Management Information System to business is a computerized database of business information programmed and organized in order to produce regular reports on operations for every level of management in an organization.
The company can get special reports from the system very quickly. The main purpose of the MIS is to enable top management to monitor the company’s overall performance and to give entrepreneurs feedback about their own performance. The information displayed by the MIS would typically show actual data against the plan the results and the results of the previous year; so it measures progress against goals. Some data is collected automatically from payment systems connected to the computer, while others are entered at regular intervals.
MIS AND ENTREPRENEURSHIP
Since MIS is defined as a computer-based arrangement of information aiding the management function, an entrepreneur running a single computer properly equipped and connected is operating a management information system.
A small business with three office assistants and a manager at a small office have an MIS system, this system becomes the link between all the parts. It can link accounting to the inventory systems and serves as the base of communications with each representative each one carrying a laptop. Nearly all small businesses engaged in marketing, sales, communications, consulting, research, and other service industries have mainframe networks where they deploy large databases. Management Information Systems has become an integral part of entrepreneurship.
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MIS RELATING TO ENTREPRENEURSHIP
Management Information Systems (MIS) in relating to entrepreneurship are tools used to support business operations, processes, intelligence, and organizational IT architecture in order to achieve entrepreneurial goals and objectives. MIS tools are used to direct, control moves data, and manage information of an enterprise. These are core information management disciplines and are regularly considered the first and emerging systems of the information age.
Management information system MIS is a system that offers useful information and data to senior executives for making strategic decisions. The Management information system involves:
• The collection of applicable data from various dependable sources.
• To process such data by extracting useful and relevant information.
• Providing this information to the respective users and departments.
Management Information Systems (MIS) is the study of information technology, organizations, people, and the relationships among various and connected users of information. MIS professionals assist firms to attain maximum opportunities from investment in equipment, human resources, and business value. It is a people-oriented field with an emphasis on services using information and communication technology (ICT).
A management information system (MIS) is a computer system involving software and hardware applications that assist as support to organizations’ operation. An MIS obtains data from different online platforms, analyses the data, and reports information to help in management decision-making.
Management information system report plays a vital role in improving the profitability, performance, and productivity of the business. An information system is a way to store, collect and share data related to business organizations. This can be related to marketing and sales, purchasing, procurement, financial planning, and manufacturing processes. Modern businesses cannot survive without using MIS to manage the huge amount of data related to business operations and have many opportunities to enhance entrepreneurship.
MIS produces data-driven reports that help entrepreneurs to make the right decisions at the right time. Some of the packages designed to enhance entrepreneurial success are:
• Enterprise Resource Planning (ERP): This is a discipline that ensures all departmental systems are integrated. MIS uses some available data to access information in order to create useful reports.
• E-commerce: The activity of the E-commerce system provides information that gives MIS reports based on the data that affect the e-commerce business.
• IT Management: IT Management department oversees the installation and maintenance of software and hardware that are parts of a business entity.
The concept of a management information system includes what computers can do in the field of entrepreneurship, how people process information in their businesses, and how best to make it accessible to top management and target customers.
ROLE OF MANAGEMENT INFORMATION SYSTEMS IN ENTREPRENEURSHIP
An information system plays an important role in the success of any entrepreneurship process and profit maximization. The six reasons are business models, operational excellence, customer and supplier intimacy, competitive advantage, improved decision making, and day-to-day survival. An information system is a way to collect, store and share data related to your business.
The role of information systems is very important for careers in entrepreneurship. An information system helps careers in different ways to achieve one common company strategic goal, which is to be profitable. New technologies in information systems are helping businesses to be more productive, cut operating costs, manage efficiently and earn maximum profit.
Sales and marketing monitoring systems are helpful in identifying the customer base and products that increase company sales volume. The data relating to customer demand helps entrepreneurs to market appropriate products to the target customers and prospective markets. This can help the business to achieve maximum sales and profit from the sales. The manufacturing and production system involves the planning, development, and production aspect of the product that the company manufactures.
