Management Information System Essay Example

Management Information System Paper Management  Information  Systems MANAGING  THE  DIGITAL  FIRM,  12TH EDITION Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Learning  Objectives Chapter  1 INFORMATION  SYSTEMS  IN   INFORMATION SYSTEMS IN BUSINESS  TODAY VIDEO  CASES Case  1:  UPS  Global  Operations  with  the  DIAD  IV Case  2:  IBM,  Cisco,  Google:  Global  Warming  by  Computer †¢ Understanding  the  effects  of  information  systems   on  business  and  their  relationship  to  globalization. Explain why information systems are so essential in Explain  why  information  systems  are  so  essential  in   business  today. †¢ Define  an  information  system  and  describe  its   management,  organization,  and  technology   components. 2  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Learning  Objectives  (cont. ) The  New  Yankee  Stadium  Looks  to  the  Future †¢ Define  complementary  assets  and  explain  how  they nsure  that  information  systems  provide  genuine   value  to  an  organization. †¢ Describe  the  different  academic  disciplines  used  to   study  information  systems  and  explain  how  each   study information systems and explain how each contributes  to  our  understanding  of  them. †¢ Explain  what  is  meant  by  a  sociotechnical  systems   perspective. †¢ Problem:  Yankee  fans  choosing  to  watch  games  on  TV  or  choose   other  forms  of  entertainment †¢ Solutions:  Use  information  systems  to  enhance  experience. Game   So ut o s Use o at o syste s to e a ce e pe e ce Ga e coverage,  statistics,  delivered  via  ubiquitous  HDTV  monitors,   mobiles  can  order  concessions,  view  replays , p y †¢ Cisco  Systems  provides  technology  to  make  Yankee  Stadium  the   most  wired  in  all  of  baseball most wired in all of baseball †¢ Demonstrates  IT’s  role  in  providing  new  products  and  services. †¢ Illustrates  the  benefits  of  utilizing  networks  and  mobile  applications   to  enhance  entertainment,  information. , 3  © Prentice Hall 2011 4  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today Information  Technology  Capital  Investment †¢ How  information  systems  are  transforming  business – Increase  in  wireless  technology  use,  Web  sites – Increased business use of Web 2 0 technologies Increased  business  use  of  Web  2. 0  technologies – Cloud  computing,  mobile  digital  platform  allow  more   distributed  work,  decision? aking,  and  collaboration di ib d k d ii ki d ll b i †¢ Globalization  opportunities pp – Internet  has  drastically  reduced  costs  of  operating  on   global  scale global scale – Presents  both  c hallenges  and  opportunities 5  © Prentice Hall 2011 FIGURE  1? 1 Information  technology  capital  investment,  defined  as  hardware,  software,  and  communications  equipment,   grew  from  32  percent  to  52  percent  of  all  invested  capital  between  1980  and  2009. 6  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems We will write a custom essay sample on Management Information System specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Management Information System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Management Information System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today †¢ In  the  emerging,  fully  digital  firm – Significant  business  relationships  are  digitally   enabled  and  mediated – Core  business  processes  are  accomplished  through   digital  networks digital networks – Key  corporate  assets  are  managed  digitally MIS  IN  YOUR  POCKET Read  the  Interactive  Session  and  discuss  the  following  questions Read the Interactive Session and discuss the following questions What  are  the  advantages  of  using  mobile  handheld   devices? What  are  the  disadvantages? †¢ What feat res are needed in a mobile to make it a What  features  are  needed  in  a  mobile  to  make  it  a   busi ness  solution? †¢ What  business  functions  can  be  performed  by  using   handhelds  alone? How  have  other  companies   handhelds alone? How have other companies utilized  handhelds? 8  © Prentice Hall 2011 †¢ Digital  firms  offer  greater  flexibility  in  organization   and  management g – Time  shifting,  space  shifting 7  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today †¢ Growing  interdependence  between  ability  to  use   information  technology  and  ability  to  implement   corporate  strategies  and  achieve  corporate  goals †¢ Business  firms  invest  heavily  in  information  systems   to  achieve  six  strategic  business  objectives: to achieve six strategic business objectives: 1. . 2 3. 4. 5. 6. 9 †¢ Operational  excellence: p – Improvement  of  efficiency  to  attain  higher   profitability fi bili – Information systems, technology an Information  systems,  technology  an   important  tool  in  achieving  greater    efficiency  and  productivity efficiency and productivity – Walmart’s  RetailLink  system  links  suppliers   y pp to  stores  for  superior  replenishment   system 10  © Prentice Hall 2011 Operational  excellence New  products,  services,  and  business  models New products services and business models Customer  and  supplier  intimacy Improved  decision  making Improved decision making Competitive  advantage Survival  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today New  products,  services,  and  business   p , , models: – Business  model:  describes  how  company   produces,  delivers,  and  sells  product  or  service  to   create  wealth – Information systems and technology a major Information  systems  and  technology  a  major   enabling  tool  for  ne w  products,  services,   business  models business models †¢ Examples:  Apple’s  iPod,  iTunes,  iPhone,  iPad,   Google s  Android  OS,  and  Netflix Google’s Android OS and Netflix 11  © Prentice Hall 2011 †¢ Customer  and  supplier  intimacy: – Serving  customers  well  leads  to  customers   returning,  which  raises  revenues  and  profits returning, which raises revenues and profits †¢ Example:  High? nd  hotels  that  use  computers   to  track  customer  preferences  and  use  to   to track customer preferences and use to monitor  and  