Did you know that just like technological advancements in the business world, business activities necessitate the support of a management information system [MIS]. In addition, almost all fields necessitate the use of a comprehensive ERP system that is capable of controlling and managing information properly and adequately. For example, the use of integrated ERP software solutions in the management information system can definitely help with managing information seamlessly. Therefore, companies can get the ERP software pricing scheme calculation first, before implementing the software in their business.
A business information system, in general, is an integrated set of components for collecting, processing, and storing data. A cloud-based ERP system in MIS is a huge introduction to a much better business process. Now, there is this system that manages interactions with customers, suppliers of goods, and market competition. An excellent and integrated ERP system could build a strong and valuable Management Information System.
Inventory management can be done using a good inventory application to produce an optimal amount of inventory, stock management processes, and effective stock management. To have the luxury of automation from a good inventory management system, you can try some free demos that’s been offered before landing on one system.
Several large corporations, including eBay, Alibaba, and even Google, rely on information systems in business. E-commerce and marketplaces, for example, use digital screens to sell their products, and the product information they have is the result of IS.
In addition, consider the following definitions, benefits, and applications of MIS.
Also read: Mentor is: Know the Importance to Your Career Success
Table of Content
- Definition of Management Information System
- Four Benefits of a Management Information System
- Disadvantages of not implementing information systems in business
- Application of Management Information Systems in Business
- Conclusion
What is MIS or Management Information System?
A management information system [MIS] is a series or group of processes that process, analyse, and display data to be used in decision-making. This system is a planning system that is part of the company’s internal control and consists of documents, human resources, technology, and management accounting processes.
The primary goal of this system is to collect and organize all data from various levels of business, and summaries, and then facilitate decision-making, and improve quality to increase the company’s productivity and profitability.
Furthermore, there are a variety of expert opinions on the meaning of MIS, including:
L. Jamers Havery
A management information system or MIS is a logical and rational process for executing or designing a series of interrelated components.
Azhar Susanto
A management Information System is a set or group of subsystems or parts or components of various types, physical or non-physical, interconnected for control, evaluation, and continuous improvement.
Ludwig von Batalanfy
A management information system is a set of interrelated elements in a relationship between these elements with the environment.
So far, are you interested in knowing more about management information systems? Then, check out the benefits and applications of SIM for the following business.
Also read: The Usage of Fingerprint | Biometric Technology as the Employee Attendance System
Four Benefits of a Management Information System
Here are some of the advantages or benefits of using an MIS for management and a company as a whole.
1. Improving data accuracy
Accurate data is needed in a company because it is related to strategic decisions. MIS is a tool that provides accurate data needed by the company.
The system automatically processes incoming data to make administrative tasks more effective and efficient. And with the support of internet technology, you can also retrieve the required data in the system in real-time.
2. Facilitate coordination
This system also provides information services that you can use for planning, monitoring, and administrative control. From the resulting information, data can be used by other departments or departments in need.
Information systems also help management to delegate tasks to other parties easily. Coordination between departments can also take place quickly without having to meet in person.
3. Improving the quality of human resources
What is a management information system for executives? Of course, when information data is available accurately and quickly, this will affect the performance of the company’s human resources. Like it or not, HR who use this system must adapt their work system to technological advances. Quality resources will undoubtedly affect the progress of your business development in the future. Use the help only of your trusted HR software.
4. Reduce operational costs
If MIS has worked for your company, this system will help minimize human error. With a minimal number of errors, the productivity of existing human resources will also increase. Then at the same time, conditions like this certainly reduce the company’s operational costs.
Also read: Production Process in Business: Definition, Types, and Characteristics
Disadvantages of not implementing information systems in business
The following are the disadvantages of not having a business information system:
- Piracy and cybercrime are typical examples of technological crimes.
- Individual liberty and competence do not grow.
- Due to a lack of progress in IT, does not strengthen the economy.
- Media offers will present a limited range of interests and tastes.
- The formation of community ties and relationships will be hampered.
- An agency’s operations become inefficient.
Also read: 6 Ways to Optimize Business Using Cloud ERP Singapore
ERP can simplify complex business activities, increasing efficiency, saving costs and optimizing your company’s productivity. Different scale companies can use this software, be it small, medium, or large.
In short, If you still don’t know which module you need in an integrated ERP system, don’t hesitate to ask the right ERP solution provider. HashMicro offers a free consultation for those who are planning to implement ERP in their company. Click here.
Related article: What is ERP Software and What Can It Do for Your Business?