Management Information Systems in Business Processes

Subject: Management
Pages: 5
Words: 1172
Reading time:
5 min
Study level: College


The nature of the current business world is the result of the development of enormous changes and innovation that started more than 200 years ago (Swanson, 1998). Even though the industrial revolution was an achievement as far as the current markets scenarios are concerned, it is evident that Management Information Systems offer the opportunity to fundamentally change how people and businesses can track their goals (Ross & Swanson, 2003). Management Information System has aided in removing the geographical and chronological challenges that limit the operations of any business.

Management Information System refers to not only the software system but the whole set of enterprise procedures and inputs that are utilized in pulling together data from functional or technical systems (Harris, 2002). Information is then delivered in a customized and appropriate way so that middle and top managers can utilize it in making the correct decisions. The whole system is developed so that the organization will achieve its strategic objectives. This paper will describe Management Information Systems, discuss the role of MIS in business today, explain the strategic business objectives related to information systems, discuss the impact of MIS on business processes, and explain the basic functions of Information Systems.

Management Information Systems (MIS)

Management Information Systems refers to a combination of software systems, enterprise procedures, and inputs that are utilized in collecting data from functional or technical systems. Information is then delivered in an accessible and suitable way so that middle and top management can utilize it in taking the correct actions (Casar, 2001). The whole system is developed so that the organization will achieve its strategic objectives. The following section will discuss the role of Management Information Systems in business.

Role of MIS in business today

Today’s management information system is both technological and collective. Managers have to understand the significance of information within the company. The manager must understand how data is gathered, analyzed, and shared. We are all greatly influenced by Information Systems and have to be prepared to accept and work with these systems. Our international markets do not permit us to rely on one on one deal such as in the 1990s. These days, few middle and top managers can overlook the significance and impact of how data is gathered and evaluated by their company. Management information system plays an important function in these days’ business and culture (Feringa, 2002).

Since the surfacing of the international market, the achievement of companies these days rely on their capability of operating internationally. The United States economy relies on global business. Foreign trade, both exports, and imports are responsible for slightly more than 25% of products produced in America, and even more in nations such as China and Japan. Such a percentage is quite huge and will keep on growing in the future (Ross & Swanson, 2003).

The globalization of the world’s manufacturing markets significantly promotes the value of data to the organization and provides novel prospects to enterprises. These days, the information system provides the diagnostic and communication authority that companies require to make transactions and to do business on an international level. Globalization and MIS besides come along with fresh risks to local business companies. This is caused by the client’s capability of shopping in an international market, getting the price and quality details constantly, 24 hours a day. The international economy causes rivalry to an upper degree than ever before, compelling all firms to participate in this international marketplace. To become an advantageous competitor in an international market, companies require strong information systems.

In an awareness and information focused market, Information Technology (IT) and management information systems assume great significance. For example, information system amounts to over 70% of the money invested in service firms such as insurance and finance. This implies that management’s actions regarding information systems will be the most popular investment action (Ross & Swanson, 2003). The next section will discuss the six strategic business objectives related to the information system.

Business objectives of information system

Product creation

The information system can expedite the time taken for new goods and services to enter the market. Firms can design product development documents by collecting market information from electronic databanks, clients, and sales officers.

Stakeholder integration

Public firms utilize their investor relationships websites in communicating with stakeholders, product reviewers, and other market contributors.

Process enhancement

Improving the process is another critical Information System business goal. Information System helps management in reviewing sales, expenditures, and other functioning measures on one incorporated information system, generally in real-time.

Cost efficiencies

The information system enables firms to reduce operation and integration costs. Also, IT-focused manufacturing solutions, from typing to email, have enabled firms to cut on the expenses of photocopying and postage, whereas sustaining and enhancing client service.

Competitive edge

Reduction in cost, quick product design, and process enhancements aid firms gain and sustain an advantageous edge in the market. Firms can utilize quick prototyping, product models, and other IS-focused platforms to deliver an item to market cost-efficiently and rapidly.


The information system is at the center of operating designs necessary for globalization like subcontracting and teleconferencing. A firm can subcontract most of its unnecessary operations like personnel management and accounting services, to offshore firms and utilize information systems to remain in contact with its abroad workers, suppliers, and clients (Swanson, 1998).

Impact of MIS on business processes

Management Information System is unnecessarily an explicit mixture of well-designed systems but instead is developed concerning the business need. Client Relation Management (CRM) system combines information that links directly to the client’s needs. Enterprise Resource Planning (ERP) system combines information utilized in the whole sales process. As a Management Information System program advances, so does the cost to implement a solution, manage the business process, and monitor day to day operations (Harris, 2002). The outcome of a Management Information System has to offer value back to the firm to be worth the cost. The next section will discuss the basic functions of information systems.

Basic functions of the information system

The key function of the information system is that of helping a manager make a decision, respond to a query, or request the correct clarification. The queries or decisions have to directly link to technical or strategic objectives. A marketing staff who utilizes forecasts from the monetary systems in comparison with real results from the sales system may better determine whether objectives will be achieved. If the objectives are not going to be achieved, then the management and its team can re-examine their previous activities and carry out necessary adjustments to grow sales and achieve objectives (Swanson, 1998).


Some managers erroneously think that, for Management Information System to be efficient, information from the entire system has to be put together. The benefit of a Management Information System depends on how much the system can aid management manage. If this implies combining simply the information required from different systems and overlooking the rest, for now, the outcome still has value, which is the end objective of the Management Information System.


Casar, T. (2001). Federal information processing standards. Information Systems, 14(1), 19-22.

Feringa, A. (2002). Risk management guidelines for information technology systems. Information Systems, 15(1), 23-26.

Harris, S. (2002). All in one CISSP certification exam guide. Columbus, Ohio: McGraw Hill.

Ross, R. & Swanson, M. (2003). Guidelines for the security certification and accreditation of federal information technology systems. Information Systems, 10(1), 20-27.

Swanson, M. (1998). Guide for developing security plans for information systems. Information Systems, 34(1), 37-56.