{"id":5093,"date":"2026-02-25T10:27:50","date_gmt":"2026-02-25T09:27:50","guid":{"rendered":"https:\/\/www.beeminds.nl\/insights\/in-4-steps-to-an-effective-management-information-system"},"modified":"2026-02-25T10:27:50","modified_gmt":"2026-02-25T09:27:50","slug":"in-4-steps-to-an-effective-management-information-system","status":"publish","type":"knowledge_pt","link":"https:\/\/www.beeminds.nl\/en\/insights\/in-4-steps-to-an-effective-management-information-system","title":{"rendered":"In 4 steps to an effective management information system"},"content":{"rendered":"<p>In my career as a CFO, controller and in accounting, I have had the opportunity to look into many &#8220;kitchens&#8221; of different organizations. From small to large companies operating in many different sectors and from very successful to less successful initiatives. When I look back at the different types of information systems I have seen, I can only draw one conclusion: so many companies, so many management information systems.  <\/p>\n<blockquote><p>&#8220;So many companies, so many management information systems.&#8221;<\/p><\/blockquote>\n<p>In this blog, I want to take a closer look at the question &#8220;What do you need to be able to (re)manage?&#8221; and how you, as an organization, could take quick steps in this regard. In my experience, this turns out to be a difficult question for &#8220;users of information.&#8221; It can be done differently. In addition, I want to address 4 steps that contribute to being able to make the right choices based on available information.   <\/p>\n<h2><strong>What makes a management information system good?<\/strong><\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/www.beeminds.nl\/wp-content\/uploads\/2026\/04\/fa614c_65d369250df1498684d0b7ce700efdb6mv2.png\" alt=\"\"><\/figure>\n<p>Before I answer the question of what someone needs to manage, it is important to determine what a management information system must meet if it is to be labeled &#8220;good&#8221; by the user(s).<\/p>\n<p>To start with an open door: an Excel spreadsheet is not, in my opinion, a management information system. In other words, a professional management information system has everything Excel does not. Is that a (dis)qualification of Excel? Absolutely not. Excel is an enormously powerful tool with a multitude of application possibilities, however, it is not, in my opinion, suitable as a daily management tool.    <\/p>\n<blockquote><p>&#8220;Excel is not suitable as a management information system.&#8221;<\/p><\/blockquote>\n<p>Everyone knows elaborate Excel sheets with complex pivot tables and huge amounts of detailed data and far too small fonts, where the first questions are from C-level management:<\/p>\n<p><em>&#8220;Lots of detail; what am I looking at?&#8221; <\/em>and <em>&#8220;Is this information up-to-date?&#8221;<\/em><\/p>\n<p>The subsequent question is as relevant as it is painful for the compiler of the comprehensive reports:<\/p>\n<p><em>&#8220;Do you think I can make adjustments based on this information?&#8221;.<\/em><\/p>\n<p>The first two questions are crucial and cast doubt on the quality of the reports. The last question is no less important and says more about the content of the reports. More on this later.  <\/p>\n<p>The question of what a good management information system should meet can be answered very long or very short. It must meet the needs of the user is the short answer. In addition, there are obviously prerequisites in the area of <u><a href=\"https:\/\/www.beeminds.nl\/simplified\/data-management\">data management <\/a><\/u>that must be fulfilled (call it hygiene), such as:  <\/p>\n<ul>\n<li>The information is available 24\/7;<\/li>\n<li>The information is always up-to-date;<\/li>\n<li>Everyone is looking at the same information;<\/li>\n<li>The information is reliable and complete;<\/li>\n<li>The information is stored and accessed securely.<\/li>\n<\/ul>\n<p>The short answer to the question of what a good management information system should meet turns out to be quite difficult in practice. &#8221;<br \/>\n<em>It must meet the need<\/em><br \/>\n&#8221; is in fact easier said than done.<\/p>\n<p>If you phrase the question a little more broadly, then every user of the management information system should be able to directly answer the question, &#8220;What do you really need to be able to adjust the business and be accountable?&#8221; The answer given should determine the information provided from the management information system. <\/p>\n<blockquote><p>&#8220;Easier said than done: a management information system must meet the need.&#8221;<\/p><\/blockquote>\n<p><strong>Being responsible and able to self-direct<\/strong><\/p>\n<p>The foundation for the success of a management information system is to place responsibilities with the right people and make those people truly responsible for things they can manage themselves. This is about multiple layers in an organization, not just C-level. <\/p>\n<p>As an example, the sales manager who is responsible for certain sales targets, where it is very clear that intervention by that same sales manager can adjust the outcome. Here responsibility can be taken because the person in charge can influence the outcome. <\/p>\n<p>That same sales manager cannot be made responsible for the maintenance costs of the property (assuming that facility issues are not his\/her responsibility). The sales manager cannot exert any influence on rental costs and therefore cannot possibly be held responsible (or accountable) for them. That&#8217;s the bottom line.  <\/p>\n<p>But based on what information can responsibility be taken and adjustments made (at different levels in the organization)? What does a person need to make his\/her success measurable (after the fact) and to make the right choices (future)? <\/p>\n<h2><strong>The right information versus an unstructured data mess<\/strong><\/h2>\n<p>We start at the base, where source data is fixed. It sounds somewhat theoretical, but the terms information and data are sometimes confused in practice. Because it is important to meet the needs of a management information system user, the (theoretical) difference between information and data is important. In this context, the word &#8216;data&#8217; can also be replaced by two words: &#8216;(unstructured) data&#8217;.   <\/p>\n<p>As an example, all unstructured data from an ERP system is basically meaningless, because there has been no processing that provides context, coherence and analysis. It will mostly amount to much, much data. <\/p>\n<p>For information to exist for someone (the recipient or user), it must be new and relevant. Usually, information is abstracted from a larger body of data (the unstructured data) and is filtered, categorized and restructured so that the information adds value to the user. Data is thus transformed into usable information.  <\/p>\n<p>With this in mind, we are getting ever closer to answering the question &#8220;what do you need?&#8221;. At least we now know what is not needed: unstructured data with no added value. <\/p>\n<p>This only distracts and creates noise and confusion.<\/p>\n<h2><strong>From (unstructured) data to &#8216;wisdom&#8217; in 4 steps<\/strong><\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/www.beeminds.nl\/wp-content\/uploads\/2026\/04\/fa614c_8c12f59970574d389130dabda232fc13mv2.png\" alt=\"\"><\/figure>\n<p>A regularly used framework for getting from (unstructured) data to &#8220;wisdom&#8221; is the DIKW model. DIKW is short for Data, Information, Knowledge and Wisdom. In this model, raw unstructured data (the integral dump from the ERP system) goes through a number of steps through which it can eventually contribute to &#8220;wisdom. This wisdom can be seen as being able to make the right choices and decisions because the user of the information is provided with information that contributes to this and adds their own knowledge to it.   <\/p>\n<p>The steps according to the pyramid (see image) from bottom to top:<\/p>\n<h4><strong>Step 1 (Data):<\/strong><\/h4>\n<p>Raw unstructured data is accessed (e.g., from the ERP system).<\/p>\n<h4><strong>Step 2 (Information):<\/strong><\/h4>\n<p>The data is categorized, filtered and placed in context. This creates added value for the user and &#8216;promotes&#8217; the raw data to information. <\/p>\n<h4><strong>Step 3 (Knowledge):<\/strong><\/h4>\n<p>The user of the information adds his\/her own knowledge and experience and analyzes, interprets and forms a picture.<\/p>\n<h4><strong>Step 4 (Wisdom):<\/strong><\/h4>\n<p>Knowledge, experience and conclusions from previous steps are applied in the best possible way. This is where choices are made and plans are made for the future. <\/p>\n<h2><strong>But what do you need to steer?