management information system; it is a computer generated business information system intended to generate information needed for the achievement of management of a subdivision or business. Without MIS managers had to depend on hand made organized documents at times. Nevertheless, with the information age we are living in with diverse competition businesses must be more practical in the world economy. Information needs to be at the business’ man reach at his or her convenience.
The owner of a car dealer business might need at any time data on stock level or sales volume for cars so that decisions on future buying can be made. A computer system is created to meet the conditions of the report or document which the owner will require. The arrangement and the substance of each report or document needed will be used to design the system. The owner by getting the particular details will now be able to get the information required. The essential data will be recovered from the system files, processed and presented.
Benefits
MIS is very cost efficient because it decreases the need for work to gather and examine data. When data enters a business’ system or database, MIS will gather and examine the data to give managers significant information to make decisions. Goods sold or stock items can be data to put into the database by workers. MIS can produce reports in a shorter time than handmade reports.
MIS helps to make decisions by studying business activities. MIS can quickly supply information needed for decision making. Hence one can use this to evaluate current performance and therefore help managers to develop the business’ activity so that the business is more viable.
Challenges
Even if it is very valuable and is hence advantageous for businesses MIS is an expensive undertaking and small businesses may have difficulty to set up this system. One may also have to think about the constant maintenance costs. The cost of training current workers to deal with the system and or hiring new persons must also be considered.