customize  environment – Intimacy  with  suppliers  allows  them  to  provide   i ih li ll h id vital  inputs,  which  lowers  costs †¢ Example:  J. C. Penney’s  information  system   which  links  sales  records  to  contract   manufacturer 12  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today Improved  decision  making – Without  accurate  information: †¢ Managers must use forecasts best guesses luck Managers  must  use  forecasts,  best  guesses,  luck †¢ Leads  to: – Overproduction underproduction of goods and services Overproduction,  underproduction  of  goods  and  services – Misallocation  of  resources – Poor response times Poor  response  times †¢ Operational  excellence: – Improvement  of  efficiency  to  attain  higher  profitability †¢ New products services and business models New  products,  ser vices,  and  business  models: – Enabled  by  technology †¢ Customer  and  supplier  intimacy: Serving customers raises revenues and profits Serving  customers  raises  revenues  and  profits – Better  communication  with  suppliers  lowers  costs †¢ Poor  outcomes  raise  costs,  lose  customers –E Example:  Verizon’s  Web? based  digital  dashboard  to   l V i ’ W b b d di it l d hb d t provide  managers  with  real? time  data  on  customer   complaints,  network  performance,  line  outages,  etc. complaints network performance line outages etc 13  © Prentice Hall 2011 †¢ Improved  decision  making – More accurate data leads to better decisions More  accurate  data  leads  to  better  decisions 14  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Role  of  Information  Systems  in  Business  Today †¢ Competitive  advantage p g – Delivering  better  performance – Charging  less  for  superior  products – Responding  to  customers  and  suppliers  in  real   time – Examples:  Apple,  Walmart,  UPS p pp , , †¢ Survival – Information  technologies  as  necessity  of  business – May  be: Industry level  changes,  e. g. Citibank s   †¢ Industry? level changes, e. g. Citibank’s introduction  of  ATMs †¢ Governmental regulations requiring record? Governmental  regulations  requiring  record? keeping –E Examples:  Toxic  Substances  Control  Act,  Sarbanes? l T i S bt C t lA t S b Oxley  Act    © Prentice Hall 2011 16  © Prentice Hall 2011 15 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY The  Role  of  Information  Systems  in  Business  Today The  Interdependence  Between  Organizations  and  Information  Technology Perspectives  on  Information  Systems †¢ Information  system: Set  of  interrelated  components   – Collect process store and distribute information Collect,  process,  store,  and  distribute  information – Support  decision  making,  coordination,  a nd  control †¢ Information  vs. data – Data are streams of raw facts Data  are  streams  of  raw  facts – Information  is  data  shaped  into  meaningful  form Figure  1. 2 In  contemporary  systems  there  is  a  growing  interdependence  between  a  firm’s  information  systems  and  its   business  capabilities. Changes  in  Ã‚  strategy,  rules,  and  business  processes  increasingly  require  changes  in   hardware,  software,  databases,  and  Ã‚  telecommunications. Often,  what  the  organization  would  like  to  do   depends  on  what  its  systems  will  permit  it  to  do. 17  © Prentice Hall 2011 18  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Data  and  Information Perspectives  on  Information  Systems †¢ Three  activities  of  information  systems   produce  information  organizations  need 1. Input:  Captures  raw  data  from  organization  or   external  environment 2. Processing:  Converts  raw  data  into  meaningful   form 3. Output:  Transfers  processed  information  to   people  or  activities  that  use  it people or acti ities that se it Figure  1. 3 Raw  data  from  a  supermarket  checkout  counter  can  be  processed  and  organized  to  produce  meaningful   information,  such  as  the  total  unit  sales  of  dish  detergent  or  the  total  sales  revenue  from  dish  detergent  for  a   specific  store  or  sales  territory. 19  © Prentice Hall 2011 20  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Perspectives  on  Information  Systems Functions  of  an   Information  System Information System An  information  system   contains  information  about  an   organization  and  its   surrounding  environment. Three  basic  activities—input,   processing,  and  output— produce  the  information   organizations  need. Feedback   d db k is  output  returned  to   appropriate  people  or  activities   in  the  organization  to  evaluate   and  refine  the  input. and refine the input Environmental  actors,  such  as   customers,  suppliers,   competitors,  stockholders,  and   regulatory  agencies,  interact   regulatory agencies interact with  the  organization  and  its   information  systems. Figure  1. 4 †¢ Feedback: – Output  returned  to  appropriate  members  of   organization  to  help  evaluate  or  correct  input  stage organization to help evaluate or correct input stage †¢ Computer/Computer  program  vs. information  system – Computers and software are technical foundation Computers  and  software  are  technical  foundation   and  tools,  similar  to  the  material  and  tools  used  to   build  a  house build a house 21  © Prentice Hall 2011 22  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Information  Systems   Are  More  Than   Are More Than Computers Using  information  systems   effectively  requires  an   effectively requires an understanding  of  the   organization,  management,   and  information  technology   shaping  the  systems. An   shaping the systems An information  system  creates   value  for  the  firm  as  an   organizational  and   management  solution  to   management solution to challenges  posed  by  the   environment. Figure  1. 5 Perspectives  on  Information  Systems Organizational  dimension  of  information   systems – Hierarchy of authority responsibility Hierarchy  of  authority,  responsibility †¢ Senior  management †¢ Middle  management Operational  management †¢ Operational management †¢ Knowled ge  workers †¢D t Data  workers k †¢ Production  or  service  workers  © Prentice Hall 2011 24  © Prentice Hall 2011 23 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Levels  in  a  Firm Business  organizations  are   hierarchies  consisting  of  three   principal  levels:  senior   management,  middle   management,  and  operational   t d ti l management. Information   systems  serve  each  of  these   levels. Scientists  and   knowledge  workers  often  work   knowledge workers often work with  middle  management. Figure  1. 6 Perspectives  on  Information  Systems †¢ Organizational  dimension  of  information   systems  (cont. ) – Separation of business functions Separation  of  business  functions †¢ †¢ †¢ †¢ Sales  and  marketing Human  resources Finance  and  accounting Manufacturing  and  production Unique  business  processes q p – Unique  business  culture – Organi ational politics Organizational  politics 25  © Prentice Hall 2011 26  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:   INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Perspectives  on  Information  Systems †¢ Management  dimension  of  information   g systems – Managers  set  organizational  strategy  for   responding  to  business  challenges – In  addition,  managers  must  act  creatively: †¢ Creation of new products and services Creation  of  new  products  and  services †¢ Occasionally  re? creating  the  organization †¢ Technology  dimension  of  information   gy systems – Computer  hardware  and  software – Data management technology Data  management  technology – Networking  and  telecommunications  technology †¢ Networks,  the  Internet,  intranets  and  extranets,   World  Wide  Web – IT  infrastructure:  provides  platform  that  system   is  built  on 28  © Prentice Hall 2011 27  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Perspectives  on  Information  Systems UPS  COMPETES  GLOBALLY  WITH  INFORMATION  TECHNOLOGY Read  the  Interactive  Session  and  discuss  the  following  questions Read the Interactive Session and discuss the following questions †¢ Dimensions  of  UPS  tracking  system g y – Organizational:   †¢ Procedures  for  tracking  packages  and  managing   inventory  and  provide  information – Management:   †¢ Monitor service levels and costs Monitor  service  levels  and  costs – Technology:   †¢ Handheld  computers,  bar? ode  scanners,   networks,  desktop  computers,  etc. 30  © Prentice Hall 2011 †¢ What  are  the  inputs,  processing,  and  outputs  of UPS’s  package  tracking  system? †¢ What technologies are sed b UPS? Ho are these What  technologies  are  used  byà ‚  UPS? How  are  these   technologies  related  to  UPS’s  business  strategy? †¢ What  problems  do  UPS’s  information  systems   solve? What  would  happen  if  these  systems  were   solve? What would happen if these systems were not  available? 29  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Perspectives  on  Information  Systems †¢ Business  perspective  on  information   p p systems: – Information  system  is  instrument  for  creating   value – Investments  in  information  technology  will  result   in  superior  returns: in superior returns: †¢ Productivity  increases †¢R Revenue  increases i †¢ Superior  long? term  strategic  positioning   31  © Prentice Hall 2011 †¢ Business  information  value  chain Raw  data  acquired  and  transformed  through   stages  that  add  value  to  that  information stages that add value to that information – Value  of  information  system  determined  in  part  by   extent  to  which  it  leads  to  better  decisions,   hi h i l d b d ii greater  efficiency,  and  higher  profits †¢ Business  perspective: – Calls  attention  to  organizational  and   managerial  nature  of  information  systems 32  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems The  Business  Information  Value  Chain Perspectives  on  Information  Systems Variation  in  Returns   On  Information   On Information Technology   Investment Although,  on  average,   investments  in  information   technology  produce  returns  far   above  those  returned  by  other   investments,  there  is   i t t th i considerable  variation  across   firms. Figure  1. 8 Figure 1 8 Figure  1? 7 From  a  business  perspective,  information  systems  are  part  of  a  series  of  value? adding  activities  for  acquiring,   transforming,  and  distributing  information  that  managers  can  use  to  improve  decision  making,  enhance   organizational  performance,  and,  ultimately,  increase  firm  profitability. l f d l l f f bl 3  © Prentice Hall 2011 34  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Perspectives  on  Information  Systems †¢ Investing  in  information  technology  does  not   guarantee  good  returns †¢ C id bl Considerable  variation  in  the  returns  firms   i i i h fi receive  from  systems  investments †¢ Factors:   – Adopting  the  right  business  model – Investing in complementary assets Investing  in  complementary  assets   (organizational  and  management  capital) 35  © Prentice Hall 2011 Complementary  assets:   p y – Assets  required  to  derive  value  from  a   primary  investment i i – Firms supporting technology investments Firms  supporting  technology  investments   with  investment  in  complementary  assets   receive  superior  returns receive su perior returns – E. g. :  invest  in  technology  and the  people  to   g gy p p make  it  work  properly 36  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Perspectives  on  Information  Systems Contemporary  Approaches  to  Information  Systems Contemporary   Approaches  to   Approaches to Information  Systems The  study  of  information   systems  deals  with  issues  and   systems deals with issues and insights  contributed  from   technical  and  behavioral   disciplines. Figure  1. 