Benefits Of Management Information Systems

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Today, management information systems (MIS) have become so prominent in our day to day lives, and often we can forget about how efficient our lives and careers have become because of them.

One of the reasons for the large amounts of information systems operating around us, and the great emphasis we place on them daily, is because of Moore’s Law. Moore’s Law states that ‘the number of transistors per square inch on an integrated chip doubles every eighteen months’, which has been roughly translated to ‘the speed of a computer doubles every eighteen months’. Graphs showing the price of transistors versus year confirm the accuracy of this law.

Because of technological advances, computer processors today are cheaper and faster than they ever
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A business needs to ask questions, and figure out the purpose of their information system, the benefits, whether one information system is better than another, and whether the benefits of an information system outweigh the cost. They would also have to look at the disruption a new information system would bring to the business, such as employee training, the cost of new hardware, or the data required in a database.

Another part of the business’ investigation would also involve looking at two different types of information systems: high-tech and low-tech. The difference between these two types of information system depends on how much work the information system completes in relation to the human user.

With reference back to the five components of information systems, the more high-tech a system is, the more automated it is. This means that the people are using procedures, therefore moving the work onto the computer side (hardware and software) to be completed. Data is considered to be the bridge between the computer side (hardware and software) and the human side (people and procedures). Low-tech systems require more effort as they are less automated, and low-tech systems are often more simplistic – such as a spreadsheet containing customer
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The components are in order (hardware, software, data, procedures, people) of increasing difficulty of change. If the information system’s hardware was changed, very little disruption would be caused as it would only require simple installation, whereas if procedures changed, it would be quite disruptive and difficult for individuals to adapt, as it requires them to change habits and work in different ways.

Information is defined as being knowledge derived from data, being presented in a meaningful context. Data and information shouldn’t be mistaken for being the same thing. It is important to remember that information can carry significance for one person, but may not carry any significance for another. Context changes may also occur when significant information from one system is placed into another, and loses its importance within that

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