Management information systems (MIS) is an
organized approach to gathering information from company operations and making
a strategic management decision. Developing quality characteristics for
gathering information is essential
to making
solid management decisions. The
main qualities of good management information
system are:
1. Relevance: Information should be
relevant to the strategic decision that company management is currently reviewing. Because
companies may review several business opportunities at one time, avoiding information not relating to
the decision is essential
2.
Accuracy: MIS information should be accurate
and avoid any inclusions of estimates or probable costs. Making decisions based on estimates can lead to cost
overruns or lower profits from future operations.
3. Timely: Many management decisions are based on
information from a certain time period, such as quarterly
or annual periods. Information outside of the requested time frame may skew
information and lead to an improperly informed
decision.
4.
Exhaustive: MIS information gathering should
resemble an upside-down triangle. The early stages of information
gathering should be exhaustive, including all types of company information. As management
narrows its decision-making process, the information is refined to include only the most relevant pieces.
narrows its decision-making process, the information is refined to include only the most relevant pieces.
5. Cost-Effective: The MIS needs to
be a cost-effective and efficient system for gathering information. Most
of these systems are developed internally, creating costs that cannot be passed
to clients.