Business values of Management Systems

Business values of Management Systems

 

Table of content

 

Executive summary       2

 

Introduction         2

 

Function of MIS        3

 

Business value of MIS       3

 

Advantages of MIS       7

 

Disadvantages of MIS       8

 

Conclusion         8

 

References         9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive summary

 

This paperwork will describe all the facts about MIS. MIS is one of the most useful tools in management of the company. More and more managers use it in order to develop the answers on the questions they need. It has more values and different types of advantages for the company and the business in general.

 

Today when people have no time to waste and there is a huge amount of data due to access to the Internet and the previous history and data which was taken before they need a fast solution to organize data. They need some programs to help them store information, package it and show it at the right moment when you have a dilemma or a difficulty what to do. MIS soft wares are excellent help in that.

 

Business growing bigger and bigger, going from one country to another and of course there are difficulties and challenges in communicating between each other. MIS value come in a hand to the business in this case and helps to centralize and organize data in such a way that everyone can understand it. So let us see further the Business values of MIS in general.

 

Introduction

 

MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

 

Management information systems are typically computer systems used for managing three primary components: technology, people, and data. Management information systems are distinct from other information systems, in that they are used to analyze and facilitate strategic and operational activities.

 

Generally speaking MIS helps to people to make a decision. Before computers were used In simple things such as sales, payroll, billing etc. with a little structure. However, the time passed by and more data was stored an linked , the applications became more complex and the storage grew. This made managers to create greater abstraction as well as greater detail with the aim of creating significant management reports from the raw, stored data.

 

From the beginning MIS was referred to the applications which were only connected with information about sales, income and the other data which would help to run and manage the business. Today it includes human resource planning, supply chain management, project management etc. It still have lots of business functions and values in it so further we will see all of them through.

 

 

Functions of MIS

 

MIS has a huge variance of functions. It helps to each of the department inside of the company to manage the data and keep choosing and finding the correct answers to the appearing situations. The most common functions are:

 

-Data processing where it simplifies statistics and reduces the costs by giving one format to all. The data processing includes transmission, collection, storage of the data.

 

-Function of plan in which MIS arranges the plans according to the data given by enterprises and the limits they have given.

-Function of prediction where MIS predicts the future of the situation by using statics, simulation and mathematics.

 

-Function of assistance where it helps to people by giving them exact answers to the related problems by using different types of mathematical modes and analyses of the data which is stored in the computers.

 

-Function of control where MIS simply looks after the whole process of operating plans and tries to find a consensus between the plan and the operations in accordance with the data given by each department of the company. Plus it helps to managers to control each method.

 

Generally speaking MIS makes business work with technology in order to the information needed in order to do the job better and faster. It also helps to people in different departments of the company to communicate more efficiently.

 

Business value of MIS

 

Each person and the company has the need once in a while to store properly their stuff, arrange them well enough so that next time they will not need to search for the things all over the place. It usually comes from a disorder inside of your system and there you need to put it in order due to the fact that the company or you have troubles after.

 

When we talk about the company we usually start with defining the problem such as poor sales or bad profit and start to seek the reason and solution to it. MIS generally is connected with the business and here we will show what types of values doe they bring to the business. They are: 

-Marketing and sales. MIS helps in marketing mix including the product, place, price and promotion.

 

Firstly it helps with the product and their introduction on the market. It balances the risks with the opportunities which come along the way with them.  Plus it looks after the competitors which can bring something new and better. The most important part is to evaluate properly the product and MIS software’s an help with that which is a huge help to the business because it can tell what type of positive and negative factors does the product has together with the risks which might come after. Also, it can surely forecast how the customers will react to the new product.

 

Secondly, The It helps in finding the proper place for distributing the product and making decision  at what time and what place they should distribute it. The MIS software helps plan the distribution channels for the product and track their performance. In terms of business value the company can get an easier answer on the question when and where should the product be distributed? What is the best way to show it?

 

Thirdly, it is often used for the distribution and advertising purposes. Media selection packages assist in selecting a mix of avenues to persuade the potential purchaser, including direct mail, television, print media, and the electronic media such as the Internet and the WEB in particular. The effectiveness of the selected media mix is monitored and its composition is continually adjusted. For business it is necessary because you need to know which strategy to choose to be able to promote the product in the best way without wasting too much money due to the fact that it is quite expensive.

 

Fourthly, it is used in terms of pricing the product. Information systems provide an opportunity to finely segment customer groups, and charge different prices depending on the combination of products and services provided, as well as the circumstances of the sale transaction. In business it is important to put an affordable price which will be more than enough to buy the product for. OF course, promotion is a huge tool in it but still if the price is too high or too low people will not buy it due to thinking whether the quality is bad or the company is exaggerating their product abilities.

 

Fifth, it can help generally with sales forecasting, in which based on the whole marketing mix they can predict what types of sales to expect. In this area qualitative research is used in order to develop marketing research and the marketing mix to the fullest. The actual sales will depend to a large degree on the dynamics of the environment such as social, economic, legal, and technological environment in which the company will try to realize its plans.

 

In this case, a lot of things rely on the external information such as marketing research in order to collect the data on the existing customers and the potential ones. The software for marketing research has the statistical analysis of data and so it helps to define the customer behavior depending on the environment culture, behavior and other factors.

