Explain the purpose of an information system and how it functions in a firm?

Information is a vital element in business decisions. Effective decisions cannot be made without answers to questions about the internal operations of the firm and the external environment in which it operates. Progressive companies use a planned management information system (MIS) that provides past, present, and projected information on internal operations and external intelligence for use in making decisions. Such information systems should aid all areas of the organization production, accounting, marketing, human resources, purchasing and finance—in carrying out their decision making responsibilities.