Significance of Management Information Systems - Assignment Example

The five major components of MIS are; computer hardware, computer software, business data or information, procedures like documentation or design, and users like employees, managers, financiers, regulators, or customers (Joshi, 2013). MIS is applied in enterprise management in several ways; for instance, Supply Chain Management (SCM), Knowledge Management System (KMS), and Customer Relationship Management (CRM) (Laudon, 2009). SCM ensures effective and efficient integration of the several supply chains; for example, suppliers, wholesalers, retailers, manufacturers, and customers.

CRM enables businesses to practice proper relationships with stakeholders in sales, marketing, and service; for instance proper communication with current or potential clients. KMS ensures effective and efficient collection, organizing and dissemination of business information; for instance, end year financial statements. The MIS has several importances. Firstly, the technology ensures businesses achieve competitive advantage. This enables the organization to perform operations better, cheaper, uniquely and faster; in comparison to competitors.

Secondly, MIS enables companies to analyze their strengths, weaknesses, opportunities, and threats (SWOT). This is because of adequate financial reports, and also employee performance trends (O’Brien, 2009). This analysis ensures that the organization improves the processes or operations of the business.