Impact of management information systems on decisions

The effectiveness of mangement information systems (MIS) depends upon their impact on the quality of managerial decision making. This paper explores this impact from a microeconomic production perspective, with MIS as an input to a management decision production function. Using inventory control decisions as an example, analytical and simulation evidence is provided that the production perspective is reasonable. In addition, benefits of this perspective in describing the effect of MIS on decision making and in providing guidance for appropriate MIS investment are illustrated.