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Management information systems

What is a management information system?

A management information system is an association between a hard drive, a floppy drive and a communications network whose main responsibility is to collect, process, store and distribute information and data, in order to achieve the desired effect.

Information system is a tool that plays a very important role for businesses in terms of managing and exchanging data information with each other. Information systems industry is a very attractive industry nowadays in the field of information technology.

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Management information systems

Common types of management information

Strategic information

Is strategic information used in the long-term policy of the organization, primarily used to serve high-level businesses when making predictions about the future. This type of information needs an accurate overview and high data synthesis.The data used to solve this type of information is normally organizational data from the outside. This type of information is aimed to provide in special circumstances.

Tactical information

As the type of information used in short-term policies, it is mostly mainly responsive to the departmental level managers of the organization.This type of information needs to be aggregated. At the same time it has to have a certain level of precise detail in statistical form. This is a type of information that is offered regularly for use. 

Operator Information

Also known as business information of the enterprise, it is used in the day-to-day operations of the organization and mainly serves the supervisor of the organization’s operational activities which take place. This type of information is the type of information that needs to be detailed and clear, learned from the organization’s data processing. This type of information should be provided on a regular basis periodically.

The structure of a management information system

A management information system is designed with the purpose to create a good structure of subsystems, which are systems that record the internal information of the business organization, the intelligence system , the final inquiry and research system is the ultimate decision-making and support system.

Information Research System

Find out and update information related to some specific issues that the organization has set goals before. The advantage of researching good information is using the scientific method. Using a variety of methods, build a model, estimate the cost/information ratio that brings the highest benefit and value.

Internal information recording system

Be sure to provide complete and up-to-date data. Many organizations now develop modern internal recording systems. The system uses information technology in management to help provide faster and more complete information.

Intelligence system

Is a system that provides managers with daily data. Information about the active situation about the happenings of the external environment.

Support and decision making system

Includes enumeration methods and decision models to help managers make the most accurate decisions possible.


Approach to information quickly

Management information systems simplify and speed up information retrieval by storing data in a central location accessible over the network. The result is faster and more accurate decisions.

Decisions based on the latest information

A management information system gathers data from inside and outside the organization. By setting a network that links a central database with retailers, distributors and members of the supply chain, companies can collect sales and production data on a daily basis or more often and make decisions based on the latest information.

Can present and persuasiveness

The reporting tools in management information systems allow decision makers to adjust the report according to the information needs of other parties. If a decision requires the approval of a senior executive, the decision maker can create a brief executive summary for review. If a manager wants to share the report’s detailed findings with colleagues, they can create a full report and provide different levels of additional data.

Assist departments to cooperate with each other

In situations where decision making involves departments, groups as well as individuals, management information systems make it easier for teams to make collaborative decisions. For example, in a project team, the management information system allows all members to access the same essential data, even when they are working in different locations.

Interpret results effectively

Management information systems help decision makers to perceive the meanings of their decisions. The system collates raw data into reports in a format that allows decision makers to quickly identify patterns and trends where raw data would not be obvious.

Decision makers can also use management information systems to acknowledge the potential impact of change. For example, a sales manager can make predictions about the effect of a price change on sales by running simulations in the system and asking some “what if price is” questions.