In this assignment it is explain what Management information system is, how we use it, its importance, changes, different patterns & trends also the impact of MI on decision making. The other elements which will be explained here will be sharing of information within an organisation also for strategic decision making the use of information to inform and support and finally the review of MI.
In the organisation every activity especially the process decision making must be done fast and accurately. In businesses and other organizations, internal reporting and recording was made by hand and only every so often, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. data had to be separated individually by the people as per the obligation and need of the business. Later, data was illustrious from information, and instead of the compilation of mass of data, important, and to the point data that is needed by the organization was stored. So there was a need of system that could ensure the better quality of information and fast accessibility as well.
O'Brien, J (1999) define "M.I.S as the term is generally used to refer to the group of I.M methods joined to the mechanization or support of human decision making, e.g. decision support system, expert system, and executive information."
(O'Brien, J (1999).Management Information Systems - Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill. ISBN 0071123733.)
An 'M.I.S' is a calculated process of the collecting, handing out, storing and disseminating records in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities that were planned and executed. According to Philip Kotler(2006) "A M.I.S consists of people, gear, and procedures to collect, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers."
(Kotler Philip, Keller, Kevin lane(2006).Marketing Management(12 ed.). Pearson Education.)
Section 1:Understanding Management Information
Features of data and information
To understand what management information is, first you have to know the elements of the management information which are
- Data are the recorded facts which can be get by reading, observing, measuring, counting etc. for example names, numbers, senior players, reserve players, junior players, graph, etc.
- Information is nothing but interpreted, understood, organised and meaningful data Weekly report of player's performance like goals, passes, attempts, tackles, attendance etc.
- The combination of data and information reaching to the position of decision making
- Performance based decision whom to play in the next match.
The criteria to be applied when selecting data and information to support decision making
Its very important for decision making that it should be supported with data and information. There is another issue that the support for decision making must have some qualities such as accessibility, relevance, comprehensibility, timeliness and accuracy.
- Accessibility: The information should be easy to access and most importantly it should be available. In order to have good management manager should be facilitate with information which is available to them all the time and in good amount or they should know where to obtain the required information. Information technology has the solution for the speedy accessibility and the large amount of data handling.
- Relevance: Relevance is the dominant quality. If solving a problem in an organisation the information should be in line with the problem, relevant an in effective format. Most of the time information in the form of graphs, reports, massages etc. contains unrelated material which creates confusion. Helpful information should be sufficient but also complete.
- Comprehensibility: Information with clarity, simplicity and unambiguousness are essential for the quality decision making.
- Timeliness: Time is an important factor in decision making process. Because of the MIS process (relevant, accurate and complete but enough), the information is useless, if a manager don't have the information on the right time or in the time when it is needed. delayed information is useless to the management.
- Accuracy: The accuracy of a report or data is very important for the decision making but to have absolute accurate information is a costly process also doesn't increase the value of information. Accuracy is to some extent connected with timeliness it impacts on information's accuracy. Managers need enough accuracy and relevance in information for there desire purpose.
- The other uses of information are the collection also storing of the data and to later convert it into information.
- Information system helps in the smooth running of the organisation and also to make sure that employee can do there work efficiently by providing operational information.
- Information system make links between organisation's, customer and supplier to increase the value chain of the business of organisation. The benefit should result in better information flow.
(Terry ,lucey (2005), management information system, 9edition)The impact of MIS on organisation
To evaluate the impacts of MIS first managers should understand what management information system is?
Basically information system is the relations between practice and equipment.
According to Effy (2008) "MIS is a tool to gather, analyze, store and disseminate information useful for decision making in a project."
Effy oz, 2008, management information system, 6th edition, Thomson course technology.
The importance of the information system is nearly spontaneous: information system consists of all the mechanism to work together on data processing and information retrieval. Almost all the business information system is composed of many subsystems, the sub goals, all putting in to the organization main objective
The purpose of information system
People seek information for amusement and knowledge by using different types of medium like tele, film, internet, radio, books and newspaper. Public and organisation look for information and utilize it mainly to craft sound decision making and solving problems.