Managing Information for Competitive Advantages - Research Paper Example

Managing Information Table of Contents Table of Contents 1 Introduction 2 Task 1 3 Task 2 5 Management Information System (MIS) 5 Decision Support System (DSS) 7 Executive Support System 7 Task 3 7 Database 7 Database Management System 8 Task 4 9 Conclusion 10 References 12 Appendices 14 Introduction ‘Information’ has perhaps been the most widely used word in the last decade. This one word has changed everything starting from business process to customer decision making process. Basically information has made all the process more efficient as well as easy. Considering the massive effect of information on the mankind, people are calling this present age as information age. As far as definition of information is concerned there are several definitions of information, but perhaps the simplest definition of information is that it is the interpretation of data. Information is nothing but the meaning form of data and the meaning is obtained by identifying relational connection among various data (Bellinger, G. Castro, D. Mills, A. n.d.). In today’s competitive business environment decisions need to be as perfect as possible and for making appropriate decisions managers are exposed to numerous information every day. In order to manage these information organizations have developed information systems. Information system of a particular organization would include various technologies, manpower and several other components. Today there are several information systems such as MIS, DSS, and ESS which help managers to make more appropriate and efficient decisions for their organizations. This paper would include a detail discussion of an information system and its various components. The paper would also include the importance of information system in the business organization. Explanations of data base and database management system are also provided in the paper. Task 1 Generally Information system is the system which, include records of data, people and all those activities of processing of these information. In organizational context information system refers to the systems of keeping record of all the data, computer technologies for processing those data and people involved in the whole process. Information system is the key for success of any business today as we are living in information age. Major components of a typical information system are people, information technology, procedures and data. People have important roles to play in an information system. People are involved in an information system as system analyst, programmer, engineer, technician, network manager and data entry operator (Kelly, M. December 6 2006). The main role of a system analyst is to guide the development of information system. But this role would vary from organization to organization. Generally system analysts are responsible for analysis and design of the system. System analysts study system for getting facts and figures regarding business activities. Sometime analysts also work as a programmer. On the other hand computer programmers are involved in writing, testing and maintaining detailed instructions which are called programs. A computer follows this computer program in order to perform various functions. Programmers are also involved in conceiving, designing, and testing logical structures in order to solve problems. They indentify proper instructions which are to be used by the computers. Engineers are responsible of assembling huge amount of code and transform them into applications. They are also responsible for updating as well as solving problems of software that is crops up in the system. On the other hand a network manager generally looks after the performance and security of a network. The person would also be responsible for detecting errors that might occur in the network (Antonine-education, n.d.). Lastly data entry operators are involved in entering data into computer. In short these are the various roles of human beings in a typical information system (Bureau of labor Statistics, n.d.). As far as the technology part is concerned there are software and hardware in an information system. These software and hardware are used to analyse and interpret huge number of data with the objective of getting proper information from it. Technology in an information system is mainly used for processing and providing desired results so that decision could be made easily. Procedure is also an important component in an information system. A procedure could be referred to as a sequence of documented actions in order to achieve some objective. A procedure is something more than a simple single task. It might be very complex in nature and it could involve several complex activities like shutting down system, performing backup and patching software. Another important component of an information system is data which is nothing but unorganized, raw and sometimes, secrete facts. These facts could be potentially useful and they are made to undergo several processes to obtain information. With growing business application, it becomes very important for organizations to implement systems where secrecy of information is maintained. All these components in a typical information system are crucial for any organization if their importance is considered in the decision making process. In order to make an appropriate and effective business decision one needs lot of data which undergo several processes with the help of various software and hardware to get the desired information based on which decision would be made. People like system analyst, programmer, network manager or even a data entry operator are responsible for proper operation of the entire system so that better and smarter decision could be made by the managers. Task 2 Information system plays an important role in strategic decision making process of an organization. Today information system is applied in almost all the departments of an organization. Basically information system in the context of an organization could be classified into two categories which are operations support system and management support system. These two systems could be further classified into several other categories such as operations support system could be classified into TPS (Transaction processing system), process control system and office automation system, whereas management support system could be classified into management information system, decision support system and executive support system. The strategic importance of information system in decision making process is much dependent on these processes and hence the success of modern organization could be explained by analyzing the significance of any one of these systems in the organization. Management Information System (MIS) Management Information System is mainly responsible of processing of data in order to obtain information which is communicated to different departments of the organization with the purpose of making appropriate decisions. In a management information system data is collected, stored and retrieved with the help of computers and telecommunications technology. These data then processed into information. Different levels of management use management information system. MIS is a tool in the hands of managers to evaluate performance of different subdivisions and verticals from one point. MIS should be developed with the objective of achieving long term strategic objectives and goals of the organization. MIS of a particular organization must have a properly defined framework of policies, guidelines, procedures and standards. Most importantly this framework needs to be followed right through the organization in the process of development and maintenance of all the MIS. Management information system is strategically very important for an organization because it enhance the effectiveness and efficiency of the co ordination between several departments in the organization. MIS is one of the most reliable and quick referencing tools. With the help of management information system managers are able to access to all the relevant data and information. It enables the organization to reduce the number of labor in the organization. As a result organization can operate in more cost effective way. MIS also improve the departmental inter-departmental and organizational techniques. Each and every strategic decision making process involves numerous facts and figures which are mainly supplied by MIS. Another major reason behind the strategic importance of MIS is that it improves the job performance throughout the organization. At the top level in the organization MIS provides data as well as