The overwhelming amount of data in today’s business world can make it difficult for companies to collect and strategically use the information for effective decision-making. A management information system (MIS) is a critical tool for professionals to use data to measure business performance in any area, including sales, human resources, finances, marketing and more. An MIS is a set of procedures and systems that collect information from a variety of sources, organize it and submit it in a readable format. This type of information system provides data to identify ways for a company to increase profits, lead to better decision-making, strengthen knowledge regarding customer needs and enrich effective communication.
An online Master of Science (M.S.) in Management Information Systems from the University of Illinois Springfield (UIS) can add value to a business by helping students gain expertise in gathering, saving and distributing data to carry out essential business functions.
How a Management Information System Works
As an important department within an organization, management information systems also refer to the software used to collect, arrange and examine data. An MIS tracks information regarding profits, expenses, human resources, inventory, marketing, sales, accounts payable, accounts receivable, taxes, debts and more. This information gives managers specific data to manage the business, identify problem areas and assess solutions. MIS reports are organized so those who read the report can read the clearly and evaluate the according to importance. Using a management information system can put a company’s emphasis on service through using technology.
There are four types of MIS that provide essential data — from day-to-day operations information to extensive decision-making strategies:
- Transaction processing system (TPS). This system processes the daily transactions of a business in real-time. Employees enter information into the system and the system collects information in a database. As a result, the information regarding sales, payroll processing or purchase orders can be retrieved or modified at any time.
- Decision support systems (DSS). With a decision support system, managers can use pre-defined reports to analyze business data to assist in decision-making. By evaluating the possible outcomes of various decisions, companies can weigh their options using data.
- Management support systems (MSS). Management support systems store and analyze performance data to help managers use in planning business needs.
- Expert support systems (ESS). This system helps businesses find long-term trends to support decision-making and planning. An ESS system can also use artificial intelligence (AI) to calculate statistics, predict outcomes and assess performance based on the existing data.
How MIS Can Give Organizations a Competitive Edge
A management information system is vital for businesses to grow and improve performance. An MIS can give business owners the ability to make informed organizational decisions based on data analysis instead of haphazardly making a decision and hoping it will work. Here are some benefits of using a management information system:
- Better decision-making by analyzing company data
- Employee productivity increases when they don’t have to collect and input data independently
- Management can explore multiple decision-making options and alternatives
- An MIS helps managers run the business more efficiently to increase their competitive advantage
- Customer service will improve based on data regarding customer needs and wants
- Marketing and promotion campaigns based on customer data can be more effective
Business professionals can advance their careers with the in-demand technological expertise needed to drive strategic business change. UIS’ online M.S. in Management Information Systems program can give you hands-on experience with collaborative learning experiences to prepare you for a career as a data analyst, database administrator, business intelligence analyst or business systems analyst.