Impact of the Management Information System

Since the MIS plays a very important role in the organisation, it creates an impact on the organisation’s functions, performance and productivity.

The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more efficient. The tracking and monitoring of the functional target becomes easy.

The MIS creates another impact in the organisation which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organisation.

The MIS calls for a systemisation of the business operations for an effective system design. This leads to streamlining of the operations which complicate the system design. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems & procedures. This process brings a high degree of professionalism in the business operations.

Since the goals and objectives of the MIS are the products of business goals & objectives, it helps indirectly to pull the entire organisation in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organisation.

Learning Objectives of mis

• Identify the changes taking place in the form and use of decision support in E-business enterprises.

• Identify the role and reporting alternatives of management information systems.

• Describe how online analytical processing can meet key information needs of managers.

• Explain the decision support system concept and how it differs from traditional management information systems.

• Explain how executive information systems can support the information needs of executives and managers.

• Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business.

Give examples of several ways expert systems can be used in business decision-making situations.

The Functional Support Role in mis

It can also be called Data Base Management System (DBMS) wherein maximum utilization in an efficient manner based on the organisational needs is obtained by analyzing, processing and referencing of Data Base. Not only for the business, but for all kinds of organisations such as Disaster Management Organisation for using it as Disaster Management Information System.

Business processes and operations support function are the most basic. They involve collecting, recording, storing, and basic processing of data. Information systems support business processes and operations by:

• Recording and storing accounting records including sales data, purchase data, investment data, and payroll data.

• Processing such records into financial statements such as income statements, balance sheets, ledgers, and management reports, etc.

• Recording and storing inventory data, work in process data, equipment repair and maintenance data, supply chain data, and other production/operations records.

• Processing these operations records into production schedules, production controllers, inventory systems, and production monitoring systems.

• Recording and storing such human resource records as personnel data, salary data, and employment histories.

• Processing these human resources records into employee expense reports, and performance based reports.

• Recording and storing market data, customer profiles, and customer purchase histories, marketing research data, advertising data, and other marketing records.

• Processing these marketing records into advertising elasticity reports, marketing plans, and sales activity reports.

• Recording and storing business intelligence data, competitor analysis data, industry data, corporate objectives, and other strategic management records.

• Processing these strategic management records into industry trends reports, market share reports, mission statements, and portfolio models.

The bottom line is that the information systems use all of the above to implement, control, and monitor plans, strategies, tactics, new products, new business models or new business ventures.