Features/Characteristics of MIS

Many companies use some form of an information management system, or IMS. Some smaller companies do this through a database found in most office software products. Others purchase external IMS and integrate these systems with currently used software. The type of information management system a company chooses depends on how much value the system can bring to the company. Database Management The chief feature of an information management system is its ability to store data and make that data easy to retrieve by the systems users. The type of database used determines how the information management system responds to requests or queries for information. Systems that use a relational database store the data in separate tables instead of one large table. Once the data gets stored, database administrators connect relevant tables of data to each other through the use of keys. These keys identify the relationship between data in one table and data in another table. Relational databases provide a quicker response to queries and store more information than hierarchical databases. Hierarchical databases always access data starting at the top of the database and moves down. It does not look at the relationship between different pieces of information. Reporting The next most important feature of an information management system comes in the form of reports. An information management system is only as good as the reports it generates. The ability to produce information that helps in the decision-making process is a key attribute for this kind of system. Most IMS provide multiple report templates while others offer the ability to create specific reports and save these reports as a template for others to use. Open Access An information management system that allows open access to its system architecture lets a company comply more easily with external regulations and internal requirements. Open access means the company can more easily integrate the IMS with existing systems. This ability reduces the need for outside service people to perform internal service changes. Open access also reduces maintenance expenses because internal resources can manage the maintenance of the system. Integration Information management systems typically integrate with a companys existing systems. How well these varied systems integrate often creates many challenges for internal and external resources. A good IMS provides ease of integration with legacy systems, thus allowing a company to maintain the equipment investments it has already made. Scalability Because not all companies require the full offering of some information management systems, scalability becomes a key purchase consideration. Smaller businesses might require a scaleddown version of an IMS now, but within a few years require additional features and larger database management capabilities. Purchasing a scalable system gives a company room to grow without losing its initial investment

Functions OF MIS

A Management Information System (MIS) makes relevant information available in a timely fashion. This is a necessary resource in organizations to support management, operations and decision functions. The information is in the form of data that has been processed and made meaningful for the user. The parts of the system must work together in order achieve a common purpose. The MIS may serve as basic a function as data collection or advance to initiating decision-making itself. Meaningful Information Data are unprocessed bits of information. They are less meaningful to decision-makers until they are processed and organized. By placing data in useful contexts, the raw material can be communicated to or accessed by members of management. The information allows management to appraise, reduce uncertainty and explore alternatives. Poor or irrelevant choices can be eliminated. By converting data, such as records of events, objects, and figures from generalized collections into specific contexts, management can be stimulated to take action. Value of Information The product of an MIS is information. The value of information can be measured its by its impact upon decision-making. The normative value of information refers to the initial knowledge that the decisionmaker has of the occurrence of some event resulting in management decisions and anticipated payoff. Collecting additional information may change decisions related to the initial event or later events. Altering the initial decision and the anticipated payoff is the revealed value of the information. Timeliness and Accuracy of Information The gap in time between the occurrence of an event and presentation of information related to the event to decision-makers is known as currency of information. A real-time information system delivers such information in a very short amount of time. By comparing the data collected with the actual event, the accuracy of the information can be ascertained. The need for accuracy will vary according to the use to which the information will be put. Accounting functions need great accuracy. Estimating the time staff spent upon a given project could require less precision. Types of Management Information Systems Management Information Systems may be divided into four categories. The Databank Information System stores collected data for use by decision-makers. The Predictive Information System collects and organizes data so as to allow predictions and inferences. The Decision-Making Information System incorporates the organization's value system in the process of choices by staff. The Decision-Taking Information System combines the functions of the information system and decision-maker. An example would be the automatic pilot on an airplane.

Potential Risks of Using MIS The MIS is a useful tool to assess risks within an organization. However incomplete, inaccurate or ineffective information obtained by the MIS can increase risks to fiduciary and other compliance functions.