9 †¢ Complementary  assets  include: – Organizational  assets,  e. g. †¢ Appropriate business model Appropriate  business  model †¢ Efficient  business  processes – Managerial  assets,  e. g. l †¢ Incentives  for  management  innovation †¢ Teamwork  and  collaborative  work  environments – Social  assets,  e. g. g †¢ The  Internet  and  telecommunications  infrastructure †¢ Technology standards Technology  standards 37  © Prentice Hall 2011 38  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN   BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Contemporary  Approaches  to  Information  Systems Contemporary  Approaches  to  Information  Systems †¢ Technical  approach pp – Emphasizes  mathematically  based  models – Computer  science,  management  science,   operations  research †¢ Management  Information  Systems Combines  computer  science,  management  science,   operations  research  and  practical  orientation  with   operations research and practical orientation with behavioral  issues †¢ Behavioral  approach – Behavioral  issues  (strategic  business  integration,   implementation,  etc. ) p , ) – Psychology,  economics,  sociology 39  © Prentice Hall 2011 †¢ F Four  main  actors i t – – – – 40 Suppliers  of  hardware  an d  software Suppliers of hardware and software Business  firms Managers  and  employees d l Firm’s  environment  (legal,  social,  cultural  context)  © Prentice Hall 2011 Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Management  Information  Systems CHAPTER  1:  INFORMATION  IN  BUSINESS  SYSTEMS  TODAY Contemporary  Approaches  to  Information  Systems Contemporary  Approaches  to  Information  Systems A  Sociotechnical  Perspective  on  Information  Systems †¢ Approach of this book: Approach  of  this  book:   Sociotechnical  view †¢ Optimal  organizational  performance   achieved  by  jointly  optimizing  both   achieved by jointly optimizing both social  and  technical  systems  used  in   production d ti Helps  avoid  purely  technological   †¢ Helps avoid purely technological approach Figure  1? 0 Figure 1? 10 In  a  sociotechnical  perspective,  the  performance  of  a  system  is  optimized  when  both  the  technology  and  the   In a sociotechnical perspective the performance of a sys tem is optimized when both the technology and the organization  mutually  adjust  to  one  another  until  a  satisfactory  fit  is  obtained. 41  © Prentice Hall 2011 Management Information System Essay Example Management Information System Essay Faculty of Business, Economics and Public Policy University of Brunei Darussalam Negara Brunei Darussalam Semester II (2011/2012) Module Title: Management Information System (BB5107) Coursework: How can IS/IT help my Organization? A coursework submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration (MBA) Name| Hj Mohd Shril Hj Matsawali| Registration No. | 11M0030| Programme| Master of Business Administration| Lecturer| Dr Hj Mohammad Nabil Almunawarah| Deadline| 15th April 2012| - Abstract This research approaches the issues on role of Information System and how it help organizations, with the aim of finding some conditions that make the organizational context able to manage the change process needed to really get the potential benefits of these technologies. This paper will further explain the process, types, benefits and how to ensure effective implementation of information system. Introduction In any business organization, data is the most important thing. Different type of information is produced from data. When the amount of data is large, it becomes more difficult to process this data manually. In order to get quick results and timely information, an Information System is used in almost all organizations. Information Systems (IS) development raises many important challenges to organizations. Nowadays, depending on the type of organization, to some extent business processes are supported by some kind of IS. It is not unusual to have in some organizations information and procedures islands lacking from a desirable integrated access to information. Managers are increasingly recognizing the competitive and strategic value of information systems. We will write a custom essay sample on Management Information System specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Management Information System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Management Information System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer It has been considered that information is the most valuable assets in any organization apart from its personnel, financial capital, plant and equipment because it describes these physical resources and the environment in which they exist. Owning and upgrading their information system is now not an option in this technology-driven era; it is a requirement because organization that use an up-to-date information system to gather, assimilate, and evaluate internal as well as external information are gaining competitive advantage over other firms. What is an organisation? Organization is a social  unit  of people, systematically  structured and managed to meet a  need  or to pursue collective  goals on a  continuing  basis (http://www. businessdictionary. com). An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. (http://phaariz. files. wordpress. com/2010/03/laudon-feature-3. pdf) They are also bureaucracies with clear-cut divisions of labor and specialization and arrange these specialists in a hierarchical manner in which everyone is accountable to someone and authority is limited to specific actions governed by abstract rules or procedures that must abide by laws. The organization is devoted to the principle of efficiency: maximizing output using limited inputs. Other features of organizations include business processes, organizational culture, organizational politics, surrounding environments, structure, goals, constituencies, and leadership styles. Organization is also considered to be an information entity (Lucas H. R. Jr (1994). This means that organization collect and assemble data from number of sources. Data is considered by scholar to be streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form people can understand and use which is usually called information. Information is data that have been shaped into a form that is meaningful and useful to humans. The information however was viewed as an unfortunate, costly by product of doing business – simply â€Å"red-tape† (Laudon K. C, Laudon J. P. 1995). Thus, all of these features surrounding the organization must be acquired and analyzed and this affects the kinds of information systems used by organizations. How organization work traditionally before IS It is important