Relationship of Management Information System and Commerce
Meaning of Commerce
Commerce refers to all activities involved in the exchange of goods and services, from the producer to the final consumer. It is a part of business which deals with distribution and exchange and includes trade (buying and selling), along with aids to trade such as banking, insurance, warehousing, advertising, and transportation. Commerce ensures smooth movement of goods from one place to another and bridges the gap between producers and consumers. In today’s global world, commerce also involves international trade and e-commerce, which makes the exchange faster and more widespread.
ACCORDING TO JAMES STEPHENSON:
“Commerce is the sum total of those processes which are engaged in the removal of hindrances of persons (trade), place (transport), and time (storage) in the exchange of commodities.”
ACCORDING TO E.L. HANSEN:
“Commerce is the process of buying and selling and the activities associated with it, such as transport, insurance, banking, and advertising.”
ACCORDING TO J.K. MEHTA:
“Commerce includes all the activities which directly or indirectly help in the distribution of goods to the ultimate consumer.”
Meaning of Management Information System
Management Information System is a system used by businesses and organizations to collect, process, and manage information for decision-making. It is a blend of people, processes, and technology that helps in providing relevant, timely, and accurate information to managers. MIS supports planning, coordination, control, and operational functions by converting raw data into useful reports. For commercial enterprises, it serves as a backbone for organizing business activities like sales tracking, financial analysis, and inventory control. MIS not only helps in daily operations but also supports long-term strategies by identifying trends and forecasting future performance.
ACCORDING TO GORDON B. DAVIS AND MARGRETHE H. OLSON:
“MIS is an integrated, user-machine system for providing information to support operations, management, and decision-making functions in an organization.”
ACCORDING TO KENNETH C. LAUDON AND JANE P. LAUDON:
“A Management Information System collects, processes, stores, and disseminates information in an organization to support decision-making, coordination, control, analysis, and visualization.”
ACCORDING TO ROBERT G. MURDICK AND JOEL E. ROSS:
“MIS is a planned system of collecting, processing, storing, and disseminating data in the form of information needed to carry out the functions of management.”
CORRELATION BETWEEN MANAGEMENT INFORMATION SYSTEM AND COMMERCE
Commerce is the activity of buying, selling, and exchanging goods and services, and it plays a vital role in the growth of a country’s economy. In the modern era, where business operations have become highly complex, technology has become essential to manage commercial activities efficiently. This is where Management Information System (MIS) becomes important. MIS helps in collecting, storing, processing, and presenting business data that aids in decision-making. The relationship between Management Information System and commerce is deeply connected, as MIS enhances various commercial functions such as inventory management, customer relationship management, financial reporting, supply chain operations, and sales analysis.
For example, a retail business can use MIS to monitor customer preferences, manage stock levels, and generate real-time sales reports. As commerce continues to grow digitally (e-commerce, online payments, etc.), MIS becomes even more critical to manage these virtual transactions securely and systematically. In short, MIS supports commercial organizations by making them more data-driven, efficient, competitive, and responsive to market changes.
MIS helps decision making in business organization
Management Information Systems (MIS) play a vital role in improving the quality of decision-making within business organizations. By providing accurate, timely, and relevant information, MIS enables managers and executives to evaluate problems, explore alternatives, and choose the best strategies. For example, if a company wants to launch a new product, MIS can offer insights into market trends, consumer preferences, past sales data, and competitor analysis. This helps reduce uncertainty and allows for evidence-based decision-making, improving efficiency and effectiveness in the organization.
MIS helps in marketing
MIS is widely used in marketing functions such as market research, sales forecasting, customer segmentation, and advertising analysis. Marketers rely on data collected through MIS to identify target audiences, understand market demand, and track the effectiveness of promotional campaigns. MIS can generate dashboards and marketing reports that help businesses monitor performance in real time. For example, data from social media, website traffic, and sales records can be analyzed to improve customer engagement and boost sales.
