Applying Of Management Information Systems In Modern System - Research Paper Example

Applying Of Management Information Systems In Modern System Introduction In today’s world, the need for information technology based systems is quite high especially with regard to day-to-day functioning of human beings. It has been observed that information technology has its importance in every aspect of conducting business in the dynamic and rapidly changing business environment. Organizations now-a-days primarily intend to perform their required organizational activities in a more competent manner by incorporating the benefits of information systems. They also desire to have an upper hand over their business rivals and boost their confidence to do better. In this regard, it is apparent that organizations need to have proper control over their decision making activities which is the ultimate difference between the success and the failure of the business. In this perspective, the role of Management Information Systems (MIS) becomes quite vital. The changing needs of the business in the modern day scenario can be met with the incorporation of MIS in different business related activities. There are various sections of organizations comprising sales, production, and marketing among others that collectively form the base of organizational operations. MIS enables the flow of information from one aspect of the businesses to the other which further facilitates to stabilize the overall operations. Furthermore, it has also been noted that decision making is one of the important concerns in the modern day business. Without the presence of quality as well as accurate information base, decisions regarding any aspect of the business operations cannot be effectively taken. However, it is worth mentioning in this regard that organizations can make use of different vital sections of MIS which will be effective in acquiring proper information for taking significant decisions. All these aspects as well as their advantages to the business will be elaborately discussed in the later part of the paper. This paper intends to analyze the potential advantages of MIS and the role it can perform in resolving or rendering quality information for future decision making (Jewadekar, 2006; Coleman, 1996). MIS and its Importance in Decision Making Management Information Systems (MIS) play an imperative role in today’s business world especially with regard to acquiring quality information for various significant activities of business. Organizations now-a-days depend on MIS for various important functions which essentially decide the direction of the business. From this aspect, it can be affirmed that MIS is quite vital in every department of modern day business. MIS is entirely based on the management of the business and in this context it is crucial in gathering the desired information in every level of the business. Furthermore, it has also been noted that MIS works towards the integration of different departments of business. It operates for tying up different aspects of business so that enhanced level of performance could be attained. Apart from acquiring information for different activities of business, MIS also play a vital role with regard to the planning of organizational operations. The information received through the assistance of MIS is further used in short-term and long-term planning of the organization, which comprises sales, production, investments as well as other managerial aspects of business. In addition to this, another interesting aspect of MIS is that effective implementation of it in the business will enable organizations to depict deviations regarding their performance and to differentiate between the set targets and actual performance of the organization. This is among the vital aspects of MIS in modern day business. It has also been learnt that the updated information that are being acquired through MIS will also be crucial towards enhancing the overall efficiency of the business as it would enable to identify the areas that require serious considerations for betterment. Furthermore, MIS is also a significant constituent in relation to determining the performance of various sections of the business. MIS is considered beneficial for the managers as well because it facilitates them in their decision making. The information that are being acquired with the incorporation of MIS add on to the intelligence as well as the awareness of the managers which further help them to review the current position of the overall business and to design certain activities accordingly. It has been noted that MIS implemented in organizations can be of different forms and each one of them operates towards the better performance of the business. MIS in modern day business comprise enterprise resource planning, networking, data mining, supply chain management and customer relationship management among others. Organizations can implement these systems for better decision making as well as ensuring effective performance (Jewadekar, 2006; Coleman, 1996). All these aspects will be elaborately discussed in later part of the paper and their importance in delivering quality information for business will also be determined. Figure: MIS and its Components Enterprise Resource Planning From the assessment of MIS, it has been learnt that modern day businesses are quite highly dependent on it in different sections of operations. In this regard, it will be vital to mention that enterprise resource planning (ERP) is an important part of the management information systems (MIS) which works towards enabling organizations with proper decision making in a few of its business sections. It integrates the external as well as the internal information throughout the organization. It gets incorporated in various sections of the organization which comprise manufacturing, sales and other sections of the operations. The system of ERP automates different sections of the organizational activities with the assistance or the incorporation of an integrated software application. It has been further noted that ERP facilitates the flow of information amid all the functions of the organization. It also performs a major role in managing the connection of the business or the organization with different outside stakeholders associated with it. It is worth mentioning in relation to determining the significance of ERP in