information so that the board and top management can make better strategic decisions. But at the other levels in the organization MIS provides the ways for monitoring various activities of the organization. Proper distribution of information takes place among the management, employees as well as the customers through the management information system. Decision Support System (DSS) A Decision Support System enables the organization to analyze business data so that business decisions could be made easily. In case of non-routine based problems or decisions DSS provides interactive support. DSS is strategically important because end users are more involved in the process of DSS as compared to MIS. Strategic decisions are needed to be as perfect as possible and this requires right information at the right time to the right people. DSS makes this process easier. Executive Support System Executive support system helps business executives in their decision making process. Executives are often exposed to too many information from where they need to identify the right information. But sometime they also need detail information. Considering these facts an executive support system is designed and developed so that summarized information is supplied to the executives. ESS also enable executives to get the detail information whenever they want. Task 3 Database One of the most important parts of an information system of an organization is database. In simple language it can be said that a database is a collection of information which are presented in an organized way. This collection could be stored in either a server or a computer. A database enables users to find information in various ways. A database can include collection of any information. A phone book or even a grocery list is an example of database. In a database system each and every data is stored in a particular place of a database. One of the major benefits of a database system is that the data redundancy is controlled. Huge amount of data is integrated in a database as a result more information could be produced from a certain amount of data (Anh, n.d.). Database Management System A Database Management System includes a collection of data which are interrelated as well as a collection of programs which enable users to access data. Basically database management system is software which is helpful for utilizing and maintaining a particular database. The collection of persistent and interrelated data in a database management system is necessary to collect, maintain , assimilate and utilize diverse volume of data. In a typical database management system there are number of programs which is used for accessing, updating and managing data and this is called data management system. A DBMS is not application specific software rather it is software which could be used in general purpose. One database management system could be used both library management system and railway reservation system. A DBMS is very much complex in nature and this complexity extends to the implementation and design process. Users are enabled to do several things with the help of this system. Users of a database management system are allowed to input, share, edit and manipulate data. They are also able to display data in a particular database. It is also possible that multiple users can share data in case of a database management system. Major objectives of a database management system are data integrity, data availability, data independence and data security. Correctness of data in a particular database could be referred as data integrity; this means available data in a database is reliable in nature. Wide variety of data is available in a meaningful format to the database users at a reasonable cost and this is one of the major objectives of DBMS. Another important objective of DBMS is to make data secure in a database so that data is accessible to only authorized users. With the help of DBMS users can store and retrieve data independently in a database (Sumathi, Esakkirajan, 2007). Today, the importance of database as well as a database management system is all the more because of the network that any organization has. A well maintained database works as a pool of resource for an organization. Task 4 a) The chosen functional area of work is marketing. Marketing is basically a broad concept. Major processes that normally take place marketing include identifying target customers, designing and developing product, developing new products, establishing various strategies on product, price, place and promotion, selling the product to the target market and finally providing after sales service which include taking feedback. Identifying target market is crucial as different products are used by different type of customers. Apart from this, developing new product is also routine task that marketing people are involved in. Perhaps the most important task of marketing people is to establish strategies based on the objectives. Strategies are mainly adopted on four P’s which are product, price, place and promotion. Distribution is another important process in marketing. Marketing professionals are responsible for choosing proper channel and making a strong network of channel. Another important process is selling the product to the customer. This could be considered as the ultimate objective of all the marketing strategies. b) There are several decisions that are routinely taken by marketing professionals. Top marketing managers such as chief marketing officer make various strategic marketing decisions like launching of a new brand, developing new channels, promotion of products or brands etc. decisions taken by chief marketing officer are strategic in nature and they are based on long term strategic goals and objectives of the organization. Information comes to the tactical level form the strategic level. In the tactical level there are brand managers, product managers and sales managers. Information from these managers flows down to various executives such as brand executives, sales executives etc. In some organizations there are assistant managers in between the managers and executives. Information system also helps marketing managers and executives to make more effective strategic and tactical decisions by providing all the required information regarding product, customers, competitors’ product and overall market. Conclusion Information system is an indispensable asset for any organization as proper decisions could not be made without right information. Several information systems such as management information system, decision support system and executive support system are there. All these information systems include people, information technology and data at the core of them. Principle objective of these information systems is to ease the process of decision making of managers and executives of an organization. Apart from information system the paper has also discussed database and database management system. Proper flow of information can only take place if information is managed properly. Any vertical would require information to reach its target business division in order to gain maximum advantage. Proper flow of information is one of the most important parameters for determining success of an industry today. References Antonine-education, No Date, Role of Computer Staff, [Online] Available at: http://www.antonine-education.co.uk/Ict_as/ICT_Module_1/Topic_6/role_of_computer_staff.htm [Accessed on January 8, 2010] Administrator of National Banks, May 1995, Management Information Systems, Comptroller’s Handbook, [Online] Available at: http://www.antonine-education.co.uk/Ict_as/ICT_Module_1/Topic_6/role_of_computer_staff.htm [Accessed on January 8, 2010] Anh, N. K. No Date, Benefits of Database Approach, Database Systems Concepts, [Online] Available at: http://cnx.org/content/m28156/latest/ [Accessed on January 8, 2010] Bellinger, G. Castro, D. Mills, A. No Date, Data, Information, Knowledge, and Wisdom, System thinking, [Online] Available at: http://www.systems-thinking.org/dikw/dikw.htm [Accessed on January 8, 2010] Bureau of labor Statistics, No Date, Data Entry and Information Processing Workers, Occupational Outlook Handbook, 2010-11 Edition, [Online] Available at: http://www.bls.gov/oco/ocos155.htm [Accessed on January 8, 2010] Kelly, M. December 6 2006, Components of Information Systems, McKinnon Secondary College, [Online] Available at: http://www.mckinnonsc.vic.edu.au/vceit/systems/components.htm [Accessed on January 8, 2010] Sumathi, S. Esakkirajan, S, 2007, Fundamentals of Relational Database Management Systems, Springer Appendices Database and Database management system Flow of information Read More