Importance of Using Management Information Systems - Essay Example

RESEARCH PROPOSAL goes here] [Your goes here] [Due the paper] Table of Contents Contents Page Introduction/Background 1 2. Research Question 1 3. Literature Review 1 3.1 Significance of the Problem/Issue for Manufacturing Companies 1 3.1.1 Need of Information Management in Online Companies 3 3.1.2 Details of Customers’ Orders 4 3.1.3 Ensures Information Retrieval on Demand 5 3.1.4 Ensures Data Consistency 5 3.2 Benefits that MIS provides to Companies 6 3.2.1 Timeliness 6 3.2.2 Accuracy 7 3.2.3 Completeness and Relevance 7 3.3 Limitations of Management Information System 8 4. Guiding Questions 8 5. Research Objectives 8 6. Research Methodology 9 6.1 Type of Research 9 6.2 Sampling 9 6.3 Analysis Technique 11 7. Timeline 12 Declaration I hereby declare that I have made this research proposal with no plagiarism. All material included in the proposal is written by me and I have supported it using relavant and scholarly sources, such as, book and journal articles. 1. Introduction/Background Information is the key to success in today’s world of competition. Every company, whether big or small, needs information to take critical decisions regarding different business matters (Earl 1996). The importance of using Management Information Systems (MIS) in companies can be known from the fact that they not only help companies in processing of data into information but also in using the information in doing business analysis, as well as in taking critical business decisions regarding future investment opportunities. Using MIS, companies can retrieve information in the form of well-documented reports that contain information about all technicalities and aspects that can influence the business at some point in future. Along with this, MIS also helps companies in setting and achieving short-term and long-term strategic goals and objectives (Earl 1998). Because of these benefits, production and manufacturing companies have started to use Management Information Systems to manage information about inventory and other business processes. However, there exist some challenges that need to be addressed in order to make an efficient use of this technology. 2. Research Question The research question for this research will be: ‘What are the perceived benefits and limitations of using Management Information System (MIS) in product manufacturing companies’. 3. Literature Review 3.1 Significance of the Problem/Issue for Manufacturing Companies According to Oz (2009, p.9), information is the lifeblood of any organization”. Without having significant amount of information, a company can never operate efficiently in today’s world of competition because information is the base for every successful business move. In general, management information system refers to processing of data into information in such a way that it can be used by organizations to administer different business activities. According to Abel (2008), Management Information System is an important software application that deals with the use of information technology tools to help managers and employees in performing different tasks associated with information processing and management. Management information systems perform all the tasks related to information management which include collection of data, editing of data, processing of data into required information, and generating relevant reports based on the stored data. As Dawn (2009) states, “management information systems are used by organizations to track, store, manipulate and distribute information to the appropriate people”. A management information system is a part of internal business control system that manages inventory, supply systems, manufacturing information, procedures, and information technology (Martin 2010). The importance of information systems in businesses cannot be denied. Stahl (2008, p. 1) found that information systems promote efficiency, accuracy, and optimal control of business processes. As Lauderdale (n.d.) states, “MIS allows managers to create reports about the company activities”. This information reflects the importance of using MIS in managing and improving the processing of different business activities. A company or organization cannot achieve success in today’s business world without implementation of a management information system because it becomes extremely difficult for managers and employees to synchronize business processes and establish harmony between them without putting such a system in practice. Dhillon (2010) found that the main task of a management information system is to ensure that correct, relevant, and accurate information is being provided to intended receivers of the information. If we talk about the key tasks of management information system in product manufacturing companies, we can say that such systems help staff in performing a number of important business tasks, such as, documentation of information about product development, keeping track of different manufacturing stages, storing information in appropriate locations, and assisting concerned departments in processing of information. Lucey (2005, p. 4) found that the main purposes of management information systems in small companies is to process information and provide it to concerned people in the form of well-documented reports. As Burke (n.d.) states, “MIS, or management information systems, are used to manage the data created within the structure of a particular business”. A well-organized MIS is one that reduces work load for employees of a company and helps them in carrying out their job responsibilities effectively and efficiently (Vitez n.d). One of the key aspects of a management information system is that it keeps business information up to date, which is essential for the success of a manufacturing company. Regular upgrading of the business information system is very important in taking right decisions at the right time (Summers 2010). 