Management Information System: Definition, Function, Purpose, Benefits, and Examples
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What is meant by a management information system? Definition of Management Information Systems is a system of planning within a company that involves internal control such as the use of resources, documents, technology, and management accounting as one of the strategies in the business.
In essence, management information systems in a business or company aim to collect, process, store and analyze information and then disseminate it for specific purposes.
Information system management is useful as a reference for decision making in an organization or company. Deeper about the management of information systems, objectives, functions and examples of their application in business will be discussed in full in this article.
Some experts in the field of management have explained about information system management, including:
According to Raymond McLeod Jr, the notion of management information system is a computer-based system that provides information for some users who have the same needs.
This information explains the company or one of its main systems about what has happened in the past, what is happening now, and what might happen in the future.
According to Nash and Robert, management information systems are a combination of users / people, technology, media, procedures, and also controls, which have a specific purpose.
The aim is to get communication channels, process transaction types, and signal management to events within an organization / company.
According to Bodnar and Hopwood, management information system is a collection of hardware / hardware (read: Understanding Hardware) and software / software to transform data into a more useful form of information.
According to James O’Brien, management information systems are a combination of each unit managed by users or humans, hardware, software, computer networks and data communication networks, and also databases that collect, change, and disseminate information about an organization.
According to James AF Stoner, the notion of management information systems is a formal method that gives management information that is timely, reliable, and can support the decision-making process for planning, monitoring, and operating functions of a more effective organization.
According to Danu Wira Pangestu, management of information systems is a collection of interactions of information systems that are responsible for collecting and processing data to provide information that is useful for all levels of management in planning and controlling activities.
According to Gordon B. Davis, management information system is an integrated system between humans and machines that is able to provide information in such a way as to support the operations, management, and decision-making functions within an organization / company.
According to Azhar Susanto, management of information systems is a group / group of any sub-system / component, both physical and non-physical which are interrelated with each other and have functions in terms of evaluation, control and continuous improvement.
According to Joel D. Aron, management information system is an information system that provides information / data needed by a manager in making decisions.
In accordance with the explanation above, as one form of strategy within the company’s internal implementation of the management information system has the following objectives and functions:
Management information system has a main function that must be useful in the operations of an organization, among them:
In large and long-standing companies, information systems are usually very well structured and programmed. Management information system regulates how interactions within companies and companies with the environment can work in accordance with applicable procedures, for example in production information systems, marketing information systems and in other activities.
Some examples of the application of information systems in companies include:
The company uses an ERP system to manage and carry out integrated supervision in accounting, finance, marketing, human resources, operational and inventory management units.
As the name suggests, Supply Chain Management moves to present integrated data related to raw material supply, such as suppliers, producers, retailers to the last consumer.
A program that is useful for large amounts of processes that occur regularly. Usually applied to salary and investment management.
OAS is most often applied, both in large and small companies that are useful for launching information systems through the integration of computer servers within the company.
IMS is useful to support a spectrum of tasks within the company and can be used to assist decision making. In its application, several information functions are put together through computerized programs such as e-procurement.
KWS will integrate one new knowledge into the company. With this new knowledge, it is expected that experts can apply it to their work.
This information system serves to support a spectrum of various jobs within the organization. IMS is also used to help make decision-making analysis, and can bring together several computerized program information functions, such as e-procurement.
DSS can help managers make decisions by observing the environment of an organization. For example, the Electronic Link at Tunas Bangsa school, which observes the amount of income or new student registration every year.
This management information system basically uses artificial intelligence to analyze problem solving using the knowledge of experts who have been programmed into it. For example, a mechanical schedule system.
The ESS system will help managers in interacting with the organization / company environment by holding on to graphics and other communication supporters.
In essence, management information systems are the company’s efforts to coordinate with each other through a computer system that is arranged in such a way that it can be used to collect data and information more efficiently.