In my previous blog I discussed how Decision Support Systems (DSS) were used in decision making. I am now going to talk about another type of IS used for decision making – Management Information System.
A management Information System (MIS) is mainly concerned with internal sources of information. MIS usually take data from another type of IS -the transaction processing systems (TPS) and summarise it into a series of management reports.MIS reports tend to be used by middle management and operational supervisors.In simpler terms a MIS is a computer system that stores and distributes information on how to successfully manage an organisation, and it is usually regarded as a subset of the internal controls of a businessFor example, a MIS might provide a middle manager with current sales figures, and indicate whether they are on track to meet the months quota or not.MIS is used for managing four major components. These are: technology,people, documents and procedures. MIS is much faster than doing things the manual way because the technology is able to analyse and collate raw data that it collects and then it reports the trends and patterns. Managers then refer to these reports in order to plan for future business operations.
- Saves time
- Allows managers to make informed decisions more quickly
- Assists managers to better understand the enterprise that they are in.
However like everything else MIS also has its flaws. These include:
- Highly senstive requires constant monitoring.
- Buddgeting of MIS extremely difficult.
- Quality of outputs governed by quality of inputs.
- Lack of flexiblity to update itself.
- Effectiveness decreases due to frequent changes in top management