A Management Information System

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A management information system (MIS) provides information needed to manage organizations efficiently and effectively.[1] Management information systems involve three primary resources: people, technology, and information. Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization.[2] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems.[2] The following are some of the benefits that can be attained for different types of management information systems.[5]


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The company is able to highlight their strength and weaknesses due to the presence of revenue reports, employee performance records etc. The identification of these aspects can help the company to improve their business processes and operations. Giving an overall picture of the company and acting as a communication and planning tool. The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities. Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviors can be predicted by the analysis of sales and revenue reports from each operating region of the company.

Information Systems can be conceptualized in terms of three types of systems: Transactional Processing Systems (TPS), Management Information Systems (MIS), and Expert Systems. MIS has several subsets such as Decision Support Systems and Executive Information Systems. The role of MIS in decision support is best discussed in the context of the subset referred to as Decision Support System (DSS). A DSS is a computer based system (an application program) capable of analyzing an organizational (or business) data and then presents it in a way that helps the user to make business decisions more efficiently and effectively. It is basically an informational application which depends on the information already input while answering to a given query. For example, a decision support system could provide: Comparative sales figures for one week/month and the next Projected revenue figures based on new product sales assumptions Consequences of different decision alternatives, given past experience Sometimes there is an overlap between the broad categories of IS and a DSS could be capable of presenting information graphically through an expert system or artificial intelligence

(AI). Usually the DSS is used by all levels of people within a business organization. Top level management uses DSS for strategic decisions, middle management uses for tactical decision while first line supervisors use deploy it for day-to-day operational decisions. Therefore, the process of decision-making in any business is an inherently vital aspect not just for organizations but also for individuals who greatly rely on these decisions for their survival in the highly competitive arena of entrepreneurship (Al-Zhrani, 2010, p.1249-1251). More importantly, Management Information System (commonly abbreviated as MIS) has been an increasingly used tool in the institutionalization and making of decisions. DSS are a subset of MIS, for intelligent decision making. However, dispite the immense benefits that result from using MIS in decision making, some critics have, reportedly, been slowly—but surely—asserting that MIS poses surmountable detrimental effects to organizations and should thus be used sparingly or avoided if possible (Demetrius, 1996). According to Kumar (2006), in order to define MIS, it must be principally divided into the three facets that constitute it—which are: management, information, and systems. In furthering his ideas, Kumar simply defines management as the process through which managers plan, organize, initiate and control operations within their businesses. Essentially, a management can only exist when there are subjects/ workers to be managed (Al-Zhrani, 2010, p.1248-1252; The Maniac, n.d.). Kumar also states that information generally refers to analyzed data. In other words, information (with regards to business) results from data that is analyzed using business statutes, principles and theories advanced by various macroeconomists. Finally, system, according to Kumar, refers to ―A set of elements joined together for a common objective.‖ More often than not, business systems normally consist of smaller systems—known as subsystems—which all function towards ensuring efficacy of the large systems. As a matter of fact, systems vary from one organization to another depending on the nature of organizational operations, size of the businesses and organizational priorities among many other salient factors. Based on the foregoing definitions, Management Information Systems refers to a system that uses information in order to ensure apt management of businesses. Fundamentally, all the

facets of MIS run concomitantly in order to ensure overall efficiency of the whole system. Journal of Management and Marketing Research Management information systems and business decision making, Page 3 Failure in one part means overall failure for the other parts since they are all designed to function interdependently (Davenport & Short, 1990). Consequentially, a good management of information systems leads to good decisionmaking in business just in the same way poor management leads to poor decision making. It is based on this foundational concept that this paper is going to circumspectly analyze the roles of management systems in decision making. Notably, this study will be arranged as follows. The study will begin by giving a brief overview into the decision making process in businesses while establishing the point in which it links with MIS. From here, an expansive analysis and review will be done on the roles of MIS in improving decision making. This will then be followed by a mentioning of the questionable areas associated with MIS and decision making. After that, recommendations will be given to solve the underlying issues that result from the paper. Finally, a conclusion will be given to summarize the contents of the paper.

Conclusion and Recommendations :Despite the positives associated with the role of MIS in decision making process, there are a few challenges that are believed to limit the efficacy of MIS. They include : 1.The dynamic nature of MIS makes it difficult for some organizations to keep up with the principles, strategies, propositions or even ideas. 2. Different situations call for different decisions to be made. This poses challenges to MIS theorists since some MIS tend to not be adaptable. 3. The programming, monitoring and evaluating MIS requires a lot of expertise – something which numerous organizations lack. 4. The running of MIS programs tends to be relatively costly for some organization – especially small ones who are not well-endowed financially. 5. MIS is more of a science – oriented field which business is art – oriented. Consequently, finding a middle ground where the two can be linked is quite challenging to some people.

6. Most organizations do not a well-defined decision making system. So even with the right MIS tools, very little can be achieved in terms of improving decision making. Based on these limitations plus other underlying issues that arises from the main discussion, the following recommendations are suggested : 1. There should be an increased monitoring of MIS so as to avoid falling victims of unobserved MIS which has dire ramification. 2. Managers and business owners should find a way of tailoring information in a way that it fits various decision making processes in variant businesses. 3. The management should encourage the effectuation of a mutually interdependent and balanced MIS where workers and automated systems are handled with due respect. 4. Business entities should find a way in calculating teachings about new MIS in order to reduce the trend of businesses being left behind on new inceptions. 5. A well - defined decision making system should be fledged in businesses so as to provide a viable working environment for MIS.A place to start here would be in inception of a centralized place where all decisions in businesses are channeled though 6. Business managers must ensure that they employ ( or alternatively outsource) professional personnel who are able to ardently run both MIS and the decision making process.

