Impacts of MIS on Aramex - Assignment Example

Impacts of MIS on Aramex IMPACTS OF MIS ON ARAMEX Introduction Since the initial existence of businesses, managers have sought to get, organize, as well as analyze their information. This way, they are able to handle data in the interest of the business, which is referred to as the business’ IS. While business information systems have gone through many changes, the impact and relevance it has on an organization’s successful management is at an all time high. MIS offer many benefits to organizations like Aramex if they are correctly used and implemented. However, it is possible for even the best designed IS to be subject to error or even be misused. Some managers blunder by believing that all informational concerns are addressed once an MIS has been set up and is in use. While it reduces the occurrence of human error, it does not eliminate error. The managers will have to train and educate the employees on the various impacts MIS has on the entire organization’s operations, especially if they are to achieve competitive advantage. For Aramex, the way they implement their MIS will determine whether IT will drive their business or whether it will become a function to be absorbed by business lines as their managers become more versed with the systems. For this reason, this paper will seek to determine the impact of MIS on Aramex’s decision-making, organizational structure, data security, as well as the impact that future trends are likely to have on Aramex’s strategy. This paper will also investigate the impact in different interviews with Mr. Hussein Hachem and Mr. Iyad Kamal, CEO and COO at Aramex respectively. MIS Impacts on Decision Making Aramex has an abundance of data at their disposal that they can draw on when making decisions. Aramex can use many tools in the analysis of data to improve on their decision-making. According to Mr. Iyad Kamal, Aramex COO, they use the Performance Planning Value Chain to enhance their decision making (personal communication, August 1, 2013). Through this, they are able to bring a vast collection of analytical tools to focus efforts and extract data value in adding value to the organization. Aramex uses MIS in decision making as it provides a process through which they can transform data that is dispersed or disorganized into high quality Information with added value allows the user to make decisions that are more effective (Edwards et al, 2000: p37). It also provides for a process that coherently combines skills to analyze and interpret information from numerous organizational sources, as well as the ability to aid non-specialists in deciphering complex technical information. Finally, it also has the ability to increase the employee’s insights on the information. MIS aids in the process of value extraction from data, such as the development of a hypothesis, data gathering, data analysis, data interpretation, communication of insights, and making decisions that are informed to take action (Fazlollahi & Vahidov, 2001: p236). It has the ability to move an organization to effective handling of information from simply working with data, turning it into knowledge with added value for competitive advantage. At Aramex, their MIS framework compares to the Plan Do Check Act cycle, which is an almost modern quality control. This was designed by Dr. Edwards Deming, which he also referred to as the Shewhart cycle. In six sigma programs, Dr. Deming further refined this cycle in to; define, measure, analyze, control, and improve cycle. Using information to enhance decision-making has to do with data conversion into information, while the information is further converted into knowledge that can help the organization in making decisions. According to Mr. Kamal, Aramex uses the Performance Planning Value Chain system for this purpose (personal communication, August 1, 2013). This prescriptive normative model describes the manner in which this process can be carried out. This includes numerous techniques and tools that the organization can use at every stage to increase value that they can get from the available data in their systems, which improves their ROI made during the gathering of information. While this system is prescriptive, its stages are generic and are usable for organizing a framework that is descriptive for synthesis of the vast data. Each of the stages in this system can be undertaken independently. In reviewing the information, the system is not taken to be linear but, rather, a set of process activities that use the available data to inform making of decisions (Wiederhold, 2000: p89). If the process is undertaken in a linear form, data is converted into information. This happens when it is given meaning and context after interpretation. When the information is taken together with the beliefs held by the decision makers during decision-making, the information is turned into knowledge. MIS Impact on Organizational Structure Mr. Kamal, who contends that the largest biggest influence on the architecture and design of the organization has been information technology and system evolution, emphasized information technology’s contribution and impact on Aramex as an organization (personal communication, August 1, 2013). MIS has a vital role in the