At the start, in businesses and other organisations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organisation. Later, data was distinguished from information, and instead of the collection of a mass of data, important, and to the point data that is needed by the organisation was stored.
In their infancy, business computers were used for the practical business of computing the payroll and keeping track of accounts payable and accounts receivable. As applications were developed that provided managers with information about sales, inventories, and other data that would help in managing the enterprise, the term “MIS” arose to describe these kinds of applications. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, ERP, SCM, CRM, project management and database retrieval application.
Problems Associated with Traditional Information System
The traditional system was more manual and it took a lot of paper work and manual operations to analyze the information in the form of primary data or from the inventory, then use inductive methods to reach at certain level or accurate decision level.
The statistical analysis of the information on various aspects of the organization was too prolonged to take quick decisions. Whereas in the present computerized ERP, EDI and other softwares, there has been a drastic change in automation of the organizations, thus removing the delays and inaccuracies to a larger extent. With the same the costs on communication of messages, letters, papers, ledgers, documentation and files were the negative aspects in contrast to the modern ERP equipped organizations.