Factors Responsible for the development of MIS are numerous and have been a prime concern for many Researchers and Practitioners. Both Inter and external factors must be taken into account when trying to understand and organization’s criteria for deciding about technology. The following are the factors which are responsible for development of MIS :
External Factors : External Factors are conditions that exist in organization’s external environment. The factors can be found at the industry level or in national policies.
(a) Industry level : At the industry level, we are looking at characteristics as degree of diffusion of certain technologies, the availability of external know-how, for example, technology suppliers, the degree of innovativeness of the industry, the requirements imposed by major customers and external markets and overall levels of competition and technology sophistication in the industry.
(b) National Policies : For the external factors the national policies also affect the organization that indirectly affects the subsystems of the organization.
Internal Factors : Internal factors internal of the firm that may affect the development of MIS can be grouped into three categories:
i) Past Experience with Technology : The organizations past experience about the technology in terms of exposure and organizational learning ultimately affects its future in developing technology.
ii) Organizational Characteristics : An organization’s characteristic like size, influence the adoption of MIS application in organization. The adoption of certain technologies may appear more appropriate for the larger firms because of the large capital investments and the skilled human resources involve in the implementation and operation of such technologies. Smaller firms are less affected by organizational inertia and they show a greater degree of involvement of organizational member’s especially top management during implementation. Ready to use software and less expensive equipments of MIS application are more attractive to smaller firms.
iii) Organizational Pursued strategy : Internal factors deal with the organizations pursued strategy on both orientation and technology policy. An organization’s strategy reflects its action with market and technology, which ultimately modify its experience and consequently its overall characteristics and capabilities. The need for a strong technology has been advocated by a number of authors and investments in MIS should therefore be closely aligned with overall corporate strategy.
Other Factors :
Customer Satisfaction : Development of MIS is affected by customer satisfaction. Customer of the services should be satisfied by the presented system.
Effective : Development should be effective in terms of organizational benefit & user satisfaction.
Efficient : Development should use all the resources, organization values efficiently.