to first understand how organization operates traditionally way before information system is introduced before it can show and compare how information system improve and help organisation. Under the old paradigm, the firm was governed by a relatively rigid functional structure inhibits cross-functional information flows. One of the other key problems identified in conventional organisation is working in silos. Silos are organisational units where there is a breakdown in communication, co-operation and co-ordination with both internal and external parties. In a paper quoting a 2003 Survey on Leadership Challenges by the American Management Association, Florence Stone notes that: â€Å".. getting people who have different agendas to work together is amongst the biggest obstacles facing business today† (Stone, 2004, p 11 cited at Fenwick et al p. ). In a recent paper Conrad Guelke notes that â€Å". organisational parochialism is characterised by a lack of co-operation between [and within] agencies. In a corporate environment where decision-making is being increasingly â€Å"unbundled†, and business unit fiscal performance is the priority, the values of teamwork and co-operation are often neglected† (Guelke, 2005, p 749 cited at Fenwick et al 2009 p. 3). Most organisations and organ isational units will have some silo characteristics at any given time. But silos become problematic when they are develop to a point that good performance suffers. The challenge is to indentify silos that are problematic or that threaten to become so, and to identify and take remedial steps. One of the ways to overcome this problem is by the setting up an information system in the organisation. What is Information System? An information system is a set of organized procedures that, when executed, provides information to support the organization (Lucas H. C. Jr 1994). According to Laudon K. C. et al. 1995), an information system is a set of interrelated components that sense, communicate, analyze, and display information for the purpose of enhancing perception, understanding, control and creative ability. Alter S. (1991) however argued that information system is a combination of work practices, information, people, and information technologies organized to accomplish goals in an organization. Information systems (IS) are sets of components that are organ ized in a way that supports the execution of some function(s) (The Institute of Electrical and Electronics Engineering IEEE, 1990 cited at Obeng S. 010). Nickerson (2000) does not limit the components to being only technical – such as computers and code – but sees that the people, the processes, and the information are also parts of an information system. Therefore it can be said that an information system is a system that provides management and other personnel within an organization with up-to-date information regarding the organizations performance; for example, current inventory and sales. Thus, it is important to understand the relationship or role of information ystem in any organization and how it would directly help them. An IS system isnt just a collection of hardware and software, its much more than that, its a tool. This tool can be used in a number of ways, and the value of it really depends on how a business opts to utilize it (Goessl L. 2008). Information systems are rarely innovative or out of the box business solutions. However manager will not be able to design new systems successfully or understand existing systems without understanding your own business organization. Relationship of Information System with Organization All businesses share one common asset, regardless of the type of business. It does not matter if they manufacture goods or provide services. It is a vital part of any business entity, whether a sole proprietorship or a multinational corporation. That common asset is information. The amount of information in organizations is heavily increasing and it has become vitally important to efficiently manage and share information inside the organization (Anna, 2009 cited at Obeng S. 2010). Information enables us to determine the need to create new products and services. Information tells us to move into new markets or to withdraw from other markets. Without information, the goods do not get made, the orders are not placed, the materials are not procured, the shipments are not delivered, the customers are not billed, and the business cannot survive. Information is considered to be the lifeblood of any organization (http://wiki. answers. com). It has far lesser impact when presented only as raw data. On the other hand damaged or lost data due to unorganized can cause disruptions in normal business activities leading to financial losses, law suits, etc. Companies have to be shifted in adopting new technology in order to remain competitive in a continuously developing business environment. This is where information systems (IS) come into play. In other words in order to maximize the value of information, it must be captured, analyzed, quantified, compiled, manipulated, made accessible, and shared through an information system (IS). It must be designed, developed, administered, and maintained which suits organizational needs and requirement. Information systems are organizational subsystems that perform ork related to information (Lucas H. C. Jr (1994) p. 52) Companies and other organizations are investing great sums in introducing information systems in the organization hoping to be able to make business more efficient and information sharing smoothly (Anna, 2009 cited at Obeng S. 2010). A sophisticated computer information system enables companies to monitor employees, to keep managers and employees informed, to coordinate activitie s among divisions, or even to sell their products to customers via the internet. Moreover, in the era of information technology like this, information has become valuable organizational asset just like human resources and inventories. Furthermore, a good information system can facilitate direct communication between firm and suppliers, manufacturers, dealers, and marketers. Together, they can create a value chain as though they were in one organization (Axos 2008). Information systems, which comprise