Purpose of a Management Information System

Purpose of a Management Information System thumbnail
Purpose of a Management Information System

Business owners and managers typically need copious internal information when making business decisions and conducting performance reviews. A management information system is a tool that helps owners and managers gather information relating to their company. Historically, these systems were manual, although many are now electronic in today’s business environment.

  1. Facts

    • A management information system is a set of processes or procedures that funnel information to owners and managers. This information can be operational or financial, depending on management’s need. While standard systems exist in the business environment, companies can develop and implement a system unique to their operations.

    Features

    • Computerized management information systems help gather external business or financial information as well as internal information. Using external information helps owners and managers make decisions that consider information relating to number of competitors or current consumer demand.

    Effects

    • Owners and managers use a management information system to collect information in a real-time format. Large organizations with multiple locations or departments can process information without the need of an intermediary. Users at remote locations can access information to easily review items relating to business functions.

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