Manger has always need information to help to them manage such information can be gathers through the Formal reporting system are through informal means the so called Management by Walking Around formalized management information system were available to manger even before modern computers was invented . Before few years the great trading companies carved out their own trading empires across the glob. Again with out a computer insight. while there advent of computers made it easier to process large amount of performance and financial information to help the mange companies , business management , marketing management did not begging 1941 when the first computers was invented .
Applicability of MIS in business environment is based on the premise that information systems knowledge is essential for creating competitive firm managing global corporations, adding value and providing useful products and services to customers.
By 1960 the concept and usage of computer based management information system had began to take hold. Today the use of computers for gathering and disseminating management information is common place even if it is still supplement by traditional Means. Because computers make so much information available management must priorities which information is most important to running the business.
information to monitor the work of an organization to point out requirements for corrective action for improvement e.g. Variance analysis monthly sale reports.
As we know that organization put forward a number of reasons why they invested in information technology. The most common reason includes the need to sustain and improve competitive position, increase revenue, reduce cost or improve flexibility and responsiveness. While these are important many organizations are driven simply by the need to survive in highly competitive environment or market. thus banks installed ATMs to increase customer services , the reliability is that once one bank had installed ATMs competitor were left with little choice but to match investment . The use of IT has become increasingly strategic for a number of reasons. Which are following?
IT significantly increases the choice of option available to company and plays an important role in the effective and implementation of every element of business.
It has potential to integrate different parts of business (Organization) and provide more information to Managers. EIS for example affect the Vertical flow of information through an organization. Top management has greater access to information and reduced reliance on middle management to source of that information .telecommunications networks allow information to easily and quickly between different departments and divisions.
It also affects the organization\u2018s interfaces with external environment such as customers and supplier. Inter-organizational systems, facilitated by electronic is data inter change for instance, create closer links between organizations and their suppliers, facilitates more efficient inventory management and allow a just \u2013 in \u2013 time approaches to reordering.
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