Requirements and Software Systems for Different Levels of Management - Assignment Example

ANALYZING INFORMATION REQUIREMENTS AND PROPOSING SOFTWARE SYSTEMS FOR DIFFERENT LEVELS OF MANAGEMENT Organizations function by using different business processes and by making sure that these processes are enhanced from time to time, so that the companies are able to retain their competitive edge. The importance of information systems in the smooth function of the business process cannot be neglected hence organizations need to continually invest in new, more sophisticated information systems. There are different business processes for different organizations but the most common ones’ are manufacturing, accounts, finance, warehouse and logistics, marketing and human resources. Based on these functional lines companies operate in a given business area. Different levels of information are required at different levels in these functional areas and similarly the natures of decisions that need to be taken are different at each level. In an organization managers are members who are responsible for the work performance of other organizational members and ensuring that individual business processes function smoothly. Therefore, managers have formal authority to use organizational resources and to make decisions. In most organizations, there are typically three levels of management: top-level, middle-level, and first-level. There are differences across the management levels as to what types of management tasks will be performed by which managers and that is defined by the role a manager has in the organization (Management Levels). In order to aid these managers in their daily business routine management information systems are deployed in most organizations. These systems allow managers to make decisions for the successful operation of businesses. The goal of the MIS in an organization is to deliver information systems to the various levels of corporate managers. Hence, different types of systems are used in different departments and at different levels (Different Types o f Management Information Systems). Our focus is on a manufacturing concern, i.e. Wyeth pharmaceuticals therefore the different types of systems that will be discussed will be according to the business practices followed in a manufacturing concern. Different levels of management require different information systems. At the top most level the types of information systems that are required are Executive Support Systems (ESS) and Decision Support Systems (DSS). Since, at the top most level the management is concerned with strategic planning and long term goals of the organization. They are the people who will path the way for the future operations of the organization. Hence, at this level information is critical and the decisions that are taken have long lasting effects. Therefore, to assist humans in making those decisions there are DSS that are specifically designed to aid the management in making decisions about situations where there is high degree of uncertainty. The DS systems are equipped with tools and techniques that help in gathering information and then performing analysis on the data to yield results. As a result by using these systems the human answer in a situation is backed by a computational answer of a Decision Support System. Similarly, Executive Support System (ESS) is also used at the top level. These systems are designed to help senior management make strategic decisions. They are able to gather, analyze and summarize critical data in the internal and external environment of the business. Managers at the middle level of an organization are more focused on the day to day running of the organization. They do so by carrying out the goals set by the top management and by setting goals for their individual departments. As a result the information they require is concerned with the day to day transactions of the firm. Hence middle level managers use Transaction Processing Systems (TPS). TPS are software systems that are designed to process the routine transactions efficiently and accurately. It is not necessary to have a single TPS in an organization. There may be several TPS in an organization based on the industry they operate in. The most common examples of TPS in manufacturing concerns are billing systems that are used to send invoices to customers, payroll management systems that are responsible for calculating monthly payroll and tax payments, procurement systems that calculate raw material requirements and inventory management systems that keep a track of inventory levels at hand and the quantity of products that move in and out of the business. Other information systems are used by the middle managers are Management Information Systems (MIS). Such systems are usually concerned with the internal sources of information and usually need inputs from the TPS. They summarize the data and generate different kinds of reports that are useful for the management. There are several different kinds of MIS which include Accounting Management Information Systems, Financial Management Systems, Manufacturing Management Systems, Marketing Management Systems and Human Resource Management Systems. The lowest level of management is the first level management. People employed in this category are responsible for the daily management of line workers—the employees who actually produce the product or offer the service. Every business unit in an organization has their own first line managers, who are responsible for managing the workforce. These managers are not exposed to a lot of information but nevertheless have to use some software systems in the extremely automated work environments. The information