Management Information Systems (MIS)

A Management Information System (MIS) is an information system that provides managers with the tools to effectively organize, evaluate, and manage departments within an organization. It’s used for decision making and the coordination, control, analysis, and visualization of information in an organization.

When used in a corporate context, a MIS is used to increase the value and profits of a business by providing managers with the relevant and appropriate information needed to make important decisions quickly. When implemented properly, a MIS helps achieve a high level of efficiency in a company’s management operations.

MIS software providers include Microsoft Dynamics, Fleetmatics WORK, Clarity Professional MIS, and Tharstern Limited.

Components of a management information system

A MIS needs to have the necessary components in order to collect, process, store, and retrieve the needed information to deliver to leaders. Below are four important components of a MIS:

  • Information system: A mix of hardware, software, personnel, and infrastructure that aids in the collection of data stored in the MIS. The information system component allows employees to interact with the system for information collection.
  • Database management system (DBMS): Software that handles the storage, retrieval, and updating of data in a computer system. It also includes the physical databases where information is stored after capture. The amount of data needing to be processed and stored will determine the type of DBMS used in the MIS. For example, a small DBMS may work well for a personal computer, but a larger DBMS will be needed for larger and more complex machines.
  • Intelligence system: Deals with the processing of collected data and presenting it in a way that is easily comprehended. This is sometimes referred to as business intelligence, which stores human knowledge and uses the logic to formulate quick solutions for future problems.
  • Research system: Identifies the main management problems within the organization and provides alternative solutions, helping ensure all possible options are analyzed and the appropriate decision is made.

Benefits of a management information system

Companies invest in a MIS for the following reasons:

  • Increases operational efficiency
  • Adds value to existing products
  • Brings about innovation and new product development
  • Identifies strengths and weaknesses within a company due to reports and records
  • Provides access to a singular database that holds the data necessary for day-to-day operations
  • Supplies a higher level of accountability, as inputs and moderations are logged and authors noted



Vangie Beal
Vangie Beal is a freelance business and technology writer covering Internet technologies and online business since the late '90s.

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