The Full Management Information System Universe
Analyzing information is the way in which a company improves its performance for future projects. A company will gauge the success or failure of a marketing plan or manufacturing process based on how the actual numbers perform against the projections. In order to make important company decisions, the management and executive teams need a constant flow of accurate information to analyze. That is where a good management information system comes in to play. The company can see the results of a project and determine where there was success and where there was failure in the operational procedure.
A management information system supplies executives and managers with information on a regular basis to help make the process of decision making more accurate. If a project is going over budget, then the constant supply of up to date information will help the management team to see where operational changes can be made to improve productivity and get the project back on track. The executive team can analyze the data and see if the profitability of the project is enough to warrant that it be continued, or if it is best to stop the project to prevent further losses. Without the consistent supply of accurate data, the company is unable to see how a project is progressing and cannot make important decisions about the profitability of the organization.
Another excellent use of a management information system is to determine where issues are being experienced in logistics. If a company has made the decision to go global with its distribution network, then the company will need to keep a close eye on the development of the new distribution channels to make sure that supplies and products get to their destination on time. If the development of an international network is falling behind schedule, then analyzing the information being supplied on a daily basis will help executives to find the bottlenecks and correct them. It could be that there is an issue with items clearing customs. Analyzing the information will show that customs is adding several days to the shipping process and that those issues need to be addressed immediately.
A comprehensive management information system allows an executive-level analysis of data from every department in the company. The executive team can see what processes in the organization are working, and which processes need to be repaired. It is a critical tool in making sure that the organization remains profitable and efficient.