1 Jun 2022


Management Information Systems: The Role of MIS in a Company

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Kerns Manufacturing Corporation is a renowned manufacturer of products for the Aerospace Industry and is located in Long Island, New York. The company has innumerable systems of information, most notably the accounting information system. 

The company has often been forced to make design changes and methods of operation since of new IT; before, for example, the decisions was too late since the information and proposals had to go through many stages in the organization before it could be decided or anything happened. The administrators who had a function to serve as points of collection and dissemination of information are no longer necessary; and the Kerns Manufacturing Corp continue to reduce the number of senior managers, line, and intermediate services. IT accelerates much of the functions of communication, coordination, and control traditionally carried out by them (Romney & Steinbart, 2012). Managers who remain in their posts have released most of their routine tasks and can now assume greater responsibility for tactical planning and decision-making (Sačer et al., 2006). Kerns Manufacturing Corp today need more workers intellectuals to enable them to ensure the satisfactory integration of information systems, and it is their skills that enable them to produce and implement appropriate technology and provide instructions for its effective and efficient use. All these changes in the design of the Kerns Manufacturing Corp and the composition of the workforce often lead to decentralization of tactical decisions, but in a greater centralization. 

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The main users of the Accounting Information System are the managers and employees within the company that interacts with the system. The degree of participation may vary according to the type of user. Direct users are who interact with the system. They enter the data or receive data outputs. An example is a warehouseman, assistant accountant, secretary, among others. Indirect users benefit from the results or reports produced by the system but interact directly with it. These users can be heads of the company using the system, such as the sales manager, person, etc. And, finally, administrative users are the ones who have responsibilities in the administration of the application systems (Sačer et al., 2006). These users are the senior managers with different functions in the businesses, which use the information system a lot. While the staff may or may not use the indirect system or directly, they have the authority To approve or disapprove investment in the development of the application; as well have the organizational responsibility for the effectiveness of the systems. All three types of users are important. Each has the essential function in relationship with the company: how it works, and where it is headed. 

The component of a system is that element that is indispensable for this fulfills its mission and objectives. In the manufacturing company the materials raw materials, plant and equipment, personnel of engineers, employees and staff productivity, as well as the design of the products, are among the others, fundamental parts, so that the same productive organization can fulfill its corporate purpose. Concerning the accounting information system, a list of components that allow its dynamics and constitute its structure of operation. Companies today have a total and absolute dependence on their environment, and much of their success is due to how they relate to it, and how they face the changes and how they adapt to them. The company emphasizes this aspect when it argues that the attempt to analyze and characterize the system environment serves to construct and delimit, at the less pedagogically, the scenario that the professional accounting faces and recognize the presence of factors and must be taken into account for the management of the problem. The environment and environment are not a controllable factor by those who lead and manage the system. On the contrary, there is a dependence relation of the system against its surroundings. The accounting information system is influenced in the first Instance by the operations and characteristics of the economic entity, which constrain its functioning. The nature of the accounting information, its process and presentation are shaped by the conditions of management and operation of the company, depending on its size, activity, and legal framework. The company is the medium in which the accounting system is born and developed. This is the predominant factor in designing the accounting information and at the same time to fix its management and direction. The information system, in addition to the direct environment - the company - has the Influence of the environment that surrounds the company: this is the system environment. The business environment constrains the accounting system in several Aspects; their influence becomes evident in the course of the activities and the content of financial reports. Therefore, the environment, the company's general structure limits and delimits the activity of the direct way. As a consequence, it influences the definition of its character and in daily accounting activities. 

The environment that surrounds the organizations today is of great importance in the decision making of the top management, due to the influence that it may have in the organization, positive or negative. Previously one could think or visualize the organizations as independent units, which had no relation to the external environment that surrounds them (Spathis & Ananiadis, 2005). They are also are not in its control or are ‘foreign’ and explained that its limits go beyond the regional and the national to locate in the interrelated economic processes that constitute the economy and especially that of the countries that have or may have an influence on the behavior of the activity performed the company. The analysis carried out under these guidelines should identify threats and opportunities for the company, thus fueling its planning process. The environment in which an organization develops impacts and defines many of its characteristics. That way we have to penetration and changes in the market determine the performance of the organization. The fiscal, accounting and commercial rules define their identity and sphere of influence. The general public and social customs, many of them social norms, limit the role of the organization as well as its scope. The organization uses the information provided by the external environment to perceive the changes and advances that are occurring in it. This critical dependence that exists between the organization and its external environment, Organizations are always alert to the changes they generate in it and, consequently, the organizations that have a knowledge of how the environment conforms and behaves will have a competitive advantage 

In conclusion, the decision-making team operates one of the main functions of the enterprise manager, and the financial decision is one of the most important. It mainly investment and financing are interdependent between them and the achievement of the primary objective for the financial function presented in maximizing the market value of the business. Due to the importance of financial decisions, they need a variety of information, which consider themselves the most important accounting information allows the rationalization of the selection process among available investment alternatives and methods. With respect to the companies surveyed, the services sector predominates, those who work as individuals and those of micro size, this would be explaining the results in the use of information systems and the financial management. 

Customers at the beginning of the service being that the entrepreneur is not very worried about making financial projections, with respect to size, it is very difficult for a micro enterprise to have staff own account and financial information of the business, apart from 

These entrepreneurs have little staff and do a job multifunctional that does not allow them to devote time to the planning of their business. A high proportion of entrepreneurs, accounting information, however, do not dimension what that means given who are only concerned with keeping up with their tax obligations and not have problems with finances, this usually happens in because of the lack of sufficient physical and human infrastructure. With regard to cost control and internal control, these result from incipient use by SME entrepreneurs, which implies that they work without controlling their results. Financial and without safeguarding their assets, which put them at high risk. With regard to financial management, a high proportion of entrepreneurs do not use the income budget, is incipient the use of financial analysis. 

They review their accounts, that is, they do so empirically, without the use of an adequate financial technique. There are very few entrepreneurs surveyed who have obtained some financing and most of them prefer financed by suppliers since it is a spontaneous source of financing and no financial cost. In addition, they find the CRM-Customer Relationship Management, which allows to keep a record and manage the customers. All CRM functions as a large database, which helps to detect sales opportunities and post-sales follow-ups. On the other hand, we also find the ‘dashboard’ system, which is a tool that organizes different indicators to calculate and obtain more specific reports of an operation. Systems can be implemented in two ways: either in the customer's offices; or, you can rent the use in outsourced servers. The important thing to note is that, when implementing a management system, we opt for the methodology that best suits the needs of the company. In this sense, it is advisable to keep in mind a bigger budget, to obtain a system that can be designed ‘tailored’ to the requirements of the business itself and not opt ​​for ‘standardized’ solutions. As mentioned, it is important to emphasize that implementing a management system is not an easy task; involves a commitment of each of the members of the company, especially its managers. However, the results are worth the effort made. Computerizing and organizing the internal processes of a company is a great decision to optimize the management and, consequently, optimize results. 


Romney, M. B., & Steinbart, P. J. (2012).  Accounting information systems . Boston: Pearson. 

Spathis, C., & Ananiadis, J. (2005). Assessing the benefits of using an enterprise system in accounting information and management.  Journal of Enterprise Information Management 18 (2), 195-210. 

Sačer, I. M., Žager, K., & Tušek, B. (2006, January). Accounting information system’s quality as the ground for quality business reporting. In  IADIS International Conference, e-commerce 2006

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