Management Information System - Assignment Example

? MANAGING INFORMATION here] of [Due paper] Answer Part a: There has always been a need to align the business company’s long-term Information Management Strategy with its overall corporate strategy in order to ensure success in today’s world of competition driven through information technology. An information management strategy involves the use of some particular systems which can be the collection of computer programs, algorithms, methodologies, and mechanisms that help a company in converting raw data into useful information. The processed information is available for use by relevant authorities in carrying out different business activities. Information system strategy incorporates the use of information technology and a range of software and hardware products that make the system efficient and fully functional (Carry 1988). According to Lucey (2005, p. 4) states, “the processing of data into information and communicating the resulting information to the user are the very essence of an MIS”. To align corporate strategy with information management mechanisms, companies need to integrate the use of management information systems in all departments. Management information system deals with the use of IT tools in speeding up business processes (Martin 2010). Some of the main fields for which integration of information systems can be useful include system analysis and design, artificial intelligence, health informatics, databases, software engineering, decision making, project management, and knowledge management. As Burke (n.d.) states, “MIS, or management information systems, are used to manage the data created within the structure of a particular business”. In today’s world of competition, alignment between corporate strategy and information management strategy cannot be possible without implementation of an efficient information system because information is needed in every business operation and in development of corporate strategies. One of the main tasks of an efficient information management system is that it processes raw data into information. The importance of using information management system can also be known by the fact that it helps companies in proper management of business related information, assists managers in developing corporate strategies based on information, helps in documentation of processed information, and assists managers in taking critical business decisions. The main purpose of using an information management system is to make effective use of latest IT tools and technologies that can support managers’ attempts to make efficient use of business information, as well as help them in carrying out different business related tasks and operations. Use of information systems has become almost essential in aligning business strategies with the corporate strategy because it establishes a useful link between technology and organizational departments along with providing assistance to the officials in carrying out business operations. In today’s world of competition, information systems are considered to be most significant essentials of success for any company or organization because it helps companies in taking right business decision in accordance with the corporate business strategy regarding any matter based on stored information. Information systems collect helps in collecting raw data, as well as in converting the data into useful information in such a way that it can be categorized and sent to concerned authorities (Earl 1988). We can take example of Carlson Investment Solutions Inc., which is a London based firm that deals with providing investment suggestions to clients based on information analysis (See appendix 1). The system works for the company in such a way that it stores all information and presents to the concerned departments is in the form of a well-documented report (Taken from Interview, case study). The system helps companies in setting and achieving long-term strategic goals and objectives (Earl 1996). The information system for Carlson Investment Solution helps managers in doing effective planning regarding accomplishment of the goals. It also helps in all business areas some of which include budgeting, planning, and forecasting future scenarios. Moreover, the system is also used to keep a complete and accurate record of all financial activities. As Summers (2010, p. 1) states, “upgrading your business information system is a necessary process that every successful organization should implement”. Without the use of the system, the employees cannot be able to access or use the information required for any particular business activity because analysis of investment opportunities depends merely on the type and amount of data. Information system of the company helps it in speeding up the business processes, as well as in strategic business development and decision making. Therefore, we can say that there is always a great importance of aligning the business company’s long-term Information Management Strategy with its overall corporate strategy. Answer Part b: I interviewed the manager of ‘Value Homes’, which is a high street estate office located in London (See appendix 2). The office currently does not make use of any proper information system because of lack of awareness about the effects of using information systems on businesses (Case study, value homes manager). Therefore, I suggested the manager the use of Management Information System (MIS) based on the number of benefits it provides to the companies. During the interview, I told the manager that some of the main purposes of implementing an information system (IS) in organizations are: to effectively manage expensive and critical organizational assets; to establish a link between business direction and information system; to effectively allocate the resources; to reduce the costs and time needed to carry out business activities; to improve interaction between IS department and the business; to ensure effective use of information; and to plan efficient information flow between different departments. I also told the manager that through the implementation of information system in the company, the employees can share information with each other