What is the Significance of MIS to a retailer?

Answer 1

Management information systems are part of an organization's internal control system. Control systems monitor how actual performance compares with targets, and analyze the factors that caused any deviations. With modern MIS such as ERP systems control can be exercised even over huge enterprises with globally widespread operations. Decision support systems generally work as follows: * Collect internal and external business data, such as transactions data and industry data * Analyze the data to generate information such as underlying patterns and revealed meanings * Respond to the information by taking remedial actions or exploiting opportunities A simple example is a project management information system. The system stores the project targets for physical milestones and financial expenditures. It then accepts the day-to-day data about actual work progress and expenditures, under the same categories as used for setting targets. Periodical reports highlight any deviations from targets, e.g. slow progress or excess expenditures. A more refined example is a cost variance analysis system. Standards are established for material consumption, machine and labor hours and other cost elements, per unit, for each product. Actual performance is then accumulated carefully. The system then generates reports showing variances, i.e. differences between actual material, machine or labor usage and predetermined standards. MIS becomes meaningful when managers respond appropriately to the reported information. For example, if excess material consumption is occurring, they can investigate the causes. The investigation might reveal that wastage beyond allowed levels is occurring. Further investigation can pinpoint the specific reasons for the excessive wastage, thus helping managers to focus on a specific problem

http://businessmanagement.suite101.com/article.cfm/management_information_systems_significance#ixzz0HnwjZDZk&D

Management information systems are part of an organization's internal control system. Control systems monitor how actual performance compares with targets, and analyze the factors that caused any deviations. With modern MIS such as ERP systemscontrol can be exercised even over huge enterprises with globally widespread operations. Decision support systems generally work as follows: * Collect internal and external business data, such as transactions data and industry data * Analyze the data to generate information such as underlying patterns and revealed meanings * Respond to the information by taking remedial actions or exploiting opportunities A simple example is a project management information system. The system stores the project targets for physical milestones and financial expenditures. It then accepts the day-to-day data about actual work progress and expenditures, under the same categories as used for setting targets. Periodical reports highlight any deviations from targets, e.g. slow progress or excess expenditures. A more refined example is a cost variance analysis system. Standards are established for material consumption, machine and labor hours and other cost elements, per unit, for each product. Actual performance is then accumulated carefully. The system then generates reports showing variances, i.e. differences between actual material, machine or labor usage and predetermined standards. MIS becomes meaningful when managers respond appropriately to the reported information. For example, if excess material consumption is occurring, they can investigate the causes. The investigation might reveal that wastage beyond allowed levels is occurring. Further investigation can pinpoint the specific reasons for the excessive wastage, thus helping managers to focus on a specific problem

http://businessmanagement.suite101.com/article.cfm/management_information_systems_significance#ixzz0HnwjZDZk&D