The environment of the corporate is dynamic involving risks and uncertainties. Such uncertainties and risk drive business firms to take complex decision to sustain in the market. Since the primary goal of any organization is to enhance its profitability and sustain in a longer period. Therefore, any business organization cannot afford to ignore the importance of MIS.
With a management information system, a business is able to establish its hierarchical structure and work-flow charts. Every single employee in the firm knows the employees he has authority over and to whom he is responsible for work. This helps work progress without glitches. The organization’s procedures and operating are listed by an MIS.
What is MIS?
MIS or Management Information System is a managerial decision-making tool. It is a set of procedures, which provides necessary data and information to the management for making an informed decision. In short, MIS is a complete knowledge of everything transpiring in the functioning of an organization.
• Processing of appropriate data to extract relevant and useful information.
• Gathering of such data from various reliable sources.
• Delivering this information to the respective department.
After an appropriate analysis of recent data and latest trend prevalent in the market, the Company’s MIS report is prepared. The fundamental purpose of the MIS reporting system is to offer crucial business information to the management for complex decision making. As it is utmost important for the management to have reliable business data for making a quick and informed decision. MIS report helps in enhancing productivity, performance, and profitability of the business. Also, the preparation of audits gets simplified.
Therefore, Management Information System serves as a backbone of the company, and it assists the firm to stand steady against the competitors.
Benefits of MIS:
1. Assists to manage the data:
Management Information System benefits in maintaining and managing vital information of business or help in making a complex decision by the management. The important information is then stored in a systematized manner, and it can be immediately accessed by the administration whenever required.
2. Examines trends:
Management requires to make estimates for strategic planning and regulate future goals. Consequently, in order to make such a strategy, it is vital to have precise reports on prevailing trends of the market. Various mathematical tools are being utilized by MIS for investigating the latest market trend and forecasting future trends based on that information.
3. Assists in strategic planning:
MIS reports contribute significantly to the strategic planning of the company. It assists in determining the future requirements of the business and helps in formulating goals on that data. Moreover, MIS report is useful in finding resources required in order to meet the objective of the organization. Therefore, it is very important that the information given by MIS and reporting is exact and consistent.
4. Setting Objectives:
For any company, setting up a goal is a very significant matter, and it needs a lot more research and development. The information provided in MIS reports is considered reliable for determining the goal of an enterprise because the data is based on current data analysis. Besides, Management Information System reporting consists of the latest market trend analysis and forecast of the upcoming trend. Hence, it is quite tough for any business to neglect MIS reports.
5. Identification of Problems:
MIS report delivers information associated with every aspect of activities and actions that take place in the company. Thus, in case if the management faces any problem, the reports of the MIS are pretty useful in recognizing the source of the problem. Likewise, MIS and reporting are really beneficial in concluding such an issue.
6. Productivity Increases:
The reliable information provided by MIS and reporting is utilized in assessing the performance of the business. Thus, Management Information System plays a vital role in increasing the efficiency of the company.
7. Comparison of Company Performance:
Reliable business data is stored and maintained in the MIS database. As the database of MIS can be logged on at any time, the current performance of the organization can be compared with its previous year’s achievement. Often this helps to measure the growth of the business and if it’s on the right track towards success.
In a concluding note, we would recommend professional MIS Training based on your organizational needs; LBTC is a sure bet when it comes to the top MIS training institute. With skilled & experienced professionals in the team, the institute is one stop shop for all management courses.