Information System MIS Stands for \"Management Information

Information System

MIS stands for "Management Information System." It is one of the computer-based tools to manage organizational operations efficiently. It consists of software that managers' use in making decision, for data storage, in project management applications, for records and procedures for making customers relations etc. Nowadays most of the organizations have separate MIS department which is basically responsible for computer systems. MIS is also called "Information System" or "Information Technology." The combination of people, software, hardware, communications network and data resource that collect, transform and distribute information in an organization is called an information system (O'Brien, 1999).

Working of the information system depends on the different activists. The first activity is input of data resources. It involves the data entry. Data can be of any time like transactions data etc. Then information system analyzes and processes that data to form information. Now this information is transferred to end users in the form of output products. Then there will be storage of that information as well as data for future uses. Information system also controls the system performance.

MIS or Information System is the best way to organize as well as coordinate the whole company structure. With the help of IS, company can search any information from its database. Managers can find any information or data that they need at anytime as managing this huge information and data manually is very difficult. So with the help of this software, company can save its time and increase its productivity. Organizations are also using information system to reduce the workload of their daily operations. It creates positive impact on the corporate strategy and organizational success. Main task of information system is to convert resources of data into information precuts by using the human resource, IT resources like hardware, software. Information system also performs processing of date and then store process data (information) for future use (Eitrhoads360, 2011).

There are three resources include in information system:

People ( like information systems specialists and users)

Information (it includes every form of data like numerical data, text, videos, reports etc.)

Technology ( include both hardware and software)

There are different applications of information system in business. Some of them are:

Decision support systems

Transaction processing system

Operations support system

Enterprise collaboration systems

Knowledge management systems

Strategic information systems

BENEFITS OF INFORMATION SYSTEM

Most mangers have perception that by maintaining database in organization one can find any data so there is no need of IS. But this is wrong because Information system is something more than database. Information system provides best and specific information that anyone wants to complete the task effectively, it does not provide raw data. Organizations have huge amount of data and when managers need that a specific data or information it results in information overload and confusion so information system provides that huge information in summarized from. It also presents information in different ways according to the needs and demands of the users. One of the advantages of information system is that it provides information that is already analyzed and processed, while on the other hand database provides the information that need to be further analyzed. With the help of information system organizations can get central access and maintain its data backup. Companies can also share their information centrally. Information system also gives benefits of easy record keeping; easy preparation of tax as well as companies can easily find and analyze needs and demands of the customers. So organizations need to be flexible to technology.

Information system can also provide information on the past and future projects. It provides right information to the right people at right time. In past, organizations were doing all record keeping tasks manually but now information system gives the concept of computerization of clerical and record keeping tasks. It provides integrated computer-based solutions. It also helps mangers to make planning and control decisions. With the help of information system, managers can communicate with the workers about their job descriptions and support operations. Through information system manufacturing organizations can also find the utilization and rejection rates of their machines. Information system also encourages decentralization of authority because it gives the authority to lower level staff to monitor the operations. It also brings coordination among the departments and connects all departments within an organization. It also helps management to evaluate and improve performances of staff. By maintaining Information System, company can also forecast and prepare accurate budget. If company is maintaining information system then it is also a kind of competitive edge over its competitors.

Risks associated with information system

The main risk associated with information system is unauthorized use of information. So it is very necessary for organizations to protect integrity and confidentiality of information and data. Organizations have very confidential information about their customers, products, employees and companies share and process this information through information system, so there is a chance of misuse of this information. Company can get huge losses because of the breach of security. So there is a need of risk management in organization to protect itself from loses.

The CISA Review Manual (2006) defines the risk management as the process of finding out intimidations and threats to the information resources of organization and mitigates them as much as possible. Information is also intangible asset of organization so there is strong requirement to protect this asset. Company can't remove or eliminate all risks but it can minimize. Nowadays information network is growing too fast and many powerful search engines are operating in the industry so the possibility of misuse of information increase.

Risk management process

There are different steps involved in risk management process that every company needs to follow:

Company should recognize the value of its data and information.

Find out the threats that can come from both inside and outside the organization.