Management Information System Implementation - Premier Hotel Chain - Case Study Example

Business Information Systems Name: Tutor: Course: Date: 1.0 Introduction In the recent past, many organizations have invested on information technology, especially computers to solve and analyze numerous transactions on daily basis. As they practice information management, individuals in those organizations makes useful use of the information to benefit processes and improve its performance. Of particular significance to information management is the counterpoint between individual members and their organization given their responsibilities at individual level and also at an organizational level (Tripathi, 2011). By managing information, the Premier Hotel Chain (PHC) recognizes formal and informal information sources as well as the external and internal flows to the organization. Information technology not only allows managers utilize information as an available resource but use it to improve on their systems and processes to increase organizational productivity. Managers are a link between workers and their organizations and thus stand at the helm of knowledge creation and management (Banerjee & Sachdeva, 1995). Moreover, an organization requires Management Information System (MIS) that is flexible to handle the organization’s changing information needs. The business environment continuously interacts with an open system with built-in mechanism so as to provide the needed information according to management requirements. Therefore, the schedule of MIS implementation is consistent to organizational needs and their desire to achieve competitive advantages. 1.1 Importance of information to an organization Information is defined as data applied in useful and meaningful context of which when relayed to a recipient will use it to make informed decisions. While information involves the reception and communication of knowledge or intelligence, good information should demonstrate usability, reliability, cost-effectiveness, accuracy, timeliness and relevance (Tripathi, 2011). Meanwhile, Rajagopal (2002) argues that information value is related to the decisions that result from its use; hence, it has great impact on decision making. There is no absolute universal value to information does because its value to the organization relates to the users, usage and circumstances for its usage (Das, 2012). PHC being a service organization has information such as number of workers, hours worked per day, number of customers and guest preferences, and frequency of bookings at its disposal. As decisions trigger actions, information supports decisions which will affect the performance and achievements of its customer and revenue targets (O’Brien, 2004). Since the impact of information can be traced, the differences in performance can be measured (Davies, 2009). PHC needs to carefully perform measurements and establish relationships between variables that affect its financial performance and employee engagement. Lucey (2005) observes that middle and top management are supported by information systems that involve probabilities that can be quantified and subsequent decisions from strictly defined events.  For example, your management can use information captured in databases appearing as single tabular presentations and a summary of requirements in specific functions of the organization. Trends can be observed by comparing information from two or more time periods (Das, 2012). As they make their decisions, your managerial team will sieve through various categories of data to their benefit (Milis & Mercken, 2002). For instance, being in the hospitality and travel industry, you will be able to make good use of benchmark surveys, guest forecasts, marketing budgets, employee job descriptions, career development plans and training requirements. 1.2 Using technology to manage information Drastic changes have happened in ways of doing business because firms have increased their technological capabilities (Chan, 2000). Your organization can utilize electronic platforms to communicate suitable information to various departments. Some of the technology instruments available to managers include accounting programs, PowerPoint, e-mail and instant messaging graphics and database, electronic spreadsheet and word processing (Chan, 2000). Avgerou (2000) shows that technology tools provide visual and text description of data in terms of tables, graphs and slides for managerial use. For example, you can use spreadsheets to analyze raw data about customer bookings into hotels per day into graphs and charts for easy interpretation and inference. The resulting information can be displayed on PowerPoint slides. Also, integrated accounting programs can be used at the point-of-sale to understand customer streams and check-in/out dates (Rajagopal, 2002). At an advanced level, your organization can utilize information systems to increase reach, effectiveness and performance apart from simply evaluating, directing and planning activities (O’Brien, 2004). Management involves accountability for actions (responsibility) and the right to direct actions (authority) (Rajagopal, 2002). In the process of organizing and planning organizational activities, managers will use information such as satisfaction surveys, website traffic, number of calls to hotel receptions, and occupancy levels using technology. MIS systems are a way to go. Management Information Systems (MIS) enable firms to track productivity levels, expenses and sales data. When managers in your organization commit to use MIS, they will be in a position to implement critical activities and decisions for business development and growth (Kroenke, 2007). This is because MIS provides ad-hoc, predetermined and periodic reporting capabilities.  Certain decision making tasks will be supported by the summarized information generated from the reports by MIS systems. Alternatively, the MIS reports can be comparative, exceptions, periodic, ad-hoc or summarized (Banerjee & Sachdeva, 1995).  