<\/strong><\/h2>\n<p>We have now gone through the steps to arrive at reliable insights based on reliable source data that can help make the right choices for the future. But we do not yet have the answer to the question of what someone needs in order to make adjustments (other than that the information must match the need). <\/p>\n<p>Still, I think that making information available that goes through the steps of the DIKW model goes a long way. Of course it is a prerequisite that <u><a href=\"https:\/\/www.beeminds.nl\/simplified\/data-management\">data management <\/a><\/u>is in order. <\/p>\n<p>The problem is often in the availability of the right information that is relevant, up-to-date and flexible. In my experience, far too often (even at C-level), management is driven by familiar reports and KPI sets &#8220;just because we know them.&#8221; <\/p>\n<p>The trick is precisely to think out-of-the-box about what information is needed, where &#8220;the box&#8221; consists of the beaten path and reports that just don&#8217;t quite fit the need and are spit out by default by the ERP system in use. This set of reports is often a limitation when it comes to determining the actual needs of the entire organization. <\/p>\n<blockquote><p>&#8220;Out-of-the-box thinking helps determine the real need.&#8221;<\/p><\/blockquote>\n<p>A simple example is the development of the turnover of the entire organization (a standard overview that everyone knows and is regularly guided by). But isn&#8217;t it (for example) much more interesting to additionally analyze the margin development per product group, customer group and region in combination with the workforce and have this information available in real time? <\/p>\n<p>For example, if we ask the aforementioned sales manager what he\/she needs in terms of information, explicitly naming that there is no limitation due to existing systems, my experience is that very meaningful insights are named that are needed to be successful. It is the job of others to provide these insights. The next step is to actually give responsibilities because the question &#8220;what do you need to (adjust)?&#8221; has been successfully answered.  <\/p>\n<p>By abandoning the idea that certain insights &#8216;just aren&#8217;t there&#8217; and assigning responsibilities to the right employees, a clear need arises that can be filled so that (re)guidance can be done by the right people. In other words: the right people are turning the right buttons, making the organization even more flexible, agile and decisive. <\/p>\n<h2><strong>Adoption of insights determines success<\/strong><\/h2>\n<p>There are multiple tools available that allow data to be accessed, collected, analyzed and presented in a smart and secure way. However, it is not just about tooling, but also about data adoption and data-driven work throughout the organization. Be sure to read the <u><a href=\"https:\/\/www.beeminds.nl\/update\/power-bi-is-geen-it-tool-verhoog-de-adoptie-met-3-stappen\">blog <\/a><\/u>by colleague Richard Verburg if you want to learn more about Power BI as a tool and data adoption throughout your organization.  <\/p>\n<h2><strong>Need help understanding information needs and making timely adjustments?<\/strong><\/h2>\n<p>As an organization, do you want to start steering more on information that really contributes to success by enabling you to make the right choices and do you want to look forward more instead of looking back to the past? At Beeminds, we support organizations in their journey to data-driven work and believe that organizations achieve more and are more agile when data is used in the right way. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In my career as a CFO, controller and in accounting, I have had the opportunity to look into many &#8220;kitchens&#8221; of different organizations&#8230;.<\/p>\n","protected":false},"featured_media":2603,"template":"","knowledge_type":[47],"knowledge_category":[55,46],"class_list":["post-5093","knowledge_pt","type-knowledge_pt","status-publish","has-post-thumbnail","hentry","knowledge_type-blogs","knowledge_category-consultancy","knowledge_category-data-ai-solutions"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/knowledge_pt\/5093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/knowledge_pt"}],"about":[{"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/types\/knowledge_pt"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/media\/2603"}],"wp:attachment":[{"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/media?parent=5093"}],"wp:term":[{"taxonomy":"knowledge_type","embeddable":true,"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/knowledge_type?post=5093"},{"taxonomy":"knowledge_category","embeddable":true,"href":"https:\/\/www.beeminds.nl\/en\/wp-json\/wp\/v2\/knowledge_category?post=5093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}