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Post By: admin November 06 2020

Role of Management Information System in Advanced Business Environment

Do you want to know how to make business more efficient, effective and competitive? Is it possible to work on global problems with people from all over the world? Yes!!!!Management Information System (MIS), an innovative, cutting-edge technology solution which created a dramatic change in organizations over recent decades. MIS is an information system which uses technology and people to record, store and business services to record, store and process data to produce information that decision-makers can use to make day by day decisions. It extracts data from different sources, analyses information and helps in business growth. The goal of an MIS is to be able to correlate multiple data points in order to strategize ways to improve operations. The purpose of MIS is improved decision-making, by providing up-to-date, accurate data on a variety of organizational assets, including:

  • Inventory 
  • Personnel
  • Manufacturing
  • Marketing 
  • Research & Development 
  • Raw Materials 
  • Project Timelines 


1. Transaction Processing System: TPS is used to record the day to day transactions of a business. Point of Sale (POS) system is an example of a Transaction Processing System which is used to record daily sales.

2. Management Information System: Management Information System is used to guide tactic managers to make semi-structured decisions. The output from the transaction processing system is used to the MIS system 

3. Decision Support System: Decision support system is used by top-level managers to make semi-structured decisions. The output from the MIS is used as input to the decision support system. It gets data input from external sources such as the current market system, competitors etc.

Does MIS Have Made Impact on Business Advancement?

Like other high-end hotels, the Emirates Palace in UAE uses information systems and technologies to develop a detailed knowledge of its customers. The hotel uses computers which help track of guests’ preferences, such as room temperature, check-in time and television programs and store these in a large data repository. Individual rooms in the hotels are networked to a central network server computer so that they can be remotely monitored. When a customer arrives at one of the hotels, this system automatically changes the room requirements, such as dimming the lights, setting the room temperature or selecting appropriate music based on the customer’s digital profile. The hotels also analyse their customer data to identify their best customers and to develop individualized marketing based on customer’s tastes and preferences. MIS is a people-oriented field with prominence on service through technology. It works with the components:

  • People: People who use the information. 
  • Data: It is raw data that information systems record.
  • Business procedures: procedures put in place on how to record, store and analyse data.
  • Hardware: It includes servers, workstations, networking equipment, printers etc. 
  • Software: Software is programs used to handle the data. These include programs such as spreadsheet programs, database software, slide presentation etc.


  • Fast data processing and information retrieval: It processes data and retries information at high speed. It leads to better customer satisfaction.
  • Data accuracy: It is feasible to implement data validation and verification checks in a computerized system compared to a manual system. 
  • Better security: Apart from restricting access to the database server, the computerized information system can implement other security controls such as user’s authentication systems, access right control etc. 
  • Reduced data duplication: Databases are designed in such a way that it ignores duplication of data. It means updating data in one department automatically makes it available to the other departments. 
  • Improved backup systems: With modern technology, backups can be stored in the clouds which make it easy to recover data if something happened to the hardware and software used to store the data. 
  • Easy access to information: Most business executives need to travel and still be able to decide based on the information. The web and mobile technologies make accessing data from different parts of the world possible. 


  • Expensive: Organization has to purchase expensive hardware and required software to run the information system as well as the integration with the existing systems and training of all employees. 
  • Heavy dependence on technology: If something happens to the hardware or software that hinders the functioning of the system, then that information cannot be accessed until the necessary hardware or software has been replaced.
  • Risk of fraud: If proper controls are not in place, it results in unauthorized access to the system which leads to invoicing the goods that were never delivered. 

CDA MIS in Advanced Business Environment

CDA is equipped with qualified MIS professionals who can manage various information systems to meet the needs of managers, staff and customers. They are capable to work collaboratively in areas such as information security, integration and exchange. We design, implement and use management information systems in an innovative way to increase the effectiveness and efficiency of your company. 

Also read, Role of Strategic Management Accounting in Decision Making

CDA Accounting and Bookkeeping Services LLC are always there for you to assist with these techniques. We offer services such as Accounting Services, Auditing Services, Vat & Tax Consultant Services, Implementation of Accounting Software Services. 

Hope you have got a clear idea about the role of management information systems in an advanced business environment. If you have any queries or need any of our services, feel good to contact us. Our expert will call you back immediately and will offer you a one-hour free consultation.