5 Main Types of Management Information Systems

Dissecting the 5 main types of management information systems is a consequence of defining the concept, MIS, in its technical nature as the information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. This analysis may involve people, processes and technology in an organizational context.

The management information system helps streamline information in databases to make them useful and ready for relevant employees to access. Learning about multiple database systems can help you understand how departments across multiple businesses function.

MIS is more organization-focused narrowing in on leveraging information technology to increase business value. Computer science is more software-focused dealing with the applications that may be used in MIS.

Electrical computer engineering is product-focused mainly dealing with the hardware architecture behind computer systems. ERP software is a subset of MIS and IT management refers to the technical management of an IT department which may include MIS. A career in MIS focuses on understanding and projecting the practical use of management information systems. It studies the interaction, organization and processes among technology, people and information to solve problems.

5 Main Types of Management Information Systems

In understanding the different structures by which the management information system, here are the 5 main types of management information systems. Have a look!

• Process Control

For businesses that have production lines, some management information systems oversee the many processes that create products. A process control system monitors processes like steel production, petroleum processing or automobile construction. Throughout the product’s creation process, the process control system gathers data continuously to create reports based on the system’s performance.

If a part of the process is slower or faster than usual, the process control system can illustrate the irregularity. Since manufacturing companies host multiple processes simultaneously, the process control software can be very important for product and performance regulation. Process control systems can also show managers when certain important events within a process occur.

• Decision Support Systems

Decision support systems gather information from both internal and external resources to help managers make decisions for a business. Internal sources include data from other departments, such as financial data, inventory data or current sales margins during a quarter.

External data includes sources such as trends within the industry, rates of interest or cost with other companies or suppliers. A manager can use a decision support system to make decisions concerning building expansion, setting annual work quotas or creating new policies.

• Inventory Control

Inventory control helps managers track the current state of a department or company’s inventory. Managers can use inventory control to understand the impact of any possible spoiling, theft or sale of inventory through a singular report. This can help purchasing managers understand when it’s time to restock certain retail items. Inventory control also can help keep track of inventory movements within the warehouse, informing managers if all items arrive at sites safely.

If customers return items for any reason, an inventory control system can help show these returns and how often they happen. Because a company that produces goods for direct sales should inventory to help maintain business, a management information system for inventory control can be important for efficiency and continuous progress.

• Executive Information System AND Sales and Marketing Systems

Executive information systems report company data to executives directly. It can take processing records, financial information and corrective action summaries and collect them into an easy-to-read report. These executive information systems can display data in several ways, including summaries, graphs, charts and spreadsheets. Employees who receive these reports can use them for comparative departmental research in order to discover new ways to improve efficiency in the company.

Sales and marketing systems help managers keep track of a company’s sales and advertising efficiency. Marketing systems can create reports that help managers improve the quality of products through customer reviews and feedback. They can also help managers better understand distribution networks through reports, helping them learn which ones create customer responses. With sales systems, marketing managers can use reports to learn more about projected sales and compare them to current profits. This can help them understand patterns and derive solutions for future improvement.

• Management Reporting System

The management reporting system produces reports for company operations. These can include financial, operational, attendance, accident and efficiency reports. While a management reporting system doesn’t manage every process within a system, it helps manage selected reports from other systems to streamline information to management personnel.

With management reporting systems, managers can oversee the operations of a company without gathering data from each department. Some companies may even orchestrate a system besides the management reporting system that creates a detailed, singular report for managers to check. Using management reporting systems, managers can evaluate the financial output, operation efficiency and goal-reaching abilities of the company.

Management Information Systems Salary

In our analysis of the 5 main types of management information systems, the remuneration which comes with the job must also be stated. The professionals who are skilled in management information systems earn quite more than a dime! Although their annual salary ranges and depends largely on countries and worth of companies, yet the average earning should be as follows in the table below: