Types of Management Information Systems
All businesses, regardless of size or niche, work with data that enables them to function. Easy and prompt access to the information aids in performing the work required and speeds up what were once laborious manual processes. Access to a system that aids in this management can improve the productivity and accuracy of transactions. Management Information Systems (MIS) assists businesses in these business facets.
The first type of MIS, the transaction processing system (TPS), forms the primary management system for companies and takes in data within and outside the company for storage in a database. Based on access levels, company employees can query and access various information from the database based on the requirement.
A number of data processing and retrieval options exist. The user can opt to work with the data in real-time or use batch processing, where the information is available depending on scheduled settings, for example, at specified times of the day. For example, one can access real-time sales or operating expenses information while sales tax or payroll information is processed or retrieved in batches.
Another MIS system is the management support system (MSS), which works in tandem with TPS. An MSS analyzes the information inputted and stored via TPS and presents the information in a format that the management can use to make informed decisions.
An example of an MSS is a data “warehouse.” This refers to a secure electronic storage system that stores information about a business or organization, including historical data that can be retrieved to aid the management in decision-making. The warehouse is used as a reference point and knowledge base for past successes and failures, and thus guides decision-making for the present and future. The data inputted to the warehouse cannot be altered, eliminating the chance of its contributing to uninformed or skewed decisions.
Decision-making support systems (DMSSs) consist of decision support, executive information support, and expert systems. These three tools and resources aid managers with information and models to extend the capability of managers in making decisions, devising strategies, and solving issues and increase the depth of data analysis. A DMSS also delivers up to date information to executives and business-specific experts, especially in industries where the business environment changes quickly, like information and technology niches.
Supply chain management systems (SCMs) help manage the flow of goods and data about the company’s products or services. The end-to-end system covers the process from the raw materials, if any, to final product delivery to the consumer. The typical components of an SCM include the network of businesses and facilities that the company works with, including procurement, planning, product creation, and order tracking. SCM platform stakeholders include suppliers, manufacturers, transportation providers, retailers, and logistics managers.
Finally, a customer relationship management system (CRM) assists businesses in tracking and fostering communications with leads, clients, and business partners. The purpose of the CRM is to replace the significant documentation, such as spreadsheets and databases, required for these functions. The information contained in the CRM includes call logs, emails, texts, meetings, transactions, and tasks. The consolidated information can be critical to closing sales and improving customer service.
The primary difference between a CRM and a spreadsheet is that while the latter can store contacts, email addresses, and client names, the former works with more complex data, like the last email a client shared or opened and pages of the business website visited. The CRM also updates in real-time, while spreadsheets require the manual input of information.