This system also helps to maintain and plan the flow of production to avoid over or underproduction in order to meet customers’ demands on a consistent basis. Accounting and finance systems help keep track of funds and the use of funds related to the manufacturing and sale of products or services. It also helps to track the growth and profitability of the business. The human resource management system helps to maintain employees’ personal and professional records, track their experiences and skill levels, job performance, and any required training record that keep the workforce up to date with the latest technology. This system is also used for employee career development and compensation.
TYPES OF MANAGEMENT INFORMATION SYSTEMS RELATING TO ENTREPRENEURSHIP
Management information system has a broad category that incorporates many specialized systems in an organization. Enterprise applications are a group of functions tied into one software system to help improve harmonizing, efficiency, and decision-making process. The applications are designed to perform different functions that businesses can use to increase profitability.
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The major types are:
• Executive Information System (EIS): Senior management in an organization use an Executive Information System to make top management decisions which will affect the entire business and strategic decision making. Management Executives need a high-level data bank with the ability to make vital decisions that will positively affect the enterprise operations.
• Marketing Information System (MkIS): Marketing and Sales Executives use MkIS to report on the effectiveness of past and current marketing and sales information and use the information to plan on how to achieve future sales and marketing strategic objectives.
• Business Intelligence System (BIS): Entrepreneurs use this system to make some important business decisions based on the analysis and data integration of collected related files. This system is similar to EIS but can be used by both low-level managers and executives.
• Customer Relationship Management System (CRM): A CRM system stores key information about sales, customers’ contact information, and sales opportunities. Entrepreneurs use CRM to plan and communicate business processes to their customers which will help the business to gain customer satisfaction and maximize its revenue objective. Companies that perform digital and online marketing can sell their products directly to the customers by exploring the advantage of the internet as part of their sales platform. CRM is also useful in the area of inventory management and ordering raw materials.• Sales Force Automation System (SFA): This is one of the specific components of a CRM system that can automate several tasks that help sales managers to carry out marketing and sales campaign effectively. SFA involves lead tracking, contact management, lead generation, and order management.
• Transaction Processing System (TPS): TPS performs sales and manages related sales transaction details. Transaction Processing System could be regarded as a point of sale (POS) system, a system that enables a traveler to search and book a hotel room accommodation at convenience. Entrepreneurs can use this information to decide on the trend analysis and track the sales volume of their business enterprise. The operational management level uses TPS such as payroll and order processing to compare the performance of sales to salary and wages. Middle management uses the decision support systems to make decisions relating to the volume of production and workforce.
• Knowledge Management System (KMS): This is very useful to the customer service department for answering questions and troubleshooting customers’ complaints and other related issues.
• Financial Accounting System (FAS): This system is designed for the finances and the accounting department. It performs the role of accounts receivable and payable.
• Human Resource Management System (HRMS): This is the system that performs the employee name, date of employment, date of promotion, and performance records.
• Supply Chain Management System (SCM): this is very useful in manufacturing and logistics companies. SCM can be used to track the flow of raw materials and finished goods until the production process is complete and products are shipped to consumers. A supply chain management system is used in manufacturing, resource planning, and raw material management.
THE USE OF MANAGEMENT INFORMATION SYSTEMS BY ENTREPRENEURS
There are many ways to use the MIS system to increase the performance of a business. Any organization that does not use MIS to automate business activities may simply not have some long-term objectives as computer-based information systems are now essential to the survival of modern organizations.
The group of professionals is responsible for maintaining the activity of hardware, software, data storage, and a network that the company uses for its business architecture.
The key advantages for effective use of management information systems are:
• Managers have the ability to receive some feedback about the key performance indicator (KPI).
• Corporate decisions can be assigned to top management executives of the organization that acquires the experience and knowledge of the required task.
• Entrepreneurs can maximize benefits from their investments by deciding on what is working and what is not working for the business.
• Companies could get an overview of their whole operation at a glance.
• Entities can drive workflow improvements that may result in a better arrangement of business processes to consumers’ needs.
• Management have the opportunity to relate results to a planned performance by recognizing strengths and weakness in both plan and performance.
