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Definition: Management Information System
Management Information System provides the information required for the strategic management of an organization that is required to manage itself efficiently and effectively. Simply put, it is the study of people, data, information and technology within the organization and the relationship among them.
It is a central or centrally controlled and coordinated system of information systems expertise and management. MIS not only provides data and information but also analyzes them to facilitate strategic and operational decision making. The term MIS is today used in different contexts and typically includes decision support system, executive information system, human resource management, enterprise resource planning, supply chain management, customer relationship management and project management.
The MIS normally provides reports that include
i) Periodic scheduled reports
ii) Exception Reports
iii) Demand Reports and Responses and
iv) Demand forecasts and inventory status reports etc.
The role of the Management Information System manager is to control the organization’s information and technology systems and the department that is responsible for MIS is called the MIS department. The main advantages of Management Information Systems include
Provide fixed and regularly scheduled reports from the data extracted and analyzed from the company’s transaction processing systems that facilitate in rapid decision making for the middle and operational managers
Companies can identify the bottlenecks that need immediate attention and strengths that they can capitalize on to increase their market share
The customer data and feedback enable companies to identify changes in the consumer behavior and perception and align their business processes with customer needs
Management information system can also be a source of competitive advantage over its competitors.