hardware, software, data, applications, communication and people, help an organization to better manage and secure its critical corporate, customer and employee data. Information systems also improve integration and work processes and organization can gain continuous benefits. An information system can be a mainframe, mid-range or network computer concept that allows distributed processing for a group of users accessing the same software application. These systems provide management with control over their data, with various tools to extract data or view data structures and records. The role of an information system is to foster a data management environment that is robust and can be expanded according to an organizations strategic plan for information processing. An information system also satisfies diverse information needs in an organization Roles of Information System in an Organization One reason information system plays such an important role in organization and affect so many people is the soaring power and the decline on cost of computer technology. Organization nowadays can use powerful communication networks to access different locations around the world and coordinate activities across time and space. These networks are transforming the shape and the form of business enterprises. This report will not look into detail on the network used, instead will be focusing on the role and the capability of information system which required the organization to redesign, transform structure, scope of operations, reporting and control mechanisms, work practices, work flows, products and services (Lo P. 2005) Information system can flatten organizations which mean it can reduce number of employees and management levels. In other words, organization can reshape and retrench employee who is in redundancy and no longer need some of the positions. Thus, it reduces the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority. Team members can collaborate closely even from distance locations which means that the management span of control also been broadened. This means managers can manage and control more workers spread over greater distances. Through information system it is now possible to separate work from location and they can organize globally while working locally by the usage of e-mail, internet, and video conferencing. According to Laudon K. C. ; Laudon J. P. 2000, it can link people, assets and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical location and hence enabling different companies to join together to provide goods and services without physical linkage. It can also help to reorganize work flows and processes and have been progressively replacing manual work procedures with automated work procedures. It allows organization to cut costs significantly through displacing paper and manual routine as well as improving customer service. Redesigned workflows can also facilitate organization efficiency and can enable new organizational structures, products and services. Information system can increase flexibility to both small and large organizations by increasing their ability to respond to changes in the marketplace and to take advantage of new opportunities. It enables transactions such as payments and purchase orders to be exchanges electronically among different companies, thereby reducing the cost of obtaining products and services from outside the firm. Organization can share business data, catalogues or mail messages through such systems. It can create new relationships between organization, its customers and suppliers because information system automates the flow of information across organizational boundaries (Laudon K. C. ; Laudon J. P. (2000). Information System concepts Laudon K. C. ; Laudon J. P. (1995) p. 6 stated three common activities in an information system produce the information organizations need for making decisions, controlling operations, analyzing problems and creating new products or services. Input is the raw data from the world around us (Laudon K. C. et al (1995) p. 2). In other word input captures or collects raw data from within the organization or from its external environment. For example, Customers information, organization’s products and services, internal operations, competitors and all the external data on the economy, markets etc. Processing entails converting this raw data into a useful form which means that computers are used to store data and then manipulate, rearrange, and an alyze this data according to a set of instructions called a program or software. The result of processing on the other hand is called output. Output entails displaying information to users which means that it transfers the processed information to the people or activities where it will be used. For example, many organizations would want their information to be disseminated and shared to the external parties which include the public, stockholders, government and etc. Types of Information Systems in organization Information systems must be sufficiently flexible to meet the needs of users at different levels in an organization. Facilitating the input, processing and output as mentioned earlier requires the use of several different types of information system. Thus, there are different types of information system used in organization. These include transaction processing systems, management information systems, decision support systems and executive information systems. Transaction Processing Systems (TPS) Transaction processing systems help production workers to process transactions. Transaction means an event surrounding the production, distribution, sale and transportation of goods and services (Laudon K. C. et al 1995), cash deposits, payroll, credit decisions and the flow of material in the factory (Laudon K. C. ; Laudon J. P. 1995). The powerful feature of TPS is their ability to record routine and well-structured processes (Rowley J. 1996). It also helps to record sales, inventory or financial data. For example if an item were sold, the transaction processing system would ensure that the sale was posted in the sales journal and later when the invoice is raised to the accounts receivable file and to the inventory records. Output would be a