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How Management Information Systems Work?

Veethi Telang
Inferred from the omnipresence of computers today, management information systems hold a significant place in the business decisions of all organizations.
A management information system (MIS) is proficient in providing data, that is essential for the effective business management of a company.
It uses validated procedures to provide effective management at all standards of operations, with the most effective knowledge based on statistics from both intrinsic and extrinsic sources; so as to empower them to make favorable decisions for planning, directing, and regulating all the activities, which they are looked forward to.
Judicious and fair settlements in business heavily rely on the MIS, as well as the data brought forth by it. The tools and applications associated with the management and development of information technology, serve the executives and work personnel, to perform any undertakings associated with the processing of information.
Thus, MIS is most useful not only in the conglomeration of business information, but also in the production of accounts and reports that are worthy of usage as applications, for effective decision-making processes. This contributes to the vitality of data and maintenance management in organizations.


With the ever-changing transformations in circumstances and environment, modern technology's fostered recourse to management information processes is much required.
Companies over the world face many problems such as, lack of management contribution to the design and development, wretched appreciation in support from the side of management, incompatible importance to the technology structure of the company, poor financial management, and negligible attention to the inferior quality processing applications in all areas.
In this case, the MIS manifest their importance within the performance structure of organizations. They make a contribution to the system design by making the knowledge specialists such as system experts, controllers, and operation analysts, cognizant of managerial operations and requirements, which contributes to the development of MIS within the company.
Often it is seen, that the employee management unit is unaware of the relevant information required to carry forward a specific process, as a result of which, the data experts fail to serve the managers who are responsible for the production of applicable data.
Hence, MIS eases the job of establishing pertinent and suitable information configurations, with the help of which it is easy for management and data experts to be exposed to a repository of vast knowledge, and they operate accordingly.


These systems facilitate data not only for the present events, but also on the past as well as future projects, both within and outside the organization.
Being a planned and integrated system of accumulating pertinent information, these systems efficaciously provide valuable information to the right seekers at the right time. As a result, they have many benefits and advantages.
  • MIS collaboratively provides data, assists in the planning and regulation of managers in an organization.
  • Information fetched by them is vitally used by companies, as an effective tool for developing new products and relationships, with their suppliers and customers. This helps to transform their intimate operations as well as the business structure.
  • It formulates electronic associations to both the suppliers and the customers, which helps companies to lock-in businesses, resulting in hoisting up the switching charges.
  • The quality and provision of operations improves with the help of relevant data for a profound decision-making process. Often, as a result of the increasing size and intricacy of companies and their operations, managers lose touch with the scenario of what is actually happening within the organization.
  • Most importantly, MIS eases the integration of specialized operations, by outspreading awareness regarding all problems and requisites of other sections within the company, which leads to linking of all the decision points of the respective departments of the organization.
Thus, it can be concluded that these systems comprise all elements that are incorporated in facilitating relevant information assistance to the company, that will help to make decision-making processes associated with planning and control, a lot easier.
There is a need to develop such effective systems in all companies, in order to facilitate modern management professionals with crucial marketing, economic, production, and effective data on products and services, offered by their organization.