What is MIS | Benefits, Full-Form, Need, Components, Types of MIS?

MIS

Contents:

1. What is MIS?
2. How it works?
3. What is the Full Form of MIS?
4. What are the 5 different types of MIS?
5. What are the 4 components of MIS?
6. Importance of MIS?
7. Why do we need MIS?
8. What are the benefits of an MIS?
9. What are the advantage and disadvantages of the MIS?

History

We live in a saturated data world, and all companies have access to copious (abundant) amounts of data. Every organization needs an information system that controls, analyzes, visualizes information. Let’s take an in-depth look at such an information system.

What is MIS?

The information system is called the Management Information Systems, popularly abbreviated as MIS. Management Information Systems (MIS) is used to coordinate, control information, and use it in the decision-making process.

It collaborates business processes, human resources, and information technology to record, and analyze data to make smart decisions. In this article, we want to introduce you to the types of MIS, components of MIS, and why we need it. Additionally, we will explore its advantages and disadvantages.

How does it work?

The tactical management team uses the Management information system. They use it to take information from the system and share the results and then make decisions based on the reports.

Let’s take a look at how the MIS system works.

Step 1: Collect data: Every organization has a system to collect data, both internal and external. The MIS uses these sources and collects all the relevant data in its network. If the info is collected manually, then the data is entered manually into the MIS.

Step 2: Process Data: Process the data First, they clean the data, then structure it in a way that is most useful for the team. After the organization, the data is analyzed, may be manipulated using logical and mathematical operations. This data can be used for research and forecasting purposes.

Step 3: Store the information and retrieve it: Every small change in data is recorded and stored so that it can be accessed anytime in the future. Depending on the type of information, store it in databases-SQL or No-SQL. As per the requirements, this information can be retrieved later by the concerned authority.

Step 4: Share the insights Sharing insights is the last step in the process: Export the necessary information, the trends, and the patterns. Use data visualization techniques to prepare reports and share them with the relevant teams. Use the reports generated and create an action plan to execute. The new data generated will again go through steps 1 to 4.This is a cyclic perennial process.

What is the Full Form of MIS?

MIS stands for Management Information Systems

What are the five different types of MIS?

Each department of an organization generates its data and requires different MIS systems to deal with it. Some MIS are specific to the functionality of a particular department, while others cater to more common parameters and mostly to the entire organization to ensure smooth running.

The five main Management Information systems are as follows:

1. Process Control System: The process control system is the type of management information system which will monitor the industrial processes. The system collects real-time data and generates reports periodically on the required parameters. 
2. Sales and Marketing System: This MIS helps track the effectiveness of the marketing and sales activities.data is collected and used in the planning and execution of promotional campaigns to launching new products and market research. 
3. Human Resources System: This MIS system has more reach, can communicate between HR and other departments in a company, keep track of recruitments and policy-related matters. This may also have some aspects of financial matters like payroll and type of employment. 
4. Inventory control System: This MIS is for tracking all stocked products and related happenings like theft, running low in quantity, and much more. As the name suggests, it is for managing inventory. 
5. Enterprise Collaboration: As the name suggests, this is a complete package. The management information system is meant to collect all the data about a company, like a record of all personnel, finances, inventory, requirements, marketing, and more.

What are the four components of MIS?

1. Business Processes- the business procedures or best practices guidelines set up by every organization. These practices are set up in such a way that it facilitates the use of the MIS by the people. These business processes might be different for every company and every team within the company. What works for one team may not work best for another. These best practices have to be formulated with care. And, it should be oriented to the requirements of each group and the company. 
2. Users- They are the people, the managers, the executives who operate the Management Information Systems to glean insights on the function of their team. A lot of control on the MIS rests in the hands of the executives. If utilized inaccurately, the results you get may be wrong, and that will be a cause of headache for the company. The people who use the MIS should be appropriately trained to use it and schooled on the best practices. 
3. Technology(hardware and software)- The technology used is as important as the people and the procedures. The equipment includes all the gadgets and systems like laptops, Pcs, scanners, copiers, and other network devices. These are used for input and output of data to and from the MIS. The software is the program or set of programs that run on this hardware. These applications will help you input the data, process information, and analyze it to gain insights. These include some standard programs like MS Word and MS suite of products, or more specific and specialized programs for tasks such as ticketing or helpdesk. 
4. Data- Data is the fourth pillar of the MIS. It is mentioned last, but it is equally important. We need space where we can store all the data that is recorded. These data can be structured or unstructured. Later, they will be sorted to discard unnecessary or redundant data. The quantity of the data handled can be high, so you will have to look for sound Database management systems to store your data. This data is later cleaned. Then the required information is filtered, processed, and analyzed to gain actionable intel. These components work together seamlessly making the use of the MIS an efficient one and help in achieving the objectives of the individual, team, and company.

Why do we need MIS?

Every business requires an efficient Management Information system. It helps people do their jobs more smartly and get results faster.

You can use the same system for a service, a particular product, or devising strategy for the whole organization.

1. It helps solve structured problems. 
2. It will assist the management tier in taking real-time decisions. 
3. It will be useful to answer the questions that may be asked and the situations faced under various scenarios. 
4. With the analysis of trends and patterns, it can serve as a guide for future endeavors. 
5. With its in-depth data analysis, it can serve as an early warning system for a disturbing trend. 
6. It helps provide a certain amount of flexibility towards the business workings.

What are the benefits of a management information system?

• Achieve objectives with efficiency: The Management Information System helps businesses achieve their goals and objectives. This also improves the overall productivity of the employees. 
• Planning and control: You can plan and control your work better with known variables using the Management Information System. You can use customer data collected to study and get a competitive edge. This will also improve the quality of the decisions made. 
• Coordination and communication: Shared and common information will allow for various teams and managers to identify the areas with issues and make an action plan to collaborate and work on it.

What are the advantages and disadvantages of management information systems?

Some of the Pros of MIS:

• High data accuracy: the duplication of data is very low as well. 
• Better security: The MIS gives access to only the personnel who need them, like managers and high-level executives. There is user authentication, sometimes even biometric, and other access control systems. 
• Good Backup plan: With the advent of cloud technology, data can be backed up and can be easily stored and retrieved on demand. 
• Ease of access: development of tech and mobile-first solutions ensure that data can be easily made available to executives irrespective of their location. 

Some Cons of MIS to consider:

• Risk factor: Security is paramount when dealing with data. If there is even a small lapse in security, there is a high potential for fraud and loss of data and confidential information. 
• Expensive: The entire setup is costly to set up and maintain. Proper personnel has to be trained on the best practices and about general usage of the product. Additionally, there is too much reliance on technology, and it will affect performance. This means that you can’t access information when any hardware or software malfunctions.

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