3.1.1 Need of Information Management Mcleod and Schell (2007) state that management information system is an IT tool that helps companies in automated processing of collected data into required information. Automated data processing saves time of employees and managers (Docfinity 2013). Need of information management is the first factor that drive most of the companies to make use of information systems. This system works best for companies which rely heavily on the use of software applications that assist them in information management. Almost every manufacturing company needs to manage customers’ details, orders’ details, billing information, and other related information in database in order to carry out the business processes effectively. A company can face problems without having an efficient information system because information needs to be stored somewhere and processed accordingly in order to conduct the business efficiently. Therefore, need of information management is one of the primary force behind implementation of management information system in online companies. 3.1.2 Assists in Problem-Solving Another factor that plays a key role in the implementation of management information system in product manufacturing companies is that it helps in solving problems through proving relevant information on time. Kulshreshtha and Maheshwari (2012, p. 5) state, “Management information system assist managers as computer understands the problem of the managers and they are capable of solving the problem of the managers”. In case of product manufacturing companies, customers place orders to companies which companies have to fulfill within the due deadline in order to satisfy the customers. This can happen only if a company makes use of some efficient system that can assist employees and managers of manufacturing companies in carrying out business activities at each stage of product development. Therefore, we can say that it is imperative for product manufacturing companies to use management information systems to speed up their business processes while integrating quality in all business activities. 3.1.3 Ensures Information Retrieval on Demand “MIS helps businesses optimize business processes, address information needs of employees and various stakeholders and take informed strategic decisions” (Dutta, n.d., p. 1). Along with the help in taking strategic decisions, information retrieval on demand is another key factor that speaks for the use of information systems in companies. In case of product manufacturing companies, information needs to be retrieved constantly for processing. Similarly, there is a need to keep track of inventory ad raw material available for use in manufacturing processes. For this, it is imperative to implement an information system because it facilitates employees and managers in accurate processing of information and generation of relevant reports using which they perform their job responsibilities efficiently. 3.1.4 Ensures Data Consistency Another important factor that supports the use of management information systems in organizations is the need to ensure data consistency. Management information system ensures data integrity and consistency (Ugboma 2004, p. 1). It is imperative for a company to make use of information consistently to keep the systems running. Any inconsistency or delay in the provision of information can prove destructive for the company because information is needed at every step in product manufacturing. For example, in product planning stage, information is needed to take critical planning decisions. Similarly, in design phase, information is needed to know customers’ preferences and requirements. When a company uses management information system to keep employees and managers updated about product development stages, the do not face any difficulty in giving a practical shape to that information. However, the company needs to apply such procedures and techniques regarding data management that should be able to bring consistency to business processes. Therefore, it is important for product manufacturing companies to implement the use of management information system because of the need to bring consistency in information management. 3.2 Benefits that MIS provides to Companies As discussed earlier in the report, success of a company without use of a management information system does not seem to be practical in today’s world. It is because of increased competition between companies due to globalization of markets. Today, only those companies are able to get competitive advantage and market domination that keep their information database up to date with key information about different issues related to internal and external environments of the businesses. If we talk about e-commerce based companies, we can say that MIS provides such companies with various benefits related to the information management. For example, eBay makes use of an efficient information system that has driven the company to the heights of success. Some of the main benefits for companies regarding the use of information systems include timeliness, accuracy, completeness, and relevance. Let us discuss these benefits in some detail. 3.2.1 Timeliness As Aoms (2010) states, “processing of the information becomes significant for better performance of managerial functions”. Quick processing of data into information and quick retrieval of relevant information from the database are two of the main benefits that management information systems provide to companies. According to Anderson and Post (2003), an organization’s MIS is able to quickly collect data from various sources and make it usable for the concerned departments when they need it. Timeliness is very important and a main feature of an efficient information system because it results in improving overall performance of a company. It is due to the use of information system in companies that information is always ready to be retrieved by different departments of the company. The data collection and processing time also takes a very less amount of time which results in saving precious time of employees and managers of a company. 3.2.2 Accuracy Accuracy is another key benefit related to the use of information system in a company. In case of product manufacturing companies, the information management system plays a vital role in keeping precise and accurate information about all aspects of the business. There is hardly any error in the information stored in the system’s database. All information is accurate and precise which helps companies in taking timely decisions regarding different business matters. Moreover, the management information system also provides a company with accuracy of internal controls, which is extremely important for proper functioning of a company. 