Management information system facts for kids

A management information system (MIS) is a special computer system that helps people in a company make smart decisions. It collects, organizes, and shows information so managers can understand what's happening. Think of it as a tool that helps a business run smoothly by giving the right information to the right people at the right time.

The main goal of using a management information system in a business is to help the company grow and make more money. It does this by making it easier to control tasks, plan for the future, and make important choices.

How MIS Started

The idea of keeping track of business information has been around for a long time, even when companies just used paper ledgers. But modern management information systems really started to develop with computers. Experts Kenneth C. Laudon and Jane Laudon describe five main periods in the history of MIS:

• First period – Big mainframe and minicomputers
• Second period – Personal computers
• Third period – Client/server networks
• Fourth period – Connecting all parts of a business
• Fifth period – Cloud computing

The first period was dominated by huge mainframe computers, often made by IBM. These computers were so big they could fill entire rooms! They needed special teams to run them. Over time, these machines became smaller and cheaper. This led to minicomputers, which allowed bigger businesses to have their own computer systems right in their offices.

The second period began around 1965 with personal computers. These smaller computers started to become popular and made computing power available to more people. By the late 1970s, personal computers were becoming common and affordable. This meant employees could have computers on their desks, which used to cost a lot of money. Having many computers led to the need for them to connect and share information, which helped the Internet become popular.

The third period saw the rise of client/server networks. As computers became more powerful and cheaper, employees needed ways to share information easily. In this setup, many computers (clients) connect to a central computer (server) to share data. This allowed thousands, or even millions, of people to access information at the same time on networks called Intranets.

The fourth period brought enterprise computing. With fast networks, different computer programs used by separate departments in a company started to be combined into one big system. These are called enterprise software platforms. This new way of working connected all parts of a business, giving managers a complete view of everything.

What MIS Is and Isn't

Sometimes, people get confused about terms like management information system (MIS), information system (IS), enterprise resource planning (ERP), and information technology management (IT).

• MIS focuses on how to use computer technology to make a business better and more valuable.
• Computer science is more about creating the software programs that MIS might use.
• Electrical computer engineering deals with the actual computer hardware.
• ERP software is a type of MIS that helps manage all parts of a business.
• IT management is about running the technology department, which includes MIS.

A career in MIS means you study how technology, people, and information work together to solve problems in a business. It's about understanding how to use these systems in a practical way.

Who Uses and Manages MIS

While anyone in a company can use a management information system, the big decisions about which systems to buy usually fall to top leaders. These include the chief information officers (CIOs) and chief technology officers (CTOs). They are in charge of the company's overall technology plan and decide how new tech can help the business.

Once these leaders make a decision, IT directors (including MIS directors) are responsible for setting up the system. They also make sure the new systems follow the company's technology rules. Their job is to ensure that data is available, networks work, and all information is kept safe.

After the system is set up, employees can use it to access important information. It's good to know that not only managers put data into these systems. Often, regular employees enter information, even if they don't see the reports or decision-making tools that managers use.

Types of Information Systems

There are different kinds of information systems that help managers make decisions and create reports:

• Decision support systems (DSSs) are computer programs that gather information from many places. They help middle and top managers solve problems and make choices, especially for difficult or unusual situations.
• Executive information system (EIS) is a tool that gives quick summaries of reports from all parts of a company. This includes information from accounting, human resources, and operations.
• Marketing information systems are designed specifically for managing the marketing side of a business.
• Accounting information systems focus on accounting tasks.
• Human resource management systems are used for managing employees.
• Office automation systems (OAS) help with communication and getting work done by making tasks automatic. They can be used at any level of management.
• School Information Management Systems (SIMS) help with school administration, including teaching materials.
• Enterprise resource planning (ERP) software helps information flow between all parts of a business and connects with outside partners.
• Customer Relationship Management (CRM) helps companies manage and understand their interactions with customers to make them happier.
• Local databases are simpler tools for managers. They are like a basic version of an MIS.
• Dealership management systems (DMS) are made for specific industries, like car dealerships. These systems help manage everything from finance and sales to parts and inventory.

Good Things and Not-So-Good Things About MIS

Using management information systems has many benefits:

• They make a company run more smoothly and efficiently.
• They can help create new products and improve existing ones.
• Managers can make better decisions because they have clear information.
• Companies can see their strengths and weaknesses from reports, which helps them improve.
• Having customer information helps companies serve customers better and do targeted marketing.
• MIS can give a company an advantage over its competitors.
• Reports from MIS can speed up decision-making and reduce delays.

However, there are also some downsides:

• MIS depends on technology (hardware and software) to work.
• There's a chance that the information might not always be perfectly accurate.

Big Business Systems

Some large-scale MIS applications used by companies include:

• Enterprise systems (also known as enterprise resource planning (ERP) systems) are like a central brain for a business. They have different parts for finance, accounting, marketing, human resources, and more. They help manage all core business tasks across different locations.
• Supply chain management (SCM) systems help manage the flow of products and information. This includes everything from suppliers and manufacturers to stores and customers.
• Customer relationship management (CRM) systems help businesses manage their relationships with current and future customers. They cover marketing, sales, and customer service.
• Knowledge management system (KMS) helps companies collect, organize, and share important information and skills. This can include documents, records, and even unwritten procedures.

See also

In Spanish: Sistema de información gerencial para niños