The Role of Management Information Systems in Decision Making

Businesses need to respond quickly to changes to remain competitive, and Management Information Systems provide managers with critical data to make sound business decisions. A miscommunication could spell disaster and mean the difference between a profit and a loss. Companies rely on MIS for data about inventory levels, human resources, finances and other relevant information they deem critical to their success. MIS is particularly important for large organizations with global operations.

Management Information Systems

Businesses collect, process and store data to help them carry out daily operations. MIS uses technology to aggregate and disseminate information to managers, which allows a business to operate more efficiently. Many companies use MIS to gain a competitive advantage. For example, through the use of MIS, a retail store can track which products sell the best and put in an order ahead of time before supplies run out. A car dealership could track the cars it has in its inventory and make provisions to ensure that it has enough stock to satisfy buyer preferences. A manufacturer can keep tabs on supply costs and use this information to find the materials it needs at the best price.

Information Technology

MIS filters data from various parts of a company using information technology to help managers understand what's going in their departments to make better use of the firm's resources. Every organization uses the information that it gathers differently. It is up to management to ensure that its IT infrastructure is adequate to meet the organization's strategic objectives. IT and MIS go hand in hand. MIS is concerned with managing how a company organizes, manages and utilizes information, while IT comprises different systems that help MIS managers do their jobs.