2.4

• Management Information System (MIS)


  A system used to collect, store, analyse and present data for an organisation
• MIS


  • Processes a large amount of data and organises it (such as in databases) so that it can be used for decision making and general data analysis
  • Can be used to display the financial status of an organisation, highlight areas of improvement and generate sales forecasts based on current data
• How a bank could use an MIS


  • Looking at the number of customers that visit each branch
  • Forecasting takings based on historical data
  • Profiling customers
  • Identifying customers who haven't saved recently to target them for email
• Benefits of an MIS


  • Integrated system: Shares a large amount of data from multiple departments within an organisation to produce accurate reports
  • Decision Making: Can be used to inform an organisation's decision making by highlighting areas that need improvement
  • Powerful analysis: Will use large data sets to provide accurate data analysis that can be used in many different ways by an organisation
  • Backup capabilities: Data can be stored centrally and backed up easily if a disaster occurs
• Limitations of an MIS


  • Cost and installation: An expensive tool that needs to be professionally set up and requires technical knowledge to maintain
  • Requires accurate data: If any data is incorrect or out of date then the analysis will consequently be inaccurate
  • Training: Employees will need to be trained to use the software accurately for maximum efficiency
• Managing Information


  1. Data Collection: Information can be collected in different ways e.g. paper forms, surveys, stock taking and data capture forms in databases

  2. Storage: Collected data must be stored in a secure and easily-retrievable medium such as paper, magnetic, optical and cloud storage. Data is most conveniently stored in a database

  3. Retrieval: Using a database to store information allows users to easily access data so that it can be updated or removed

  4. Manipulating & Processing: Data can be exported to other software, such as from a database and into a spreadsheet so that it can be manipulated, sorted and visualised

  5. Analysis: To analyse the data is to see what can be learned from it, so important decisions can be made
• Example of managing information for a tennis club


  • Data Collection: Create a form on their website that allows users to apply for membership and fill in key data
  • Storage: Store data in a database using cloud storage as soon as a new member enters their information
  • Retrieval: Submit a query in their member database to display all members whose membership will expire in the next month
  • Manipulating & Processing: Export member information to spreadsheet software that then allows for graph / chart creation using specific values
  • Analysis: Analyse the charts made in the processing stage to identify key patterns, such as when most members sign up during the year and where the members travel in from