business that organizations consider it as the backbone of their business and a vital element that works towards assembling various activities. The decision makers of the organizations are keen on building appropriate decision in every section of the business so that there are high chances of acquiring maximum success. In this regard, accurate and quality information is of high necessity. To facilitate the fulfillment of such needs, ERP enables the flow of information from one section of the business to the other. It ensures that the different valuable information is offered on-time to the decision makers so that they are able to decide the right path of action. As mentioned earlier, the ERP system compares the current activity of the business with that of the previous activities along with providing a summarized set of information that are vital to develop the plans of the business. Hence, it is obvious that organizations, with the dynamic nature of the modern day business, can implement ERP and leverage its advantages towards decision making for future (Rashid, Hossain & Patrick, 2002; Bosilj-Vuksic & Spremic, n.d.). Data Mining Alike ERP, data mining is also considered to be among the key aspects of management information systems especially with regard to organizational activities. It has the capability of contributing towards decision making by delivering quality information to the concerned authority. It is a process that has its roots attached to computer science. It has a wider range of applications in all forms of business especially with regard to the modern day scenario. Data mining is among the prime sections of MIS implemented in businesses with the objective of changing the nature of the organizational performance. It has been noted that data mining involves the discovering of various critical patterns from a large set of data which is further used in artificial intelligence, statistics and database systems among others. In precise, it has been depicted that the overall goal of data mining is to extract valuable information from the set of given data which would be transformed for further implementation in the process of decision making for various crucial phases of the business. In the similar context, the concept of data mining works towards discovering different patterns in the conduct of business along with revealing the relationship amid them. This beneficial factor enables to make better and well thought-out decisions in the long run. Furthermore, it has also been noted that the process of data mining is capable of depicting sales trends which are be quite beneficial for organizations in making decisions regarding sales of products. In addition, with the assistance of data mining technology, organizations are able to fashion smarter as well as effective marketing campaigns which can render a business with decisive competitive advantages over its rivals. It is learnt that customer loyalty along with preference is one of the major uncertain factors in business. In this regard as well, data mining has a crucial role to play as it understands the characteristic patterns of customers as well as evaluates their loyalty and preference quite accurately. This is also a vital aspect that can be considered with regard to determining the importance of it in business (Alexander, n.d.). The inherent quality of data mining process in terms of producing accurate results and information is also an important aspect that is fundamental for businesses as it will provide a specific direction to them. Apart from the above mentioned features, data mining also provides a significant outlook in relation to the market segmentation aspect for the products of the company. This can be done by analyzing the buying characteristics of the customers in different sections of the market along with determining an ultimate set of behavioral features demonstrated by the customers. Furthermore, with the implementation of the similar process, the changing needs as well as preferences of the customers can be depicted as well. From the overall analysis, it can be affirmed that the concept of data mining is a vital constituent for organizations to be used in every aspect of business for better decision making (Alexander, n.d.). Customer Relationship Management and Its Significance in Decision Making In recent years, the importance of Customer Relationship Management (CRM) has augmented manifold in business especially in relation to ensuring considerable success for organizations by accurate decision making. It is one of the most significant parts of MIS that has a potential beneficial role in business. Organizations can obtain utmost advantages from effective execution of CRM in their operations. CRM is a vital decision making point for organizations in respect of maintaining proper relationship with the customers who are amid the biggest assets of an organization. This is owing to the fact that the performance of the business is largely dependent on the aspects of customer retention and loyalty. An organization needs to address varied factors of communication which would enable it to main a healthy relationship with the customers. In this context, the role of CRM becomes visible and vital for businesses. CRM is often considered as a thought process of the business which is developed to understand the customers and construct plans to retain them with the deliverance of better interactive experience to them. The concept of CRM is vital with regard to attracting new clients or customers and listening to their grievances regarding the products or services. These aspects will certainly lead towards better understanding of the customer preferences as well as their expectations from the organization which will further enable to enhance its performance (Baltzan, Detlor & Welsh, 2012; Beck, 2011). Supply Chain Management and its Importance in Decision Making Supply Chain Management (SCM) is among the crucial components of MIS that has been widely used in business. It is considered as one of the most important approaches to maintain proper flow of business activities by companies all over the world. In accordance with the present day context, SCM performs a key role in shaping or providing proper direction to the performance of the business. It has been noted that supply chain management is the concept of managing the interconnected networks and channels that are being