Information within a company can be likened to blood flow in the human body. Information is essential to support the continuity of growth of the company, so there is a reason that the information is necessary for a company. The main problem is that an enterprise's information systems are often too much information that is not useful or meaningful (too much data in the system). Understanding the basic concepts of information is very important in designing an effective information system (effective business system). Setting up the steps or method in providing quality information is the goal in designing the new system.
What is management information system? Management information system is an integrated set of part or entities that interact to accomplish a particulars function, objective or goal. Therefore it is a computer based method that provides information for decisions making on planning, controlling and organizing the operation of the sub-system of the firm and provides a synergistic organization in the process.
Management information system is described as a pyramid building in which the coating consists essentially of information, transaction description, annotation status, and so on. The next layer consists of the sources of information in support of day-to-day management operations. The third layer consists of resource information system to assist planning and tactical decision making for management control. Top layer consists of information resources to support planning and policy formulation by management level.
The part of an information system includes: a hardware which is used for input / output method and storage of information, program used to process information and also to instruct the hand ware part, databases which is the location in the system where all the organization information will be automated and procedures which is a set of documents that describe the structure of that management information system.
There are giant amount of information available for manager and this had therefore meant that managers are increasingly relying on management information technique to access the exploding information. Management information services helps manager to access correct, relevant, and up-to-date information which is the more definite way of making correct decisions. It also helps in automation and incorporation of research and management science techniques in to the general management information technique for example probability theory.
Based on this relevancy, management information method ought to be installed and upgraded in various organizations since today's managers need them to access information for management functions and managerial decision making.