Planning For Management Information System Essay, Research Paper

The biggest challenge and

most critical success factor in reengineering projects are persuading the

people within the organization to cooperate. When you begin to computerize

a legacy system considers the advantages; reduced clerical cost, quicker

processing time and improved customer service. Everyone knows that

the computer capabilities alone make life a lot easier for all managers.

The advantage of time and accuracy spread over the lifespan of the information

system means improved long-term vision and focus for top, middle and lower

managers.

A management

information system (MIS) focus is on information that management needs

to prepare its job. This task becomes much more difficult when the

major players have a tradition of high independence, are often confrontational

to management, and are irreplaceable independent contractors. CIO’s in

major business organizations face exactly this situation; further complicated

by the fact that the reengineering effort is crucial to the continued existence

of the organization.

Such discussion has driven the software industry to focus attention on

software specifically designed to support the team approach essential to

most service and customer oriented organizations. The importance of teamwork

can not be over emphasize in achieving overall organizational goals, and

the need to capture and manage an organization’s knowledge base remain

crucial. This teamwork enables the organization to achieve and sustain

competitive advantage in their business.

In considering the framework for an information system (IS) each level

operational, tactical and strategic planning requires different IS.

At the operational planning system, the IS collect, validate and record

transactional data relating to acquisition or disbursement of resources.

The data for account receivable and payables, payrolls, inventory level,

shipping data, printed invoice and cash receipts recorded as they occur.

The operational-level IS characteristic are repetitive, predictable, emphasizes

the past and detailed in nature just to name a few. The focus of

the operational system is the daily tasks performed at the user level.

The operational level manager uses this data to check every day tasks,

i.e. ordering, shipping, inventory control, the essence of the business

processes.

The

second level in the framework is the tactical system. This system

provide middle-level managers with information to monitor and control operation

while allocating their resources efficiently. The data is summarized,

aggregated, or analyzed with a wide range of reports, i.e., summary, exception

and ah hoc reports. The tactical information system differs from

operational information system in the basic purpose: operational support

the execution of tasks and a tactical information system supports a manager

control over those tasks under their area of supervision as well as the

allocation of resources to meet the company objectives set by top management.

The data input and the information produced as outputs differ from the

type of data involved, tactical characteristics are periodic in nature,

with unexpected findings, comparative in nature with both internal and

external sources. The tactical information system purpose and the

regularity of report produced within the information system are drastically

different from an operational system.

The

third level in the framework is strategic planning, designed to provide

top managers with information that assist them in making long-range planning

decisions for the business. The different in strategic and

tactical are not always clear, because both types of information systems

may use some of the same data, you might say that the systems sometimes

overlap with the difference being in the data that the system uses.

Typically, top management uses strategic planning system to forecast long-range

company objectives. The characteristics are ah hoc basis, unstructured

format, external source, and subjectivity, summary and predictive in nature.

A MIS provides information for effective planning and tactical decision

making, which is the foundation of operational level data system.

A tactical planning system provides middle-level management with the ability

to monitor and control resources. The tactical information

system does not support the execution of operational tasks, but allow managers

visibility over the operation.

Information systems are costly, to deploy and maintain, yet the maximization

of economic value of IS in the long-run balance out over the initial set-up

cost. The right software products enable teams of people to integrate their

knowledge, work processes and applications to achieve improved business

effectiveness. It has been suggested that the implementation

of such technologies is more difficult and yields more unintended consequences

than is typically acknowledged. First, how such technologies are

used reflect the effects. Second, how these technologies are likely used

when alternative tools co-exist, meaning predictability is difficult from

technological characteristics. Third, because people use groupware with

other people, one person’s choices about how to use groupware may have

consequences for other group members, user satisfaction.

The

measurement for an effective MIS must be the users; usage and satisfaction

have a strong correlation. Obvious, the effectiveness of MIS depends

upon the use of the system and if the employees accept it. The information

system department, managers and users together make the MIS process successful.

The managers implement the MIS, their behavior and motivation play an important

part in the variables for the system to be effective.

Each designed MIS produce information for decision making throughout the

organization. Let?s examine several case studies with the implementation

of MIS as seen in three distinct companies, an insurance company, a food

marketing company and a social service agency.

The insurance company normal routine consisted of tons of policy paperwork

generated daily to accomplish the company objectives. The company

started on line systems supporting policy screening, creation and issuance

in the 70?s. An employee could key in new application information

at his or her computer terminal, after the compilation of information an

underwriter can evaluate the insurability of potential customers.

