According to Inc.com, the role of management information systems is to give managers feedback about their own performance so that they can monitor the company as a whole. MIS automatically collects information from computer-linked check-out counters and data keyed in at periodic intervals.
MIS refers to any computer-based arrangement of information that aids the management function. It encompasses the decision support systems, resource and people management applications, project management and database retrieval applications used by companies. The term was developed to describe the systems used by large enterprises, but the availability of personal computers has made it possible for small businesses to use integrated management information systems. Small businesses in the service industry usually have large computer networks with substantial databases to help managers make critical decisions. MIS is important because it collects the appropriate data from various source and helps managers identify problems.
MIS can also help a business gain a competitive advantage by providing information about processes that can be improved compared to competing companies. Managers can also use customer data and feedback to fulfill the needs of customers and develop better marketing and promotion activities. More importantly, MIS allows companies to highlight their strengths and weaknesses and evaluate employee performance.