effectively and efficiently. They can integrate the use of technology with all information activities in such a way that they do not face any difficulty in taking any kind of business decision. Another benefit of the IS for the company is that it increases interactive communication between two different departments, as well as within the departments. I also told him that information system can play a vital role in increasing the level of productivity and efficiency. Employees can use the information stored in the IS to analyze property investment opportunities for clients, as well as to provide correct suggestion to them. Moreover, users of the system can share knowledge with one another creating a collaborative learning environment at the workplace. “Information systems is offering opportunity to reorganize every aspect of business model and business processes” (Alshamlan 2006, p. 1). In case of Value Homes, it is very important to design an Information System strategy that should be able to provide the company with competitive advantage against the local competitors. Therefore, the main points the company needs to think upon while developing the information management strategy include firm’s readiness level for the incorporation of an information management strategy, who will be the users of the system, what will be the dynamics of the system, the way the users will operate the system, and the tools and technologies required for the implantation of the system. All of these factors are considered the main elements of IS planning framework which will also play a key role in the implementation of an IS strategy for the company. Estate agencies need to have all information about the ups and downs of property in any particular area in order to be successful because provision of correct information to clients depends merely on the level of information a company has. Therefore, I suggested the manager of Value Homes to start making efforts towards designing and implementing an efficient information management system which should not only speed up the business processes but should also be able to provide employees with required information about taxes, property value, cost estimations, and rent value within a short span of time. I suggested the manager to first identify the business areas that need the use of information management system. After knowing it, the company should explore the working of each department to know the connection that exists between different departments. After this, the company should make use of an entity-relationship diagram to determine the relationships between people, technologies, and processes. Based on the diagram analysis, the company should develop an efficient information system. Information technology provides the base for success in today’s competitive environment. Only those companies can do well in the market which make use of latest tools and technologies in all departments, such as, human resources, operations, organizational management, or financial management. For example, if we talk about financial management operations of Value Homes, we can say that information management system will help the company in storing, retrieving, and updating the company’s financial information, as well as in taking key business decisions based on the accurate analysis of the information stored in the system. I am sure that the company can further improve the efficiency and economic performance using the information management system described earlier. Answer Part c: Value Homes needs to adopt the use of a new computer system which should integrate the information management processes of all departments. This will not only help the company’s officials in quick retrieval of data but also will help in making accurate judgments about different property investment scenarios. Some of the main benefits the company can get from the new computer database system include quick collection of information, consistency of records, accurate analysis of information, completeness of information, and error-free processing of information. The new computer database system will include ten to fifteen computer systems attached to the server in which all information will be stored regarding the business of the company. There will also be a printer which will be in the use of systems’ users for taking print outs of reports generated by the Management Information System. The database components of the system will include the use of Oracle, VB.net, and Microsoft Excel. The system will bring a number of benefits for the company some of which include improved process control, increase business efficiency, improved customer service, enhanced interaction between organizational departments, and reduced operational and administrative costs. Moreover, the new system will also help the company in performing a range of data processing activities some of which include classification of data, rearranging the data, summarizing the data, selection of data based on some common factor, and assistance in performing accurate calculations. The new system will also help the company in forming a sound strategy regarding investment in new business opportunities. For example, the company can use its accounts and management information systems to analyze the property investment opportunities in new areas and locations before actually investing. The planning team of the company will be using the information system to assess the feasibility of new ventures and will be reporting to higher authorities in order for them to take business decisions accordingly. The information system of the company will also make employees aware of the potential risks associated with the investment opportunities due to which they will become able to tackle the challenges in a timely manner. In short, we can say that the new computer system serving the company as a Management Information System will play a considerable role in speeding up the business processes of the company. For example, employees will be able to take well-analyzed and calculated decisions based on the analysis reports generated by the system. The system will establish a useful link between people and information technology. According to Mcleod and Schell (2007), information systems involve