involved in developing products and services for the ultimate customers. Furthermore, the concept of SCM also involves the management of the movement along with storage of raw materials in workplace, inventories and the finished products among others. In precise, it has been defined that SCM is the process of designing, planning, executing as well as monitoring the entire process of supply chain with the objectives of enhancing the condition of the business in every aspect. It has been observed that information technology (IT) is a vital part of SCM as it a sub-section of MIS. There are a lot of advantages that can be gained by companies in the modern day scenario by implementing this section of MIS. It enables companies to gather information about every stage of the business (Chandra & Grabis, 2007). It has been noted that the process of SCM in business enhances decision making with the involvement of the activities such as collecting, analyzing as well as conveying information to all the parties involved in the business. It further helps all the different units of business to work together towards the targeted goals of the organization. In addition to this, it has also been learnt that SCM enables the companies to get a set of dynamic and apparent views of the business. This further enables the involved parties of the business to have a detailed breakdown of the supply chain processes. It is obvious that in the absence of SCM system in organizations, it would be hard for companies to get accurate as well as quality information about the supply chain which further could affect their decision making (Chandra & Grabis, 2007). It is vital to understand that in this dynamic environment of business, decision making is quite an immense task which can appropriately be made with the assistance of proper information about each and every aspect of business. It is only in this regard that the counterparts of MIS such as SCM come into play. In an integrated supply chain management, there are various decision support systems incorporated to help decision makers of business. There are certain components of SCM that need to be discussed in relation to effective future decision making. Planning is one of the vital components of SCM which is also considered as the strategic part of supply chain. Supply chain management in business provides companies with a plan to meet the demands of the customers with regard to products and services. This is effective for a company to decide its production activities as well as to make the deliverance of the products to the market within the stipulated period of time. Apart from this, supply chain is also capable of assisting companies in depicting reliable along with effective suppliers which further can enhance business performance. Thus, it is vital to understand that SCM being a vital part of MIS can be implemented effectively in business and its capabilities can be leveraged in proper and effective decision making (Baltzan, Detlor & Welsh, 2012; Zigiaris, 2000). Networking and its Application for Decision Making Alike ERP, SCM and CRM, networking is also considered to be among the vital parts with regard to the modern day business especially in terms of effective decision making. Networking is determined as a method of assimilating the vital parts of information systems to build an infrastructure that could deliver accurate information. This aspect is quite significant in the context of conducting businesses in a dynamic environment where quality information has utmost importance. In today’s business world, networking has a vital role to play as it is responsible or connected with various pertinent operations. In general, networking activities in modern day business involve the incorporation systems such as intranet and extranet in business. Intranet is widely known as a computer network that is being implemented for the purpose of sharing valuable information, controlling the activities of the operational systems and computing other services. The objective or the main function of intranet is to organize and manage each and every individual computer through the expense of minimal cost as well as time. Hence, its rendered quality of offering services at a minimal cost with ensuring maximum productivity makes it crucial especially in the modern day business scenario where these aspects are of extreme need. Owing to this aspect, intranet is being widely used in businesses all over the world and provides various advantageous inputs to the overall operations of organizations. The concept of intranet is much useful with regard to the communication activities of the organizations. The flow of information from one section of the business to the other not only enhances the swiftness of conducting the business but also plays a major part in relation to decision making process of the organization. Moreover, the information that flows from one section of the business to another with the help of proper communication is generally quite accurate and unchanged which can further portray those as quality information and make them eligible for important decision making of the organization. This aspect of intranet is considered to be the most valuable factor for businesses as in this dynamic business environment, decision making regarding any aspect is a quite a tough job. Other aspects of intranet which include operational time saving, cost reduction and productivity are also vital assets for business (O'Brien, 2007). Similarly, extranet is also an integral part of modern day business. It is known as the computer network that allows the users to have proper control over different activities of the business from outside. It has been observed that extranet is also viewed as the expansion of intranet facilities of an organization that is mainly designed for the users who are from outside of the organization. Similar to intranet, the implementation of extranet in business also can render certain valuable advantages. It is quite convenient for the purpose of sharing information with different people associated with the business. It is important to understand that the information that is being acquired through extranet is always current and reliable which enables companies to use the information in various significant decision making purposes. With the inception of modern era, the printed materials in business are significantly being