You’re working hard. Really hard.
You want to improve your profitability and sustain your business in the long run.
Every day you talk to customers, suppliers, and employees. You keep up with receivables, the rate of turnover on your inventory, and your gross profit margins. Your plate is full, and some important things are falling through the cracks.
It is time your business ran smoothly like a well-oiled machine.
That’s where Management Information Systems (MIS) comes in. To help you make informed decisions as quickly as possible.
What is MIS, and why do you need it?
In short, it is the information system used for Decision Making. Management Information Systems (MIS) is a computer-based system that provides you with tools to organize, evaluate, and efficiently manage departments within the organization.
MIS helps roles such as functioning, performance, and support with planning, organizing, controlling, and decision making.
Some benefits of MIS in your organization are –
- Increased productivity
- Enhanced quality of decision-making
- Improved communication and teamwork
What makes MIS useful?
An MIS provides detailed current data and trend analysis, so you have ready information on all business areas.
The detailed data on company finances and environment helps you predict your business performance in the short and long terms. Trend analysis is helpful in strategic planning and budgeting. MIS gives you sales, production, revenue, expenses, and investments data. Through Analytics, performance data will help you predict the future.
MIS comes with sophisticated mathematical tools that evaluate relationships and calculate possible future trends — leading to accurate forecasts.
Let us look at each of the attributes in detail –
- Facilitates communication
You want flawless communication within and outside the organization to reach your stakeholders quickly and effectively with timely and accurate information.
MIS comes with email, a short messaging system (SMS), and records information. SMS and email make it possible to reach other stakeholders within your MIS system in real-time. You can even send messages in bulk – meaning you can reach thousands of people in real-time.
- It helps you build a future perspective for your business
It helps you manage and analyze independent processes, including work processes, data, production, customer feedback, financial management, etc.
It enables you to follow the latest business trends and speed up your business progress.
But how do you plan for your future? Study business trends and make strategic plans, which is our next point.
- Helps in analyzing trends and strategic planning
To build a future perspective, you need to analyze trends and make strategic goals. You need accurate reports on the prevailing market trends.
MIS provides various tools for analyzing current market trends and predicting future trends.
In strategic planning, it provides accurate and reliable reports you need to determine the future needs of your organization. Reports help in identifying the resources you require to meet your objectives.
If you want to improve your business capabilities and compete with your rivals, you need unique analytical tools.
- Helps increase efficiency and problem identification
MIS increases efficiency in generating accurate and timely reports. You can quickly analyze the performance of your business, just by a click of a button.
Reports show you every aspect related to all activities in your organization. If a problem arises, you’ll be able to identify the source and find a solution quickly.
Attributes of a high-quality MIS
- Reliable — When it comes to quality decision-making, you need accurate data which is also consistent with facts. MIS gives such data quickly and accurately.
- Timely — Some situations call for urgent decision-making. A high-quality MIS helps you instantly get the information you need in the right place and to the right person.
- Comprehensive — Strategic plans need factual and detailed information about your business and economic environment. MIS gives you comprehensive reports which are also easy to analyze and feed into your strategic plan.
- Insightful — As a business owner, sometimes you need an overview of your company’s performance against industry standards. You can get each department’s performance metrics and decide which areas need more support.
- Balance between financial and non-financial lag and lead indicators — Information you obtain from your MIS is not helpful if the solution is more costly than the problem. A high-quality MIS reduces your cost of collecting data and processing it into the information you need, and the benefits are enormous.
CFO Bridge has created a framework for preparing high-quality MIS where each of the above attributes is adequately authored.
Finally, consider these questions:
- How can you make your business so efficient that it almost runs on auto-pilot?
- How can you leverage the power of MIS to get across your services and products?
Interested in leveraging MIS for your Business? — Connect with us