Axis Bank and Walmart - Management Information Systems - Case Study Example

MANAGEMENT INFORMATION SYSTEMS Management Information System (MIS) is a diverse and organized information system that collects, analysis, distributes and stores data associated with all the departments in an organization. Management Information System ensures the success and efficiency of the decision making process which is the key to administrative process in an organization. MIS provides the management of an organization with valuable data that is used for the running of the organization’s operations. It provides the central storage of all the organization’s information. MIS is used at all levels in the organization. For instance, it provides crucial information at the senior management level to assist them make strategic decisions. At the other levels, it observes the organization’s operations and distributes information to all the employees and customers of an organization. Management Information System is vital in the decision making process of an organization (Shajahan & Priyadharshini, 2004). Management information system Management Information System is an organized information system that collects, analysis, distributes and stores data associated with all the departments in an organization (Lucey, 2005). Businesses and organizations use MIS in all levels of their operation to store, collect and process data. Thus, different businesses and organizations use different management information systems in their operations. This paper will use a case study of Axis Bank and Walmart. The different levels of management of Axis Bank and Walmart use management information systems in monitoring and controlling the operations of the organizations. The systems should always be supportive of the organizations long term strategic goals and objectives as well as to the everyday operation requirements (Lucey, 2005). Both Axis Bank and Walmart use the everyday financial accounting systems to ensure the maintenance of basic control over the financial record keeping activities. Financial accounting systems are a type of organizational management information system. They are a crucial part or functional element of the management information system structure. Both Axis Bank and Walmart use financial accounting systems. These systems are mostly focused on internal balancing of organization’s books to the general ledger and other subsystems of financial accounting. Predictive information system is a category of management information system. It provides data and information along with the predictions and the inferences. It helps the management to know what could happen if a certain action or decision is taken (Shajahan & Priyadharshini, 2004). This type of information system is used for semi-structured decisions. Axis Bank and Walmart use this type of management information system. Databank information system is a creation of database by grouping and storing data that is potentially useful to the management in the decision making process (Lucey, 2005). Information in the databank is usually merely suggestive and the management has to determine contextually the effect and cause relationship before making the decision. In Axis Bank, this type of MIS is used for unstructured decisions. Decision making information systems, a type of MIS, provide expert and detailed advice to the management in the form of recommended course of action given the prevailing value system in the organization (Shajahan & Priyadharshini, 2004). The management has just to modify, approve or disapprove the recommendation. It is suitable for the structured decisions. Walmart usually use this type of management information system. Use of information systems in managing internal operations and making decisions Information system offers many benefits for internal operations of an organization. For example, Walmart can program its store computers to display important memos and daily messages. Since Axis Bank have many employees working at multiple locations, they can be able to communicate with each other via email. In Walmart at the store level, information systems allow retail associates to efficiently conduct inventory audits and update pricing. This not only speeds up operations in the organization but makes it easier for employees to check and compare the inventory data with the actual stock and account for the missing items. Organizations make decisions on the operational improvements and on selecting new opportunities for the efficient running of the organization. Axis and Walmart use information systems to enhance job performance and customer satisfaction. It also provide a medium through which the organizations’ activities are monitored and how information is distributed to the customers, employees and the management (Lucey, 2005). Organizations use information systems to ensure appropriate time frames and presentation formats required by the different management levels are met (Shajahan & Priyadharshini, 2004). Information systems are developed and maintained in such a way that they are sufficient to meet the organization’s unique objectives. Walmart and Axis Bank use the information systems to make sure potential customers are aware of the products they offer. Information systems are used by the organizations in the risk management strategy. They support the managements’ ability to perform reviews, measure, recognize, manage and monitor the risks (Lucey, 2005). This is done through the involvement of the core elements of risk management; operational processes, feedback devices, staff management and policies or practices. Use of information technology for competitive advantage Information technology has greatly helped the management in both planning and in decision making. It has enabled the organizations to know their potential market and hence know who to target (Shajahan & Priyadharshini, 2004). For example, Walmart can look at the global trends in the consumption of certain products and hence plan ahead in order to have a competitive advantage over the other competitors. Axis Bank can be able to monitor the proportion of one’s income that is spent and hence strategize on how to have more people save their money with them. Customer relationship management has been adopted by Walmart. It is an effective marketing system where organizations collect data and set up customer accounts at their point of sale (Shajahan & Priyadharshini, 2004). This helps them leverage their core customer relationships. For instance, the customers who purchase particular products are the best targets for renewal when the opportunity arise and those that have not been seen for a while are sent direct mails. This helps in retaining organization’s customers. Analyzing of different trends, tastes and preferences have been made easier by information technology. This has helped the management of the different organizations in identifying, managing, limiting or averting risks (Lucey, 2005). Without information technology, it is more difficult for the management to identify, measure and monitor the risks that the organization is facing. As a result, decisions are made to ensure that organizations have an upper hand over their competitors. It has enabled organizations to identify market niche that will give them the competitive advantage. Introduction of new services and products, acquisitions and mergers have been adopted by different organizations. This has been possible through the use of the information technology. Individual and organizational consequences of the use of information technology Use of information technology have of significant importance to both individuals and organizations. For instance, huge cost benefits, productivity gains and time savings are associated with the use of information technology. It has enabled the easy access and analysis of data without the tedious time consuming data manipulation and processing. Decision making process have been enhanced and decisions can now be made faster with the guarantee that the data are accurate and time relevant. Integrated information has been used in organizations for the efficient operation of the organization. Potential security breaches and computer crimes Computer crime is the illegal or unauthorized actions perpetrated via the computer, theft of technological hardware or the computers (Lucey, 2005). As people and organization of all sizes increasingly depend on computers to operate, worries of computer crimes have also increased as the practice have increased regardless of the efforts of the business communities and law enforcement to stop it. Hacking is a major computer crime. Computer hackers usually have a goal of trying to prove a point by use of clever manipulation on other computers (Shajahan & Priyadharshini, 2004). Nowadays hacking has been used for various reasons one of them being an attempt to earn money. Indeed, crucial information stored in computers make them a target for fraud, embezzlement efforts and corporate espionage. The greatest threat to information security in an organization is its employees. They know the valuable information and where they can find it and decide to use it for their own benefit. Outsiders also engage in this behavior by the use of viruses and worms. Viruses are the most popular outside threat to an organizations computer network. They infect the computers by attaching themselves to files and programs (Lucey, 2005). Hardware theft is also a form of computer crime (Shajahan & Priyadharshini, 2004). The culprits of this are usually the employees who work the shifts after the business hours. Other loses are due to the outsiders who break-in and steal the computers, technological and computer hardware. Thieves are also in the streets where they steal notebooks and other hardware from the business travelers and other people. Conclusion Management Information System is an organized information system that collects, analysis, distributes and stores data associated with all the departments in an organization. Different organizations use different management information systems in their operations. The MIS should always be supportive of the organizations long term strategic goals and objectives as well as to the everyday operation requirements. Management information system is vital in the decision making process of an organization. References Lucey, T. (2005). Management information systems (9th ed.). London: Thomson Learning. Shajahan, S., & Priyadharshini, R. (2004). Management information systems. New Delhi: New Age International (P). Read More