important elements that shape most organizations. In fact, MIS is an equal attribute in the organization with business processes, people, and strategy. These elements are greatly interconnected since it is impossible to change one in a transformative way sans considering the others. The formal structure of an organization will most likely be affected with the implementation of an MIS strategy’ although this does not have to be the case. In an organization, it is possible to link MIS to changes in factors like work team formations, internal and external cooperation, supervisory autonomy and relationships, physical location or layout, as well as job design (Kahn, 2000: p332). At Aramex, according to Mr. Kamal, the idea of a virtual workplace is a notion whose time has come (personal communication, August 1, 2013). This concept is based on the premise that when the employee has access to the information they require, they are able to work independently. The virtual workplace allows employees to have the information they require anytime to carry out their task sans need for them to remain in their offices. This plan, obviously, would depend on the job at hand, although such employees would possess ultimate autonomy. Management would also have to be reconfigured to supervise employees with increased autonomy (Kotlarsky et al, 2007: p16). The organizational tasks need to be goal oriented and more objective with measures of job performance being no longer dependent on personal interaction. Rather, it will have to be tied to an ability to complete the task at hand. Aramex had to make some modifications; some were planned, whereas others emerged without planning. According to Mr. Hachem, Aramex CEO, the organization used MIS to improve speed of communication, transfer of information, and sharing of information without regards to the temporal dimension or to physical locations (personal communication, August 1, 2013). The supervisor is, therefore, able to look after the activities of many employees without needing any direct reporting. This span of control can be referred to as a measure of the number of employees a supervisor manage effectively. These are expected to give way to communication spans, which is the number of people managers can reach using the information system (Lucas, 1994: p14). In addition, some of the changes implicit, especially with regards to their relationship with clients and suppliers. As Aramex gained information along the distribution channel, it made having control on the entities, or processes less of an issue. Aramex, having considered vertical integration at some point, came to realize that this was less necessary as they began to use IS more imaginatively. MIS also drastically affected the tasks that were performed by the employees through increased technological application in the organizational processes. The expectations of an employee in an environment with integrated MIS have to change, as they are more reactive to situations, rather than performing repetitive tasks (Hitt & Brynjolfsson, 1997: p92). MIS Impact on Data Security However, the increased use of IT systems has created risks that were not present before. According to Mr. Hachem, one of these risks is the access of Aramex data by unknown third parties through mobile devices (personal communication, August 1, 2013). The current trend at most organizations, including Aramex, has seen employees download mobile apps and install them for personal use. This has allowed for unregulated access by third parties to sensitive corporate data and information stored on these devices (Halliday et al, 1996: p25). Some of the risks to these devices include infection with malware that could be used, by hackers, to control servers and get information without alerting the mobile device user. If the devices are Wi-Fi connected, they might expose the corporate data that is contained in these devices. Aramex has tried to remedy this by blacklisting software that has malware risks, whereas also separating personal and corporate data on the devices using Mobile Application Management. According to Mr. Hachem, this involves creating, management, and deployment of commercially available apps on personal devices. Another risk involves the leaking of data by disgruntled employees or those who are leaving an organization (Halliday et al, 1996: p27). Most of these employees possess devices with sensitive data, which they could also use for their personal benefit. To counter this, Aramex ensures that HR reminds employees that all data on these devices ids company property. In addition, they monitor data-in-motion and data-in-use on the personal devices. However, transmission of data and information electronically and on the internet cannot be secured completely by these approaches. While Aramex tries its best to secure personal information, it is not able to guarantee data security for information shared on the internet, according to Mr. Hachem (personal communication, August 1, 2013). For this reason, Aramex has implemented a planned risk management approach. The organization does recognize industry standards, doing its best to employ safeguards to protect the personal information from misuse and access. Aramex encrypts all personal information before it leaves the