3.2.3 Completeness and Relevance Completeness and relevance are two of the main features of management information systems. As Vitez (n.d.) states, “the MIS should not be concerned with whether the information can be retrieved, but rather how and what information should be retrieved”. This statement shows that MIS always provide relevant information to users instead of providing them with details that may not be related directly to the information required by the users. According to Case and Parker (1993), only that information is provided to the user by MIS, which is needed by the user to carry out some particular business operation. Moreover, information is presented to the concerned users in the form of reports which makes it easy for the users to analyze the information and use it for taking business decisions. 3.3 Limitations of Management Information System Along with many considerable benefits of using management information systems in companies, there also exist some limitations which need to be addressed properly in order to reap maximum benefits associated with the use of such systems. Some of those limitations include cost of employee training, information privacy, and expense of the information system implementation. However, these limitations are not able to overshadow the positive aspects related to the use of management information systems in large companies. 4. Guiding Questions The guiding questions for the research will be: (1) What are the benefits and challenges associated with the use Management Information System in product manufacturing companies (2) What is the impact of Management Information Systems on customer relationship management of large companies 5. Research Objectives There exists the need to examine the benefits and challenges of using Management Information System for large manufacturing companies. This study proposes (1) To identify the benefits and challenges associated with the use Management Information System in manufacturing companies, (2) To determine the impact of Management Information Systems on customer relationship management of large companies, and (3) To know which training programs can be used to ensure employees’ compliance with the management information system. The goal for this study will be to come up with some suggestions to implement the use of Management Information Systems in product manufacturing companies. Moreover, the study is also aimed to know the limitations in using such systems in order to come up with effective measures to overcome those limitations. 6. Research Methodology 6.1 Type of Research This will be an exploratory research aimed towards identifying the issues regarding the use of MIS in large companies. Exploratory research is suitable where there is no much research done about the topic in past (Tatum n.d.). Moreover, the will be a longitudinal study which will determine the benefits of MIS for product manufacturing companies, as well as the challenges that employees and managers face in implementing the use of management information systems at the workplace. The research will use deductive reasoning for the research because it helps in moving to specific information from general information (Crossman n.d.). 6.2 Sampling In the proposed study, the researcher will use a questionnaire to study the responses of the participants. Using a questionnaire is a viable option when planning to gather data or public opinion about some topic. The researcher will visit four to five local manufacturing firms located in London to get the responses of employees and managers. Use of direct observations along with face-to-face interviews will be made to know the way employees and managers use management information systems at the workplace and to know how production gets better through the use of such systems. Observations will be used to support the information gathered through questionnaires. The interviews will be conducted in the companies which will facilitate both the participants and the researcher, as well as it will save the time at both ends. As far as the duration of the interviews is concerned, each interview will take at least fifteen to twenty minutes. The responses will be recorded on an audio tape and then it will be recorded in the computer system for analysis. Here, one point to be mentioned is that the interviews will be conducted only with managers and senior employees because it will take a lot of time to conduct interviews with a large number of employees. For other employees, the researcher will distribute a questionnaire which they will return after filling it. The research will use probability sampling for this study because it is not only simple to use but also helps in random selection of participants (Trochim 2006). Moreover, the specific method for this research will be Stratified Random Sampling. The reason is that it helps in representing overall population, as well as eradicates the chances of boas from the research (Trochim 2006). The study will include participants (managers and employees) based on the following criteria: (a) age limit of 27 to 50 years, (b) at least five years of work experience. There will be no bias in selecting the research participants. For example, the participants will be selected regardless of gender, religious, and ethnic differences. The ethical consideration for this particular study will be the privacy of information provided by the participants. All participants will be taken in confidence by ensuring them that the researcher will not use or publish their personal information elsewhere. Ethics are integral for conducting research because it is essential for collaborative work and fairness in research (Resnik 2011). To adhere to the ethics, there will be a confidential form along with every questionnaire signed by the researcher which will ensure that the obtained information will be used only for this particular study. The respondents will be asked to fill in a questionnaire. The information gathered from the questionnaires will provide the researcher with some valuable information regarding the issue. The questions will help the researcher in knowing the benefits and challenges associated with the use of information systems in businesses. The questions included in the questionnaire will be good enough to obtain detailed and relevant information. 