The concept of management information system

DIT ASSIGNMENT

The senior managers of a large business organization want to know whether they should use an information system to support their strategic decisions.

Write a report that explains the use of information systems for this purpose.

Information systems are those systems which process raw facts or data into processed information which can be useful for an organization in decision making. In today's world where science and technology is replacing the previous ways of working, information system has proved to be an asset in the field of business. The use of computers and Information Technology (IT) has made the decision making processes in businesses a lot easier. Information systems are scientific methods of handling the data of a business. So, whenever any data is fed to the system which is either manual or automated a result based on probabilities or statistics is produced. This processed data may show the trends in business and may help in identifying the plus points of that business. Managers of any organization and any sector may use this processed information before making any kind of decision. The case mentioned above asks whether the senior managers of a large business organization should use an information system to support their strategic decisions. Well managers definitely have years of experience and have made lots of decisions in the past, but with the aid of information system they can make better decisions. Managers may act on some whims of their own while making decisions. However this may not be healthy for a business as business decisions must be based on scientific approaches rather than on someones whim. This is exactly where information system comes in and helps in achieving what's best for the business.

The concept of Management Information System (MIS) explains the use of information system in business organizations. An information system is a manual or automatic processing method which receives data and processes them into reports or statements. Management Information Systems are three separate words used together to form an entirely different definition. Management refers to the utilization of an organization's resources - manpower and goods and organizing the business activities in the business. Similarly, management is also related with planning, policy making and decision making in a business. Management consists of managers who are responsible for the growth and development of the business. The management of a business has the responsibility to play a key role in making decisions of that business. Information is processed data. Any raw facts and figures are converted into information when they are processed and checked. Any deals and transactions of a business, any survey conducted by the business has lots of numerical data. When those data are stored over time and processed they can provide useful information. Today lots of businesses rely on computerized information in order to make strategic decisions. Information received from information systems is scientific and accurate. So, it is best to study the information before taking any kind of decisions. A system is any manual or automated method of work procedure which processes inputs and gives an output. And so management information system when collectively used define the computerized system of processing information in an organization. At present the use of computers in business has hugely affected the working methods of a business. Businesses of today rely more on computers rather than on their human resources. Different management information software systems are developed on a daily basis in this new age of technology. Different businesses have also been established to produce this software. Businesses keep on upgrading their information system with newer systems arriving in the market.

The managers of today's organizations generally are experts in the use of different computerized software. In order to survive the competition from other corporate managers they have to improve their knowledge with time. Now coming back to the process of decision making in a business, decision making in a business requires lots of study. Decision making may differ according to different businesses. A manufacturing business may have to decide between the increase in production of one good and decrease in the production of another good. A marketing business may have to choose between different marketing methods available. Similarly, a constructions business may have to decide on which raw materials to use. All of these decisions have to be made after careful study and must be based on past facts and figures. Information system uses different scientific methods in order to record all the past data and information and assists in a scientific way of reasoning while making decisions.

The strategic decisions of a business are those decisions which have to be taken for a long term by keeping the future in mind. So, strategic decisions have to be handled very carefully. Senior managers of an organization are always present to decide what is best for the business. However they must take help of information system before planning anything. Information system and particularly Decision Support System (DSS) can help an organization in taking strategic decisions. A decision support system is a software, which when fed with unprocessed data gives out some useful information. Decision support system is designed in such a way that it reads the raw facts and figures of a company's records and helps in problem solving by identifying trends from that information. The examples of what can be the input of a decision support system are sales figures, customer satisfaction surveys etc. When these inputs are entered into a decision support system it automatically comes up with different suggestions based on the information provided. Managers do not have to act entirely according to those suggestions. However it makes decision making easier for them. A business organization has lots of data and numerical figures. It is not possible for managers to study those data manually. That is where decision support systems help them.

A business organization in the present faces lots of competition from the evolving business environment. Therefore it has to adapt to whatever the latest technology has to offer. Information technology and computerized systems of an organization has to be upgraded on a regular basis and information system must be used to support each and every decision of an organization.

However it makes decision making easier for them. A business organization has lots of data and numerical figures. It is not possible for managers to study those data manually. That is where decision support systems help them.

A business organization in the present faces lots of competition from the evolving business environment. Therefore it has to adapt to whatever the latest technology has to offer. Information technology and computerized systems of an organization has to be upgraded on a regular basis and information system must be used to support each and every decision of an organization.

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