A Management Information System (MIS) aims to help the decision makers in a business to make better decisions and advance the goals of the business. The system does this by aggregating data into useful information to give an overview of the key performance indicators (KPIs) selected to measure the company’s progress towards its agreed objectives.
The term refers to a computer-based system that provides managers with the tool to organise, evaluate and effectively manage departments within their business. An important factor of an MIS is to highlight areas in need of the most assistance, so time can be spent in the right places. Rather than spending time gathering and collating the raw data, the time can be spent addressing issues arising from the aggregated view offered by the system.
Characteristics of a good MIS
Understandable: Due to information already being in its simplest form, it must be clear what any abbreviations, shorthand or any other acronyms within the system mean for the receiver so that they are able to interpret it correctly.
Reliable: The aggregated information coming out of the MIS should be accurate and consistent. Poor quality information will generally lead to poor quality decisions.
Timely: Information must be delivered at the right time, to the right place and to the right person. Information that is passed on to early can become outdated and could be forgotten about by the time it is actually needed, which could lead to an inadequate decision.
Useful: The information provided by the system may well be relevant and accuarate, but it will only be of use of it aids a specific decision. Most systems have the potential to allow the monitoring of additional KPIs as the needs arise.
Fundamentally, management information systems store information about customers, employees and vendors.They play a role in communication, problem identification and give managers the information they need to help the process of decision making. Ultimately, there goal is to increase efficiency and provide the business with a competetive advantage over those that do not have a proper system.
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