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Management Information Systems plays a very important role in business. The purpose of an information system is to collect information, retrieve information, process information, and distribute information. Information systems are

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     Management Information Systems plays a very important role in business.  The purpose of an information system is to collect information, retrieve information, process information, and distribute information.  Information systems are composed of the following:  hardware, database, telecommunications, and software.  It is believed that information systems are beginning to replace humans in the "real world".  There are several advantages of using information systems rather than humans in business operations.  Included in these advantages are that they reduce costs and standardize procedures.  Information Systems also help the Management Process.  They allow for easy access to specific information, easy access to workers, easy coordinating through internet interface, ability to get information faster, and Enterprise Resource Planning (ERP) software.


The objective of this research is to increase my understanding of the role of management information system by searching the internet.  

Types of information system:

 There are six major types of information systems.  They are as follows: 

- Executive Support Systems (ESS)

- Management Information Systems (MIS)

- Decision Support System (DSS)

- Knowledge Work Stations (KWS)

- Office Automation Systems (OAS)

- Transaction Processing Systems (TPS). 

It is impossible to adequately run a business without one of these information systems, they are extremely helpful.  Businesses were run successfully long

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Processing these marketing records into advertising elasticity reports, marketing plans, and sales activity reports.Recording and storing business intelligence data, competitor analysis data, industry data, corporate objectives, and other strategic management records.Processing these strategic management records into industry trends reports, market share reports, mission statements, and portfolio models.Use all of the above to implement, control, and monitor plans, strategies, tactics, new products, new business models or new business ventures.

The decision support role of MIS:

     The business decision making support function goes one step further. It is an integral part of making decision. It allows users to ask "What if …?" questions. What if we increase the price by 5%? What if we increase price by 10%? What if we decrease price by 5%? ; What if we increase price by 10% now, then decrease it by 5% in three months? It also allows users to deal with contingencies: If Inflation increases by 5% (instead of 2% as we are assuming), then what do we do? What do we do if we are faced with a strike or a new competitive threat?

     The most basic and most versatile business decision making tool is the spreadsheet, but spreadsheets are not user friendly. More sophisticated programs often seamlessly incorporate statistical decision making tools like sensitivity analysis, Monte Carlo analysis, risk analysis, break even analysis and Bayesian analysis. If, for example, you are using the information system to decide about a new product introduction, the program should incorporate tools like logit analysis, B.C.G. Analysis, conjoint analysis, contribution margin analysis, multi dimensional scaling, G.E. Multi Factoral analysis, factor analysis, cluster analysis, discriminant analysis, Quality function Deployment, preference regressions and preference-rank translations.

The strategic support role of MIS:

     Information systems can support a company's competitive positioning. Here are three levels of analysis:

  1. The supports for help in piloting the chain of internal value. They are the most recent and the most pragmatic systems within the reach of the manager. They are the solutions to reductions of costs and management of performance. They are typically named "Business Workflow Analysis" (BWA) or of "Business Management Systems p2p ". Tool networks, they ensure control over piloting the set functions of a company. The real-time mastery in the costs of dysfunctions cause distances from accounts, evaluation and accounting that are presented in the evaluation and qualitative reports.
  2. All successful companies have one (or two) business functions that they do better than the competition. These are called core competencies. If a company’s core competency gives it a long term advantage in the marketplace, it is referred to as a sustainable competitive advantage. For a core competency to become a sustainable competitive advantage it must be difficult to mimic, unique, sustainable, superior to the competition, and applicable to multiple situations. Examples of company characteristics that could constitute a sustainable competitive advantage include: superior product quality, extensive distribution contracts, accumulated brand equity and positive company reputation, low cost production techniques, patents and copyrights, government protected monopoly, and superior employees and management team. The list of potential sustainable competitive advantage characteristics is very long. However, there are some commentators' claims that in a fast changing and competitive world, none of these advantages can be sustained in the long run. They argue that the only truly sustainable competitive advantage is to build an organization that is so alert and so agile that it will always be able to find an advantage, no matter what changes occur.
  3. Information systems often support and occasionally constitute these competitive advantages. The rapid change has made access to timely and current information critical in a competitive environment. Information systems, like business environmental scanning systems, support almost all sustainable competitive advantages. Occasionally, the information system itself is the competitive advantage. One example is Wal-Mart. They used an extranet to integrate their whole supply chain. This use of information systems gave Sam Walton a competitive advantage for two decades. Another example is Dell Computer. They used the internet to market custom assembled PC’s. Michael Dell is still benefiting from this low-cost promotion and distribution technique. Other examples are eBay, Amazon.com, Federal Express, and Business Workflow Analysis Oberon-bwa.

The performance monitoring role of MIS:

Management Information System is not just statistics and data analysis. They have to be used as a MBO / Management by Objectives tool. They help:

  • To establish relevant and measurable objectives.
  • To monitor results and performances (reach ratios).
  • To send alerts, in some cases daily, to managers at each level of the organization, on all deviations between results and pre-established objectives and budgets.
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Leverage IT investment in E-commerce. Company web sites can be personalized to each customer's interests, expectations, and commercial needs. They can also be used to create a sense of community. Both of these tend to increase customer loyalty. Customer loyalty is an important barrier to entry.Leverage IT investment in stability. Technologically sophisticated firms with multiple electronic points of contact with customers, suppliers, and others appear to be more stable. This monumental appearance of stability can be a barrier to entry. This is particularly true in financial services.The simple fact that IT investment requires funds makes it a barrier to entry. Anything that increases capital requirements is a barrier to entry.

     In conclusion, management information system is a part of the information system. A management information system, or MIS, is a computer-based system that optimizes the collection, transfer, and presentation of information throughout an organization by using an integrated structure of databases and information flow.  A business would be more effective with management information system. It covers almost many parts of a business. It plans, organizes, coordinates, decision makes, and controls a business.






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