MIS helps in school management
In the education sector, MIS is used to manage and monitor various school functions such as student attendance, academic performance, teacher schedules, fee collection, and communication with parents. School Management Information Systems (SMIS) help principals and administrators track progress, manage resources efficiently, and ensure smooth operation of the institution. This improves transparency, reduces paperwork, and allows stakeholders to access real-time updates about school operations and student performance.
MIS helps in communication and planning tool
MIS acts as a bridge for effective communication and planning within organizations. It allows managers and employees to share data, documents, and updates across departments using digital platforms. MIS tools support collaborative planning by enabling the creation of shared goals, timelines, budgets, and reports. It also ensures that the right people receive the right information at the right time, improving organizational coordination and long-term planning.
MIS helps in studying consumer behaviors
Businesses use MIS to track and analyze consumer behavior by collecting data on buying patterns, feedback, preferences, and browsing habits. This data is crucial for understanding what customers want, when they want it, and how they respond to different products or services. With this information, businesses can personalize their marketing strategies, improve product offerings, and enhance the customer experience. Consumer behavior analytics is a key component of competitive advantage in modern commerce.
MIS part of Commerce curriculum
As businesses increasingly rely on technology and data, Management Information Systems have become an essential part of the commerce curriculum in schools and colleges. Students studying commerce need to understand how data systems work, how they influence business processes, and how MIS contributes to strategy and operations. Courses in commerce now often include modules on data analytics, information systems, business intelligence, and ERP (Enterprise Resource Planning) systems to prepare students for modern business environments.
MIS and Customer Satisfaction
MIS directly contributes to customer satisfaction by helping businesses respond quickly to customer needs, manage service quality, and personalize interactions. Systems such as Customer Relationship Management (CRM), which are part of MIS, allow companies to store customer data, manage complaints, follow up on inquiries, and offer tailored products or services. This leads to faster problem-solving, improved service delivery, and stronger customer loyalty.
MIS helps in business transactions
Every business transaction, whether it’s a sale, purchase, or financial exchange, generates data. MIS systems help in recording, processing, and tracking these transactions efficiently. For instance, Point-of-Sale (POS) systems, online payment gateways, and digital invoicing tools are all components of MIS that streamline and secure business dealings. This reduces errors, enhances accuracy, and ensures proper financial reporting, which is essential for audits and compliance.
MIS and Commerce- Whole and Part relationship
The relationship between MIS and commerce can be understood in terms of a whole and part relationship. Commerce is the broad field that encompasses trade, finance, marketing, supply chain, and more, while MIS is a specialized tool within this field that supports all these functions. Without MIS, modern commerce would be incomplete, as most transactions, operations, and strategies now depend on data-driven systems. Hence, MIS is an integral part that powers and strengthens the whole system of commerce.
MIS and Business Administration
MIS supports business administration by helping managers plan, organize, direct, and control organizational activities. From managing human resources and finances to monitoring operational performance, MIS tools provide reports and analytics that guide administrative functions. It also supports project management, budgeting, compliance, and performance evaluation, making business administration more effective and informed.
MIS enables better use of records
Proper record-keeping is essential in any business or organization. MIS ensures that all records—financial, operational, or customer-related—are stored securely and can be accessed easily when needed. Digital record-keeping reduces the risk of data loss, ensures data integrity, and improves efficiency in audits and evaluations. For example, cloud-based MIS systems allow businesses to retrieve years of historical data with just a few clicks, enabling comparative analysis and trend forecasting.
CONCLUSION
In conclusion, Management Information System is a powerful tool that plays a central role in modern commerce. It improves decision-making, enhances marketing, streamlines school and business management, and fosters better communication and planning. MIS helps understand consumer behavior, supports customer satisfaction, and enables smooth business transactions. Its integration into commerce curriculum and administrative processes shows its increasing importance. As commerce continues to grow more technology-driven, MIS will remain essential in ensuring efficiency, accuracy, and competitive advantage across all sectors.