the use of computer systems for collecting data, processing of data into information, and generating reports for decision-making purposes. Therefore, we can say that the new system will be playing the role of a business expansion tool for the company through efficient data processing ability. As Aoms (2010, p. 1) states, “processing of the information becomes significant for better performance of managerial functions”. the new system will bring automation to the existing business processes as the result of which the managers and employees will be facing no difficulty in responding to the changing business scenarios, as well as in taking quick business decision based on properly forecasted scenarios and accurate calculations. Answer Part d: With approximately 20 different functional departments and 5000 employees, there should be a fully functional and all-inclusive Management Information System in place which should help the company in managing the internal data sharing. However, the company can face some key challenges in introducing such system. For example, employees may do not have required skills to use the new system. As the company has nearly 20 departments and 5000 employees, the introduction of a new system without employee training can be ineffective for the cause. The company should first integrate the functional and non-functional requirements of all departments and should identify the main users of the system from each department in order for the system to deliver maximum efficiency for the company. When a company installs some new software in the computer systems, the provision of training to employees becomes essential in order to make them adapted to the use of the system. However, with little or no training, the implementation of a new system may result in expense instead of being an added advantage for the company. IT tools and technologies, if introduced in a company, require some employee training in order to reap maximum benefits for the company. Therefore, the company should provide required training to the intended users of the system so that they can use the system efficiently for data management. Another major problem that usually occurs in the implementation of a new Management Information System or any IT system in a company is security. Data security risk is always there when a new system is introduced in a company which will have to deal with precious information of the company. The company should use authorization and authentication features of computer security tools to ensure that only authorized people operate the system and retrieve information. The company should assign logins and passwords to each user of the system and should maintain a log which should record the activities of the users of the system. These were some of the main challenges that company is likely to face with the introduction of the new IT system. However, employee training and use of authorized controls can limit the occurrence of such risks to a great extent. References Aoms, P 2010, Management Information System (MIS) In College Management Software, viewed 02 December 2013, Alshamlan, A 2006, Information Systems Strategies: Prospective Demand and Supply, viewed 02 December 2013, Burke, A n.d., An Introduction to Management Information Systems, viewed 02 December 2013, Carry, J 1988, Human Factors in Management Information Systems, Alex Publishing Corporation, U.S.A. Case study, personal experience of visiting the Carlson Investment Solutions. Case study, personal experience of interviewing the manager of Value Homes. Earl, M 1996, Information Management: The Organizational Dimension, Oxford University Press, New York. Earl, M 1988, Information Management: The Strategic Dimension, Oxford University Press, New York. Lucey, T 2005, Management Information Systems, 9th edn, Thomson Learning, London. Martin, S 2010, An Introduction to Management Information Systems, viewed 02 December 2013, Mcleod, R & Schell, G 2007, Management Information Systems, 10th edn, Pearson Education, U.S.A. Summers, I 2010, Guide to Upgrading Your Business Information Systems, viewed 02 December 2013, Appendix 1: Case Study 1: Carlson Investment Solutions Inc. Carlson Investment Solutions Inc. is a London based firm that deals with providing investment suggestions to clients based on information analysis. The system works for the company in such a way that it stores all information and presents to the concerned departments is in the form of a well-documented report. The accounting information system for Carlson Investment Solution helps managers in planning issues. It also helps in budgeting, planning, and forecasting future scenarios. Interview taken from John Hudson (System Operator): Questions: 1.) How does the company manage information? 2.) What information is stored in the information system, if used? 3.) What benefits the company reaps from the use of the system? 4.) From how long the company is in business? 5.) Have you any future plans regarding the introduction of Management Information System in the company? If yes, what are they? 6.) How will you ensure security if the system? Appendix 2: Case Study 2: Value Homes ‘Value Homes’ is a high street estate office located in London. The company is in business since 2011. However, it does not make use of any proper information system because of lack of awareness about the effects of using information systems on businesses. The company has started designing its website which is going to be launched in a couple of months. Currently, the company only uses a single computer system to store information about clients, sales, and purchases. Interview taken from John Hudson (System Operator): Questions: 1.) From how long the company is in business? 2.) How does the company manage sales, purchase, and clients’ information? 3.) What information is stored in the computer system, if used? 4.) Have you any future plans regarding the introduction of Management Information System in the company? If yes, what are they? 5.) What problems you have faced without the use of a well-organized information system? 6.) What problems you face in forecasting investment opportunities without using information system? 7.) How will you ensure security if the system when introduced? Read More