ADVANTAGES OF MANAGEMENT INFORMATION SYSTEMS (MIS 13.04.2021)

ADVANTAGES OF MANAGEMENT INFORMATION SYSTEMS

 

There are many benefits that come with applying Management Information Systems. Some of these benefits help make work easier for management while the rest of them help the organization as a whole.

Let’s take a closer look and see what you stand to gain from having a MIS.

 

1. All stakeholders in the company have access to one single database that holds all the data that will be needed in day-to-day operations.

If the MIS is used for project management, the contractor, client and consultant will be able to achieve a high level of transparency hence it will be easy to develop trust. Operations will also be smoother because information will always be readily available and data collection methods like forms or questionnaires will be standardized.

 

2. Employees and other stakeholders in the organization will be able to spend more time doing productive tasks.

This is because a big chunk of their time is saved thanks to the more efficient information system. This time would have otherwise been spent setting up or retrieving traditional information recording systems such as forms and files. As a result, the company is able to save on manpower costs, while at the same time producing more output in a fixed time span will now be spent productively.

 

3. Another benefit of Management Information Systems is that they bring the power of data processing tools that help significantly improve the quality of decisions made in the company.

A majority of Management Information Systems have built-in data processing tools that are able to draw conclusions based on the inputs received from the different sources. This helps make better plans for material management, manpower allocation and even the overall execution of the project.

 

4. Owing to the flexibility that is brought by the use of mobile devices such as tablet computers and smartphones, Management Information Systems ensure that employees have easier and closer interaction with information about the progress of any process within the organization.

This also ensures a higher degree of accuracy in data collection since it will be possible to record the progress in smaller milestones throughout the day on mobile devices as opposed to recording once at the end of the day. As a result, management is able to get a better idea of the progress due to the availability of the latest information.

 

5. Inputs and modifications in these systems are logged and the authors noted.

The time when the change has been made is also recorded for future reference. This means that the company is able to achieve a higher degree of accountability since all the actions can always be tracked back to the particular individuals who initiated them. This also means that the best performing employees can also be easily identified since information such as production numbers per shift and sales reports are always available and well presented in the system.

 

6. Management Information Systems help reduce the amount of paperwork that departments have to deal with thanks to the central database that’s accessible from the company network. This means that in addition to making processes simpler and faster, the company is able to go paperless while at the same time reducing its carbon footprint. The bills also go down since the need for items like plain papers, ink and toner cartridges will be reduced significantly. Transportation costs are also reduced since there will be no need for shipping documents back and forth for approval and signatures. Shelf space will be saved and used for other tasks. Company wastes will also be reduced when the company goes paperless.

 

7. Reports make it easy for companies to easily identify their strengths and weaknesses in carrying out various tasks.

Management Information Systems provide revenue reports, performance reports for employees, expenses tracking reports and many others. When companies use these reports, they are able to improve their operations.

 

8. From a top executive perspective, Management Information Systems help give an overall impression of where the company stands financially.

These systems can also give overall status reports for specific projects within the organization. This enables top executives and managers to easily tell if the company is on track towards achieving its goals.

 

9. Most Management Information Systems provide a channel for customers to collect and store vital data and feedback from customers.

With this data, companies can easily adjust their products and marketing campaigns to better suit the needs of the customers hence improving on sales.

 

10. With management information systems, a company gains competitive advantage.

This is because operations are faster and smoother and thus results are achieved faster and more efficiently. Customers will be happy with the service delivery because they will be getting the answers that they seek faster and employees will be motivated because most of the tasks will become easier with better access to data.

 

11. MIS helps eliminate redundant roles.

When information is stored efficiently, it’s possible to identify parts of a system that are unnecessary. This means that any efforts that were duplicated are eliminated hence the company is able to better use the available resources.