• Understanding Management Information Systems is a planning system within a

company that involves internal control such as the use of resources, documents,
technology, and management accounting as one of the strategies in business.
• In essence, management information systems in a business or company aims to collect,
process, store and analyze information and then disseminate it for specific purposes.
• Management information systems are useful as a reference for decision making in an
organization or company.
• Management information systems are part of a changing business entity and provide
new challenges from time to time. Modern business cannot last long without using a
management information system to manage large amounts of data, and provides a
wealth of information for disciplined study or work.
• This system is a very useful tool for the purpose of reviewing and controlling company
operations.
Some experts in the field of management have explained about information systems
management, including:
1. Raymond McLeod Jr
According to Raymond McLeod Jr., understanding management information systems is a
computer-based system that provides information for multiple users who have the same
needs.
This information describes the company or one of its main systems about what has happened
in the past, what is happening now, and what might happen in the future.
2. Nash and Robert
According to Nash and Robert, management of information systems is a combination of user
/ person, technology, media, procedures, and also control, which has certain objectives.
3. Bodnar and Hopwood
According to Bodnar and Hopwood, a management information system is a collection of
hardware / hardware (read: Understanding Hardware) and software / software to
transform data into a form of information that is more useful.
4.James O'Brien
According to James O'Brien, a management information system is a combination of each
unit managed by a user or human being, hardware, software, computer networks and
data communication networks, and also databases that collect, change, and disseminate
information about an organization.
5. James AF Stoner
According to James AF Stoner, the understanding of management information systems is a
formal method that gives management information that is timely, reliable, and can
support the decision making process for planning, monitoring, and operating functions
of an organization more effectively.
Management Information System Functions in Business
• Assist in decision making: This system plays an important role in the decision making
process in any organization. Because in any organization decisions are made based on
relevant information and relevant information can only be taken from management
information systems.
• Assist Coordination among Departments: This system also helps in building healthy
relationships between everyone from department to department through the appropriate
exchange of information.
• Helps Find Problems: As we know that this system provides relevant information about
every aspect of the activity. Therefore, if there are mistakes made by management then
the Information Management Information System helps in finding solutions to problems
that occur.
• Helps in Comparing Business Performance: This system also stores all data and
information history in its Database. That is why this system is very useful for comparing
the performance of business organizations
• Makes it easier for managers to plan, supervise, direct and delegate work to all team
members through a single command or coordination relationship.
• The data presented becomes more effective and efficient as well as more accurate and
timely.
• Can be one of the efforts to increase productivity but reduce organizational costs.
• Through a work system that is well coordinated and systematic can improve the quality
of human resources.
The purpose of this system is as follows:
• Data collection can provide information that can support decision making.
• Information is useful in planning, controlling, evaluating, and also making
improvements.
• The information system can be used as a basis for calculating the price of products,
services or for other purposes as desired by management.
• to organize all data collected from each level of the company, summarize it, and present
it in a way that facilitates and enhances the quality of decisions taken to increase the
profitability and productivity of the company.
The management process is defined as activities:
• Planning, detailed formulation to achieve a certain end goal is a management activity
called planning. Therefore, planning requires setting goals and identifying methods to
achieve those goals.
• Control, planning is only half of the battle. After a plan is made, the plan must be
implemented, and managers and workers must monitor its implementation to ensure
that the plan runs as it should. Managerial activities to monitor the implementation of
plans and take corrective actions as needed, are called needs.
• Decision Making, the selection process among various alternatives is called the decision
making process. This managerial function is interwoven between planning and control.
The manager must choose among several objectives and methods for carrying out the
chosen objectives. Only one of several plans to choose from. Similar comments can be
made regarding the control function.
Management Information System Category
• Executive Information System (EIS): Senior management uses EIS to make decisions
that affect the entire organization.
• Marketing Information System (MkIS): The marketing team uses MkIS to report on the
effectiveness of the marketing process history and current.
• Business Intelligence System (BIS): Operations that use BIS are usually to make
business decisions based on the collection, integration, and analysis of data and
information collected.
• Customer Relationship Management System (CRM): CRM systems store important
information about customers, including previous sales, contact information, and sales
opportunities.
• Sales Force Automation System (SFA): A special component of the SFA system that
automates many tasks performed by the sales team.
• Transaction Processing System (TPS): At a basic level, a TPS can be a point of sale
(POS) system such as Mokapos, or a system that allows tourists to search for hotels and
include past room options such as price range, type and number of beds.
• Knowledge Management System (KMS): Customer service can use the KMS system to
answer questions and solve problems.
• Financial Accounting System (FAS): This system is specifically for departments dealing
with finance and accounting, such as for calculating accounts payable (AP) and accounts
receivable (AR). You can try Accurate Online for free for a month through this link.
• Human Resource Management System (HRMS): This system tracks employee
performance records and payroll data.
• Supply Chain Management System (SCM): Manufacturing companies use SCM to track
the flow of resources, materials and services from purchase to the final product shipped.
Report Type Generated
• In essence, management information systems are for storing data and making reports
that can be used by business professionals to analyze and make decisions. There are
three basic types of reports on this system:
• Is scheduled
• Done periodically, this report uses rules provided by the applicant to withdraw and
organize data. Scheduled reports allow companies to analyze data from time to time
(example: An airline can see the percentage of baggage lost by month), location
(example: Distributors can compare sales figures from different stores), or other
parameters.
• Ad-hoc
• This is a one-time report created by users to answer questions. If the report is useful, you
can turn the ad-hoc report into a scheduled report.
• Real time
This type of report allows one to monitor changes as they occur. For example, the head of a
customer service can see unexpected spikes in call volume and find ways to increase
productivity or check several calls elsewhere.
• The Benefits Obtained if Using a Management Information System
• Using management information systems can improve company performance in many
ways.
R. Kelly Rainer, Jr., Professor at Auburn University and Author of Management
Information Systems, Moving Business Forward, said,
"Any organization that does not use a management information system will not last
long. This statement might not have been true decades ago, but computer-based
information systems today are very important for the survival of any organization or
business. "
• Beyond business needs to remain competitive, these are the main benefits of using an
effective management information system:
• Management can get a general picture of all their operations.
• Managers have the ability to get feedback about their performance.
• Organizations can maximize the benefits of their investment by seeing what works and
what doesn't.
• Managers can compare results with planned performance by identifying strengths and
weaknesses in plans and performance.
• Companies can encourage improved workflows that result in better alignment of
business processes with customer needs.
• Many business decisions are moved from top management to a more efficient level of
organization, with qualified knowledge and experience.