replaced by the incorporation of extranet. Hence, it can be affirmed that the incorporation of intranet and extranet in business as part of the networking activities not only benefits the performance of the organization but also plays a key role in decision making which is considered to be quite a vital constituent in the context of modern day business (Bidgoli, 2004). Decision Support System and Its Application in Decision Making In the process of making advantageous use of MIS in decision making activities, Decision Support System (DSS) can be a vital element. It is also among the essential as well as effective sections of MIS that explores proper information for the purpose of efficient and valuable decision making. It has been observed that DSS is a computerized information technology system that provides maximum support to modern day businesses in terms of facilitating a number of decision making activities of organizations. Furthermore, the concept of DSS serves companies in terms of managing their operations along with the planning tasks and assists to make decisions as rapidly as possible so that they can perform various activities in advance. DSS can be a fully computerized approach or human intervened. In addition to all these aspects, DSS is considered as an interactive software-based system as well that provides decision makers of business functional information from the amalgamation of data, documents as well as other valuable knowledge of business that can be helpful to solve problems as well as to come up with effective decisions. Thus, it can be depicted that decision makers will have certain invaluable assistance from the DSS system with regard to conducting their business effectively (Power, 2000). Resource Management and its Importance in Decision Making Resources can be considered as one of the most significant parts of business. It is a vital aspect which is required by companies to take proper decisions with regard to properly using various resources in the operations of the business. In this context, resource management which is a part of MIS can be advantageous for companies. It has been observed that resource management will enable companies to make decisions regarding the use of resources wherever they are needed. The resource of any organization will include financial resource, human resource as well as resources of production among others. It has been noted that this section of MIS is able to come up with the best possible approaches of allocating resources to the various sections of business by implementing diverse techniques and quality information. Furthermore, there are certain software of resource management that exist, which are helpful for companies in the process of the allocation of resources along with determining supply as well as demand for resources. Therefore, it is evident that this aspect of MIS is useful in making decisions regarding a vital aspect of business i.e. resource allocation (Lundy & Cowling, 1996). Conclusion From the overall analysis of the paper, it can be summarized that modern day businesses have a high need for accurate as well as quality information for the purpose of significant decision making. It has been observed that companies all over the world have the option of using the advantageous aspects of MIS to find a better way of collecting information. The entire paper depicted that there are various sections of MIS which are of key significance in business activities today. In this context, the paper emphasized on the incorporation of enterprise resource planning (ERP), customer relationship management (CRM) as well as supply chain management (SCM) in business and also portrayed their impacts on the business performance. It has been illustrated that enterprise resource planning (ERP) is a significant element in the decision making process of different sections of the organizations. Furthermore, it is also derived that supply chain plays an imperative role in business as well as in effective decision making which in turn shapes the overall business performance. The paper also emphasized on the prospect of data mining for business. It has been noted that the process acquires valuable information from raw data and other business activities which can be transformed and used in important decision making process. Apart from this, the paper also depicts the importance of CRM, resource management and networking in business and their elaborative roles in effective decision making for future preferences or activities of the business. It is evident that this entire aspects work towards enhancing the accuracy of the information that is to be used for deciding various important aspects related to the performance of business. Hence, it can be concluded that MIS has an advantageous role in ensuring the availability of accurate information which in turn can facilitate to make proper decisions without any delays. References Alexander, D. (n.d.). Data mining. Retrieved from http://www.laits.utexas.edu/~anorman/BUS.FOR/course.mat/Alex/ Baltzan, P., Detlor, B., & Welsh, C. (2012). Business driven information systems with connect access card. Canada: McGraw-Hill Ryerson. Bidgoli, H. (2004). The internet encyclopedia. New Jersey: John Wiley & Sons Bosilj-Vuksic, V., & Spremic, M. (n.d.). ERP system implementation and business process change. Journal of Computing and Information Technology, pp. 1-13. Beck, T. (2011). The importance of customer relationship management in business markets. Germany: GRIN Verlag. Chandra, C., & Grabis, J. (2007). Supply chain configuration: concepts, solutions, and applications. United States: Springer. Coleman, K. G. (1996). Reengineering MIS: aligning information technology and business operations. United States: Idea Group Inc. Jewadekar. (2006). Management information systems: texts and cases. New Delhi: Tata McGraw-Hill Education. Lundy, O., & Cowling, A. G. (1996). Strategic human resource management. United Kingdom: Routledge. O’Brien, J. A. (2007). Management information systems. New Delhi: Tata McGraw-Hill Education. Power, D. J. (2000). Supporting business decision making. DSS Resource, pp. 1-22. Rashid, M. A., Hossain, L., & Patrick, J. D. (2002). The evolution of ERP systems: a historical Perspective. Idea Group Publishing, pp. 1-16. Zigiaris, S. (2000). Supply chain management. Retrieved from http://www.adi.pt/docs/innoregio_supp_management.pdf Read More