printed list of detailed monthly statements for customers or a screen display of the stock levels of items in stock. Management Information System (MIS) Management information systems support managers in making decisions and to produce meaningful reports for managerial use (Rowley J. 1996). The purpose of this system is to help the business firm integrate new knowledge into the business and help organization control the flow of paperwork (Laudon K. C. ; Laudon J. P. 1995). MIS are suitable to use in decision making situations where the information requirements can be gathered and access in advance and the need for information occurs regularly. The highly structured information provided by these systems allows managers to evaluate an organizations performance by comparing current with previous outputs http://www. chris-kimble. com/Courses/World_Med_MBA/Types-of-Information-System. html. An example might be the decision to change the price of a given product. In order to make such a decision it is useful to have data on production costs, existing profitability of the product, past sales of that and other products, and the effect that a previous price rise had on sales, as well as data concerning the prices of comparable products from competitors. Decision Support Systems (DSS) Decision support systems help managers monitor, control, organize work, (Laudon K. C. et al 1995) decision making, and administrative activities (Laudon K. C. Laudon J. P. 1995). It is an information system that assists managers with unique, non-recurring strategic decisions that are relatively unstructured (Rowley J. 1996). According to Keen and Morton 1978, the systems support non-routine decision making (as cited in Laudon K. C. Laudon J. P. 1995, p. 13). A decision support system must be very flexible http://www. freetutes. com/systemanalysis/types-of-information-system. html It typically provides periodic reports rather than instant information on operations. It is therefore tend to support tactical and strategic decision making in situations where the risk associated with any error is high and a mistake can have serious consequences. These systems are often used to analyze existing structured information and allow managers to project the potential effects of their decisions into the future. An example is a relocation control system that reports on the total moving, house hunting, and home financing costs for employees in all company divisions, noting wherever actual costs exceed budgets. Executive Information Systems (EIS) Executive information systems are designed to assist top-level executives in the acquisition and use of the information that is necessary to support them in their top management of the organization (Rowley J. 1996). In other words it helps them to tackle and address key strategic issues and long term need, both in the firm and in the external environment. Executive Information System are designed to be operated directly by executives without the need for intermediaries and easily tailored to the preferences of the individual using them http://www. chris-kimble. com/Courses/World_Med_MBA/Types-of-Information-System. html. EIS support them by providing them quick access to detail and investigation of a problem once the problem or opportunity has been identified. Output on the screen often uses a mixture of graphics and tables. Benefits of using Information Systems Organization practicing pervasive as information systems has a wide range of significant benefits. They often view these as assets and a means to gain a competitive lead in their respective industry. There are number of benefits that organization could gain are as stated below: Enhance jobs Implementing Information Systems can make jobs more efficient in terms of releasing employees to do other important tasks. It is no longer for staff needed to spend valuable time sorting through statistics, data and other pertinent information because the system has ability to gather it for them. Information System provides a cost-effective way to conduct transactions, significantly cutting down the time involved in processing. Differentiation Information System provides the ability to strategically define organization in a way that makes the business stand out from the competition. Information systems can be integrated in such a way where customers can be offered something no one else provides. With a unique design that makes your business appealing to do business with, you can easily increase your customer base. Decision Making Information systems allow the vital element of providing real-time information. In todays competitive environment, a manager needs to make rapid decisions and to do this effectively and they need the most up to date information available to assist them. Properly designing their IS to custom fit the needs will enable them to accomplish this. Communication Information systems possess ways to effectively and efficiently share information. Automated communication is a time and resource saver and can add tremendous value to business. With the help of information system, communication can become cheaper, quicker, and more efficient. Organization can now communicate with anyone around the globe by simply text messaging them or sending them an email for an almost instantaneous response. The internet has also opened up face to face direct communication from different parts of the world thanks to the helps of video conferencing. Globalization   IS has not only brought the world closer together, but it has allowed the worlds economy to become a single interdependent system. This means that organization can not only share information quickly and efficiently, but they can also bring down barriers of linguistic and geographic boundaries. The world has developed into a global village due to the help of information system allowing countries from different continent who are not only separated by distance but also by language to shares ideas and information with each other. Increasing Revenues IS used technology to generate revenue, for example by making information products available through computer systems (Lucas H. C. Jr 1994). There is an abundance of financial databases and services to which one can subscribe. It