Contribution of Management of Information Systems to Information Systems - Essay Example

Running head: Management of Information Systems Contribution of Management of Information Systems to Information Systems [Institute’sName] Contribution of Management of Information Systems to Information Systems The 21st century is the age of technology and more precisely, the age of information technology (IT), which enables the easy transmission of information from one source or party to another. In this time, it is very difficult to perform any functions without information and the quick and responsive transmission of information. Most tasks for the sake of academic, social, or business purposes are performed by computers. However, computers are not programmed to think for themselves and human beings do hold the accountability and the credit for feeding information into the computers and devising new software, which makes the tasks fairly simpler (Laudon & Laudon, pg 103, 2007). Businesses are more prone than any other body to rely upon the use of information systems to conduct their daily operations and for communication within the organization. Information systems hold data regarding the business operations, employees, sales statistics, stock, and the most popular products. Software has also advanced to the level where it is easier for information systems to compare statistics and data and help management in forming critical decisions regarding business operations. It is also easier to transmit this data from one manager to the other and provide different managers with their required data easily. Not only do information systems show information, they are now able to analyze information and help managers in making decisions regarding the company (Delone & Mclean, pg 240, 2003). However, computers and information systems do not have a brain of their own and the decision of which software to use and which information system would be best fitted to the requirements of the company, lies in the hands of the management of the company itself. Information systems are a critical and important aspect of businesses and other organizations now. The mismanagement of an information system can lead to the incorrect transmission of information, which can prove highly consequential for a company. Moreover, if the information system chosen is not adequate for the task it is to perform; this may lead to inadequate results and an improper analysis. Hence, it is highly important for information systems to be managed correctly and the correct software be used with frequent updates to allow for information systems to be as beneficial as they should be for a company (Laudon & Laudon, pg 103, 2007). This paper will outline the importance of information systems to the proper functioning and decision making of a business or other organization. It will also analyze the importance and procedure for the management of information systems and how mismanagement can cause serious consequences for a firm. The paper will present its case with the analysis of the information systems used by three companies and the problems and dimensions of the information system according to cost, design specification, data, and operations. Moreover, the paper will outline recommendations for the improvement of the information systems and the implementation of the system (Laudon & Laudon, pg 105, 2007). The companies referred to as exemplars for this paper include LG Electronics, UBM Aviation Group Limited, and American Express Bank. The paper will outline the benefits and specifications according to the four dimensions mentioned of the systems being used and suggest any improvements that may be made to the present system. Management information systems are systems that express the combined relationship of information technology, people, and systems. While information technology is important for the consideration of all business operations, it also has to be combined with equal management efforts in order to use the information output through the system. Moreover, decisions about the software that needs to be used or when systems need to be changed is also dependent upon the management of the company (Delone & McClean, pg 242-243, 2003). Information systems are of many types and transmit a variety of information to the company management. Information may include information regarding pricing, sales records, employee records, and other trends regarding supplier data, and recruitment information. There are various information systems for different types of data, and different software used for the transmission of that information (Lucy, pg 230-235, 2004). In the same manner, there are different levels of management and different information system access to each level in order to assist them in their decision making process. The top management will be responsible for strategic decisions or the most important decisions of the company. The middle management will be responsible for operational decisions and the lower management will be responsible for tactical decisions. There are various information and decision-support systems of different costs and specifications that will enable the management to make their decisions wisely and with correct information (O’Brian, pg 100, 2010). Communication within the organization and to other franchises or outlets is also very important. Information transmission between suppliers and the company and employees and management is also equally important. Information transmission between all management levels is essential in its own accord. Hence, different information systems must be used to transmit all this information to the correct people. For this purpose, organizations have an intranet, which is an inner network used to circulate information, memos, and tasks between them. An extranet is also used, which is an outer network used to communicate with people outside the organization such as customers and suppliers (Lucy, pg 240, 2004). Success factors of an organization depend upon the information system that is used to a large extent. In order to be successful, information systems should be easy to use, accurate, reliable, economical, and speedy. They must also carry out the task that they are asked to perform to full function and not partially or substandard. This is a measure of their accuracy and reliability (Delone & McClean, pg 242, 2003). Information systems which are out of date, slow, inaccurate, or do not perform the desired operation to optimal level are failures and a cause of consequence to the firm. Each information system is judged upon the four dimensions of data, design specifications, cost, and operation. The dimension of data measures the data that is actually needed or required from the information system. Design specification measures exactly how this data can be retrieved from the system and