Management Information System, abbreviated as MIS, becomes more and more popular in modern society focus on management and information. MIS is a new subject covering several fields such as management science, system science, operations research (OR), statistics, and computer science. It formed an info-collection and processing method based on the above-mentioned subjects and further formed a cross-linked system. In the 20th century, many economists consequently put forward new management theories along with the prosperous development of global economy. In 1950s, Simon put forward the management thought depending on information and decisions. At the same time, Wiener presented his “Control Theory”, who thought that management is a control course. In 1958, Gail wrote: “Management will obtain real-time and precise information with fairly low cost and control well.” In this term, computers began to be used in accounting, and the word “Data Processing” appeared. In 1970, Walter T. Kennevan defined the newly appeared word “MIS” as: “it provides managers, staffs, and external persons with relative past, current, and future predicted information of the internal and external of the enterprises in oral or writing form and in proper time to help them conduct decision.” He emphasized on the support of information on decision in the definition without emphasis of the applications of models and computer. In 1958, Gordon B. Davis, a MIS founder and a professor of Management, Minnesota University, gave a comprehensive definition to MIS as following: “MIS is a human-machine system with the application of software and hardware resources and database. It can provide information to support the running, management, and decisional functions of enterprises and organizations.” This definition comprehensively explained MIS objectives, functions, and components; additionally, it reflected MIS level at that time.
MIS was used in the most basic works originally, such as printing statements, salary calculation, personnel management, etc. It further developed to single management such as financial and inventory management of the enterprises, which belongs to Electronic Data Processing (EDP) system. It reached to MIS stage when the database of an enterprise was set up and the network enabled data co-sharing, as well as the info-system was planned and designed comprehensively from systematic concept. Along with the progress of computer technology and the improvement of people’s demand to system, people put more emphasis on whether MIS can support the decisions of the top leaders of an enterprise, as well as more emphasis on whether the external info-collection, integrated database, model library, arithmetic base, and other artificial intelligent tools of the enterprise can face to the deciders directly, this is the mansion of Decision Support System (DDS). Three alterations occurred in foreign large companies in the recent 20 years as follows:
● Emphasize on MIS and make management technology mature.
● Information is the accordance of decision, MIS provides the managers with information services at any time;
● The managers connect their operational plans with their specific business activities through MIS;
Due to the alterations mentioned above, the application of MIS is developed rapidly. Some large- and mid-sized enterprises set up their own MIS, so do some medium- and small-sized enterprises, who set up data network such as e-mail and Electronic Data Interchange (EDI). Recently, the rapid development of Internet and the application of Intranet technology provide MIS of the enterprises with friendly support environment. Three elements present in the application of MIS in enterprises: human, computer, and data. “Human” is referred to leaders, managers, technicians of an enterprise, as well as leading institutions and fulfillment institutions of MIS construction, and they must have the positive participation of managers of an enterprise, especially leaders. “Computer” is the main technology to realize MIS. Among these technologies, software development is the emphasis of MIS development. The third element also can not be neglected; “data” management of the enterprise is the foundation for MIS normal running. Broadly speaking, various management controls are the foundation of MIS. We are supposed to calculate the cost of a machine tool, the expenses of each part, each nut and bolt should be input on time, and the work will involve in many divisions such as workshop, purchasing, warehouse, process design, and finance, thus it must have a set of management system for assurance.