Management Information Systems

DEFINITION

A management information system is a combination of hard drives, floppy drives and a communication network whose main responsibility is to collect, process, store and distribute information and data, in order to achieve the desired effect. .

Information systems are tools that play a very important role for businesses in terms of managing and exchanging information and data with each other. Industry Currently, information systems is a very attractive industry in the field of information technology.

Common types of management information

Strategic Information

Is strategic information used in the long-term policy of the organization, mainly used to serve high-level businesses when making predictions about the future. This type of information needs an accurate generalization and high data aggregation. The data used to resolve this type of information is usually external organizational data. This type of information is intended to be provided in special circumstances.

Tactical information

As the type of information used in short-term policies, it is mostly relevant to the organization’s departmental managers. This type of information while it needs to be aggregated and at the same time needs to have a certain level of precise detail in statistical form. This is a type of information that is provided regularly for use.

Operator Information

Also known as business information, it is used in the day-to-day operations of the organization and mainly serves to monitor the organization’s operational activities. This type of information is the type of information that needs to be detailed and clear, learned from the organization’s processing of data. This type of information should be provided on a regular basis.

Structure of a management information system

A management information system is designed with the purpose to create a good structure of subsystems, which are systems that record internal information of an organization, an intelligence system , the final inquiry and research system is the ultimate decision-making and support system.

Internal information recording system

To ensure adequate provision of current data, many organizations have now developed modern internal recording systems that use information technology in management to help provide information. Faster and more complete information.

Intelligence system

A system that provides managers with daily and operational information and data about the ongoing developments of the external environment.

Information Research System

Find out and update information related to certain specific issues that the organization has set goals before, the advantage of good information research is the use of scientific methods, using a variety of methods. different methods, build models, estimate the cost/information ratio that brings the most benefit and value.

Support system and decision making

Includes enumeration methods and decision models to help managers make the most accurate decisions possible.

ROLE OF MANAGEMENT INFORMATION SYSTEM IN DECISION MAKING

Quick access to information

Management information systems simplify and speed up information retrieval by storing data in a central location that is accessible over the network. The result is faster and more accurate decisions.

Decisions based on the latest information

Management information systems gather data from inside and outside the organization. By establishing a network that links a central database with retailers, distributors and members of the supply chain, companies can collect sales and production data on a daily basis or more often and make decisions based on the latest information.

Presentable and persuasive

The reporting tools in management information systems allow decision makers to tailor reports to the information needs of other parties. If a decision requires the approval of a senior executive, the decision maker can create a brief executive summary for review. If a manager wants to share a report’s detailed findings with colleagues, they can create a full report and provide varying levels of additional data.

Make it possible for departments to cooperate with each other

In situations where decision making involves departments, groups as well as individuals, management information systems make it easier for teams to make collaborative decisions. For example, 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

Management information systems help decision makers to make sense of their decisions. The system collates raw data into reports in a format that allows decision makers to quickly identify patterns and trends where raw data would not be obvious.

Decision makers can also use management information systems to understand the potential impact of change. For example, a sales manager can make predictions about the effect of a price change on sales by running simulations in the system and asking some “what if price” questions. .