After the approval process, the information system produces a policy data

sheet. This business process makes it possible to handle inquiries

from individual policyholders and sales agents seeking personal data information

about policyholders. The home office linked to all locations of their

sales agencies allowing sales agents to inquire on-line about policies

with the capability to edit application information at their site.

The home office can still update policies as well. Yes, this service provides

the agencies with a competitive advantage in product marketing and customer

service. The home office outsourced and purchased software that enable

the sales agents to analyze alternative companies? product and service

options, resulting in winning the customers? loyalty and a quicker sales.

The company continues to grasp the future for innovations and anticipating

their customers? needs in the future. This approach along ensures

valuable information for the senior-level management to plan as well as

reduce overhead cost with improved productivity and better decision-making

ability.

Next,

let look at the food industry and view how information system improved

their process. The MIS geared toward physical distribution at the

operational level, where update orders and invoices sent to the distribution

centers and the system updates the account receivable and associate system

files. The system prints invoices at the origin and destination location,

resulting in reduced cost and faster payments equal more cash flow.

The food company produced numerous reports that enabled the managers to

conduct on-line credit checks from their account receivable status report,

and identify delinquent accounts, before shipping the merchandise to the

distribution centers. The customer services personnel have

immediate access to open account allowing for immediate visibility and

response to customer inquiries about deliveries and shipments, similarly

cash payments received automatically applied to customers? on-line account.

Let us not forget to look at the marketing advantages with MIS as well.

Sales analysis reports reflect the customers? history product information

file; this data generates report by product line in each territory each

month for middle-level managers to forecast demands for any specific product

item. Normally, this begs the question about production and

if the company can continue to support the demands of the customers.

At this junction, the IS gives managers additional insight about demand

and the need to forecast for future buys. The company established

a bill-of-material file, which computerized the ingredients for each product

line and created batch size for all products. This process minimized

the work process and improved the manufacturing ordering process for each

customer batch orders. The product specification file served

as the database of reference information enabling the manager the ability

to print text on all purchase orders. The text file produced a finished

goods inventory, which is transferred to the branch warehouse stockroom

in various locations; this information is based on sales analysis report

(demand). In the finance and administration department, the updated

account receivables correlates with customers’ billing and cash receipts.

A monthly exception report generated from the aged balances spits out a

collection letter automatically to the respective recipients at specified

intervals. The MIS enabled the food marketing company to process

orders more timely, manage inventories more efficiently and organize their

production section. Bottom line cost savings of MIS results in more

revenue and a better customer relationship and senior-level managers focusing

their attention on emerging trends in the market.

A

social service department utilizes MIS in the public sector by providing

financial assistance to the residences, i.e. medical assistance, food stamps,

facilitate foster home and adoption, day care, school service, family planning,

housing and legal services. The MIS processes new applications and

payments. The applicant applies and become eligible then the system creates

an on-line record for them. The system automatically prints an identification

card for the payroll master file that entitles the recipient to service

for which the bill goes to the social service department. An on-line

inquiry and update of the applicant record are also possible.

The payroll master file sorts, generates the welfare check, and lists them

on the payroll register, which generates historical report for managers.

In all three case studies, the information systems support transactional

processing. The user involvement in each of the project selection ensures

the effectiveness of the information system and its acceptability.

How do you

measure utilization and performance in MIS? The term utilization

is the extent that the intended users use the information system (IS) for

its intended purpose. The term performance measures the improvement

of the business process that supports the IS implementation. These measurements

observed through business records, visual or electronic inspections and

take the personal opinions and attitudes out of the decision-making loop.

The multiple variables sometimes are difficult to identify, but the IS

department must be impartial if the true value is realized of a successful

IS project. A successful IS project can be measure best with psychometric

tests of attitude, interests, and opinions such as user information satisfaction

in the broadest sense. The performance measures of the business determine

the effectiveness of the MIS.

You

can see that information technology give companies a competitive edge,

once an information based service enters other company either catch up

or eliminate the original innovator competitive advantage thus raising

the stake for those participating in the marketplace. Today, company

can link its customer to its order entry system, thus improving efficiency

and improve business performance.

Sure, an effective information system, if efficient reduces needless paperwork

and allows the customer access to available stock information before committing

to the purchase of goods and services. Let not forget about effective

too, the information system provide better service to its customers, for

instance, i.e. the creation of electronic travel supermarket through on-line

reservation system, i.e. www.priceline.com or www. Travelocity.com, which

is transforming the basis of competition within this marketplace.

To compete efficiently in this world, companies must establish information

partnership as an integral part of successful business processes

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