Management Information System

INTRODUCTION:

Management Information Systems (MIS) is a field of science that studies on (1) how better we can manage technologies (2) how better we can design information systems, in order to enhance a firm's effectiveness, efficiency and profitability.

MANAGEMENT:
Managing resources that include people, machinery (technology and computers), money and time etc. You have to consider three managerial factors together in MIS: effectiveness, efficiency and profitability.

Effectiveness – how well a firm is pursuing a goal or objective of its business; for instance, providing quality product/service can be a business goal that is usually stated in a firm's mission statement; Management by objective (MBO), etc.

Efficiency – best use of resources, a synonym is productivity = output divided by input. Productivity is measured in general by a ratio of OUTPUT to INPUT. Here, output indicates revenue, market share, etc., while input indicates labor, raw materials, administrative costs, operations costs, and IT related costs.

Profitability - The empirical studies in the IS literature have reported that on the contrary to the management's belief, there exists no significant difference in the profitability between before and after the new IS implementation. In other words, the new IS does not make significant profitability increase whatsoever. In general, the bottom line in any business is the profitability. If it does not enhance the profitability, then what is a point to go through all the trouble to develop/implement a new IS? Using IT is not the perfect solution for every business situation. Whenever a new IT or information systems (IS) are implemented, additional costs incur. They can be costs related to hardware, software, training, maintenance, etc. Therefore, the cost-benefit analysis should be conducted prior to a new systems implementation.

INFORMATION:

• Relates to the computer; refers to knowledge.
• Data are a source for the information. If... [continues]

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