Information System and Strategic Business Objectives


Computer systems play an important role in that they offer vital information on effective business operations. The presence of the human workforce is significant to ensure that the management of computer systems is efficient. Business people use computer systems for practical duties such as keeping records of receivable and payable accounts and making payrolls. The advancement of computer applications offers important information to business people in inventories, sales, and other data related ideas, which help in the management of business enterprises. Management information systems develop to describe various applications of computer systems in the business world. Management information systems help with the applications of project management, management of human resources, database systems, and decision-making processes.

What is the management information system?

Management information systems (MIS) refer to the discipline that studies organizations, technology, human workforce as well as the relationship among the stated factors. The experts of management information systems help business organizations generate maximum profit from the investment of business processes, equipment, and personal management. MIS promotes service delivery through the use of technology. Tansey claims that management information systems adopt technological advancement as a way of enhancing people’s lives (13). Business organizations make use of information systems to carry out operational duties such as storing, processing, and collecting data. Individuals who perform various responsibilities in business enterprises make use of information systems to produce their work in order to become efficient. For example, car dealers use an information system to keep a record of products for sales. Business retailers adopt MIS to sell their products through the internet. Many business organizations aim to align information systems with their business objectives to attain a competitive edge over their competitors.

The role of MIS in business today

MIS experts establish information systems to analyze, search, store, and manage business data and processes. MIS plays a vital role in enhancing the efficiency and effectiveness of business organizations. MIS focuses on making efficient fundamental business theories, customer service performance, business management, leadership and teamwork, and business data analysis. MIS is a decision-making device that is useful in business processes and operations (Milner 99). Business organizations want to understand everything that is happening in their enterprises. Business organizations, therefore, make use of MIS to leverage their positions.

Through using MIS, business companies are capable of documenting and tracking all information concerning their methodologies, processes, and procedures. Management information system contributes to controlling and managing material resources and human workforce in business organizations. MIS is capable of listing all operating procedures and processes that organizations use (Marchand 31). In this way, MIS ensures that work operations continue without glitches. MIS simplifies business audit preparations.

Organizations use MIS to document and record all their strategic functions. Whenever any undesired deviation occurs, organizations take corrective measures to alleviate the possible risk. Casson presents that using MIS enables organizations to strengthen their communication channels (213). Management information systems enable business organizations to determine the disadvantages and advantages of many approaches to achieving objectives and developing effective decisions.

First, organizations use information systems to promote their product development by ensuring that new products reach the market quickly. Milner says that organizations can enhance market intelligence by using information systems (91). Information systems enable organizations to respond faster to changing consumer needs. Secondly, organizations make use of information systems to improve stakeholder integration (Tansey 18). Information systems provide 24/7 interconnectivity that enables business organizations to remain connected to get relevant information for sustaining their businesses. Companies use information systems to obtain important information that gives them the possibility to communicate with market participants, research analysts, and companies’ shareholders.

Thirdly, business companies adopt information systems in their operations to facilitate process improvement. Information systems enable managers to evaluate operating factors, costs, and sales output (Casson 193). In this manner, information systems help organizations achieve effective internal control. Fourth, information systems enhance cost efficiency. Companies use information systems to minimize implementation and transaction costs. Using information systems is the way organizations save money due to improved customer services and product quality.

Fifth, organizations aim to gain a competitive advantage over their competitors. Adopting information systems gives these organizations the possibility to process improvements, faster product production, gain cost-effectiveness, and eventfully acquire a competitive advantage. Companies using information systems are able to bring their products to the market faster and cost-effectively. Sixth, information systems are crucial tools that enable organizations to sustain their operations in a competitive environment. Betz provides that such organizations possess financial and operational flexibility to develop both internationally and locally (38). Globalization is an important factor in the business world. Organizations that use information systems remain connected with suppliers, customers, and employees at the global level.

The impact of MIS on business processes

Appropriate MIS in a company’s management results in effective personnel, financial, production, and marketing performance. Convenient MIS ensures efficient monitoring and tracking business processes. According to Marchand, efficient MIS offers vital information that leads to the effective performance of business processes (27). Information systems help organizations properly conduct planning for long-term objectives and business processes. Effective MIS develop efficiently structured databases, which enhance the organizational processes and operations to run appropriately. MIS leads to systemized business operations and processes that enable business organizations to become profitable. MIS enhances administration processes and streamlines operations in organizations. Effective business processes develop high professionalism in the organization’s operations. MIS helps companies indirectly to achieve their corporate objectives and goals by offering significant information to employees of such organizations. Appropriate MIS enables organizations to achieve managerial efficiency.

The basic function of IS

IS generates significant information in a timely manner that helps companies sustain themselves in a competitive environment (Betz 34). Information systems are essential tools for companies to make effective decisions, operate efficiently, and support management. The information system aims to achieve certain objectives that are indirectly important to accomplish organizational goals of various companies. Organizations depend on information systems for market intelligence, quick and effective communication channels, and data processing. The information system contributes a vital role in any industry, enables organizations to enhance business processes, sustain a competitive edge in the market, increase revenue growth, and accomplish cost-effectiveness.


Using and implementing MIS appropriately can help develop effective business processes and operational efficiency. Effective MIS helps organizations enhance their competitive advantage over other businesses. With accessible and appropriate information, employees can become professionally competent in performing their tasks. Organizations that make use of information systems conveniently can become more productive which results in enormous positive impacts in the output performance. MIS provides great benefits only when used correctly.