Example of the Role of Management Information Systems
Rancakmedia.com – The following is an explanation of management information systems (MIS) which are very important in today's business world that you need to know and understand the contents of. Let's see below!
The fundamental purpose of building an information system is to assist business operations and human work. as this will allow for a more organized and methodical implementation.
This, of course, is closely related to digital transformation in various startup business domains today. More information about the world of technology can be found in the information below.
Definition of Management Information Systems
A management information system (MIS) is a collection or set of procedures by which data can be processed, analyzed and presented in such a way that the data becomes relevant for decision-making purposes. This system is an invaluable tool to assist and manage company operations.
The basic objective of this system is to collect and organize all data from all levels of the company, summarize, and then enable and improve the quality of decision making to increase the productivity and profitability of the company.
These systems are computer-based and may be excel sheets or more complex platforms. Data can be accessed, processed and shared internally and internationally. A more effective and productive information system has been implemented.
Functions of Management Information Systems in Business
This system is important because it has a high level of complexity in business organizations. If you don't have the right information, no organization or business can make a viable choice.
For a business or organization to make informed decisions, they must have access to current and accurate information. Your business productivity will decrease if you do not have accurate and up-to-date information.
Following are the roles of SIM in business:
Assist in the Decision Making Process
Data from reliable and relevant sources is, of course, information for any system. This information must contain facts so that the decision-making process runs smoothly.
When you have a management information system, it is much simpler and more organized to make decisions for your business.
Helps in Finding a Problem
As is known, this system will provide useful information in all aspects of activity. If there is an error in management, the information on the SIM will provide a solution to the problem.
Helps in Comparing Business Performance
This system also maintains historical data and stores data in a database (database). So, a management information system might be able to compare your business performance more quickly and easily.
Assist in Inter-Departmental Coordination
When a business has multiple divisions, each division is responsible for its own set of activities. As a result, a system is needed to coordinate multiple departments effectively.
SIM can assist in coordinating each department in this arrangement. Exchange of information becomes better and faster with organized management.
Everyone in one department will have a good relationship with other departments as information is exchanged.
Stages of Management Information System Process
The steps of the management information system process are as follows:
Planning Management Information System
The first stage is the formulation stage, which is prepared in detail to achieve the final goal and is involved in management activities. Setting goals and making plans to achieve them is an important part of the planning (goal) stage.
Control Management Information System
The second stage enters into the control process, where after the plan has been successfully developed, the next step is to enter into the plan implementation process. Managers and staff are responsible for ensuring that the plan is carried out correctly and smoothly.
Decision Making Management Information System
The penultimate step, the selection procedure, will be carried out among many possible alternatives. The manager's job is to intercede for the many departments involved in the planning and execution phases. A manager must be able to distinguish between goals and strategies to carry out these goals.
Management Information System Components
A management information system must be developed with many components that are connected and impact on one piece of information. The following elements go into creating an MIS:
Man
In a SIM, people play a very vital role. Humans are responsible for the design, processing, operation, construction and use of systems.
As a result, both humans and businesses that use SIMs will benefit from the information created on SIMs. Human resources are needed to build a system that works well and is properly put together.
Information
Humans create management information systems to turn raw data into data that companies can handle and use. Information of value in this case is information that is useful, comparable, accurate, current, and explainable.
Humans and the businesses they manage will benefit greatly from information that fits the criteria outlined above. Utilizing a suitable SIM will make data processing simpler and more testable.
System
A management information system (MIS) is a complex system of related systems that perform various functions. The management information system subsystem is tasked with collecting, processing, and refining data to be used as information.
Management Organization
Every business and every business sets a management business to achieve their business goals. The organizational management task is to organize, implement, plan, and supervise the activities of a company or organization.
Decision-making
Decision making can be done if the business has relevant and accountable information. Without a driver's license, a businessman or entrepreneur cannot make the right choice.
Making a choice with the help of a management information system can be considered as a starting point. It is also important that the information is accurate and does not cover any technical aspects.
Type of Management Information System Report generated
Business professionals rely on management information systems (MIS) to store and create data and reports for analysis and decision making. SIM generates the following three types of reports:
Real-Time Management Information System
Real-time reports, on the other hand, can mean that they can be acted on immediately. This kind of report is often used in business to see every change in information in real time and there is no time limit.
For example, a customer support representative keeping an eye out for spikes in call volume so they can address the situation as quickly as possible. This form of real-time reporting can also increase the productivity of the business you manage.
Ad-Hoc Management Information System
Users only need to prepare this report once to provide feedback on a query. You can make the report a scheduled report if it's useful.
This report type can only be used once, but speeds up report creation. Ad-hoc business is ideal for businesses that want an efficient reporting system.
Scheduled Management Information System
Finally, recurring reports are reports that are sent regularly. Scheduled reports allow companies or organizations to deal with data regularly over time. The applicant has offered to extract and organize the data.
Using multiple characteristics, distributors can compare sales figures from multiple locations with scheduled reports. As a result, the company's revenue will increase, and the state of the business market will be better monitored.