The impact of the Management Information System

The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more efficient, the tracking and monitoring the functional targets becomes easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by providing certain information indicating the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The manager'' attention is brought to a situation which is exceptional in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending and analysis, saving the manager's valuable time.

The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is common understanding of terms and terminology in the organization bringing clarity in the communication and a similar understanding of an event in the organization.

The MIS calls for a systemization of the business operations for an effective system design. This leads to streamlining of the operations which complicate the system design. It improves the administration of the business by bringing a discipline in its operations everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in the business operations.

Since the goals and objective of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.

A well designed system with a focus on the manager makes an impact on the managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools of the management. It helps him to resort to such exercises as experimentation and modeling. The use of computers enables him to use the tools and techniques which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improves the decision making ability considerably

Developing Information Systems
"The actions that are taken to create an information system that solves an organizational problem are called system development (Laudon & Laudon, 2010)". These include system analysis, system design, programming, testing, conversion, production and finally maintenance. These actions usually take place in that specified order but some may need to repeat or be accomplished concurrently. System analysis is accomplished on the problem the company is facing and is trying to solve with the information system. Whoever accomplishes this step will identify the problem areas and outlines a solution through achievable objectives. This analysis will include a feasibility study, which determines the solutions feasibility based on money, time and technology. Essentially the feasibility study determines whether this solution is a good investment. This process also lays out what the information requirement will be for the new system. System design shows how the system will fulfill the requirements and objectives laid out in the system analysis phase. The designer will address all the managerial, organizational and technological components the system will address and need. It is important to note that user information requirements drive the building effort. The user of the system must be involved in the design process to ensure the system meets the users need and operations. Programming entails taking the design stage and translating that into software code. This is usually out sourced to another company to write the required software or company’s buy

existing software that meets the systems needs. The key is to make sure the software is user friendly and compatible with current systems. Testing can take on many different forms but is essential to the successful implementation of the new system. You can conduct unit testing, which tests each program in the system separately or system testing which tests the system as a whole. Either way there should also be acceptance testing, which provides a certification that the system is ready to use. Also, regardless of the test a comprehensive test plan should be developed that identifies what is to be tested and what the expected outcome should be. Conversion is the process of changing or converting the old system into the new. This can be done in four ways: Parallel strategy – Both old and new systems are run together until the new one functions correctly (this is the safest approach since you do not lose the old system until the new one is “bug” free). Direct cutover – The new system replaces the old at an appointed time. Pilot study – Introducing the new system to a small portion of the operation to see how it fares. If good then the new system expands to the rest of the company. Phased approach – New system is introduced in stages. Anyway you implement the conversion you must document the good and bad during the process to identify benchmarks and fix problems. Conversion also includes the training of all personnel that are required to use the system to perform their job. Production is when the new system is officially the system of record for the operation and maintenance is just that. Maintain the system as it performs the function it was intended to meet.

McDonald's
McDonald's Corporation has sold billions of hamburgers. Beginning in 1955 with a single drive-in Des Plaines, Illinois, McDonald's has frown to today's system of more than 25,000 restaurants across 115 countries. As a brand, McDonald's is synonymous with a quality product at a reasonable price. Equally important, McDonald's markets itself as more than a place to get a hamburger. Ronald McDonald, Happy Meals, the clean restaurants and each new product or promotional theme add to the fun that brings more than 40 million customers of all ages to its restaurants around the world each day. Eighty percent of worldwide McDonald's restaurants are franchised. Each restaurant must meet strict requirements to make the same as all others. This esnures that each time you drive or walk into a McDonald's, no matter where you are, the Big Mac that you order will always be the same taste, size, weight, and quality. It will also be competitively priced. Legal contracts, quality standards, and performance specifications direct the individual restaurants inthe effort to keep all the food orders the same. What most individuals do not think about when they walk or drive into McDonald's is that McDonald's management information system (MIS)plays a critical role in ensuring the quality and consistency of each sandwich. McDonald's Corporation maintains a strict requirement that food be fresh and not stored more than a limited amount of time. MIS applications direc managers in the management of employees and the ordering and tracking of hamburgers, buns,

potatoes and soft drinks. Because restaurants are not consistently busy throughout the day, the MIS is called upon to assist the manager in maximizing the scheduling of individuals to cook and serve the food. The MIS further helps track restaurants' cash flow and guard against inaccuracy and waste. As McDonald's add new products and addresses market segments more specifically targeted both ethnically and geographically, the manager must make more complex decisions about eh best mix of products to prepare to serve at each meal and throughout the day. McDonald's "Made for You" campaign uses a point of sale system to register each custoemr's "Made for you" order. Its "Fresh Tastes" campaign seeks to bring new and more focused products to its customers' attention. Special promotions and communitywide events add additional factors that must be added to the equation that can best be addressed through management information systems

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