Management Information Systems - Assignment Example

Management Information Systems Contents Contents 2 Question 3 Question 2 4 Question 5 6 Question 7 8 References 9 Question The information systems have been able to automate many tasks that were in earlier days very tedious to be performed. The information systems comprise of both positive as well as negative impacts. The major positive impact is that information system helps in saving time. In an organization much of the tasks can be executed faster in terms of double entry, developing financial reports, filling spreadsheets, etc. The time that is been saved by the use of information systems can be effectively utilized by the organization in terms of enhancing their performance or designing strategies. It can also be stated that multitasking functionality of information systems helps in saving valuable time. The multifold data operations are enabled through the multiprocessing capabilities of the information systems. The other major positive impact is that information system enhances the level of accuracy in data processing. The accuracy level is very important in handling huge volumes of data and the automated systems helps to maintain this accuracy in data handling and even facilitates faster processing. The third positive impact is that it reduces the risk in terms of losing data that was previously a big challenge as people used to have important data written on papers. The information system provides a scope through which large volumes of data can be stored in small space in the electronic devices which can be easily accessed as and when required. The negative impacts of the information systems are even widespread across different sectors. The first major negative impact is that the factor of piracy that gained its importance at a large scale after the evolution of information systems. The information systems comprise of certain methods through which the data stored in the systems can be misused by an individual. The other negative impact is that the speed and accuracy that is maintained by information systems leads to increase in rate of unemployment. The systems are capable enough to perform all the manual work making it advantageous for organizations but limit the scope for employment. The third negative impact is that of data security and data integrity. The information systems enables risk factor as volumes of data can be lost which would increase the cost and time. The malfunction that is caused by information systems often leads to loss of information and huge volumes of data. Question 2 The information systems can be considered as a production factor that is easily substituted for labor and capital. In an organization the entire production process is automated through information technology which in turn reduces the labor and capital required in order to deliver the specified output. The transaction cost theory describes that organizational size do increase majorly because some of the services and products can be obtained internally at a much lower cost than incorporating any external firm available in the market space. The curve below illustrates the theory- By lowering the transaction costs or market participation costs information systems facilitates organizations to obtain services and products at the lowest cost through various outside sources in comparison to internal means. On basis of transaction cost theory it can be stated that information technology helps in increasing the revenue of organization and at the same time reduces the size of the organization. In the traditional context the size of the organizations is noticed to grow so as to reduce the overall transaction costs. The concept of information technology helps in reducing the overall costs for a specific size. As stated in the above diagram if the curve is shifted inward then the scope for revenue growth would increase without any increase in organizational size. The agency cost theory considers the organization to be a form of contracts that exist between individuals who are self interested. These individuals need to be properly supervised so that they ate able to achieve the objectives of the firm. The diagram given below states the agency cost theory briefly- The impact of information systems is that it reduces the agency costs that are related to communicating with a large employee base performing different activities. The information technology enables the management of an organization to handle large number of employees in the firm and even the time required to coordinate with all the team members is decreased with the evolution of information systems. The increasing size of the organization gives rise to agency costs as well as more of complexity in the system. As stated in the graph above the information systems shifts the curve of agency costs down and then right which in turn facilitates the firm to control its agency costs and reduce it as well as increase on its size. Both the theories that is transaction cost theory and agency cost theory are contradicting by nature. This is because transaction cost theory states that increase in size of an organization leads to less of transaction costs which is further facilitated with the use of IT systems that even states that revenue can be increased without increasing firm’s size. On the other hand the agency cost theory is totally different as it states that increased size leads to more of agency costs and in such a scenario the IT systems helps the firms to reduce such costs as well as increase size. Thus in the first theory focus is on shrinking size and more revenue growth, while in the second theory the focus is on reducing costs and increasing size. Question 5 Organizational learning can be defined as a continuous process that is widespread across an organization so as to respond as well as accept all the internal and external changes. Organizational learning is a factor that is much more in comparison to the information that is possessed by the employee base. The mechanism of organizational learning requires collective interpretation and systematic integration of the current knowledge so as to enhance the risk taking behavior and enable collective action. The tacit knowledge can be defined as unspoken, hidden, and unwritten knowledge that is possessed by all individuals on the basis of their emotions, intuition, experiences, observations, insights, and other form of internalized information. Tacit knowledge is very different from the organizational learning as in the former it is based on the consciousness of an individual but in the later case it is gained by an individual while performing tasks in an organization. A best practice can be defined as a methodology or technique that is considered to be reliable through research and experience so as to deliver the required outcomes. The best practice has no similarity with the concepts of organizational learning or tacit knowledge as it is no information that is gained through individual’s experience or through organizational process but acquired through continuous research. An organizational memory can be defined as an accumulated body that comprises of knowledge, information and data that is created in lifetime of an individual organization. Organizational memory is a sub part of knowledge management and can be associated with the archives of an organization comprising of electronic databases as well as memories of an individual. Organizational memory differs from the concept of best practices as it is not acquired through any form of research but is very closely knitted with the concepts of tacit knowledge as well as organizational learning. This concept comprises of the knowledge that is gained through experiences of an individual that is related to tacit knowledge and also encompasses the information that is gained through organizational process as described in the concept of organizational learning. Amongst all the concepts the most difficult one to be pinned down in the knowledge systems is the approach of tacit knowledge. This is simply because it is based on the factor of individual’s experience and consciousness that continuously changes and cannot be implemented into a system directly. The other three concepts of organizational learning, organization’s memory and best practices are not related to a specific individual and hence can be easily incorporated into the knowledge systems. Question 7 The information systems architecture is a term that had been coined so as to describe the structure of a particular system. The authors usually recommend nine major steps so as to design an information system architecture that is effective. The first major step is to analyze the requirements of the international business and even the required content in relation to a system. This step even comprises of going through the available documentation, conducting content inventory and even interviewing various stakeholders. The next step that is recommended is to conduct an exercise of cards sorting encompassing representative users. The third step is to evaluate the exercise’s output and capturing trends in labeling and grouping. The next step is to develop a draft that comprises the details of information architecture. The following step is to prepare the organization for a change through describing the benefits of information system architecture. The next step is to develop a project team who would undertake the major tasks of developing and implementing the architecture. The next step is highly recommended by the authors who state that thorough knowledge audit needs to be conducted so as to analyze the loopholes in the existing system which needs to be incorporated in the new architecture. The next step in designing the architecture is defining the major features of the information system that needs to be present such as in the international context it needs to be distributed and open and even customizable. The final step is to execute knowledge mapping and developing blocks that would help to resolve issues and this step is usually performed before linking the information system to people. References Kim, T., and Adeli, H. 2010. Advances in Computer Science and Information Technology. New York: Springer Science & Business Media. Nagamalai, D., Renault, E., and Dhanuskodi, M. 2011. Trends in Computer Science, Engineering and Information Technology. New York: Springer Science & Business Media. Sousa, K., and Oz, E. 2014. Management Information Systems. USA: Cengage Learning. Tomar, G. S., Chang, R. S., Gervasi, O., Kim, T., and Bandyopadhyay, S. K. 2010. Advanced Computer Science and Information Technology. New York: Springer Science & Business Media. Read More