A management information system is a set of processes that allows companies to move information through their business operations. Business owners and managers use the information to make decisions, among other things. The expanding variety and use of information technology—particularly computers—allows companies to automate this critical business function.
Many tasks in the business environment involve the use of computers. Employees input data in software applications and programs that allow other individuals to view the information. Owners and managers rely on computers to access the information from the management information systems.
Computers can process certain types of business data quicker and more accurately than employees. Accounting and finance departments, for example, typically input data and allow the computer and software application to generate reports based on the financial numbers.
Using computers can restrict employee access to business or financial information in the management information systems. Most computers or software applications require usernames and passwords to access data. This prevents individuals from filtering or altering information prior to review by owners and managers.