For example, when your manager requires information on customer booking and satisfaction levels, the MIS will generate these reports from customer integration system (CIS) and transaction processing systems (TPS) databases. Basing on verified data, managers can create business plans, contact consultants and financial institutions using summaries of interpreted information (Tripathi, 2011). Before information systems and computers, managers were compelled to sift manually volumes of information so as to get what they need and consequently make decisions (Sachdeva, 1990). In the contemporary business environment, firms are predisposed to instant messaging e-mail, fax machines, internet and voice mail which help in communication and sharing of managerial information. For your firm to be progressive, you need to use internal and external data as part of tactical execution of strategy and for strategic planning process. While information can be used over time to track profitability, Sakthivel (2014) agrees that applying MIS systems in your organization will help identify areas of improvement and maximize return on investment. When managers can on a daily basis track sales, they can reduce the cost of service, boost employee productivity and respond immediately to lower-than-expected numbers (Das, 2012). Knowledge base and structure database will have been created if the information reporting systems are disciplined. 1.3 MIS Implementation plan Implementing MIS systems in PHC requires a suitable conversion approach from old to new systems. The following recommendations are made; A parallel strategy is recommended where potential replacement is made to run together with the old system until a point where everyone in the company is confident that the new system functions correctly. A customized solution should be purchased while data collection, conversion, migration and entry are underway. This will reduce wait time at the implementation phase. All pre-requisite work such as bidding and evaluations should be completed before the start of actual work. The cost of MIS should be negotiated to $300,000. While the old system can still be used as a backup, PHC can be cushioned from processing disruptions and errors. However, it is expensive and requires additional resources and staff to implement. The implementation schedule is as shown in the table below. Event Description Dates Remarks Training and documentation Assist in training users; user training; assist users to accept the application software March 2016- March 2019 Ongoing activity Purchase customized MIS from developers All-in-one package April 2016 After determining the number of end users Installation of software on servers and PCs Production go-live and run May 2016 Reviews by technical specialists and users September 2016 Conduct parallel runs Installation; troubleshooting, data collection, entry, conversion and migration January-February 2017 Fix bugs Troubleshoot functions to understand causes and solutions to problems January 2017-Feb 2019 Solve problems with end users; Regular inspection and checks Maintenance and support Prepare formal document on post implementation audit; improve processing efficiency; meet requirements and correct errors March 2017-future 1.4 Technology use to improve organizational performance Implementing MIS systems will be beneficial to the entire company as it will be able to manage information and data to make informed decisions (Milis & Mercken, 2002). As it is evident that your company is using basic tools to analyze and compile specific information in customer care, human resource, marketing and finance, using MIS will help the company achieve a competitive edge. Your organization will not only to able to make judgments on certain decisions but will also know when to apply the specific information. With increased efficiency and performance, the company will be pulled towards corporate objectives and goals. Implementing MIS with three years provides a good time for all the employees and managers to understand the systems and apply across the organization (Sakthivel, 2014). Similarly, order is not only brought to the organization’s operations as everyone is required to use and follow the procedures and systems but also high degree of professionalism. Also, functional targets will become easy to be tracked and monitored. Managers will find long-term perspective planning and forecasting easy by following certain information that indicated trends in the business and the industry it falls (Davies, 2009). Your company will be able to compete and expand internationally in a globalized and liberalized world. Reference list Avgerou, C. (2000) Information systems: what sort of science is it? Omega, Vol. 28, No. 5, pp 567- 579. Banerjee, U. K., & Sachdeva, R. K. (1995) Management information system: A new frame work. New Delhi: Vikas Publishing House. Chan, S. L. (2000) Information technology in business processes. Business Process Management Journal, Vol. 6, No. 3, pp 224-237. Das, S. K. (2012) Applications of management information system in an organization. Paper presented at the National Seminar held on 24-25 February 2012 at IACS, Jadavpur, Kolkata, India. Davies, P. B. (2009) Business information systems. New York, Palgrave Macmillan. Kroenke, D. M. (2007) Using MIS (2nd ed.). Upper Saddle River, New Jersey, Pearson Prentice Hall. Lucey, T. (2005) Management information system (9th ed.). London, Thomson Learning. Milis, K. & Mercken, R. (2002) Success factors regarding the implementation of ICT investment projects. International Journal of Production Economics, Vol. 80, pp 105-117. O’Brien, J. A. (2004) Management information systems: managing information technology in the business enterprise (6th ed.). New York, McGraw-Hill/Irwin. Rajagopal, P. (2002) An innovation-diffusion view of implementation of enterprise resource planning (ERP) systems and development of a research model. Information & Management, Vol. 40, pp 87-114. Sachdeva, R. K. (1990) Management handbook of computer usage. Oxford: NCC Blackwell. Sakthivel, R.S. (2014). Role impact and importance of MIS, September 1, 2014. https://www.linkedin.com/pulse/20140901121616-270946654-role-impact-and-importance-of-mis. Tripathi, K. P. (2011) Role of management information system (MIS) in human resource. International Journal of Computer Science and Technology, Vol. 2, No. 1, pp 58-62. Read More