Implementation of Automated Management Information System - Coursework Example

The Use and Implementation of Automated Management Information System across the Retail Sector Management information systems can be defined as usingthe IT to automate processes, information production using computers, telecommunications, software and other ancillary equipments. The main aim of the management information system is to convert data from various sources into information vital for decision making. In the banking sector, retail banking has been automated with the introduction of Automated Teller Machines that allows the customers to access banking services without having to queue over the counter for services. On the other hand, supermarkets and outlet stalls manage the stock and sales using the management information systems (Michael, 2004). Easy access to accurate and up to date information has been realized after the introduction of the management information systems which can be used in decision making. Data Collection and Analysis Use of multiple categories of respondents such as peers, customers, managers and self reports can provide the retailers with relevant information for decision making. Further, longitudinal designs can be used where a single respondent approach is used to gather information for subsequent analysis. However, the longitudinal approach is somehow impractical due to high costs required and less participants to draw the information from. In using self reports, anonymous answers from respondents is desirable because most respondents pretend make themselves better in answering survey questions (Michael, 2004). Data mining is one of the most useful technique in selection of data for analysis and therefore vital for decision making. The use of computer ancillaries and the entire management information systems provides the retailers with huge information necessary for decision making. With the MIS, most businesses have established links to gather information from the customers such as through debit cards, credit cards just to mention but a few (Joseph, 2009). The following techniques usually recur in data mining: Artificial neural networks are non-predictive model expert systems that have been developed to function like a biological neural network. Additionally, are data mining techniques used to predict values and classify them as good prospects or poor prospects. Secondly, another technique relevant in data mining is a decision tree (Michael, 2004). This exhibits a hierarchical arrangement of values and a subsequent prediction of the value. Once the computer program is installed, data is entered and a decision tree is produced. The Management Information System Used In Financial Management A financial management information system is a management system that tracks financial events and produces a summary at the end of a given period or upon request. Mostly, such a system is an integrated system with fundamental characteristics. First, this system has a standard data classification for storing and recording of the occurring financial events. Second, the system has inbuilt internal controls over data entry, processing of transactions and reporting. Thirdly, the system is fitted with a system design that eliminates unnecessary duplication of data entry (Michael, 2004). The Management Information System used in Marketing and Data Management Marketing in any business deals with the movement of products and/or services from the manufacturer or the provider to the consumer. One of the basic aspects of marketing is supply chain management which involves a series of companies that ensure that the products and the services reach the final consumer. The use of management information systems have enabled various retail businesses to order for goods online and subsequently selling of the products using the websites. In supply chain management, management information systems can aid in the purchasing management. Through e-procurement systems developed in 1990’s, most retail businesses reduce their expenses by making orders online and selling their products in the same way. In marketing, demand and supply forecasting is vital for planning and sound business decisions. The development of an accurate forecasting is vital for business decisions and helps in combining the factors that influence demand. Using a combination of techniques like Delphi, regression analysis among others, the management information systems develops an accurate forecast to be used by retail businesses. The management of inventory also forms part of marketing and here, management information systems allow firms to share data and information quickly. Additionally, detailed customer information is captured in the Automated teller Machines (ATM) in the retail bank service which is relevant for determining the services within the customers reach (Joseph, 2009). Data management using the management information system has grown since the inception of IT in the retailing business. The use of bar codes in (point of service) to enter the details of products sold in supermarkets and major retail outlets is very vital in data collection. This system ensures that data is collected easily and makes inventory management easier at the end of the financial period. In the microfinance sector which provides services through retail based system has also benefited from the introduction of management information system in the business sector. Activities such as deposits, withdrawals and money transfers can now be completed in a short time due to the reduction of the paperwork traditionally used (Joseph, 2009). The Trends in Hardware and Software in Retail Management Information System and Their Impact on Society Software like Oracle Financial has hit the market in many businesses. Their significance and benefits are more to the retailers than to the customers. The development of computer systems like the ATM has enhanced the development of IT in other sectors. This development in IT has left the people with no choice but to study their applicability. Mostly, these systems are met with resistance by Trade Unions who view as if they are put to displace them from employment. The benefits and negative aspect of technical development in the use of retail management information systems The implementation if MIS adds brand awareness reputation as advertising is mostly web based and reaches many people. Further, this system deepen trust and loyalty of the customer to the products due growth of knowledge on the product. Through product mix using expert systems, superior product performance can be achieved at affordable prices. The MIS has established channels for effective communication between retailers and customers and therefore effective marketing (Diana, 1992). Customer interaction at point of sale with the employees builds a relationship between the two parts. Some of the negative aspects affect the retailers while others are faced by the customers. The labor market for technical experts is insufficient. Additionally, the few experts available charge high remunerations at the expense of the retailers. Software and hardware maintenance remains a nightmare for most retailers. The interfaces created by this software are hard nut to crack by most employees therefore making potential customers to shy away from completing a transaction (Diana, 1992). The Strategic and Operational Implications, Trends and Development in Retail Management Information System A manager is expected to perform various classical functions including: planning, organizing, coordinating, decision making and controlling of activities within there area of jurisdiction. The operational decisions involve the day to day decisions such as ordering of stocks. A long term decision that affects the future of an organization is considered a strategic decision. With the implementation of the management information system transactions of business in the retail sector have significantly reduced more particularly, in the supply chain. Data storage and collection costs have significantly reduced and with the invention of faster and better systems, the volume of data will continue to increase (Diana, 1992). The automated decision making application using the management information system is expected to have substantial implications in the retail sector. Where complex and ambiguous strategic decisions arise, the management information system plays a major role in unsettling such a dispute. The various data analysts and information workers in the retail sector are benefiting from the automation of the tedious calculation processes (Diana, 1992). Management information system is actually replacing intensive knowledge management and in place inputs decision support systems. References Diana, M., Donald, G.C. (1992). Building strong management and responding to change World Bank Publications, Washington, D.C. Joseph, M. (2009). Management Information Systems in Knowledge Economy PHI Publisher, Louisiana. Michael E. W., Amy B. W.(2004). The handbook of information systems research. Idea Group Inc (IGI), New York.   Read More