Setting up a Management Information System could be of vital importance and of major benefit for any organization. MIS gives one place solution of all data required for any personnel in the deciding space; especially for the top managerial and decision-making roles. Support systems like Decision Support Systems and Group Decision Support Systems will be of major help for Decision making.
Considering a D2C brand like Tanishq as an example for our case
Tanishq as a brand has various collections segregated based on needs, customer requirements, occasions, and traditions. Before finalizing the decisions and deciding the best market fit products, they must have done a lot of research and analysis. Here they should’ve received accurate information from the audience base they are planning to target. The received information should not pertain to a specific timeline alone. They must have also checked the relevance and completeness of the information.
MIS as a whole ensures all of these requirements since it can be implemented globally across all branches and focus areas. This makes sure both the Information system specialists from across geographical locations can continue feeding the data and the End Users can make the decisions right at the head office irrespective of their demography with the right data.
The above-mentioned details can be explained further with respect to MIS characteristics, components, advantages, and limitations.
Characteristics of MIS
Management Oriented and Directed: Most of the decisions for any organization are made at the managerial level. Thus MIS ensures that the right information is available to the right personnel at the right time.
Common Database and Data flow: It’s not just the accurate data that helps in making the right decision but also having the exact and same data available to every subsystem that uses the common database. Thus gathering, storing, and retrieving the data from the original source also helps in minimizing the process and maximizing the output.
Integrated and subsystem concepts: To seamlessly perform various operations and activities, the data is available for various teams and systems in the organization. But also, all the information needs to be transparent to all the subsystems. Thus MIS provides a clearly explained hierarchy with easily accessible information.
Flexibility: In spite of having all these, if updating the software is not possible, then maintaining the accuracy becomes tricky. MIS offers easy modification options to keep the information up to date.
Heavy Planning element: To top it all with proper planning and design, MIS ensures proper integration between various components such as information processing, database, feedback, hardware, and Software. Let’s look at the components of MIS in detail.
Components of MIS
MIS is a collectivity of various components. It ideally starts with the people and ends with the people. These people are facilitated with software, hardware, a source to connect i.e., a network, the data that’s carried, and finally the curated information itself.
People: Right from the people who feed the data, the information system specialists to the end-users who require this information who require this information to make the right managerial decisions all together make the people component of MIS.
Hardware, Software, and Network: The components of MIS include all the physical devices like laptops, keyboards, monitors, CPUs, etc; the hardware. Along with the set of instructions required to control and carry out operations like programs and procedures; the software. Finally, the means to carry out, store, process, and share the information to two or more devices; is the Network. Here, the network is of two types
Communication media that includes coaxial cables, satellite technology, and cellular support
Network support that covers the integration of hardware, software, and technologies
Data and Information: Both raw and processed data are components of MIS since they are themselves a part of one another. The raw facts collected from both primary and secondary sources are collected, analyzed, processed, and presented in different formats such as figures and graphs to curate into meaningful information.
All of these together make the MIS worthy of its investment while making the final decisions.
Advantages and Disadvantages of MIS
Setup Advantage: Ability to convert a humongous amount of data into easily interpretable information. Disadvantage: High Maintenance cost.
Departments Advantage: Since the information is easily available to all the departments, coordination becomes easy. Disadvantage: Integration of departments causes accountability issues if not planned right. It also creates resistance to sharing interdepartmental information.
Output Advantage: The reports pave the way to identify strengths and weaknesses Disadvantage: Unavailability of creative solutions for critical situations
Access Advantage: Decentralization of authority provides information to all levels of management Disadvantage: Technical failure due to the heavy load of data and multiple users.
Tanishq as a brand with multiple collections such as mia for an audience looking for a minimalistic fashion, Virasat for heavy and bridal jewellery, and similarly, its other collections such as Aarambh, Nyusha, Ekatvam, etc., have all been planned and launched by exponentially capable managers of their team.
Concluding from the cost perspective as well, for a company that currently has employed over seventeen thousand employees which also deals with products of extremely high bucket value will be Return on investment-worthy to invest on MIS.
Thus, keeping all of the characteristics in mind, setting up MIS is a step in the right direction for Tanisha. Also, looking at the Pros and Cons; the cons can be rectified by proper planning and execution.