Management information systems (MIS) is an organized approach to gathering information from company operations and making a strategic management decision. Developing quality characteristics for gathering information is essential to making solid management decisions.
Information should be relevant to the strategic decision that company management is currently reviewing. Because companies may review several business opportunities at one time, avoiding information not relating to the decision is essential.
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MIS information should be accurate and avoid any inclusions of estimates or probable costs. Making decisions based on estimates can lead to cost overruns or lower profits from future operations.
Many management decisions are based on information from a certain time period, such as quarterly or annual periods. Information outside of the requested time frame may skew information and lead to an improperly informed decision.
MIS information gathering should resemble an upside-down triangle. The early stages of information gathering should be exhaustive, including all types of company information. As management narrows its decision-making process, the information is refined to include only the most relevant pieces.
The MIS needs to be a cost-effective and efficient system for gathering information. Most of these systems are developed internally, creating costs that cannot be passed to clients.