Business Information System or Management Information System is defined as the ability of an organization to create, maintain, retrieve, and make immediately available the correct information, in the right location, at the right time, in the hands of the appropriate people, at the lowest cost, in the best media, for use in decision making.
The rapid advancement of computer technology is increasing people’s desire to use computers to solve increasingly complicated problems: challenges previously seen as entirely the realm of man’s intuitive and judgmental processes, particularly in organizations. Progressive and dynamic organizations are becoming increasingly interested in information systems.
A Business Information System is a system for accepting data as raw material and generating information as a product through one or more transmutation processes. Management information systems are connected to an organization’s successful decision-making processes.
Functional Elements of Management Information System
It is made up of the following functional elements that are related to the company and its environs.
- Initial entry of data into the organization, whether captured or generated
- Keeping track of data acquisition on a physical level;
- Processing transformation based on the organization’s “unique” requirements;
- Storing something implies that it will be used in the future.
- Data retrieval
- Reporting, presentation, and communication
Except to the extent that the Management Information System engages in decision-making that concerns itself, decision-making is a contentious inclusion.
Organizational and behavioural principles and technical factors must be considered while designing and operating a MIS. Management must be well-informed to contribute effectively to system design, and information experts must better understand managerial tasks and demands to construct more effective MIS as a team.
Characteristics of MIS
Following are the characteristics of the Management Information System
Integration Based: Integration is important since it allows to produce more meaningful data. Taking a thorough view or looking at the entire picture of the company’s interconnected subsystems is what integration entails.
Requirement Based: MIS design should be based on the information requirements of managers at various levels.
Management Focused: The management Focused characteristic of MIS denotes that the system development activities are actively directed by management. The top-down strategy should be used while planning MIS.
Forthcoming Oriented: MIS should not only provide information from the past or from the past but also provide information based on future projections for the actions to be taken.
Common Data Flow: This is part of the common data flow: Avoiding duplication, consolidating related procedures, and simplifying operations whenever possible. The construction of a common data flow is a reasonable and rational economic notion. But it must be examined from a practical standpoint.
Exclusion Based: MIS should also be designed on an exception-based basis. This means that in the event of an unusual circumstance, the exceptional situation should be immediately reported to the appropriate decision-makers. There should be a significant amount of planning involved.
Sub-System Perception: Although the MIS should be considered a single entity, it must be split into more consumable sub-systems.
Common database: A common database for the entire system should be available in the MIS.
Lengthy-Term Planning: Management information systems (MIS) are created over a prolonged period.
The MIS guarantees that suitable data is collected from diverse sources, processed, and provided to all the destinations that require it. Best ERP Software in Dubai, like Fortuner from Fortune Technology LLC, provides a particularly good framework for Management Information systems.
Query Systems, Analysis Systems, Modeling Systems, and Decision Support Systems are some of the systems the MIS uses to meet the various needs. Strategic planning, management control, operational control, and transaction processing are all aided by MIS.
Importance of Business Information System
The Business Information System aids senior management in goal-setting, strategic planning, and the evolution and implementation of company objectives. The management information system (MIS) aids middle management in short-term planning, goal-setting, and control of corporate processes. The MIS aids junior management staff by providing operational data for planning, scheduling, and control. MIS also assisting them in making operational decisions to fix an out-of-control scenario.
Business information System assists employees in making decisions regarding their everyday tasks. MIS also aids managers in decisions making to achieve the organization’s goals and objectives. MIS aids the organization in developing appropriate strategies for success in a competitive environment. Instead of waiting weeks or months to correct problems that may have only grown larger and drained more profits during that time, most MIS solutions have management dashboards. These dash boards allow owners and managers to see what is happening in the business in real-time and make fact-based business decisions just as quickly. Instead of waiting weeks or months to correct problems that may have only grown larger and drained more profits, MIS analysis enables management to pinpoint areas that need attention or correction.
MIS aids decision making through generation, communication of information and identification of problems associated with it. As a result, the MIS is critical to an organization’s management, administration, and operations.