Why a Management Information System.

It has been an on going objective of MIS research to determine the exact economic role of MIS in modern business. The effectiveness of Management Information Systems continues to occupy the highest priority of the MIS research agenda.

Management Information Systems are costly to purchase, deploy, and maintain. Therefore, in a world where business enterprise is operated for maximum profit according to the theory of rational choice, it is natural to suppose that MIS offers economic value and that this value overcomes the costs.

This is not necessarily true.

In business, Management Information Systems support not only the basic business processes and operations, but also decision-making and competitive strategies. The measurement of MIS effectiveness precludes conflict such as that caused by personnel issues. These issues are managerial behavior that is not consistent with profit or value maximization.

When MIS implementation decisions are made by managers, managerial behavior and motivation are likely to be important variables in MIS effectiveness.