The management information systems are highly valuable tools that support business processes, using technology as a true ally to centralize and process large volumes of data, and transform it into valuable information for managerial decision-making.
These systems by optimizing daily operations, facilitate planning and control, contributing significantly to more effective management; Furthermore, by providing a comprehensive vision of the company, they allow a quick and appropriate response to the constant changes in the current market.
Therefore, these systems are a indispensable tool for modern organizations.
In this article you will find:
What are management information systems?
The management information systems (SIG) represent a set of procedures and technologies designed to collect, process and distribute data essential for the operation and management of a company, incorporating the use of specialized hardware and software to facilitate strategic decision making through rigorous analysis of information.
For Laudon, Kenneth and Laudon, Jane (2012) “Information systems are one of the foundations for doing business today. In many industries, survival and the ability to achieve strategic business objectives are difficult without extensive use of information technology. Today, companies use information systems to achieve six main objectives: operational excellence; new products, services and business models; intimacy with the client/supplier; improved decision making; competitive advantage, and daily survival.” (p. 33)
Therefore, it is essential that contemporary companies adopt robust and flexible GIS that is capable of adapting to constant changes in the environment. market, guaranteeing not only operational efficiency but also a sustainable competitive advantage in an increasingly digitalized environment and globalized.
8 Types of Management Information Systems
Currently there are different types of GIS, each one designed for different areas of specialization and management.
However, it is important to remember that each GIS, individually, does not provide all the information that the organization needs, that is why different systems are integrated or implemented, whichever ones are:
Transaction Processing System (TPS)
The transaction processing systems (TPS) are fundamental types of operational information systems, responsible for record, monitor and manage routine transactions carried out in a company. These transactions may include selling products, issuing receipts, managing inventory, employee payroll, and more.
A crucial aspect of TPS is its ability to perform many similar operations quickly and accurately, allowing businesses to handle large volumes of transactions efficiently, minimizing errors that can occur with manual processing.
Kenneth and Jane Laudon (2012) agree that “The primary purpose of systems at this level is to answer routine questions and track the flow of transactions throughout the organization.” (p. 46).
Management Information System for Decision Support (MIS)
The management information systems for decision supports (MIS) are integrated sets of tools and processes designed to collect and analyze data and provide reports and insights to facilitate decision making in an organization.
For Kenneth and Jane Laudon (2012) “MIS serve managers who are primarily interested in weekly, monthly and annual results… Most MIS use simple routines, such as summaries and comparisons, as opposed to sophisticated mathematical models or statistical techniques.” (p. 48)
Decision Support Systems (DSS)
The Decision Support Systems (DSS) are technological tools designed to assist in the decision-making process within an organization; These systems facilitate the analysis of business information, providing the necessary support to make informed and strategic decisions.
These systems provide a wide range of analytical tools, such as trend analysis, modeling and simulations. The primary goal of a DSS is to facilitate a more rational, data-driven decision-making process., helping business leaders navigate through complex situations and solve problems that require careful, thoughtful analysis.
For Kenneth and Jane Laudon (2012), they argue that in contrast to the Mis system, the DSS “provide support for non-routine decision making. They focus on problems that are unique and rapidly changing, for which the process for arriving at a solution may not be completely predefined in advance.” (P. 48)
Executive Support Systems (ESS)
Executive Support Systems (ESS) are information management tools designed to facilitate access to consolidated and summarized information of vital importance for senior executives and decision makers in an organization.
An ESS is responsible for extracting, filtering and compiling relevant data from various sources, presenting them in a graphic and easily interpretable way, generally through interactive dashboards that facilitate the visualization of key performance indicators (KPIs) and other important metrics.
For Kenneth and Jane Laudon (2012), these ESS systems “They help upper-level management make these resolutions. They handle non-routine decisions that require judgment, evaluation and perspective, because there is no pre-agreed procedure for reaching a solution.” (P. 50).
Enterprise resource planning (ERP) systems
The enterprise resource planning systems (ERP) are integrated platforms that They help manage and optimize the internal processes of an organization, by unifying various business functions, such as financial management, supply chain, human resources, among others, in a single system.
This integrated approach promotes operational efficiency by facilitating a fluidity of homogeneous and real-time information, allowing faster decision making based on reliable data.
Kenneth and Jane Laudon (2012) argue that with ERP systems “Information that was once fragmented across many different systems is now stored in a single comprehensive data warehouse, where it can be used by many different parts of the company.” (P. 51)
Supply Chain Management Systems (SCM)
The Management Systems Supply chain (SCM) are tools that facilitate the integrated and efficient administration of all activities related to the supply chain, from planning and procurement of raw materials to production and distribution of finished products to the end customer.
These systems seek to optimize chain operations of supply to ensure a constant and efficient flow of materials, information and finances, allowing an agile response to variations in demand and improving customer service.
For Kenneth and Jane Laudon (2012) “These systems help suppliers, purchasing companies, distributors and logistics companies share information about orders, production, inventory levels, and delivery of products and services, so that they can supply, produce and deliver goods and services with efficiency. The primary objective is to bring the correct quantity of your products from the origin to the point of consumption in the shortest possible time and at the lowest cost.” (p. 53)
Customer Relationship Management Systems (CRM)
The Customer Relationship Management Systems (CRM) are strategic tools that facilitate the management and analysis of a company's interactions with its current and potential customers; through the use of technology, CRM seek to improve business relationships, helping to retain customers and promote sales growth.
These systems allow all relevant information about clients to be centralized on a single platform, including contact data, purchase history and preferences, thus allowing more personalized communication and effective.
Furthermore, CRMs facilitate the analysis of the performance of sales and marketing strategies, providing tools for monitoring and measuring objectives, which contributes to informed decision-making and the continuous improvement of business strategies.
For Kenneth and Jane Laudon (2012) “CRM systems provide information to coordinate all business processes that deal with customers in sales, marketing and service to optimize revenue, customer satisfaction and customer retention these." (p. 53)
Knowledge Management Systems (KMS)
The knowledge management systems (KMS) are platforms designed to facilitate the creation, sharing and management of knowledge within an organization; these systems They allow companies to capitalize on their institutional knowledge by centralizing valuable information and making it accessible to employees.
A KMS may include technical documents, best practices databases, directories of experts, and other resources that help promote learning and collaboration. In addition, promoting innovation by facilitating the circulation of ideas and knowledge between different areas of the organization.
For Kenneth and Jane Laudon (2012) “These systems collect all the relevant knowledge and experience in the company, to make them available wherever and whenever required to improve business processes and management decisions.” (p. 54)
As described above, the types of management information systems, are of vital importance in the administration of modern companies, which They go beyond just technological tools, rather, they represent a strategic approach to integrating and coordinating an organization's information resources, transforming data into useful and timely information.
Well, these systems help in planning, control, and decision making, providing managers with a complete view of the current state of your organization, facilitating the ability to respond to any contingency.
Furthermore, the implementations and use of these systems represent a competitive advantage, promoting innovation to provide an agile and effective response to the changing market dynamics.
LAUDON, KENNETH C. AND LAUDON, JANE P. Management information systems Twelfth edition PEARSON EDUCACIÓN, México, 2012 ISBN: 978-607-32-0949-6, pages 640.