THE INFLUENCE OF MANAGEMENT INFORMATION SYSTEMS ON BUSINESS ACTIVITY OF AN ORGANISATION

Abstract

Organizations of various types of business tend to apply and implement management information systems designed for corporate resource management, interaction with clients, and supply chain optimization. The influence of management information systems on an organization's business is not of apparent significance in terms of the expected effect of their implementation. The extent of the effect of such systems on economic indicators of an organization has an ambiguous nature. The business performance of organizations, not paying careful attention to the justification of the processes of purchasing and exploitation of management information systems, usually, is significantly lower than their capabilities. The article is dedicated to the study of cost efficiency sources amid the implementation of a management information system, mechanisms of economic effect formation, and methods of cost-benefit analysis. The impact of organization's ability to collect and process information on the efficiency of its businesses performance and cost efficiency is considered. The article describes major factors, influencing the implementation efficiency, and substantiates the dependences of calculations of the expected increase in profit from the use of assets and a decrease in transaction costs when introducing management information systems in an organization. The possibility of unambiguous determination of the economic efficiency of management information systems with the appropriate management organization has been proved.