Management Information Systems And Their Functions


An information system refers to an ordered set of mechanisms that have the purpose of managing data and information so that they can be retrieved and processed efficiently and quickly. This is a series of data linked together to achieve a common goal on a user’s request. With numerous available solutions in the IT market, firms’ leaders must comprehend their possible applications in-depth.

Information Systems

In order to understand the benefits and applications of this technology, it is crucial to comprehend its fundamental functions. Information systems are a set of coordinated components working together to collect, process, and store information to support decision-making, coordination, control, analysis, and visualization an organization’s (Laudon & Laudon, 2012). Assessing IT-based solutions and their usage in modern industries allows businesses to gain a competitive advantage.

Important Emerging Technologies

5G: This is the modern type of wireless network technology designed to expand the reach of mobile technology beyond the capabilities of LTE. This type of connection will benefit innovation in all industries and transform all aspects of people’s daily activities (Duggal, 2022). Businesses that rely on data transmission are especially interested in the development of new, safe network standards.

Artificial Intelligence (AI): This information technology is one of the new trends with its noticeable effects on the way humans live and work are only starting to appear in people’s lives. AI is well-known for its excellence in image and voice recognition, navigation apps, personal assistants, ride-sharing apps, and many other usages (Duggal, 2022). Even at its conception, this innovation grants a major advantage to firms that utilize it.

Internet of Things (IoT): Another technological advance is all the things that are being built with Wi-Fi technology. Today people can already see this solution in appliances, cars, and much more, which are connected to exchange data over the internet (Duggal, 2022). IoT can incorporate network functions into any aspect of business operations.

Smarter Devices: These new-generation IT solutions began to appear in people’s lives with astounding speed. Moreover, specialists continue to explore new possibilities for integrating AIs into other fields of development, such as robotics, engineering, Internet-of-Things, and numerous daily technological appliances (Duggal, 2022). Nearly every work can benefit from smart software applications that make humans’ lives more comfortable.

Cyber security: It may not seem like emerging technology, given that it has been around for a while, but it is evolving like other technologies. Since the threats are constantly new, there will always be hackers trying to access data illegally. These criminals will not give up and will continue to find ways to bypass even the most stringent security measures. Cybersecurity will continue to be a fashionable technology because it has constantly evolved to defend against hackers (Duggal, 2022). This field of IT science has a need to continuously adapt to new threats, as the development of new types of attacks puts modern companies at risk.

The Major Function of Information Systems

The purpose of information systems is to execute various functions, such as gathering, storing, and processing data and then producing output information. This two-sided connection is required to create a feedback loop with a system’s user. The input in an information system has two types: Output is produced with detailed data, which is stored and processed. The specification of what kind of analysis is done must be specified by the user. The storage of Data should be done at the most detailed level possible. Regular backups and various summaries should be completed to avoid losing any critical data due to errors.

A process is a function that transforms data into information. A simple process would be adding up a few items that are sold by a business by a variable. More complex processes are the functions that perform calculations and can make assumptions about missing data to create information from the data available (“Features and functions of information systems,” 2015). A feedback/control loop is what happens to output when it is processed and produced. The system continuously repeats the same processes depending on the outcome of the last loop, which can then impact the input of the following data into the cycle (“Features and functions of information systems,” 2015). Such interactions will only continue to evolve, making drastic changes to people’s daily activities.

Data, Information, and Knowledge

The data is the basic facts; it can be quantitative or qualitative since the information is data with context; Knowledge is meaningful processed information that has been aggregated and analyzed and can be used for decision making. The information is nothing more than the refined form of the data, which is helpful in its in-depth investigation. Moreover, knowledge is the applicable information that helps people draw evidence-based decisions. The data collected in a meaningful context provides information. On the contrary, when information is combined with experience and intuition, it results in knowledge (Surbhi, 2018). This classification is crucial for IT specialists and managers alike.

Management information systems give their users access to crucial data about any process within a firm and about the company itself. Managers can utilize this aggregated knowledge to make necessary actions stemming from the presented evidence. If the manager needs reference information for a bid or for regulatory purposes, management information systems are a good source (Markgraf, 2019). It is crucial to utilize valid data in a decision-making process, especially in business operations. Management information systems improve this aspect of analytics objectives because they provide accurate, timely, relevant, and complete information. It is also possible to reduce mistakes in a system by adding elements that conduct self-analysis and self-regulation (Markgraf, 2019). By ensuring the validity of data, businesses can generate strategies from the most reliable sources.

Tools like laptops, databases, networks, and smartphones are examples of information systems. Businesses and organizations use information systems to communicate and work with their customers and suppliers, manage the organization, and perform essential business operations. There are several types of information systems involved in business operations. The most widespread information system is the transaction processing framework (Simplilearn, 2022). Less common goals of this technological solution rely on aggregating information for future analysis. This category includes office automation systems and knowledge work systems (Simplilearn, 2022). On a global scale, companies utilize analysis tools of complexity exceeding previous levels. A firm’s administrators can benefit from management information systems and decision support systems, while directors can base their strategic judgments on executive support systems (Simplilearn, 2022). Therefore, every aspect of an organization can be improved with IT solutions.


In conclusion, by exploiting the capacity of an information system to its fullest, a company can obtain a significant boost in its performance. Such frameworks enable firms to process massive quantities of data and make vital managerial decisions based on their output. To increase the information system’s effectiveness is necessary to improve the accuracy of data, exploit new sources of information, or use the generated results in innovative ways.


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Features and functions of information systems. (2015). AnswerKid. Web.

Laudon, K. C., & Laudon, J. P. (2012). Management information systems: Managing the digital firm (12th ed.). Prentice Hall.

Markgraf, B. (2019). How is a management information system useful in companies? Chron. Web.

Simplilearn. (2022). The 6 types of information systems and their applications. Web.

Surbhi, S. (2018). Difference between information and knowledge. Key Differences. Web.