How to Use a Management Information System
A Management Information Systems (MIS) is the name given to computer systems which provide metrics in line with the goals and objectives of an organization. The development of an MIS consists of assembling the right tools to assist management in making the best business decisions related to achieving organizational objectives. These systems are especially helpful when used in conjunction with financial data which can then be analyzed for regular reporting.
Use MIS to support strategy decisions. Tactical decision making has always been more difficult than strategic planning due to the lack of knowledge about future business events. MIS and business systems allow companies to use metrics and forecasts to spot trends in business data.
Create regular financial statements. MIS can be used to improve the accuracy and integrity of financial statements and performance reports. This helps with monitoring and implementing strategic decisions.
Collate massive amounts of data. By having access to business data, managers and key decision makers can identify patterns and trends that may go unnoticed in raw data. MIS also helps to run simulations based on key drivers of business performance. This allows managers to run scenarios on business data without having to commit to a particular plan of action.
Use MIS to save time by providing a central location for all information and data. Having a central location to store business data cuts back on the number of organic spreadsheets and databases which can hinder communication.
Provide a common language. MIS must provide data in a single format; that is, all reports must use the same basic methodology. This methodology becomes the dominant way in which managers share and access information making the ability to communicate with a common "data" language more efficient.