Lecture-3

Information Systems Management/Management

Information System, (ISM/MIS)
Course ID: BBA-305
BENEFITS OF MIS
 Helps to achieve a higher level of efficiency: Managers have the information needed to identify a
company's strengths and weaknesses.
 Improves the quality of decisions: Better availability of information reduces uncertainty and lets
managers make more rational decisions based on reliable data.
 Promotes better communications between departments in a workplace: When managers,
department heads and employees are sharing the same information, there is better
communication between them to identify problem areas and find mutually agreeable solutions.
 Provides a platform to explore different scenarios for various alternatives and economic
environments: Management is able to explore various alternatives to see the possible results
before making decisions and commitments.
 Improves employee productivity: Employees are more productive because they don't have to
spend time gathering the data that management wants. A well-designed MIS will gather all the
data without any more input from employees.
 Strengthens a company's competitive advantage: Running a more efficient business by reducing
and eliminating weaknesses and non-performing areas increases a company's competitive
advantage over its rivals.
 Reveals more data about customers: With more data about the needs of customers, management
is better able to improve customer service and design more effective marketing and promotional
campaigns.
 A management information system is essential for any small business owner who is serious
about improving the performance of his company. Without a good MIS, managers are managing
by trial-and-error rather than making intelligent decisions based on a thoughtful analysis of
data.
Role of MIS in Business Organization
 MIS units are company wide.
 MIS must be integrated at all levels of

company to facilitate the management in

decision making.
 MIS is used by the Top management.
 The top management of company must play

an active role in designing, modifying and

maintaining management information system
which is used at all level in organization.
Role of MIS in Business Organization

 Information system and information technology have

become nowadays an important component of any
successful business and are considered as major
functional area as other function area of any business
organisation like marketing, finance, production and HR.
 Thus it is essential to understand that MIS is important
because all the business generate new data on every day
basis and have need for information about the various
tasks which are to be performed information and
technology provide MIS a tool for solving problem and
in aid in decision making leads to increase productivity
and quality work.
Role of MIS in Business Organization
 Support the Business process : Treat input as a request from the
customer and output as a service to customer. Supports current
operation and use the system to influence further way of working.
 Support operation of a business organisation : MIS supports operation
of a business organisation by giving timely information, maintenance
and enhancement which provide flexibility in the operation of an
organisation.
 To support decision making :MIS support the decision making by
employer in their daily operations. MIS also support manager in
decision making to meet the goal and objective of the organisation
different mathematical model and IT tools are used for the purpose
evolving strategies to meet competitive needs.
 Strategies of an organisation : 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
Componentsof MIS
 MIS is a system which take data as input and
processed it to give relevant information that
can help the management of an organisation
to take correct decision and further for
strategic planning.
 Today the reason for that most organisation

implement the MIS is to achieve the goals of

an organisation in the given time face all
components of MIS must support for the
same.