i) Speed of processing and retrieval of data increases:
Modern business situations are characterized high degree of complexity, keen competition and high risk and reward factors. This invariably calls for systems capable for providing relevant information with minimum loss of time. Computer with its unbelievably fast computational capability and systematic storage of information with random access facility has emerged as an answer to the problems faced in modern day‘s management. Processing of data in relevant form and design and retrieval of them when needed in fact requires considerably less time and facilities the management action and decision making.
ii) Scope of use of information system has expanded:
The importance and utility of information system in business organizations was realized most of the concerns, especially after the induction of computers for MIS development. Systems experts in business organisations developed areas and functions were computerized MIS could be used to improve the working of the concern.
iii) Scope of analysis widened:
The use of computer can provide multiple type of information accurately and in no time to decision makers. Such information equips an executive to carry out a thorough analysis of the problems and to arrive at the final decision. Computer is capable of providing various types of sales reports. These reports are quite useful in analyzing the sales department working and to ascertain their weaknesses so that adequate measures may be taken in time. In this way, the use of computer has widened the scope of analysis.
iv) Complexity of system design and operation increased:
The need for highly processed and sophisticated information based on multitudes of variables has made the designing of the system quite complex. During the initial stage for MIS development, systems experts faced problems in system designing and their operations. Now, the computer manufacturers have developed some important programs to help their users. Besides, some private agencies are also there who can perform the task of developing programs to cater to the specialized needs of their customers, either on consultancy basis or on contact.
v) Integrates the working of different information sub-systems:
A suitable structure of management information system may be federation of information systems, viz., production, material, marketing, finance, engineering and personnel. Each of these subsystems is required to provide information to support operational control, management control and strategic planning. Such information may be made available from a common database. This common database may meet the information requirements of different information subsystems utilizing the services of computers for storing, processing, analyzing and providing such information as and when required.
vi) Increases the effectiveness of Information System:
Information received in time is of immense value and importance to a concern. Prior to the use of computer technology for information purposes, it was difficult to provide the relevant information to business executives in time even after incurring high expenses. The use of computer technology has overcome this problem.
vii) More comprehensive information:
The use of computer for MIS enabled systems expert to provide more comprehensive information to executives on business matters.