client’s browser using SSL 128-bit RC4 technology. They also use VeriSign for online payments to secure credit card authorization in transactions carried out over the internet. VeriSign handles the entire transaction with the client’s bank and informs Aramex that the transaction has been authorized. In addition, the details from the credit card must not be stored on the organization’s servers or in any other place on the internet (Tran & Atkinson, 2002: p239). This approach does have some business risks as with the majority of business ventures. Depending on how the organization deploys and uses the risk management approach, some challenges do come up. Budgetary allocation for the system’s upgrades, revisions, and modifications can prove to be tricky sometimes, especially during the past economic crisis. Lack of uniform budgetary allocations according to requirements could lead to some key functionalities being affected. This will cause the benefits from the system not to be consistently realized (Mukherji, 2002: p502). Issues of integration with legacy systems could also affect output quality while compromising vital organizational intelligence reports. Mr. Kamal also refers to constant monitoring issues as a challenge for their risk management approach (personal communication, August 1, 2013). Management and staff changes have a broad effect on costs related to monitoring of the MIS risk management approach. Because it is a critical component of Aramex’s risk management strategy, it is necessary to monitor it constantly to ensure it is effective. According to Mr. Hachem, the organization had to start taking risk management as a management issue, rather than a technical one. Establishment and continuous update of the system provides a strong indication as to the use of a systematic approach to identifying, managing, and assessing the risk management approach. Impact of Emerging Trends in IT Going forward, Mr. Hachem believes that Aramex will continue to be impacted by IT trends, especially smart devices and cloud computing (personal communication, August 1, 2013). There is an increased use of smart mobile devices that are based on Blackberry OS/QNY, iOS, and Android. It is projected that tablet use alone will have effective parity with personal computers by the year 2015. Therefore, while it is still early days, Aramex believes that it is essential they begin to treat smart devices as equal partners in their MIS and IT strategies. However, there are several challenges to this, including the fact that these devices are poor in enterprise ecosystem. IT departments and software vendors are organized around older platforms like LAMP and Windows. The IT relationships, skills, and infrastructure are still built around older IT generations while Android and iOS have not built up enough to match the older IT world. In addition, most inherent advantages of this technology are not presently compatible to traditional IT structure. According to Mr. Hachem, however, the key adoption insight for this technology is the possibility to design them for loss of control (personal communication, August 1, 2013). This means that employees can bring personal devices to work safely as discussed earlier, including for use of business data under particular specified conditions. This should unleash innovation and lower costs. Another trend that will impact Aramex is cloud computing, which is less controversial than mobile devices. According to Mr. Kamal, cloud-computing technology is expected to reduce costs, although performance perceptions and lack of visibility will be a major issue for an organization as large as Aramex (personal communication, August 1, 2013). Nevertheless, cloud computing is being adopted for critical and non-mission applications with Aramex even thinking of downsizing data centers. Mr. Hachem, however, sees challenges to its implementation. For one, there is the issue of control, especially since more tasks are now reliant on a working IT system. In addition, he does not seem to trust cloud entirely, in spite of many providers being reliable compared to internal infrastructure. Cloud computing also has issues with reliability, as well as performance perceptions with outages by Microsoft and Amazon setting back its adoption. However, Mr. Hachem believes that a key adoption insight is that there are new emerging technologies that have made it possible to build private clouds for selective service transfer on a trial basis (personal communication, August 1, 2013). Conclusion It is now clear that, in order for Aramex to maintain a competitive advantage, its IT systems must be managed in a way that enhances positive impact on decision making, organizational structure, and ensure that data in their possession is secure from its rivals. In addition, the new trends in IT, including smart devices and cloud computing should be integrated in a way that ensures they lead the organization’s business model, as well as its evolution, rather than becoming a commoditized utility. This should open up supply chains as it allows strategic abundance of IT through designed control loss together with agile and emergent approaches to IT. References Edwards, J. S. Duan, Y. & Robins, P. C. (2000). 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