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BUSA 345

Importance of MIS (Management Information Systems)

Management information system is defined as an information system

designed to support the management of organizational functions at the managerial

level of the organization (Valacich and Schneider). It includes software systems as
well as business processes and resources that are used to gather information. It is a
computerized database of financial information that provides reports for the
managerial level of the company to look over. Management uses it to regulate a
feedback on their performance and the company as a whole. Management
information systems plan and manage the data, procedures, and people of the

The MIS manage information from multiple systems, which helps the

management understand the contributions of different departments in the

company. For example, relating sales with inventory helps the manager find a
solution to better meet customers needs and demand by going through which
inventory sell more and not sell, and which inventory is available and not available.

MIS controls the creation and growth of file records, which improve

efficiency and productivity. Because of the computerized database, files and other
information are all stored in the computer. As a result, there are fewer amounts of
paper records and other unnecessary files being piled up. Searching for missing or
misfiled records becomes easier. Less time is spent searching and more time is use
for being productive. MIS thus helps company improve its recordkeeping system to
make it easier to retrieve information. Implementing a records management
program also cut operating costs. Having an office with file cabinets and boxes
everywhere creates a poor working environment for everyone. Having less clutter
creates a more organized and safe working environment for everybody. It also
shows professionalism in running the business.

The use of MIS minimizes litigation risks and safeguard important

information. Organization and companies need to protect vital information from any
catastrophe because they have the vulnerability to get loss. Anything can happen

Karen Olayvar
BUSA 345

and if this important information gets loss, it will create a whole mess for the
company. MIS prevents the spread of confidential information for the companys

MIS help management make better-informed decision. Because of MIS,

information needed is available for the management whenever they need it. It helps
management plan for future business purposes for both financial and operational
activities. If some problem arises, it will be easier to track and locate the problem
areas and management can then implement solutions to better the company.

MIS preserves the companys memory. This means that all of the

organizations files, data, and other records are all kept for the future. This
information, which is an asset to the company, is tend to be overlooked but all these
information run the company. Every day, a new data is recorded which could be
used in the future for making decisions and planning.

MIS is not necessarily a specific combination of functional systems, but

instead is created based upon the business need (Importance of the MIS, p. 1).
Organizations need to review their needs for management before using MIS. The use
of MIS must result in a good outcome for the business for it to be worth the cost.
Many managers think that MIS becomes effective by combining all data from all
systems. However, the value of MIS is based on how much help it can provide the
management. If this means only gathering the data needed and putting aside the
rest, it will still yield a useful result (p.2).

Karen Olayvar

BUSA 345

Banks, Linda. "Importance of the Management Information System." Small Business.
N.p., n.d. Web. 19 Nov. 2015.
"Management Information Systems (MIS).", n.d. Web. 19 Nov. 2015.
Schneider, Christoph. "Glossary." Information Systems Today Managing in a Digital
World; Student Value Edition. By Joseph Valacich. N.p.: Pearson College Div,
2015. N. pag. Print.
"The Importance of a Good Information Management System | Blue Avenue
AssociatesTest." The Importance of a Good Information Management System |
Blue Avenue AssociatesTest. Blue Avenue Associates, 2010. Web. 18 Nov.