Importance of MIS in an Organization

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MIS workers use computers to organize and compile databases full of company information.
MIS workers use computers to organize and compile databases full of company information. (Image: Thinkstock Images/Comstock/Getty Images)

Management and information systems (MIS) have taken an ever increasing role in the processes of businesses in the Internet age. After companies collect data about their customers, inventory and sales volume, MIS workers take the raw data and turn it into usable information that top-level management can use to steer the company.

Production Process

Management and information systems technologies monitor the production and operations of a business. Using databases, MIS tell managers and decision makers the amount of inventory in stock, important information about customers, accounting information and any other data that is entered into the company's computer system. MIS also "cleans" the company's data and removes any incorrect or erroneous input. For example, if text is entered into a number field, an MIS controller will fix that input.

Business Strategy

MIS employees provide data to decision makers within the company that assists with strategic decisions. MIS control the raw data that companies import from sales, services and other business. From that data, managers decide what inventory they should purchase, what products are selling the best and what demographic buys the product. Managers then make decisions concerning the company's future based on the information MIS provides. For example, if a company sells tires, but truck owners do not purchase from the company, managers will focus on car tire inventory.

Competency

A company's greatest strengths, also called their "competency," can become clear with the help of MIS. When data is compiled and analyzed by the MIS department, the company sees what they do best. For example, if a company produces car parts, but based on its MIS data some of the parts are difficult to produce with little expected return revenue, the company could choose to cease making those parts and instead focus on the parts they make best.

Simulations

The MIS department is responsible for creating hypothetical models that predict where a business could be in the future. Data is used from past quarters to create simulations about potential revenue, expenses, employee recruitment and growth. Investors use growth projection information to determine the value of a company in the future. MIS workers help the company brace for good times and bad with estimates based on complied data.

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