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Management Information System can be defined as a discipline focused on the integration of computer systems with the aims and objectives in an organization. Integrating computers in the core and support processes has enabled many organizations to augment the speed at which the work is processed. The development and management of information technology tools assists the executives and the general work force in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

Applications of MIS:

There is hardly any business today where there is no computer. Every organization tiny, small or large has computers. The dependency on computers has increased enormously in the recent times. Small, medium and large organizations have to maintain as many computers 90% to 100% of their workforce.

Information systems can be used to process and transform data into meaningful information for the purpose of decision making. As small, medium and large organizations have to periodically take decisions regarding the present performance and take appropriate action. They also need to retrospect the work that has already been done and maintain the data for future reference. The same was a painstaking task when physical record books were around. Now, Information systems with enormous amount of data handling capability can do the trick within no time.

In the past when there were hardly any computers, if organizations, say for example had to introduce a product and wanted to know how the an earlier, similar product was received by customers. For this information, the analysts would have had to search all the past books and take out the relevant data and collate them into a meaningful information. But, today the same work can be done within the matter of minutes. As management students know that past records are crucial to an organization as the data will be very much useful for predicting the future trends for the products.

In some situations information systems can simulate hypothetical situations and give out the result. This if done in real world will put an heavy cost burden on the organization.
Information processing time has been reduced 90% with the introduction of Information systems. Information systems process the present data and give out relevant information to the management in the form of reports. Of all the data, financial data which is very crucial in an organization is processed by the information systems. Without the presence of computers, there is a big scope for human error. But, with computers that risk is avoided completely, thereby giving accurate data to the management.

Different systems have evolved in the recent years which have taken the responsibility of data processing at different levels. They are Transaction Processing Systems, Management Information Systems, Decision Support Systems, Executive Information Systems and other systems like Data Warehouse Systems, Enterprise Resource Planning, Geographic Information System, etc. Each system has a unique role to play in an organization. For example, Transaction Processing System is extensively used where business interacts with customers directly like retail stores, Banks, etc. Management Information system is used to process the information from the Transaction Processing System make it relevant for decision making.

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