The advantages of MIS to businesses, governments, scientists, universities, students, non-profit organisation and all other entities are diversified. Some of the most often realised benefits are as follows :
Table of Contents
Advantages of MIS
- Generate Competitive Advantages
- Implementation of Management by Objectives Techniques
- Fast Reaction to Market Changes
- MIS as Strategic Resource
- Change in Industry Structure
- Functional Use
- External and Internal Change
- Availability of Customer Data
Generate Competitive Advantages
Business houses succeed or fail based on how they face competitive challenges. MIS if implemented properly, provides a wealth of information to allow management to construct and develop effective plans to meet, and beat, their competition.
Implementation of Management by Objectives Techniques
MIS allow all participants, both management and staff, to view, analyse and interpret useful data to set goals and objectives.
Fast Reaction to Market Changes
MIS can deliver facts, data and trends to business with lighting speed. Having this information allows business houses to react quickly to market changes, regardless of the type (positive or negative) or volatility.
MIS as Strategic Resource
- MIS helps in taking strategic, tactical and operational decisions. It is one of the critical and important resource.
- It helps the management to understand cost, quality, price, technology, productivity and product.
- It helps to smoothen the business process and thereby facilitate managing of business operations.
- It helps to maintain the business standards like ISO, QS, CMMI, six sigma etc.
- It helps to be a head in the competition.
- It helps company in analysing their own SWOT.
- It also helps in maintaining its own profitability.
- It will help in taking new business decisions like new plans, new product, new business line etc.
- It protects company from business cycles.
- It provides future direction to the organisations.
- It also provides the competitive edge.
Change in Industry Structure
MIS helps in changes in industry structure includes five forces:
- Customers’ bargaining power
- Suppliers’ bargaining power
- Threats of new entrant in market
- Pressure from substitute products and services and u Existing industry competitors
- Birth of new business/ New business initiatives. u New way of doing business.
Functional use of MIS includes:
- Lower the cost
- Information and information system facilitate value chain. e.g. product delivery quality. It increases the speed, accuracy and timeliness of the organisation. It helps in simplifying the business processes. It helps organisation in meeting the standards and benchmarks.
External and Internal Change
MIS creating knowledge is an asset. It helps to achieve change in work life style for better results. MIS has made the world smaller. Worldwide reorganisation environment and attempt to control the calamity. Health conscious among the group lead to less sufferings.
MIS helps in Internal Change: MIS will change the business process, MIS will change the old standards and set new standards. MIS is a key for continuous improvement process. MIS will reduce the hierarchy and hence less operation cost. MIS focuses on “shared information”. MIS also measures the result and performance.
Availability of Customer Data
MIS giving an overall picture of the company and acting as a communication and planning tool. The availability of the customer data and feedback can help the business houses to align their business process according to the need of the customers.
The effective management of customer data can help the company to perform direct marketing and promotion activities. Therefore, information is considered to be an important asset for any company in the modern competitive world.