Negative and Positive Impact of Mis Essay

2125 Words Mar 15th, 2011 9 Pages
Executive Summary

A management information system (MIS) is a system or process that provides information needed to manage organizations effectively Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information
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Positive Impact
Economic impacts 1) Reduce cost of capital: IT changes the relative cost of capital.Information systems technology can be viewed as a factor of production that can be substitiuted for traditional capital and labor.As the cost of information technology decreases, it is substitudted for labor, which historically has been a rising cost. 2) Reduce Cost of inforamtion:Hence information technology should result in a decline in the number of middle managers ans clericl workers as information technology substitutes for their labor and reduce the labour caost 3) Lower market transaction cost: Inforamation technology helps firms contract in size because it can reduce transaction cost- the costs incured when a firm buys on he marketsplace what it cannot make itself. 4) Lower agency cost : Information technology also

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