In addition to managing current performance in a business enterprise, the need to measure and evaluate the readiness of the Information System department or function for future performance cannot be overemphasized. The prospect perspective is concerned with frequently improving the skillset of Information System personnel in order to prepare them for potential changes and challenges that may affect the organization. There is also a need to regularly update the applications portfolio considering the effort in researching emerging technologies and their potential value to the business.
The ability of MIS employees to communicate effectively with users in order to understand the area of their difficulties must be put to check. After understanding the customer’s problems, MIS employees must present computer-based solutions to those problems by using simple channels of communication, time, and resource management to offer the solution to the problems.
MIS personnel must keep abreast of emerging technologies and the potential impacts that these technologies will have on the entities. Some entrepreneurs like financial services, health care, and telecommunication sectors. allocate a huge amount of resources to deploy up-to-date IT infrastructure in order to improve the overall performance of business operations.
THE FUTURE OF MANAGEMENT INFORMATION SYSTEMS IN ENTREPRENEURSHIP
Management information systems, like any other discipline, involve computer hardware and system software that are constantly changing the narratives in business. Some recent developments in this field include the following:
Application and Management Service Providers: This is similar to obtaining cloud storage. It enables companies to rent software packages, and systems management services and expand as the need arises.
Data Security: Recently, data breaches and data security has moved from a small issue to a bigger problem for every business organization.
The major area of development in information technology is artificial intelligence (AI), which goes far beyond robots that control production for example, in the automobile industry. Machines are becoming smarter in that they can learn how to provide solutions to customers’ problems. One such system is a neural network, which is used to inform a client that his debit card may have been tempered by not authorized persons.
EMERGING TECHNOLOGIES IN ENTREPRENEURSHIP
• The Internet of Things (IoT): The rapid increase in placing sensors on all objects is leading to a sense-and-respond environment. MIS should be used to perform the SWOT analysis on IoT for an entity.
• Artificial Intelligence: Narrow AI, AI for specific tasks is now persistent in many organizations. Advances in machine learning and deep learning are making narrow AI much more valuable to organizations. Think instantaneous translation, robots, autonomous vehicles, digital manufacturing, 3D printing, etc. MIS must keep up with these advances and decide how narrow AI can be used in business organizations.
• Financial Technology (FinTech): In the financial sector, MIS employees are being closely seen at start-up FinTech enterprises. These entities are planning on disrupting the traditional financial sector.
• Blockchain Technology: Distributed-ledger technology is now being used in a large number of areas. Again, MIS specialists must keep up with this technology and see how it impacts organizations’ goals.
ADVANTAGES OF MIS IN REPORTING BUSINESS ACTIVITIES
1. It Helps in Managing Information: MIS helps in managing and maintaining important business information which can be useful to management in making decisions. The vital information is kept in a logical way, which can be accessed quickly by the administration whenever the data is needed.
2. It Helps in Trends Analyses.
3. It Helps in Strategic Planning: It helps in determining the future needs of the company and assists in formulating goals and strategies based on such information.
4. It Helps in Setting Organisation Goals: For any organization, setting up a goal is a very crucial matter, and it requires lots of research and development.
5. It Helps in Problems Identification: MIS assists organizations in quickly identifying some problem areas that require management attention.
6. It Helps to Increase Efficiency: Management Information Systems play an important role in increasing the efficiency of the company’s data gathering and utilization.
7. It Helps for Comparison of Business Performance: The relevant business data and information of the company are stored and maintained in the MIS database.
In conclusion, MIS reporting in an organization is prepared after taking into account proper analysis of current market recent trends and market information. The main objective of the MIS reporting system is to provide critical business information to the management for strategic decision-making. It is important for entrepreneurs to have reliable information related to the present market trend and appropriate business data for making an informed decision.
MIS gives good and up-to-date information to organizations. Its responsibility is to provide relevant data to the management to use in solving problems faced by business enterprises. These are the reasons why entrepreneurs must implement MIS in order to bring quality service, and increase productivity and profitability of the business.
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