Traditional accounting data may be relatively meaningless, however, if the objective is to evaluate the effectiveness of a new program. To achieve better management decisions, the information available must be both timely and pertinent. As a concept, management information systems often is vaguely described and broadly misunderstood. First and foremost, a management information system is a process by which information is organized and communicated in a timely fashion to resolve management problems. Traditionally, management information systems have been developed as tools for operational management.
Strategic decisions differ from operational decisions, however, along several dimensions.
Therefore, the information necessary for strategic management varies from the more traditional MIS used for operational control. This understanding may be enhanced by taking these words in reverse order. A system is fundamentally a set of two or more elements joined together to attain a common objective. A system often is made up of a number of smaller systems or subsystems , which, in turn, are composed of basic elements which define the purpose and capacity of the total system. A properly functioning system is characterized by synergy .