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Benefits and limitations of an MIS - Coggle Diagram
Benefits and limitations of an MIS
Benefits
Generates analytical results
It can organise the data for analysis so that it can generate informative results for the company. From this they can monitor its performance and identify new opportunities.
compares projections and performances
this allows the company to compare what they project with their actual performance and see if they are reaching their business goals.
real time performance results
The MIS allows the company to gather real time performance results and allows them to be more dynamic and discover and respond to opportunities quickly
Improves internal communication
It improves the communication between members of different departments within a business.
Aids work allocation process
The company's management can use this system to make better decisions when allocating staff and resources to departments.
It has a transaction processing system
This enables the company or corporation to quickly make and manage transactions accurately.
It has a decision support system
Should the company get a bit stuck on what decisions it needs to make to help itself, the MIS will be able to help and give some suggestions as to what decisions need to be made in order to grow the business.
It has an executive information system.
It helps executives make the important decisions that need to be made.
predict future growth and sales
This system will be able to help the organisation predict future growth and sales by evaluating and monitoring what they are doing well in and what they aren't which will help to improve accuracy when targeting different markets.
Limitations
Requires training to use
Employees will require training on the use of the MIS for the company
lack of versatility
MIS' aren't really versatile in their uses, it has a set amount of uses and that's it.
Development costs
An MIS costs a lot of money to develop
storage of incomplete or incorrect data
Data will need to be added or updated regularly otherwise it will need to be removed from the system. The data also has to be relevant to the subject of focus.
upkeep costs
In order to upkeep the MIS it will cost money and it isn't cheap to maintain to a good standard
Real world examples
Apple
Microsoft
Google
GDPR
All MIS' also have to stay in line with the GDPR (general data protection regulations). This means that any information about you that is stored by the organisation must be kept private from any third party.
