The corporate environment is dynamic involving uncertainties and risks. These uncertainties and risks drive business organizations to take complicated decision to survive in the market. Since the primary goal of any organization is to improve its profitability and sustain in the long run. Hence, any business establishment cannot afford to ignore the importance of MIS.
What is MIS?
Management information system or MIS is a set of procedures that provides essential data and information to the management for making an informed decision. The Management information system involves:
- Collection of appropriate data from various reliable sources.
- Processing of such data to extract the relevant and useful information.
- Delivering this information to the respective department.
Why are MIS Reports so crucial for business decision-making?
MIS report of a company is prepared after proper analysis of current data and recent trend prevalent in the market. The primary purpose of MIS reporting system is to provide critical business information to the management for complex decision making. Since, it is essential for the administration to have reliable information related to the current market trend and relevant business data for making a quick and informed decision. Management information system report plays a crucial role in improving performance, productivity, and profitability of the organization.
Thus, MIS reporting system serves as a backbone of the company, and it helps the organization to stand firm against the competitors.
Advantages of MIS and reporting
1. Helps in managing data
MIS helps in maintaining and managing crucial business data for assisting in complex decision-making by the management. The critical information is stored in an organized manner, and it can be accessed by the administration quickly whenever required.
2. Analyses trends
Management needs to prepare forecasts for strategic planning and determine future goals. Thus, to create such a strategy, it is essential to have accurate reports on prevailing market trends. MIS uses various mathematical tools for analyzing the current market trend and predicting future trends based on such information.
3. Helps in strategic planning
MIS reports play a significant role in the strategic planning of the company. It helps in determining the future needs of the company and assists in formulating goals and strategy based on such information. Management information system report is also helpful in identifying resources required to meet the company’s objective. Thus, it is vital that the information provided by MIS and reporting is accurate and reliable.
4. Goal Setting
For any organization, setting up a goal is very crucial matter, and it requires lots of research and development. Since the information provided in MIS reports is based on current data analysis, hence it is considered suitable and material for determining the goal of an enterprise. Also, MIS reporting includes the current market trend analysis and prediction of the future trend. Thus, it is quite difficult for any company to neglect MIS and reporting.
5. Problems identification
MIS report provides information related to every aspect of activities taking place in the company. Hence, in case any problem arises in front of the management, MIS reports are quite helpful in identifying the source of the problem. Also, MIS and reporting are really useful in finding the solution to such an issue.
6. Increases efficiency
The relevant information provided by MIS and reporting is utilized in formulating goals and strategy of the company. Also, the performance of the business can be assessed with the help of MIS reports. Hence, MIS plays a vital role in increasing the efficiency of the company.
7. Comparison of Business Performance
The relevant business data and information of the company is stored and maintained in the MIS database. Since the MIS database can be accessed at any time; hence, the current performance of the firm can be compared with its previous year’s achievement to measure the organization’s growth.
How to prepare MIS reports?
MIS reports are very important for business decision-making thus it must be prepared with due care. Since an inaccurate MIS report can cause the business to suffer severely, therefore, the accuracy of the statement must be ensured. A firm can either hire staff for creating MIS reports or outsource the process.
Hiring staff for MIS and reporting is quite expensive for a company, and also, it does not ensure the accuracy of reports. It is better to outsource the process as the company will receive the services of experts at minimal costs as compared to hiring staff for MIS reporting. Also, outsourcing MIS reporting process is cost-effective and saves precious time of the management.