The amount of data collected and stored by modern organisations is enormous. To be useful this data must be interpreted and presented in such a way that it may be used effectively by the relevant personnel in the company. Management Information System (MIS) refers in general to a computer-based system that gives managers the tools to organize, evaluate and efficiently manage departments within an organization. MIS offers a long list of benefits some of which may be: central access, easy information back-up, central distribution of information, easy record keeping, organized customer records etc. Each department within a company will have different MIS requirements in order to operate efficiently. Sales & Marketing: The sales and marketing department will need as much information as possible about customers. This is normally delivered by Customer Relationship Management (CRM) tools such as Salesforce and Hubspot, such tool are designed to improve the relationship with existing customers, finding new prospective customers, and win back former customers. They generally do not require experts to set up and can be accessed via the cloud. Finance: The key for MIS in finance is to enable management to maximize profits and at the same time mitigate risk. MIS will offer them up to the minute information on stock levels, margins on various products, scale of business with different customers, information on the financial stability or otherwise of customers or suppliers. This information is critical to the solvency and profitability of all modern well run companies. HR: Human Resources will hold a wealth of information on the staff of the company. This information will include personal data such as age, sex, address and also appraisal results, wages, attendance records, sick leave etc. This data is highly sensitive so it is important that access is restricted to senior management and relevant managers. The above are just some examples of the uses of MIS within three functional areas of a business. Key advantages with modern MIS is the ability to log into systems remotely e.g. Cloud based applications, ERM etc which means personnel that are based away from head office or travel a lot still have the relevant information at their fingertips. This also enables easier and more informed decision making. Another key advantage of MIS is that it helps companies to meet stringent compliance requirements in term of financial reporting which ensures transparency for shareholders and government. Although MIS generally offers business more advantages than disadvantages, the holding of information also comes with responsibilities. Most recently General Data Protection Regulation (GDPR) will make it very onerous on a company to hold data on customers without express permission. Some of the disadvantages of MIS may be cost both of acquiring and maintaining systems, risks associated with holding sensitive data, hacking of sensitive data, over dependence on MIS. References:
Markgraf, B. (2018) “Importance of Information Systems in an Organization” [Online] Available at: http://smallbusiness.chron.com/importance-information-systems-organization-69529.html [Accessed 19 March 2018] Dr. John Lannon (2013) “Understanding the Role and the Impact of Information Systems in today’s Business Environment” [Online] Available at: Sylvan, R. (2018) “Tangible Benefits of Information Systems” [Online] Available at: http://smallbusiness.chron.com/tangible-benefits-information-systems-50155.html [Accessed 19 March 2018]
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