16 Oct Management Information Systems and Why You Need Them
A management information system provides data that helps businesses in making decisions, reducing expenses, and increasing revenue. MIS also indicates a company’s growth, acts as a planning tool and helps improve the performance by emphasizing its strengths and weaknesses.
The information generated through an MIS can be used by everybody in a company – right from management and departments to customers.
Management information systems – Applications in Business
MIS application falls into several categories that work in coherence to generate information within an organization.
The following information is obtained:
Business Intelligence System
All levels of executives and management can print graphs and data in BI. These pictorial representations show information and trends pertaining to growth, strategic control, costs, risks, efficiency, and performance.
Executive Information System
EI functions similar to BI but offers greater insight into confidential information. This allows top-level executives to partake in decisions that impact the entire organization.
Marketing Information System
MI systems are designed specifically for marketing executives. These systems provide data about previous campaigns to determine what worked and what didn’t. This way, chances of launching successful campaigns increases.
Transaction Processing System
Sales transactions are handled by TPS. Customers can use this information to sort search results on pre-defined parameters. Sales executives can also track sales trends through TPS.
Customer Relationship Management System
An MIS also acts as a CRM. It helps companies know how and when to follow up with customers to cultivate ongoing sales rapport with them.
SalesForce Automation System
Sales teams used to do everything manually earlier. With the advent of SFA, everything can be automated to make ordering and information storage seamless.
Human Resource Management System
HRM systems are in place to track the payroll of employees. Companies use this information to keep tabs on performance and expenses incurred in a financial year.
Knowledge Management System
Sometimes, customers might want answers to questions right away. Knowledge management systems allow them access to frequently asked questions to resolve queries on their own.
Financial Accounting System
These systems keep track of accounts payable and account receivable. This information helps in the management of cash flow in a company.
Supply Chain Management System
Supply chain systems record and manage supply finances, data, and goods all across the shipment journey. The process begins from point of origin to delivery to the customer.
A management information system is a versatile platform. Whether you recognize it or not, chances are you’ve already used an MIS as a customer. When you sort and filter on search on your favorite shoe site, you are actually accessing MIS. MIS makes doing business faster, more precise, and more profitable.