Management Information System

Management information system refers to the system in which an organization processes data into information and communicate it to the various departments in the organization for decision-making. Besides, it provides the organization with information for managerial activities thus enabling the managers to plan and control all the operational functions effectively (Lee and Jung, 82).  It offers an organization a competitive advantage in the following ways. First, companies use management information system to become a market innovator. When companies develop new and innovative products and services that meet the needs of the customers, it can eventually raise the market entry cost for its competitors hence gaining competitive advantage. Also, in a situation when an organization forge electronic linkages to its customers and suppliers, it will lock in business and increase the switching costs.

The following are types of information that should be available to managers and how they can use them to improve the decision-making process. First, managers need to have internal company information. When the manager wants to expand the business, he /she will analyze the strength and ability of the organization to determine where it stands. They will need sales and purchase reports, costing, margin report before making a decision to expand the business (Pride, Robert and Jack 433). Second, a manager will require market intelligence information. The business environment information will help the manager make a decision on the market demand, competitors and the potential of the market. Third, the manager requires information on the market research. This information is necessary to determine the new products ideas and improvements in processes. It will help the managers make a decision on what the customers want.


Works cited

Lee, Seul-Ki, and Jung-Ho Yu. “Success model of project management information system in construction.” Automation in construction 25 (2012): 82-93.

Pride, William M, Robert J. Hughes, and Jack R. Kapoor. Foundations of Business. Mason, OH: South-Western/Cengage Learning, 2013. Print.


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