Organizational Need for MIS in a Company?

Ans.: To facilitate the management decision making at all levels of

company, the MIS must be integrated.
MIS is available for the Top management.
The top management of company should play an active role in
designing, modifying and maintenance of the total organization wide
management information system.
Information system and Information technology have become a vital
component of any successful business and are regarded as major
functional areas just like any other functional area of a business
organization like marketing, finance, production and HR.
Thus it is important to understand the area of information system just
like any other functional area in the business.
MIS is important because all businesses have a need for information
about the tasks which are to be performed.
Information and technology is used as a tool for solving problems and
providing opportunities for increasing productivity and quality.
Efforts have been made for collection and retrieval of information,
However, challenges still remain in the selection analysis and
interpretation of the information that will further improve decision
making and productivity.
MIS for a Business Organization :
1. Support the Business Process : Treats inputs as a request from the
customer and outputs as services to customer. Supports current
operations and use the system to influence further way of working.
2. Support Operation of a Business Organization : MIS supports
operations of a business organization by giving timely information,
maintenance and enhancement which provides flexibility in the
operation of an organizations.
3. To Support Decision Making : MIS supports the decision making
by employee in their daily operations. MIS also supports managers in
decision making to meet the goals and objectives of the organization.
Different mathematical models and IT tools are used for the purpose
evolving strategies to meet competitive needs.
4. Strategies for an Organization : Today each business is running
in a competitive market. MIS supports the organization to evolve
appropriate strategies for the business to assented in a competitive
environment.

Advantages of MIS
1. Generate Competitive Advantages
2. Implementation of Management by Objectives Techniques
3. Fast Reaction to Market Changes
4. MIS as Strategic Resource
5. Change in Industry Structure
6. Functional Use
7. External and Internal Change
 8. Availability of Customer Data
Generate Competitive Advantages
Business houses succeed or fail based on how they face competitive
challenges. MIS if implemented properly, provides a wealth of
information to allow management to construct and develop effective
plans to meet, and beat, their competition.
Implementation of Management by Objectives Techniques
MIS allow all participants, both management and staff, to view,
analyse and interpret useful data to set goals and objectives.
Fast Reaction to Market Changes
MIS can deliver facts, data and trends to business with lighting speed.
Having this information allows business houses to react quickly to
market changes, regardless of the type (positive or negative) or
volatility.
MIS as Strategic Resource
 MIS helps in taking strategic, tactical and operational decisions.
It is one of the critical and important resource.
 It helps the management to understand cost, quality, price,
technology, productivity and product.
 It helps to smoothen the business process and thereby facilitate
managing of business operations.
 It helps to maintain the business standards like ISO, QS, CMMI,
six sigma etc.
 It helps to be a head in the competition.
 It helps company in analysing their own SWOT.
 It also helps in maintaining its own profitability.
  It will help in taking new business decisions like new plans, new
product, new business line etc.
 It protects company from business cycles.
 It provides future direction to the organisations.
 It also provides the competitive edge.
Change in Industry Structure
MIS helps in changes in industry structure includes
 Customers’ bargaining power
 Suppliers’ bargaining power
 Pressure from substitute products and services
 Birth of new business/ New business initiatives. u New way of
doing business.
Functional Use
Functional use of MIS includes:
 Lower the cost
 Information and information system facilitate value chain. e.g.
product delivery quality. It increases the speed, accuracy and
timeliness of the organisation. It helps in simplifying the
business processes. It helps organisation in meeting the
standards and benchmarks.
External and Internal Change
MIS creating knowledge is an asset. It helps to achieve change in
work life style for better results. MIS has made the world smaller.
Worldwide reorganisation environment and attempt to control the
calamity. Health conscious among the group lead to less sufferings.
MIS helps in Internal Change: MIS will change the business
process, MIS will change the old standards and set new standards.
MIS is a key for continuous improvement process. MIS will reduce
the hierarchy and hence less operation cost. MIS focuses on “shared
information”. MIS also measures the result and performance.
Availability of Customer Data
MIS giving an overall picture of the company and acting as a
communication and planning tool. The availability of the customer
data and feedback can help the business houses to align their business
process according to the need of the customers.
The effective management of customer data can help the company to
perform direct marketing and promotion activities. Therefore,
information is considered to be an important asset for any company in
the modern competitive world.