Information is at the core of how business is conducted today. Every type of business activity generates and is influenced by valuable information crucial to a company’s success. But that information goes to waste if businesses don’t have the necessary methods or frameworks in place to collect, manage, interpret, and utilize that data. That’s why organizations need management information systems ― digital collections of pertinent data that can be used to support and develop processes and activities. Successfully using information management helps businesses thrive.
Business officials can use management information systems in various situations. For example, implementing new production policies based on pricing and cost data collected in an app, analyzing competitor trends and markets to develop new strategies through a cloud system, and reassessing the effectiveness of internal procedures are types of information and actions made possible by the successful collection, management, and interpretation of data by management information systems.
How Management Information Systems Are Used to Improve Businesses
Information management isn’t just restricted to one sector of an organization. Management information systems can be used at all levels and in all areas of the business process.
Sales and marketing
A successful clothing manufacturer wants to increase sales by opening its first location outside of the United States. Before it even begins manufacturing or shipping clothes, it needs to take into account the demographics of the consumers who will buy the product, how much they’re willing to spend, and what styles they will prefer.
This company can utilize management information systems to view and analyze data on which foreign markets have already shown a strong interest in its clothes, which similar clothing manufacturers have succeeded or failed in each location being considered, and whether the consumer trends of one country would allow for better opportunities than another country. Information management ― effectively collecting and properly interpreting that data ― can create a key opportunity for the company’s sales and marketing.
Goal setting and decision-making
The clothing company knows it wants to increase its sales in the foreign market, but is cautious about how much increased profit and revenue it should target. Trying to win over too much of the market too fast might cause foreign consumers to turn their backs on the product. Not producing enough or producing too slowly might allow a competitor to swoop in.
Management information systems can help to set goals and make decisions based on useful and relevant data. Analysis of buying patterns and production costs in that region can help show how many customers might realistically purchase the company’s items and for what price. Another system that evaluates the company’s internal financial health can determine the most appropriate time to pursue this market and what reasonable financial goals it can set year after year.
Supply chain operations
The clothing company has decided what foreign markets it wants to reach, but now comes the hard part: getting the clothes there. On top of other domestic duties, the company will need to calculate how costly it will be to ship the items overseas and how long it will take to get the clothes from the production process to the new consumers, with any miscalculation threatening its health.
The ability to precisely pinpoint travel times and instantly compare different options for shipping is made possible by management information systems. Collecting and interpreting specific data regarding shipping costs and travel times is another way an organization can effectively use information management for its business.
Production and manufacturing
How many employees should the company hire for a new international initiative? Does it need new machinery to assemble clothes, or can it use the equipment it already has? Where can it buy fabrics and materials that are affordable but still high quality? How long will it take to train new workers to manufacture these items?
Management information systems can help executives and managers answer these questions. Organizing key data like labor costs, prices of textiles and manufacturing equipment, and output per a specific number of employees can allow officials to streamline production costs and achieve an efficient level of output that meets their goals.
What Coursework Does an MBA with a Specialization in Management Information Systems Cover?
A Master of Business Administration with a specialization in management information systems (MIS) has classwork in specialized MIS areas like data gathering and information analysis, as well as a common MBA business core curriculum. Here are some of the courses offered by the New Jersey Institute of Technology in the management information systems specialization for its online MBA program.
Information Systems Principles
Information Systems Strategy
Data Mining and Analysis
Decision Support Systems for Management
These subjects are diverse, but they each cover a specific area that relates to every businesses’ fundamental need for organized, efficient, and secure management information systems. The coursework offered in this type of MBA primes students to build, manage, and interpret various techniques that are crucial to companies of all sizes and in all industries.
Management information systems are utilized in nearly every process of a business’s day-to-day activities. An information management for business speciality will prime MBA students with the skills they need to succeed in this fundamental, evolving field.
The online MBA program at New Jersey Institute of Technology is designed to prepare motivated, tech-savvy management professionals with the business expertise and technical knowledge vital for success.
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5 Tips for Workplace Communication in a Crisis
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New Jersey Institute of Technology Martin Tuchman School of Management, MBA Concentrations