Role of Management Information Systems in Business Administration

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Role of Management Information Systems in Business Administration

In spite of the significant improvement in the field of information and computer technology (which is based on modern IT) can not yet take over business management. However, business information systems has transformed the effectiveness and the strength and efficiency of management.

in a previous article on the business management software, and we look at aspects of contemporary surface helps management information systems companies. We saw how computers sped up and improve the quality of operations. We also mentioned the existence of broad categories of commercial software - office suites, software functionality such as accounting, inventory, and software industries, such as retail management software. In this article, we seek to look more analytically at the role of information management systems.

decision support, analysis of problems and generally controls

business managers often need to make decisions that can affect the fortunes of the business, "one way or another. For example, a company with outlets or distributors spread over a large geographical area may want to improve the logistics for the delivery of goods to retail outlets. the best solution could be affected by many factors, such as demand patterns, availability of goods, the distances and the option of using foreign carriers (which can be found on two loads the road less expensive option may prove long-distance) rather than private cars.

while it may be possible to use complex mathematical equations on the one hand to calculate the best solution, computers convert the whole process on a routine mission to feed some information as input and get suggestions for the best solutions as output task. can usually be done in a few minutes (rather than hours or even days) and it becomes possible to study several alternatives before a decision which seems more realistic.

problem identification and analysis of the factors that cause them too It has been transformed by modern computer information systems. In a typical MIS environment, it creates standard reports routinely actual performance against the original estimates comparable. You can ask the software that generates the report to highlight exceptions, no significant differences between the original estimates and the actual performance. Thus managers will become aware of the problem areas in the daily course of their work simply by looking at the reports received, without having to do the same detailed and computational data collection.

identify the factors responsible for the problem it can also be routine to some extent by the use of tools such as analysis of variance. Analysis of variance is a component of the standard cost system divides the deviations from the estimates (or standards) in the causal factors, such as high prices of the materials used, and the excessive use of materials, Crash Machine unexpected, etc. With such a detailed report, managers can delve deep into workers problem, such as: Why there was excessive use of materials.

exercise

also control through the analysis of variance. Budgets are prepared for all business processes that managers involved working in a coordinated manner. For example, the estimated volume of sales to determine production levels; and levels of production determine the purchases of raw materials; and so on and so on. With good information management system, then it becomes possible to generate reports in a timely manner compared to actual sales, production and delivery of raw materials and other against the estimated levels.

reports will help managers to keep a watch on things and take corrective action quickly. For example, the production manager became aware of the sales decline (or rise in sales) for certain products, and can be prepared to make adjustments in production schedules, purchasing, inventory managers will become aware quickly of any growing stockpiles of material is used. MIS and thus enhances the quality of communication everywhere and can significantly improve the effectiveness of control processes.

effective MIS involves humans and computers work together

The major aspects noted is that the MIS only provide information; it is the responsibility of the managers involved to act on this information. It is the synergy between the equipment and the human beings with reason and intelligence and judgment that really gives the ability to effectively and fast and accurate MIS.

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