The full form of MIS is referred to as Management Information System. It is a computerized system that helps an organization collect, store, organize, manage and evaluate the data relating to its various activities and provide information effectively and efficiently.
What is Management Information System
The management of information and the decisions based on such data gets complicated as a business grows in size. MIS helps organize such information, so decision-making becomes easier in case of simple low-level decisions and strategic plans made at the top level of management.
MIS helps the employees to access the required information for day-to-day operations easily. It enables the managers to make the right decision at the right time.
Components of MIS
- Users- who use the information system
- Data- a raw form of information that the system records
- Business Procedure- the process of recording, storing, and analyzing data
- Hardware- includes servers, workstations, printers, networking equipment, etc.
- Software- application programs like a spreadsheet, database software, etc., used to handle the data.
Categories of MIS
Management information system incorporates many specialized systems. Some of them are-
- Executive Information System: this is used by the senior management who needs high-level data to make decisions that affect the entire organization.
- Marketing Information System: This is used by marketing teams to plan for future campaigns by analyzing the past and current campaigns.
- Intelligence System: This system is used by lower-level managers and executives to make business decisions.
- Customer Relationship Management System: This system stores key information about customers and helps management to maintain relationships with them.
- SalesForce Automation System: this system performs the tasks of a sales team, such as tracking lead, contact management, and order management.
- Financial Accounting System: This system deals with finances and accounting, such as accounts receivable (AR) and accounts payable (AP).
- Human Resource Management System: This system maintains employee payroll data and performance records.
- Supply Chain Management System: This is used by manufacturing companies to track the flow of materials, resources, and services from purchase to shipment of final products.
Benefits of Using MIS
A business can improve its performance in many ways, thereby increasing its longevity by using a Management Information System (full form of MIS). Some of the main advantages of MIS are-
- MIS reports provide an overview of their entire operation by evaluating the performance of employees, machinery, and even money.
- Organizations can maximize profits and utilize opportunities by making the right decisions at the right time.
- Managers can compare results to set performance standards by identifying strengths and weaknesses in both the plan and the performance.
- MIS also finds out the strengths and weaknesses of an organization, allowing management to take corrective steps in the future.
- It helps in minimizing the efforts of the employees to handle information manually and thus saving time.
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