What are the Disadvantages of MIS?

As to making important business decisions, a MIS (Management Information System) is going to be implemented. Important strategic decisions, operational and technical aspects are being managed by the company's owners and managers. A MIS system is being organized to make each and every decision possible. In the past decades, this system of MIS was manual, but right now, with the digitization of everything, everything has been changed and it comes electronically now.

With the competitive challenges in the market businesses pass or fail and beating this competition and meeting effective planning, MIS system is being installed in the companies and it provides a lot of information to the management. To set goals and objectives in the business, MIS will allow all the staff and management level people to interpret useful data to view and analyze. With lighting speed MIS will deliver useful trends and data to business due to which if the market changes it will indicate them accordingly.

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It helps in taking all operational decisions also strategic one which act as the very important resource. MIS helps the management to understand the product cost, its quality, price and technology. Business process get smoothen and operations are also managed by with MIS and it also maintains the standards of business like six sigma, ISO, etc. Competition in the market is being handled by MIS and helps the company in analyzing their own SWOT and maintains its own profitability. Decisions on new plans, product and business line is being discussed and managed by MIS system and provide competitive edge and future direction to the company.

But using MIS, there are some disadvantages that occur while working, which are:

Expensive

For a company, installing a management information system might be expensive. Especially for large organizations, it can be represented as a significant expense. Actually these systems are online so they require permanent ongoing support and upgraded fees all the time and will affect the business cash outflows. For staying up to date with current business technology and MIS, the company should manage their budget accordingly. Expenses may also increase while integrating these MIS systems with technology.

High Maintenance

In companies to keep the management information system runs smoothly maintenance engineers are hired which creates an extra cost. With this not only the labor cost increases but time to time these maintenance engineers require additional training and computer science functions which also increase the expenditure of the company. Companies must have trained employees due to changed business technology who can maintain company websites and computers and other kind of equipments.

Ineffective

In the companies different operations the MIS has the potential to become ineffective because with all computer systems, MIS is as good as programmer. Business decisions get on to some delay while gathering some information which is un-important and non-essential which also requires additional input. While reprogramming and correcting issues too much time is being spend and correspondingly increase the time in decision making. Extensive training is required to the business managers on new systems and will diminish over time.

Security

In all businesses, MIS security is a very significant area that must be highly secured. Very important means of data is being saved in MIS which is to kept secret from others and even from those also who are authorized. However due to some kind of negligence this data get leaked out of the organization. Companies should focus properly to their security part as it affects its business a lot.