G063 - Management Information Systems “I can’t see the wood for the trees!”

Learning Objectives: By the end of this topic you should be able to: describe the features of an Management Information System describe how Management Information Systems (MIS) can be used to assist decision making explain the advantages and disadvantages of its use

Management Information System (MIS) software that stores, converts & combines data organises data into a more easily usable form so that managers can interpret the data in order to make informed business decisions creates links between sets of data that are inter-related organises and produces summaries of data in the form of charts and reports

Possible uses of MIS: identifying trends e.g in sales for different products identifying demographic information e.g types of customers that buy certain products create a targeted advertising campaign monitor marketing campaigns e.g analyse sales during that period

Advantages of MIS: information can be collated and summarised from different systems helps to minimise information overload provides managers with up-to date information managers can forecast trends decisions can be made more quickly

Disadvantages of MIS: compatibility: data from sub-systems may not be compatible important data may be excluded from summaries? time: MIS takes several years to develop and use properly GIGO: summary information given to managers is only as good as the data input into the system cost: expensive to develop and support training: managers will need training due to complexity of the system