is possible to obtain hundreds of types of data about companies and their financial conditions. The Internet is the main source to advertise your products. Information system on the other hand has also helped to computerize the business process thus streamlining businesses to make them extremely cost effective money making machines. This in turn increases productivity which ultimately gives rise to profits that means better pay and less strenuous working conditions. Reducing Costs -One of the main benefits of implementing IS/IT in organizations has been cost savings. For instance, organization has automated clerical tasks to reduce costs. Insurance companies and banks on the other hand generate products that are really information; bills, notices, renewals, and so on represent output, products that must be printed and distributed to customers. These systems have resulted in elimination of existing positions, whereas others have reduced the number of additional employees needed in the future. Taking Ernst Young for example, the company has successfully reduced its office space by 2 million square feet by allowing their employees to work from home. http://www. bukisa. om/articles/20243_the-importance-of-information-system#ixzz1rMCWg2Uz Improving Quality One reason to use IS/IT is to improve the quality of output: computer aided design is a good example. An engineer or draftsman uses a computer terminal to create engineering drawings. He or she stores the drawing on a computer file; it can be recalled later for easy modification. A system like this will also plot a drawing copy; changes are redrawn in minutes. The syste m reduces much of the time of design work and has dramatically reduced the need for draftsman. Another example is through the usage of electronic data interchange (EDI) which connects firms to each other electronically. A typical application is order entry and acknowledgement. The use of EDI contributes to quality by reducing the opportunity for errors since data are entered only once. An information system offers a litany of benefits that help to make the process of managing information easier. Central access, easy back up, central distribution of information, easy record keeping, easy tax preparation, as well as easy customer trait identification http://www. blurtit. com/q8104822. html More and more people are working from their homes nowadays. Information technology has become so sophisticated it allows people to choose to work from home. Teleconferencing and video conferencing enable employees to beam in whenever needed How to ensure effective implementation of IS in organization When manager has decided to change processes along with software, they must create a phased in approach to their organizations changes in order to make the change successful. Usually the push towards a new software system is backed by a need to change business from the current way of doing things. Organization will become more efficient, to reduce paper usage, to provide better audit trail, to better market and care for a customer base and/or many other reasons. In order to implement change it is better to use conversion strategies in which to implement new system they cannot just simply forget the old system completely, it must done simultaneously so that change would become more effective. This is because if there is anything happen to the new system, the old system can still be easily retrieved. Changing too many things at once may overwhelm organizations staff. In addition, unless it is a very large company with a dedicated project team, it is very likely that they will not have the resources to properly supervise and implement both new software and new process. It is essential to really understand the full functionality of the system until it is implemented and are utilizing it for a period of time. Manager in organization will make better process decisions after going through the nuts and bolts pieces of the conversion and can now focus on all the bells and whistles the software offers. Organization need to provide sufficient training. It also allows staff to brainstorm with one another as they are getting used to the softwares functionality. It is vital to follow up training after implementation of the system, even if it is only a brief overview. Doing so, will allow manager to realize the full benefits of their system. It will also give organization updated information on the system. It is vital to involve the right people in the organization. It is also important to identify a champion in each key area of the organization that can ensure the success of the implementation. The champions do not necessarily need to be management, or supervisors. In fact, a trusted peer that is dedicated to the project may be able to better connect to the staff on the level of their daily duties (as well as provide excellent feedback regarding implementation details during the project). No matter what approach is being used by organization, implementing new software can definitely be a busy and stressful. Using these tips will assist more or less assist organization to a successful implementation. Conclusion In conclusion, it is surprising facts that there are many more companies still do not use information system in their organization. Information system enables companies to react, respond, cater, store, retrieve, disseminate, and control their new valuable asset that is information. In the years to come, a good information system within a company will be no longer an option; it will become a compulsory in determining success and to gain competitive advantage. Implementing a new system typically comes with a large price tag, but if business requirements and processes are properly and accurately identified, the payoffs can be big. Investing in information systems keeps a business competitive and helps an organization carry the ability to maintain visible status in the global economy. Without IS, a business will more than likely fall rapidly behind. The benefits of integrating technology within an organization can truly be limitless depending on the level of creativity, strategic planning and innovation in the decision making processes. 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