Category Management Information System (MIS)
The following are examples of management information systems, each of which has a wide range of applications:
Business Intelligence Systems (BIS)
Companies that use data and information collection, integration, and analysis to develop business systems often fall into this category. This system has similarities to EIS, but only lower-level managers and executives use BIS.
Executive Information System (EIS)
EIS is more often used by senior management to assist decision making that impacts the company. For CEOs, reliable data and the ability to interpret it correctly is very important.
Customer Relationship Management (CRM)
CRM maintains a variety of information about customers, including sales, contact information, and earned revenue prospects. Marketing departments, customer service, business analysts, and sales staff will typically use a CRM system.
Sales Force Automation System (SFA)
It is possible for a sales team or department to automate a large number of processes using this particular SFA system component. These components include contact management, tracking, contact creation, and order management.
Financial Accounting System (FAS)
Area ini didedikasikan untuk setiap departemen yang bekerja di bidang akuntansi dan finance. Menghitung hutang dagang (AP) dan piutang (AR) adalah dua contoh tugas yang telah selesai (AR).
Knowledge Management System (KMS)
Customer service representatives can use the KMS to answer any questions and resolve any issues that may arise.
Marketing Information System (MkIS)
The marketing team utilizes MkIS to be able to report the effectiveness of the marketing procedures that have been carried out. It is also used as viewable data to make marketing better in the future.
Supply Chain Management System (SCM)
Examples of companies using SCM include retail and manufacturing companies, which are used to monitor the movement of resources, materials, and services from initial creation through product delivery or distribution.
Transaction Processing System (TPS)
Point of Sale (POS) is also included in the TPS, where this system can help tourists find hotels or lodging locations quickly and with quality. Using the best data available, it's employees' job to continuously report sales trends.
Human Resource Management System (HRMS)
This last category is used to record worker performance, and to generate employee wage data reports.
Example of Management Information System
Examples of management information systems for businesses that you create are as follows:
Enterprise Resource Planning (ERP)
As a result, large companies often take advantage of this system. Most likely small and new companies can also use this system. Integrated management of data and management procedures within the organization is made possible through the use of enterprise resource planning (ERP).
Supply Chain Management (SCM)
This system is very useful for management to perform data integration. Raw material supply management, for example, starts from suppliers, producers, traders and consumers.
Transaction Processing System (TPS)
The next system is TPS which functions to handle large volumes of data and large transactions that are carried out regularly. Inventories, banks and other financial institutions will love this system.
Office Automation System (OAS)
The fourth system is OAS, which is designed to streamline and speed up communication across divisions within a single company. Then, they can integrate across servers within the company. An example is the use of e-mail.
Informatic Management System (IMS)
This system supports various tasks in the organization. The term "spectrum" refers to the integration of several tasks into a single process.
In addition, IMS can also link various information functions with computerized applications such as e-procurement. This system is perfect for assessing information to make judgments.
Knowledge Work System (KWS)
By using this system, new information can be more effectively integrated into the company or organization. Knowledge signifies something new that can increase productivity in the business you operate.
Group Decision Support System (GDSS) and Computer-Support Collaborative Work System (CSCWS)
For most systems, the answer to a problem can only be found through collective wisdom gathering, which is the heart of the GDSS. It could be in the form of a survey, scenario or discussion, for example. E-government is a good illustration of this kind of system.
Expert Systems (ES) and Artificial Intelligence (AI)
The implementation of this system incorporates artificial intelligence, which differentiates it from previous systems.
The purpose of this system is to be able to examine problems with the help of previously programmed experts. The design of a mechanical schedule system is an illustration of how ES and AI can be used.
Executive Support System (ESS)
This system tends to favor top management. To assist managers in their interactions with the business environment, an ESS (Executive Support System) is available. Graphical aids and other means of communication may be used to facilitate the engagement.
Decision Support System (DSS)
For this last system, a manager can use it to make decisions about the company's environment. The observation here is very important if the business you are running is to be better and more productive.
Benefits of Management Information Systems
By implementing a management information system in the company, it can improve the performance of the business being operated. Some of the advantages of implementing a business management information system include the following:
- Managers can compare how performance is expected to change and see where performance and business strategy are weak and where they are strong.
- Managers may also be able to get feedback on how well their business is performing.
- Management receives an overview of every action taken.
- Many decisions are passed from top management to more efficient organizational levels, taking into account experience and knowledge aspects.
- Organizations can get the most out of their investment by checking to see if their information and systems are working properly or not.
- Companies can drive process improvement workflows, which streamline business operations to meet the needs of each client.
- If the human resources work unit system is better, it is possible to make it more organized and systematic.
Conclusion
So that's an explanation of a management information system (MIS) is a collection or series of procedures where data can be processed, analyzed, and presented in such a way that the data becomes relevant for decision-making purposes.
Businesses rely on management information systems (MIS) to store and create data and reports for analysis and decision making.