CMI A.C. 1.3 – Evaluate the impact of a management information system (MIS) to an organisation


The impact of MIS is informed by the existence of a high-level of the interdependency of an entity business strategy to rules and procedures. This is in line with Laudon and Laudon (2015) definition that note the information system as interrelated components that work collaboratively in collecting, processing, storing and disseminating information. This is used in decision making, active coordination, control, analysis and an organisation visualisation. MIS is inclusive of input, processing/classify/arrange/calculate and action. Input is used in capturing data from the environment or internally, data conversion to meaningful forms. From this, output transmits the processed information to individuals in an entity and applied to solve problems and decision making.

Using the above background in context of ABC Company, the MIS is used in collecting and storing data in different areas of bookkeeping which is later used for decision making. Also, it is used in the provision of operational information for ensuring that all involved stakeholders in ABC Company are playing their roles effectively and assisting in organisation operations. Lastly, the ABC company extends its value chain operations linked to bookkeeping and accountancy customers to their benefits.

Finally, the main functions of MIS to ABC can be further expounded by using the Ke (2011) Marchand evaluation tool as applied below in the context of the organisation (see figure 2);

Figure 2: Importance of MIS to ABC organisation

Source: Summarised from CMI Pathway

As shown in figure 2, in adding value, ABC Company would benefit from the ability to offer quality services in bookkeeping, appreciating their client’s satisfaction and trends in accountancy field. In reducing costs, the process would be more efficient, limited resources used in services delivery and reducing paperwork in accountancy practices involved. Bookkeeping practices are characterized by immense risks including finance, accounting, auditing and corporate practices which has led to immense policies and acts being developed in this area. For instance, data management is a significant risk affecting ABC company operations.  All these would be managed using the MIS, harness innovativeness as a new reality.