What is the Advantage of a Management Information System?

Management information systems are used by organizations to track, store, manipulate and distribute information to the appropriate people when necessary. Using a management information system can enable a business to streamline its operations into a cohesive functioning unit.

Computer network

History

The concept of management information systems began in the 1960s as computer use became more prevalent and business managers discovered the ability to computerize records and increase efficiency of business processes. (See Reference 1.)

Function

Management information systems support business decision-making by providing management with critical data. They serve to enhance the organization's communication, reduce human labor, support short- and long-term business goals and distribute complex information. (See Reference 2.)

Features

The critical components of a management information system are computer hardware, information to track and the manual processes involved with entering or manipulating the data. (See Reference 1.)

Types

Management information systems can support many aspects of a business including human resources, financial or accounting functions, technology resources and general data storage.

Significance

Management information systems are widely used to assist business management with making decisions that impact all aspects of operations.

References

• Advantages of Management Information Systems
• Administrator of National Banks - Comptroller of the Currency

Resources

• Read this Article in Spanish