Understanding Business Driven MIS and its Difference from Information Technology(Business Intelligence)

The Information Technology(IT) is the collection of hardware and software including the network and internet interactions. These systems help in the creation of the information.  The right choice of IT helps to achieve success and innovation in the business. Whereas, Management Information System(MIS) is the set of data, computing devices, and decision-making models that support the various hierarchy of organization to make operational, business and strategic decisions. It is the study of people, technology, organization. These two disciplines are complementary. The state of information technology used by the institution helps it to make the MIS, indeed I believe these are positively correlated.

Jack Ma, CEO, and founder of Alibaba.com is the fourth richest person in China, once told that “Data is the human nature”; the paramount to make a rational judgment. For the purpose, his company has already invested $15 billion in Research and Development (R &D). The investment made by companies like Amazon, Alibaba.com. Google, Microsoft are creating a breakthrough in latest IT through Artificial Intelligence(AI) along with human computing, Virtual Reality, Augmented Reality which is the very basis for heightening the level of MIS.

MIS helps in the collection, storage, analysis and retrieval of information to the end user so that they can make informed and rational decisions (Baltzan, 2014). It includes software, data in the form of the database, hardware system, decision support system et cetera. Amazon Customer Relationship Management(CRM) software could be a classic example of effective use of MIS giving it a value driven business model. Through the effective use of software and hardware technologies, the MIS generate Transaction processing report(TPS), Decision support report(DSS) and Executive information system(EIS)

The MIS fundamentally holds and concentrates in the system theory, throughout the organizations, and across the departments. There is a sharp demarcation of Input-Process-Output, these generated results facilitate decision making and problem solving. The amalgamation of information technology into the business helps to drive the performance of the business through the creation of required information for decision makings (Markgraf, 2018). E-commerce and E-business helps in restructuring and re-engineering of the business process leading to streamline overall process, it not only reduces the operational expenses of the organization but also provide competitive and comparative advantages.

Bibliography

Baltzan, P. (2014). Business Driven Information System, 4th Edition. McGrawHill.

Markgraf, B. (2018, March 9). The Role of Management Information Systems in Decision-Making. Retrieved from www.smallbusiness.chron.com: http://smallbusiness.chron.com/role-management-information-systems-decisionmaking-63454.html