Management Information System Role

Topics: Supply chain management, Management, Decision theory Pages: 5 (1389 words) Published: October 17, 2010
The role of management information system in contemporary business/organizations cannot be over emphasized. Discuss

Management Information System (MIS) is a combination of tools, processes, and technologies that an organization deploys in order to gather relevant operating data and gain efficiency in internal processes. The system consists of tools and technologies, such as computer software and hardware, as well as technical personnel.

* Decision Making Tool
Management information system plays an essential role in corporate decision-making processes in organizations by providing operating data necessary for decision-making; the system helps senior leadership make well-informed decisions, depending on current economic trends, regulatory developments and internal business requirements in the short and long terms. Also, Accounting Information Systems (AIS) are a subset of a company's total Management Information Systems aid organizations business decisions and ensure profitable business operations. business report image by Christopher Hall from

* Organizational Layout and Structure Charts
Using an MIS, an organization is able to establish its hierarchical structure and work-flow charts. Every employee in the organization knows the employees he has authority over and to whom he is responsible for work. The work then progresses without glitches. * Planning Purposes

Also organizations use different types of MIS for different needs and scenarios. At a given point of time an organization might be using several types in isolation and in combination. Organizations essentially use the TPS. TPS is the acronym for transaction processing system. The business tabulates all its recurring transactions like inventory and customer orders using TPS. The Operations Information system, or OIS, is used by managers to plan out their production and scheduling activities. The decision support systems, or DSS, are used by the top management to find feasible solutions and options to different scenarios.

* Aid Task Accomplishment
There are numerous pluses in using an MIS. The organization records and tabulates all its key strategic functions. As and when deviations from the planned course happen, the organization is able to take corrective action at once. Communication channels are enforced. As the authority-responsibility diagrams are well established, the superiors delegate work to their subordinates and the subordinates turn to them for guidance and suggestions. The MIS mechanism enables the organization to weigh the pros and cons of several methods of accomplishing a task and choosing the most practical one.

* Supply Chain Management System
warehouse image by Niki from
A management information system is critical to a supply chain management system. It automates simple and complex tasks and provides management with reports concerning logistical accounts services by an organization or supply chain process. Supply chain management practices are used in various logistical functions such as, transportation, distribution services, warehouse management (retail and wholesale) and industrial manufacturing. * Materials and Information Flow Process

A management information system established for supply chain management analyzes the flow of materials or products through an automated accounting system based on logistics management. The system provides information and status on items relevant to cost accounting while determining profitability and the most effective way to manage inventory levels. Data from a logistical information system allows an organization to identify inventory levels, inventory turnover rates while identifying usable warehouse or distribution space. * Automation of Logistical Functions

Areas such as, receiving, storage and distribution, delivery services and inventory management...
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