Importance of decision making in management

Definition of Management Information Systems: A management information system (MIS) is an organized process which provides past, present, and projected information on internal operations as well as external intelligence to support decision making.

Due to the increased, many organizations and businesses are using Management Information Systems to manage themselves efficiently and effectively.

Information is the knowledge gained from processing facts and figures. If a has a well managed information system, it can in a very competitive market, for example; small businesses can be in position to gather data about the demographics of a targeted market or needs and wants of people in those markets, this gathered information can be processed and used to create .

However, as competition increases in the business world, small business owners must look for opportunities to provide high quality products and services basing on consumers needs and wants, but all this can be possible if they use technology and information. This all process makes information a frontier for businesses seeking to gain and maintain an edge over their competitors.

Many organizations and small businesses use technology to collect, process and manage information. Information systems can be tailored to facilitate various business functions and activities. A well managed information system can provide reports on each and every function in a business, for example; it can provide reports on human resource management, manufacturing, finance and accounting, consumer behaviors and so much more…

Businesses use different types of information systems, and these include;

  • Management Information System (MIS)
  • Marketing Information System (MIS)
  • Office Automation System (OAS)
  • Decision Support System (DSS)
  • Executive Information System (EIS)
  • Enterprise Resource Planning (ERP)
  • Knowledge Management System (KMS)

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Capital Budgeting is a process that is closely concerned with determining the nature of investment a company makes in capital equipments and other facilities. These capital decision generally involve substantial amount of investments, cannot be reversed easily, take long time to implement, and continue to impact the ability and performance of the company over long period. All these features of capital decision make the capital budgeting one of the most important decision that managers of any company are required to make.