Organizations have different requirements and aims to achieve specific goals. Organizations employ different tools and processes to ensure they achieve the goals and strategic requirements. Technological process has become an integral component is improving and sustaining the requirements of an organization. One of such technological advancement is the use of computer-based systems in achieving organizational strategic requirements. Management information system (MIS) is a program that aims at ensuring systems within an organization operates seamlessly. The aim of this paper is to define and present information on information system, discusses the advantages and disadvantages of MIS and the difference between MIS products from MIS itself.
Definition of IS
Information system is the integration of numerous components that are used for collection, storage and processing data with the aim of obtaining digital products, knowledge and information (Gupta, 2011). Many organizations and business firms employ information systems to manage and carry out interaction, operations of their activities relative to the requirements of the marketplace, suppliers and customers (Oz, 2008). For example, an organization may reach its prospective customers using targeted messages to the consumer through Internet.
Types of Information System
Information systems come in different forms and types depending on its requirements and applications. Four types of information systems exist, which includes executive information systems, decision support systems, management information systems and transaction processing systems (Gupta, 2011). These different systems are applicable to different scenarios and platforms.
Transaction processing systems allows division of work into indivisible and individual operations that are commonly called transactions (Schniederjans & Schniederjans, 2007). Some types of transaction processing systems include time-sharing, batch processing, transaction processing and real time processing with features that includes data integrity, modular growth, ease of use, continuous availability and performance.
On the other hand, management information system allows management of an organization effectively and efficiently. The five components that make up management information system include people (e.g. organizations, groups or people), procedures (e.g. documentation, development and design), data (e.g. decision-making information), software and hardware (Gupta, 2011). The difference of management systems from other type of information systems is that it is the only one that facilitates strategic requirements and operational activities. Most institutions and businesses schools usually have an MIS department alongside other departments that may include marketing, management, finance and accounting.
Decision support system aims at supporting decision making within an organization. Decision support system serves the planning levels within a company, operations and management, which assist in making decisions. Therefore, decision support system facilitates organizational processes and assists in the collection of appropriate information that is appropriate for decision-making. Some of the information gathered by decision support system includes projected revenue figures, comparative sales figures and inventories of information assets.
Executive information system on the other hand supports and facilitates decision-making needs and executive information. The system provides an easy avenue to external and internal information that is important to organizational goals (Gupta, 2011). Executive information system emphasis on easy to use user interfaces and graphical displays; therefore, executive information system assists executive in analyzing, comparing and highlighting trends and other variables that provide avenues of monitoring performance and identification of problems and opportunities.
Advantages of MIS
Management information system is important in ensuring an organization operates effectively and efficiently. One of the major advantages is decentralization of tasks since each sector will be responsible accomplishment of specific requirements (Gupta, 2011). It allows reviewing of operations at numerous levels while freeing resources in which departmental managers may utilize more time on strategic activities. In addition, MIS allows coordination of activities and projects in a better manner and allows easier identification of problems and challenges that may occur. Moreover, MIS minimizes occurrences of information overload that is commonly associated with conventional businesses approach. Therefore, MIS allows smooth flow and utilization of information towards achievement of organizational strategic goals.
Disadvantages of MIS
Some disadvantages of MIS exist but are dependent on organization usage deployment and extraneous factors. Frequent innovations and developments within the MIS sector, additional budgets are required for modifications, upgrades and revisions that are sometimes very expensive (Gupta, 2011). If the allocation of resources is not done within the stipulated periods, some functionality within the organization may be affected, and consistency of the benefits may not be maintained for long. In addition, incorporating information with legacy systems may not yield the expected quality and may be important for business intelligence reports.
Different between MIS Products and MIS Itself
Management information system brings together computer-based system that allows managers to utilize the system and other tools associated with the system in organizing, evaluating and efficiently managing different departments within an organization (Gupta, 2011). In order for the MIS to operate effectively, it needs additional resources. Some of these resources sometimes called MIS products include data resources e.g. databases, decision making software, project management applications, hardware resources and decision support systems (Heijden, 2009). Therefore, MIS ensures that all the activities operate effectively with the aim of achieving a specified goal while MIS products facilitate arriving at the appropriate goal through the use of computer-based systems.
Management information system is an integral component in ensuring an organization achieves its specific objectives. Four types of IS exists, which includes executive information systems, decision support systems, management information systems and transaction processing systems. These different types of information systems provide different benefits to an organization. In addition, the benefits of MIS are decentralization of processes, easing the work of managers and graphical illustrates of information allowing effective decision-making while the disadvantage include budget requirements.
- Gupta, H. (2011). Management information system. London: HITESH GUPTA
- Heijden, J. (2009). Designing management information systems. London: Oxford University Press
- Oz, E. (2008). Management information systems, 6th Ed. London: Cengage Learning Publishers
- Schniederjans, M., & Schniederjans, A. (2007). Outsourcing management information system. New York: Idea Group Inc (IGI)