systems used by these managers are the Office Automation Systems. The most common example of such systems is the Microsoft Office Suite, managers at this level use such software to develop reports, presentations and to keep track of day to day routines. SUITABILITY OF THE INFORMATION SYSTEMS IN THE ORGANIZATION The information system that exists in Wyeth is the Enterprise Resource Planning (ERP) system. ERP systems attempt to integrate all departments and functions across a company onto a single computer system. The ERP system deployed at the company is JD Edwards World and has different modules for different business purposes. The most important ones’ are the supply chain module, accounting and finance module, inventory management module and the human resource management module. The ERP system is suitable for such an organization because of the diversity of operations and the need for timely information sharing in between the different business units. In manufacturing concerns like Wyeth it is of utmost importance that materials are procured on time, manufacturing schedules need to be made, demand needs to be forecasted and other strategic decisions need to be taken in the light of available data. Hence, ERP systems are extremely suitable for this organization because they help in eliminating costs and inefficiencies in the business system. They improve operational efficiency by ensuring the smooth flow of information in between different business units. Furthermore, ERP systems also enhance the productivity of the firm by aggregate planning and forecasting demand. Such systems enable firms to extend their business by using the Internet and hence firms can get a better control over their business processes. The JD Edwards system is suitable in this regard because it allows the management to perform the tasks mentioned earlier in the most effective way. For example, the firm does not have to worry about inventory stock outs or procurement errors. All materials are ordered automatically to registered suppliers and a safety stock of the raw materials is maintained on site. Other modules help in streamlining the process in manufacturing from calibration of tools to the generation of manufacturing orders everything is done with the help of computer systems. Hence, the firm is able to reduce the errors made by human intervention in business processes. SECURITY MEASURES FOR INFORMATION SYSTEMS The security measures that are deployed at Wyeth include internal audit, internal controls that aim to limit user behavior by assigning each employee a unique id and password, each employee is assigned certain privilege level and based on that level he or she is allowed to perform transactions in the systems. (IT Governance and Security) In order to ensure network security suitable firewalls are in place, all connections to offshore servers are made through VPN, intrusion detection software is placed on local servers and work stations to prevent attacks from outside users (Security in an ERP World). The ERP systems security and integrity is maintained by assigning each employee an id and password to log into the ERP system and each employee has his role defined as to which information is visible and which information can be altered. Similarly, all transactions are time-stamped and show the user id from which the change was made; hence it becomes easy to find the source of disruption. Another security threat is from the multitude of viruses that creep up in computer systems on a routine basis. In order to prevent them the company has purchased a licensed anti-virus (McAfee). Therefore, according to my analysis the security measures in place are adequate to combat from viruses and outside infiltration. Since, all access points to critical information are safeguarded security is not a concern in the organization. SUITABILITY OF CLOUD COMPUTING Cloud computing in simple terms is defined as the process that delivers services over the Internet. These services are broadly categorized into three major segments which are Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). In the current scenario where organizations need to invest heavily into information systems and technology, cloud computing can provide them with a cheaper alternative. In the case at hand, it will be feasible if the company opts for Software-as-a-Service because there are still certain functions in the organization that are not maintained efficiently in house. If they will outsource them to professionals it will be useful in the longer run, because the processes will be handled with professional care and the results will be accurate. Similarly, the company requires space over the Internet to reach out to its target market; they can get web development and hosting as a service from a professional web developer. In the near future when their computing equipment like servers and data banks will become obsolete it will be beneficial for the organization to get Infrastructure-as-a-Service and save upon the cost associated with buying technological products. Although cloud computing and outsourcing seem to be a better and cheaper option they need to be dealt with very carefully. Proper documentation and contracts should be signed before actually agreeing to avail services from a vendor, this will save the company from trouble when issues arise after deployment of services. BIBLIOGRAPHY Different Types o f Management Information Systems. [Internet]. Available from [15th February 2010] IT Governance and Securtiy [Internet]. Available from [15th February 2010] Management Levels. [Internet]. Available from [15th February 2010] Security in an ERP World. [Internet]. Available from [15th February 2010] Read More