Management Information System Career Scope

Management Information SystemManagement Information System (MIS) is a computer system consisting of hardware and software that serve as the backbone of these operations. The major function of MIS is to gather information from multiple systems, soon after gathering the information, then it analyses the information and reports the data which eventually assist in decision making. 

MIS can be simplified as a collection of systems, hardware, procedures and people. All these segments work together to store, process and produce information that is useful to the organisation. 

Why do need MIS?

Following are reasons behind why Management Information System knowledge is essential for the career:

  1. Credible information is demanded to make rightful decisions and Management Information System assist to make this happen. 
  2. Facilitate internal and external communication in and outside of the organisation, employees within the organisation is able to access the required information for the day to day operations. MIS also creates short messages and email services offered to communicate to the customers and suppliers from within. 
  3. Recordkeeping, MIS also aid in keeping records of all the business transactions of an organisation so that they can use it as a reference for the transactions. 

Components of Management Information System

For typical management information systems following are the major components:

  • People – people who use the information system
  • Data – the data that the information system records
  • Business Procedures – procedures put in place on how to record, store and analyze data
  • Hardware – these include servers, workstations, networking equipment, printers, etc.
  • Software – these are programs used to handle the data. These include programs such as spreadsheet programs, database software, etc.

Types of Management Information Systems

Transaction Processing Systems (TPS)

This sort of information system is used to allocate the data regarding day to day transactions of a business. 

Management Information Systems (MIS)

Semi-structured decisions are taken by tactic managers, they use this system of information.

Decision Support System

This support system is majorly used by the top-level decision-maker to make semi-structured decisions. The output of MIS is used as input information to aid the decision.  DSS would also get input from external sources. 

Manual information System VS Computerized Information Systems (MIS).

Data is very essential for any sort of business establishment. Since decisions are information-driven, without proper and credible information, nothing can be acted upon. The information system is more of a proper organised way of recording, storing data and retrieving information from the available data. This section would help the user to differentiate between computerized vs manual information system. 

Manual information system

This information system does not include any computerized devices. Anyhow they follow up the same procedure by the company and the role of data remains the same. Therefore, storing, retrieving of data is done manually by the people. These people are responsible for this information system.

Following are the major components of the manual information system:

  • People –people are the recipients of the information system
  • Business Procedures –these are measures put in place that define the rules for processing data, storing it, analysing it and producing information
  • Data –these are the recorded day to day transactions
  • Filing system – this is an organized way of storing information
  • Reports –the reports are generated after manually analysing the data from the filing system and compiling it.

Advantages of Manual Information System:

  1. Cost-effective: Since it doesn’t require any sort of computerized system, therefore, it is cheaper than anything. There is no need for purchasing such expensive equipment.
  2. Flexible: For immediate implementation business requirements can easily be implemented into the business procedures. 

Disadvantages of Manual Information System:

  • Time consuming – all data entries need to be verified before filing, this is a time-consuming task when done by humans. Retrieving data from the filing system also takes a considerable amount of time
  • Prone to error – the accuracy of the data when verified and validated by human beings is more prone to errors compared to verification and validation done by computerized systems.
  • Lack of security – the security of manual systems is implemented by restricting access to the file room. Experience shows unauthorized people can easily gain access to the filing room
  • Duplication of data –most departments in an organization need to have access to the same data. In a manual system, it is common to duplicate this data to make it easy to access to all authorized users. The challenge comes in when the same data needs to be updated
  • Data inconsistency – due to the duplication of data, it is very common to update data in one file and not update the other files. This leads to data inconsistency
  • Lack of backups – if the file gets lost or mishandled, the chances of recovering the data are almost zero.

Computerized Information system

Since there were many challenges with manual information system and this was created to address all of them. Major difference between is unlike manual software system, it uses a combination of software and hardware to allocate, store, analyse and withdraw information based on requirements. 


Following are the advantages of Computerised Information system. 

  • Fast data processing and information retrieval – this is one of the biggest advantages of a computerized information system. It processes data and retrieves information at a faster rate. This leads to improved client/customer service
  • Improved data accuracy – easy to implement data validation and verification checks in a computerized system compared to a manual system.
  • Improved security – in addition to restricting access to the database server, the computerized information system can implement other security controls such as user’s authentication, biometric authentication systems, access rights control, etc.
  • Reduced data duplication – database systems are designed in such a way that minimized duplication of data. This means updating data in one department automatically makes it available to the other departments
  • Improved backup systems – with modern-day technology, backups can be stored in the cloud which makes it easy to recover the data if something happened to the hardware and software used to store the data
  • Easy access to information – most business executives need to travel and still be able to make a decision based on the information. The web and Mobile technologies make accessing data from anywhere possible.


Here are some of the disadvantages of CIS.

  • It is expensive to set up and configure – the organization has to buy hardware and the required software to run the information system. In addition to that, business procedures will need to be revised, and the staff will need to be trained on how to use the computerized information system.
  • Heavy reliance on technology – if something happens to the hardware or software that makes it stop functioning, then the information cannot be accessed until the required hardware or software has been replaced.
  • Risk of fraud – if proper controls and checks are not in place, an intruder can post unauthorized transactions such as an invoice for goods that were never delivered, etc.

The Information system has numerous examples and how it can help the user to excel in his field. Once the user is working with a big organisation where he/she would want to leave a skid mark then exploring the major areas are really important. MIS is essential for modern users and employees since it offers the following features that may help them in their career. 

  • Converts data into useful information
  • Supports in decision making
  • Allows effective strategy formulation
  • Helps to optimise resource consumption

Personal growth offered by MIS

Data management and retrieval are on the rise. Own businesses or working for any sort of organisation would expect to allocate the data, present, perform, record, analyse and store again for further references. There are many reasons why this field is worth learning because it can help the users directly in the following ways.

  • Increase Placement Rate
  • High salaries
  • Job satisfaction
  • Fun
  • Challenge