The Impact of Management Information System on Organization

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The issue of researching on management information systems is of interest to scientists specialised in management and computer studies. Thus, there is advancement in technology handling information. Beside, implementation of effective management information systems transforms organisation decisions making process from irrational to rational. Hence, an organisation acquires significant benefits through technological research and development (Power 13).

Meanwhile, some of management information technologies determined when analysing the impacts of technology on business include the use of networks, web technologies, cloud computing, and mobile-based application (Power 16). They are analysed on how they influence the organisations work environment, business strategy, business function, and industrial achievement.


Management information systems are supportive to managers especially when making decisions and distributing workload (Gurbaxani and Whang 64). When managers are making decisions on how to distribute workload, management information systems ensure the managers access employees’ essential information in time. That is, the management information systems gather, register, analysis, and present performance information to the managers.

In addition, management information systems improve business administration (Trivellas, and Santouridis 172). Organisation using common servers ensure companys information is safely stored, common printers saves resources and time, and web-based timesheet systems keep tracking records of time used in projects. Furthermore, use of mail merge when sending large mails saves time as it accommodate sending large volume of documents and digital calendar remind managers of meetings (Gurbaxani and Whang 67).

Moreover, management information systems manage the companys capital efficiently (Gurbaxani and Whang 74). Application of digital technologies, such as accounting software, keep updating records of income, expenditures, tax, PAYE, and observe the requirements of the Charity Commission. Websites provide a user interface of making payments from different parts of the world by providing a platform linking bank, client, and company (Gurbaxani and Whang 73).

Finally, management information systems keep the customer records securely in a database software. The customers data is stored in soft copies and it becomes easy to read, monitor, and analyse trends. The database stored information can also be shared easily among the organisations stakeholders such as funders and donors. Hence, storing information in database software make it easy to update clients profile information (Sahara 3).

Business Function

Management information systems improve effectiveness of business operations leading to higher productivity.

Firstly, management information systems play a significant role in attaining efficiency and productivity in an organisation (Power 17). For example, the Walmarts Retail Link System communicate data from the stores to the suppliers to ensure there is a timely replenishment of the stores in time.

Secondly, management information systems bring innovation and facilities routine activities through creating business models. Business models are descriptions of how firm create products, supply, and sell them to create wealth (Sahara 1). Hence, the management information technology brings the market new experience of higher number of new products, new services, and improved products (Trivellas, and Santouridis 174). For instance, management information technology has led to emergence of iTunes, android phones, and iPad.

Lastly, management information systems enhance the business internal communication. They increase flexibility when disseminating information (Trivellas, and Santouridis 173). The remote accesses enable emailing, making internet telephone calls, and video conferencing to bring together the company workers working in different places and on different projects. Besides, emailing stakeholders and internet postings win the trust of other business stakeholders such as funders, volunteers, and partners.

Industrial Achievement

Implementations of management information systems help organisations achieve their desired goals such as serving customers faster and efficiently (Power 19). Serving customers well makes them come back for services and the customers may bring their friends along, which increases the organisations profits. For instance, the hotels using computers to track the preference and taste of their customers presents food and drinks menu containing the customers preferences and tastes available for serving as per customers’ amount.

Moreover, management information systems increase the intimacy between the firm and suppliers. This ensures suppliers remain working for the company; providing cheap vital inputs (Trivellas, and Santouridis 172). A good example of management information systems that maintains intimacy between firm and suppliers is the J. C. Pennys Information System which communicates the record of sales to the manufacturer to contractors for quicker replenishment.

Furthermore, management information systems improve the decision making process. The management information systems analyses large volumes of data quickly and accurately (Trivellas, and Santouridis 170). Hence, managers employ inferences from data, instead of making guesses. This leads to optimum production of goods and services, ideal allocation of resources and timely responses by the organisation to needs. It also lowers the production cost and attracts more customers. For instance, the Verizons Web-based digital dashboard presents managers with timely data derived from the grievances of customers, performance of networks and line outages.

Finally, management information systems provide a higher competitive advantage to the firm. The firm is able to perform better, charge less for quality products, and respond to customers needs instantly (Gurbaxani and Whang 67).

Organisational Strategy

The management information systems change the strategy of the business (Power 12).

First, they enable changes of operations at the industry level such as banks introducing ATMs and organisation meet the requirements of the law when keeping records such as Toxic Substances Control Act, Sarbanes Oxley Act (Gurbaxani and Whang 69).

Second, the management information systems increase the market reach of the firm from being local to international. Thus, management information systems lower the costs of doing business globally. Organisation uses computer and internet effectively to collect, manage and publish data. This data supports the process of a company acquiring advice. Through management information systems, organisation may seek advice from far countries through internet calls and messaging at any time of the day for the whole week (Sahara 5).

Third, the management information systems provide superb platforms for marketing. Websites supports communal interaction without a lot of organizational follow up. This presents an interactive forum with the customers who post their views, feeling, and grievances through web-based interactive forums (Gurbaxani and Whang 59).

Fourth, the wide applications of management information systems improve business relationships. Management information systems ensure undertakings of important business processes are done through computerised services such as digital networks (Sahara 1). This improvement in management information systems increases the usage of desktop patterns such as designing and printing leaflets, annual reports, and postcards to communicate with the environment outside the company. This also enables the organisation to project PowerPoint presentations through LCD screens and projectors. These support the implementation of the companys strategy when bringing them to the knowledge of the community (Sahara 5).

Lastly, management information systems facilitate coming up with flexible objectives to fit what managers decide (Trivellas, and Santouridis 170). Management information systems provide flexibility in time and space shifting. As a result, there is occurrence of interdependence between management information and the capability of accomplishing the business strategies and objectives.


Gurbaxani, Vijay and Whang, Seungjin. “The impact of the information system on organisation and market.” Communication of ACM 34.1 (1991): 59-74. Print.

Power, Daniel. “The Impact of Information Management on the Organisation: Two Scenarios.” MIS Quarterly 7.3 (1983): 13-20. Print.

Sahara, Taichiro. “Insight and emerging challenges on Japans information and communication technology sector.” The International DSI Meeting and the 16 APDSI Joint Meeting, Taipei, Taiwan. 2011: 1-7. Print.

Trivellas, Panagiotis and Santouridis, Ilias. “The Impact of the Management Information Systems Effectiveness on Task Productivity the Case of the Greek Banking Sector.” International Journal of Computer Theory and Engineering 5.1 (2013): 170-174. Prints.

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