What Is a Management Information System?

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What Is a Management Information System?

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A management information system is an information system that is used to analyse, coordinate, visualise and control information or data, and then use it to make strategic and evidence-based decisions within your organisation. From a corporate perspective, management information systems are intended to increase the profit of your business, and subsequently the overall value.

We at NJCSI have put together the below blog to help illustrate the benefits of management information systems and to what effect they can be used. Find out how management information systems can benefit your industry and organisation, below.

Benefits of Management Information Systems

There are numerous benefits of management information systems, from productivity right down to improved decision-making. We have listed several of the benefits of management information systems below:

  • Acting as a communication and planning tool to improve strategy
  • Identifying strengths and weaknesses within the company from reports
  • Improving business processes and operations thanks to deeper insight
  • Creating a digestible and accurate overview of the company
  • Facilitating customer data and feedback to align processes with customer needs
  • Improving direct marketing thanks to detailed customer relationship management
  • Maximising investments by determining success or non-success of changes

Categories of Management Information Systems

A management information system can fall within a broad spectrum of applications and specialisations that serve your industry or organisation best. There are ten main categories of management information systems, namely:

Executive Information System: Senior management and decision makers us an executive information system to make decisions that affect the entire business.

Marketing Information System: The marketing professionals of a company can report on the success of previous or current campaigns and use this information to improve future campaigns.

Business Intelligence System: These systems collect, integrate and analyse the data of an entire business and assist operational level managers in making business decisions.

Customer Relationship Management System: This system stores vital information about customers such as prior purchases, contact information and potential future sales indicators. Many departments in a business can collaborate cross-functionally using customer relationship management systems.

Sales Force Information System: This is a type of customer relationship management system that optimises the tasks that a sales team performs, such as contact management, lead tracking, order management and so on.

Transaction Processing System: This system is tasked with completing sales and managing related tasks. This could be a point of sale system, or a system (think e-commerce) that allows a user to find and select items they want to book or purchase. Reports indicate usage trends and track sales over time.

Knowledge Management System: A system like this can be used by customer service professionals to answer questions and assist in troubleshooting problems their customers are having.

Financial Accounting System: Finance departments can use this system to enter, track, analyse and manipulate data in line with their tasks in accounting and related fields.

Human Resource Management System: Human resource professionals and their superiors can track employee performance, attendance, and payroll data.

Supply Chain Management System: Manufacturing companies can use a system like this to track the acquisition, usage and progress of resources, materials, and services from purchase to shipping. The entire supply chain can be monitored.

The NJCSI Solution

You can contact NJCSI to discuss your management information system requirements and how we can help you improve your business performance. Stay tuned to our blog for more interesting and informative articles about system integration, industrial automation and more.