M = Management = Practical Use of Power of Decision Making
I = Information = Useful Data
S = System = Technique of Use of Data for Business
Now, we are able to introduce management information system.
What is Management information System ?
Management information system is that system in which raw data is collected and analyze it. After making it useful, it is used for decision making of business.
I think you can not understand what am I saying. Let me explain with my own business example.
I am doing this blogging business for more than 2 years. Like any other business, I want to get highest return of my invested time, energy and talent. So, it can only be possible, if I will manage it proper way. So, not only teaching to you online, I am also manager of this business. For growing this business, I have to take many decision. These decisions can not be taken without analyzed data which I have collected from different sources. So, I make system to collect raw data and analyze it with my own way and take decision on this basis. For this system for my business will be my management information system which I have to develop as manager of this business. This guides me how to manage my business information for getting best reward from my own business. Now, many question may arise in your mind.
Ist Question : What are decision, I am interested to take?
Ans : 1 To advertise my business 2. To invest money in my business 2. To write which contents in Accounting Education
2nd Question : What raw date will I collect for this decision?
1. Traffic of my site of Accounting Education, 2. Last year profit from this business. 3. Advertising media, 4. Advertising cost,
3rd Question : What is the system which will I use for this?
Ans : I am not shaktiman and like shaktiman, I can not fly to everywhere to see who is opening my site and count the number. My management information system will be fully on the basis of Internet technology, softwares and fast networking. I added code in my site. With this, I can know who visit, when visit, from where visit, how much time spent, how much traffic I gained on specific keyword or content and many more things.
I read the websites of advertising companies and media and I can check the prices of advertising cost without going to each advertising company. I can track my day income, yesterday income, seven day income and income since I started business. Everything are just far a click. I have email accounts, I have google docs contact box and I watch my search engine from where I know what my reader(customers) want from me? and Under this information system. I compare each and everything and take decision for making new and new planning.
Samething, you can imagine for large scale company like wipro, reliance or nokia or google. All are doing samething like me. They collect not only accounting data but every data in their advance softwares and take decision when, what and how to pay or get money, how to acquire new company and take decision relating to big and big projects. Now, dear MBA scholars, all of you would understand, what am I saying about Management information system.
This is the age of 21st century and now, you can get every report of everything within second. Now manager's work is limited only to decision making, even analysis of data is also done by softwares. All these softwares are known as MIS software.
Today, management accountant should know MIS and should have knowledge to do it practically.
Benefit of MIS
Decision making is the difficult part of business. A single wrong decision may collapse your business. So, a good MIS will be helpful for taking best decision in business. So, it is needed that we should apply MIS in business.