whether this is an easy and understandable task. Cost measures the expenditure occurred for the setting up and use of the information system. Operation measures whether the information system is able to perform the task required and is suitable to the needs of the organization, whether it is adequate for easy employee usage (Lucy, pg 232, 2004). Other factors that may affect firms and bring a change to their use of information systems are the factor of which software competitors are using; the availability of new information technology, the growing size of the firm, increased reliance on technology to make more decisions, inadequate speed of previous technology, and employees having difficulty using the previous system (O’Brian, pg 76, 2010). The first example we can take is the analysis of the information system of LG Electronics. LG Electronics is a global electronics company and is the world’s second largest manufacturer of television and third largest producer of mobile phones. The choice of this company is because its functions are entirely based on information systems technology as their offices are based throughout the world so they need an efficient information system to monitor the performance of every regional office. All offices whether they are in London, New York, Karachi, Tokyo, etc are linked to each other through information systems (LG Electronics, 2011). The management information system used by LG Electronics, Berkshire office (UK Headquarters) is an in house developed, online ERP software using Oracle 10g. An Enterprise Resource Planning (ERP) system is an “integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources, its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders” (Wilde & Pautasso, pp. 340, 2011). In addition, analysis has indicated that it usually has a central database system that facilitates ERP to combine all the business activities under one umbrella for effective and efficient management. The current system is operating effectively throughout the organization and disseminates data regarding sales trends, new offers, marketing techniques, new policies, budgeting, employee records, pricing, and other information between branches and to the top management. This data is retrieved by accessing the consolidated database for all branches of LG electronics. However, the speed of the system is updated constantly to keep it up to its full potential. The cost of the system is not clearly mentioned in data provided, however the system is not highly advanced or expensive (LG Electronics, 2011). While LG uses both an intranet and an extranet for communication within its operative branches, there is room for improvement in their current management information system. The software used throughout the company is not highly advanced and an explanatory reason for this can be that employees are not familiar with the new advanced software and find it difficult to adapt. Hence, faster and better technology can be used and should be implemented, and employees should be given adequate training to use the new software (LG Electronics, 2011). The private limited company of UBM Aviation is also a good example of information systems used to their full potential. This is because an aviation company requires critical contact between flights and landing operators and airport officials. In order to get information regarding weather, altitudes, conditions of planes, number of passengers, oil needed, repairs, luggage being carried, etc; information systems are used. Flight timings, landing conditions, emergencies, and other important information is also disseminated through these systems. Hence these systems should be highly fast and competent in order to help make critical decisions on the spot. This requires advanced software. The system set up for UBM Aviation is highly expensive and data is retrieved through the entering of data through officials and managers and operating through a combined database (Awery, 2011). UBM uses Sabre software to conduct its operations. The system has been successfully implemented because it is easy to use, reliable, performs the operations it has been set up for, and is accurate. Moreover and essentially, it is quite fast and disseminates information on a wide scale (Awery, 2011). DB2: It is one of relational database management system (RDBMS) (Awery, 2011) products from IBM that are used for various operating system platforms. DB2 is excelling in terms of database market share and performance UBM makes use of DB2 in such a way that it stores the company’s data – data ranging from customer records to sale records and other orders. Moreover, Honda is also making use of LTEO4 and data storage tapes for storing data. Plus, personal computers are also there to help share the burden (Awery, 2011). The last company that we are analyzing for reference is American Express Bank. Banking systems are also highly important because they require information systems holding essential account information about money held by the customers, money transfers, checks, pay orders, and other transactions occurring between accounts. Banking systems must also be highly reliable, quick, and essentially accurate. The system used by American Express is of a satisfactory nature and meets the criteria set upon it by the four dimensions of data, data specification, cost, and operation. There is constant need to update the system and upgrade to the most reliable and advanced software for operational purposes. Management information systems have proven their exceptional need in today’s world. However, their function and use has also proven that talented and educated human capital is also needed in order to make the most of their functions. Hence, computers are not the only element running businesses today; humans are still equally important (Oz, pg 32, 2006). References Awery. 2011. Information of UBM Aviation Limited. Retrieved on August 10, 2011: http://awery.net/company/UBM+Aviation+Worldwide+Limited.html Delone, W. & Mclean, E. 2003. “The Delone and Mclean Model of Information Systems Success: A 10 yr Model.” Journal of Management Information Systems. Volume 19, Issue 4, pp. 234-250. Laudon, K. C., & Laudon, J. P. 2007. “Management Information Systems: Managing the Digital Firm.” International Journal of Computers, Communication, and Control. Volume 2, Issue 1, pp. 103-105. LG Electronics. 2011. Contact us. Retrieved on August 11, 2011: http://www.lg.com/uk/general/contact-us.jsp LG Electronics. 2011. LG Technology Strategy. Retrieved on August 11, 2011: www.lg.com/us/about-lg/innovation/technology-strategy.jsp Lucy, T. 2004. Management Information Systems. This One Companies. O’Brian, J. 2010. Management Information Systems. Mc-Graw Hill Companies. Oz, E. 2006. Management Information Systems. Cengage Learning. Wilde, Erik and Pautasso, Cesare. 2011. REST. Springer. Read More