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Posted: March 3rd, 2022

Reply 5.1

 
MIS systems are very important in the process of strategic management because the ability to collect and use information can help inform strategy formation and can give a firm competitive advantages such as monitoring suppliers, cross-selling to customers, managing funds and coordinating activities in larger companies. Information is increasingly becoming recognized as a valuable organizational asset and companies endeavor to implement strategies that have been created using reliable information that an effective MIS system can provide. (David and David, 2017, p. 269).
Some MIS systems can use stored data to create what-if scenarios that can aid in decision making between multiple strategic scenarios. Many can also create reliable forecasts based on historical data enabling a company to decide is modifications to the strategy are needed to hit future goals. In addition, once a strategic initiative is implemented, an MIS system can collect data to track and report results to ensure that the initiative is progressing as planned or if action should be taken to course correct (Markgraf, 2019).
Reference
David, F. R., & David, F. R. (2017). Strategic management: Concepts and cases: A competitive advantage approach (Sixteenth edition). Harlow: Pearson Education Limited.
Markgraf, B. (2019). The role of management information systems in decision-making. Houston Chronical. Retrieved from https://smallbusiness.chron.com/role-management-information-systems-decisionmaking-63454.html

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