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Management information systems

What is a management information system?

A management information system is the integration of hardware, software, and communication networks with the primary responsibility of collecting, processing, storing, and distributing information and data to achieve the set objectives.

Information systems play a crucial role as tools for businesses to manage and exchange information and data. Currently,  the information system is an attractive field in the domain of information technology.

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Management information systems

Common types of management information

Strategic information

Strategic information is used in the long-term policies of an organization, primarily to serve senior management in predicting the future. This type of information requires precise summarization and high-level data synthesis. The data used to derive this information is often externally sourced organizational data. This type of information is provided in specific cases.

Tactical information

This type of information is used in short-term policies, mainly catering to departmental managers within the organization. This type of information requires a degree of synthesis. Additionally, it needs to have a certain level of precise detail in statistical form. This is a type of information that is regularly provided for use. 

Operator Information

Also known as operational information of a business, it is used in the daily operational activities and primarily serves those overseeing the operational activities of the organization. This type of information is detailed and explicit, derived from the organization’s data processing. This type of information needs to be provided regularly on a scheduled basis.

The structure of a management information system

A management information system is designed to create a well-structured framework comprising subsystems that record the internal information of the business organization. These subsystems include the management system, the intelligence system, the research and development system, and ultimately, the support system for final decision-making.

Information Research System

Research and update information related to specific issues that the organization has previously set as goals. The advantage of good information research is its use of scientific methods. It employs various methods, constructs models, estimates the cost-to-benefit ratio and determines how to achieve the highest value and benefit from the information.

Internal information recording system

Ensuring the provision of complete and up-to-date data is essential. Nowadays, many organizations have developed modern internal recording systems. These systems utilize information technology in management to facilitate the provision of information more quickly and comprehensively.

Intelligence system

It is a system that provides managers with daily data. It offers information about the current operating conditions and ongoing developments in the external environment.

Support and decision making system

It consists of methods for enumeration and decision-making models to assist managers in making the most accurate decisions possible.


Approach to information quickly

The management information system simplifies and speeds up information retrieval by storing data in a centralized location accessible via a network. As a result, decisions are made more quickly and accurately.

Decisions based on the latest information

The management information system collects data from both inside and outside the organization. By establishing a network that links centralized databases with retail stores, distributors, and members of the supply chain, companies can gather sales and production data more frequently or daily and make decisions based on the most up-to-date information.

Can present and persuasiveness

The reporting tools in the management information system allow decision-makers to customize reports to meet the information needs of various stakeholders. If a decision requires the approval of a high-level executive, the decision-maker can create a concise summary for their review. If a manager wishes to share detailed findings from a report with colleagues, they can generate a comprehensive report and provide various levels of supplementary data.

Assist departments to cooperate with each other

In situations where decision-making involves departments, teams, as well as individuals, the management information system facilitates easy collaborative decision-making. For instance, in a project team, the management information system allows all members to access the same essential data, even when they are working in different locations.

Interpret results effectively

The management information system helps decision-makers understand the implications of their decisions. The system transforms raw data into formatted reports that allow decision-makers to quickly identify patterns and trends that may not be apparent in the raw data.

Decision-makers can also use the management information system to understand the underlying impact of changes. For example, a sales manager can predict the impact of a price change on sales volume by running simulations within the system and asking “what if” questions.