Benefits of Management Information System for Business Development

Benefits of Management Information System for Business Development

Current business era is an era where information flow is very vital role than the flow of goods. As great as any of a businessman and monopolize the flow of goods, it does not mean anything if he does not have accurate, current, easily accessible and controllable in the mastering its distribution.Therefore it is one of the company assets of modern business is highly valuable information system that has a high response rate and focus on its users from all aspects.

Exactly how much importance and benefit of management information system for a business? Information systems are built well and correctly, among others, can increase productivity, reduce the stock of material production, eliminating activities that do not have the benefit (value added), improve service and customer satisfaction, coordinating every part in the enterprise and improve the quality of management policies.

While in general the benefits of management information systems can be categorized as tangible benefits and intangible benefits.

Tangible benefits

An information system is built and maintained properly will provide tangible benefits could be seen that in fact achieved its movement through the income and expenses incurred by the company.

Indicators of success / benefits that have an impact on revenue enhancement is the increased sales in existing markets and expansion into new markets.

A good information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management.

So with the support of good information system can be obtained then the information is accurate, reliable, current and easily accessible on the condition of the company's sales.

With the report presented by the rapid and can be accessed at any time that the decisions taken can be faster and precise on the existing market dynamics.

In terms of cost reduction can be done on reducing the amount of factual analysis of the human resources involved in the business, reducing operational costs such as supplies and overhead, the reduction of goods / material in warehouse stock, reduction of maintenance costs and providing equipment that is not too expensive

Examples of reduction of the number of human resources is in the process of recording financial transactions. If previously in the accounting process should be managed by five person with the implementation of the good accounting information system is done by one person enough.

This is due to the Accounting Information System which is integrated so any bookkeeping process can be processed directly from each of the relevant sections without having to go through the process of refilling the data.

Stacking material supply problems during the production is often burden of the company assets, with the implementation of supply chain management module in information systems developed greatly help solve the problem.

With the support of supply chain management then the Stacking stocks of material production can be reduced to a minimum. Where the company simply ordered to suppliers only when the inventory reaches the minimum limit.

 

Intangible Benefits

Often the intangible benefits of sistem information management is the critical point in the course of business of a company's wheel. Because it is intangible, the following aspects are often overlooked or not detected.
1. Increased customer satisfaction
Good management information system will speed up the process so that, the time required to serve a customer can be faster.

2. Improved quantity and quality of information
Information is an important component of business today. Who controls the information would act more responsive to changes and trends in the future.

Application of good information system will certainly generate reports compilation of data that is managed by qualified and comprehensive database. This can be achieved for each of the reporting process is executed automatically by computer machines.

3. Improved quality and quantity management decisions
It is inevitable that any decision-making relies heavily on information that supports the policy to be taken. It can only be realized if information systems can provide information that is relevant, accurate, current and can be retrieved at any time

4. Improved quality and responsiveness number of the competitors' condition
Aspects of business intelligence is very important since a long time with a variety of formats and needs. To reach the point of rapid and appropriate response on the dynamics of the competition will require information systems that can collect, analyze and compile the information needed by decision makers in the company.

5. Improved operational efficiency and flexibility
All business owners would want these. The more efficient and flexibly an operational then this indicates the low cost to run it. This can be achieved due to cut the bureaucracy in the company after the implementation of good information systems.

6. Improved quality of internal and external communications
A good information system must be supported by electronic data communication network systems that are reliable as well. With the application of good information systems, each party both inside and outside the company can exchange information more effectively and efficiently.

7. Improved quality of planning
Planning is an essential process for businesses. However, any plan that will be made then of course needed the support of adequate information into practice. If not then the plan may be disoriented and did not reach its target because of mistake information into its base.

8. Improved quality control and supervision.
With the information system is built and maintained properly then any activity within the business environment can be constantly monitored. Monitoring is certainly an impact on improving control over every procedure and activities occurring within the company.

conclusion
management information system is essential for business development. There are many benefits that can be obtained from the business owner application of information systems. To be able to keep compete with competitors will require a good and reliable management information systems. Information system importance in business.