6.3 Analysis Technique The researcher will use qualitative design to conduct this study. This design will help the researcher in getting detailed information about the issue. This type of research will also help the researcher get an insight into real benefits and challenges associated with the use of MIS in manufacturing companies. This research type will also help in using subjective information to examine the issues, as well as in dealing with value-laden research questions successfully. Quantitative design does not seem to be suitable because it provides generalized and numeric based results, which will not help the researcher for this particular study. As far as data storage and analysis techniques are concerned, the researcher will gather data through interviews and will store them in the personal computer for further analysis, as well as for preparation of the final report. The researcher will also use regression analysis technique to identify the relationship between variables. Regression analysis will assist the researcher in knowing the true relationship between independent (MIS) and dependent (impact on productivity and efficiency) variables. If we talk about the authenticity and validity of the study, we can say that there is no noticeable threat to validity of the research because the researcher will take information from authentic sources, that is, practicing employees and managers. 7. Timeline TASKS WEEKS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16   Planning for the research – Studying methods and analysis approaches   Designing the questionnaire Timetable interviews Begin Data Gathering - Interviews, questionnaire, and observations Data Analysis and redefine problem(s)   Implement findings   Preparing draft report   Preparation of the final report   Write dissertation   References Abel, O. (2008). Knowledge Workers in the Information Age, viewed 04 April 2013, http://ezinearticles.com/?Knowledge-­Workers-­in-­the-­Information-­Age&id=1233438 Anderson, D., & Post, G. (2003). Management Information Systems: Solving Business Problems with Information Technology, 3rd edn, The McGraw-Hill Companies, U.S.A. Aoms, P. (2010). Management Information System (MIS) In College Management Software, viewed 04 April 2013, http://ezinearticles.com/?Management-­Information-­System-­(MIS)-­In-College-­Management-­Software&id=3804507 Burke, A. (n.d.). An Introduction to Management Information Systems, viewed 04 April 2013, http://www.ehow.com/about_5114305_introduction-management-information-systems.html Case, T., & Parker, C. (1993). Management Information Systems: Strategy and Action, 2nd edn, McGraw-Hill, U.S.A. Crossman, A. (n.d.). Deductive Reasoning Versus Inductive Reasoning, viewed 04 April 2013, http://sociology.about.com/od/Research/a/Deductive-Reasoning-Versus-Inductive-Reasoning.htm Dawn, S. (2009). What is the Advantage of a Management Information System?, viewed 04 April 2013, http://www.ehow.com/facts_5544446_advantage-management-information-system.html Dhillon, T. (2010). Data Management for Your Success, viewed 04 April 2013, http://ezinearticles.com/?Data-­Management-­For-­Your-­Success&id=4125763 Docfinity. (2013). Save Time, Money, and Aggravation: Six Benefits of Automating Your Payables Process, viewed 04 April 2013, http://www.docfinity.com/save-time-money-and-aggravation-six-benefits-of-automating-your-payables-process/ Dutta, P. (n.d.). Advantages & Disadvantages of Information Management Systems, viewed 04 April 2013, http://www.ehow.com/about_5494879_advantages-disadvantages-information-management-systems.html Earl, M. (1996). Information Management: The Organizational Dimension, Oxford University Press, New York. Earl, M. (1988). Information Management: The Strategic Dimension, Oxford University Press, New York. Kulshreshtha, V., & Maheshwari, S. (2012). Benefits of Management Information System in Blood Bank, International Journal of Engineering and Science, vol. 1, no. 12, pp. 5-7. Lauderdale, C. (n.d.). What are the Benefits of a management Information System?, viewed 04 April 2013, http://www.ehow.com/about_5672242_benefits-management-information system_.html Lucey, T. (2005). Management Information Systems, 9th edn, Thomson Learning, London. Martin, S. (2010). An Introduction to Management Information Systems, viewed 04 April 2013, http://ezinearticles.com/?An-­Introduction-­to-­Management-­Information-­Systems&id=3514442 Mcleod, R., & Schell, G. (2007). Management Information Systems, 10th edn, Pearson Education, U.S.A. Oz, E. (2009). Management Information Systems, 6th edn, Cengage Learning, Massachusetts. Resnik, D. (2011). What is Ethics in Research & Why is it Important?, viewed 04 April 2013, http://www.niehs.nih.gov/research/resources/bioethics/whatis/ Stahl, B. (2008). Information Systems: Critical Perspectives, 6th edn, Routledge, Oxon. Summers, I. (2010). Guide to Upgrading Your Business Information Systems, viewed 04 April 2013, http://ezinearticles.com/?Guide-­to-­Upgrading-­Your-­Business-­Information Systems&id=3720773 Tatum, M. (n.d.). What Is Exploratory Research?, viewed 04 April 2013, http://www.wisegeek.com/what-is-exploratory-research.htm# Trochim, W. (2006). Probability Sampling, viewed 04 April 2013, http://www.socialresearchmethods.net/kb/sampprob.php Ugboma, E. (2004). Assuring Information Systems’ Effectiveness Through Data Integrity: Essential Guidelines for Information Systems Databases, viewed 04 April 2013, http://proc.isecon.org/2004/3252/ISECON.2004.Ugboma.pdf Vitez, O. (n.d.). Limitations on Management Information Systems, viewed 04 April 2013, http://www.ehow.com/about_5183440_limitations-management-information-systems.html Appendices Questionnaire 1. For how long have you been working for this company? 2. When the company started using management information system to run business processes? 3. What impact do such systems have on your efficiency levels? 4. How customer relationship management has improved since the implementation of MIS in your company? 5. How these systems improve the accuracy and quality of product manufacturing phases? 6. At which stages of product manufacturing, these systems are used the most and what impact do they have on overall product manufacturing process? 7. What challenges, if any, do you usually face in using such systems? Explain them please. 8. What training programs, if any, have been implemented in your company to make employees trained with the use of such systems? Read More