 

There is also another way find the data by using the research on the competitors, their  behavior, the way they attract the customers and comparing them to themselves.

 

-Production. In terms of production there are couple of steps such as product design and engineering, product scheduling, quality control and facilities planning.

 

Firstly, it helps with designing the product and actually making it. The computer aided design systems can help in calculating, assigning and figuring the surfaces while keeping the information on design in databases. They needed in terms of helping to define the best design of the product without spending much money. In business it is necessary because that way they can save time, efforts and money while making the process fast and reasonable.

 

Secondly, it can help with product scheduling which s ne f the most important in the whole process. In fact the program has to make sure that there will enough people, resources and technology in order to start the production. Also, it looks after the whole process whether it goes as planned or not because the most important part is to get the work done ncluding the human factors. Production scheduling and the ancillary processes are today frequently controlled with a manufacturing resource planning system as the main informational tool. This software after helps in the sales forecast for the plants products into a detailed production plan and further into a master schedule of production. In terms of the business, it again can save money, unnecessary resources and the efficient amount of time.

 

Thirdly, it is needed in order to look after the quality of the products, where TQM(total quality management) is a huge help. Generally speaking TQM is a management technique for continuously improving the performance of all members and units of a firm to ensure customer satisfaction. For the business, it is necessary to be able to produce the products which will not be returned after sometime because of the defects.

 

Fourthly, it can help in managing the raw materials, packaging, the inventory and the whole process. Among the higher-level decision making supported by manufacturing information systems are facilities planning - locating the sites for manufacturing plants, deciding on their production capacities, and laying out the plant floors. In some cases, inventory management is combined with the general logistics systems, which plan and control the arrival of purchased goods into the firm as well as shipments to the customers. For business it is a god decision because the company will have a better control and understanding of what amount of things will they need and so they can plan a certain budget on it.

 

-Accounting and finance. In this case, MIS can help with the records of all the payables, receivables and inventory. Pus it will take care of you funds and financial forecasting together with auditing.

 

Firstly, it can help with ensuring that its available resources are properly used and that the organization is financially fit. Financial forecasts are based on computerized models known as cash-flow models. They range from rather simple spreadsheet templates to sophisticated models developed for the given industry and customized for the firm or, in the case of large corporations to specify modeling of their financial operations. Financial forecasting serves to identify the need for funds and their sources. In terms of business, the company always would like to predict what may happen to its money in the future.

 

Secondly, it can help with controlling the budget by using the spreadsheet programs. Spreadsheets are the personal productivity tools in use today in budget preparation. Performance reports are used to monitor budgets of various managerial levels. A performance report states the actual financial results achieved by the unit and compares them with the planned results. Along with budgets and performance reports, financial control employs a number of financial ratios indicating the performance of the business unit. For the business it is important to be in control of the budget and know how much should you generally expect on the investments which you made.

 

Thirdly, it can help with funds managements by managing the assets which company has. Generally it is the securities which can be easily converted into cash.  For management it is good because that way they can easily automatically generate buy or sell orders.

 

-Human resources. When it comes to Human resources, there are couple of functions which it has such as the HR planning,, recruiting, compensation and benefits.

 

Firstly, it can help with controlling people inside of the companies and issues between them. To identify the human resources necessary to accomplish the long-term objectives of a firm, company needs to project the skills, knowledge, and experience of the future employees. For business it is good because that way they can see who can help and how inside of the company.

 

Secondly, it can help in recruiting and finding the workforce.

The life-cycle transitions of the firm's workforce - hiring, promotion and transfer, and termination - have to be supported with the appropriate information system components. For business it can be useful because they need to know what are the potential people which can help them to make the business better.

 

Thirdly, it can help with compensation and benefits such as calculating who and how should get it and what type of investment should be involved with that. For business it is necessary to know who should get a compensation and how much in order to prepare a budget for it.

 

Advantages of MIS

 

There are advantages in MIS which can generally benefit people together with the businesses it relates to such as:

 

-Improving the quality of information which is provided. It simply facilitates planning because due to a huge amount of  data in the company managers have lost personal contact with the scene of operations.

- It encourages decentralization where it can help in measuring performance and making necessary change in the organizational plans and procedures.

-It brings Coordination where MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization.

-MIS assembles, process, stores, retrieves, evaluates and disseminates the information.

-Insecure for the future jobs because it is not so simple to follow the technology. You always have to be on the learning mode .

 

Disadvantages of MIS

 

-IT creates an unemployment due t the fact that lots of work done by the computers and less people are needed.

-There are privacy issue just like with the Social media. Yu may never know if someone will try to steal the information or it may end up somewhere where it shouldn’t

-Dominant culture s created due to the fact that someone will understand information faster  so of course it s not so easy to be on the lower level. 

 

Conclusion

 

By building an exceptional management information system into the company it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.

 

Though MIS may sometimes give a wrong output depending on which the management may take a decision which may a have a negative impact. Thus the management should have an alternative evaluation tool which will help to verify the output.

 

The value of information can be measured its by its impact upon decision-making. The normative value of information refers to the initial knowledge that the decision-maker has of the occurrence of some event resulting in management decisions and anticipated payoff. Collecting additional information may change decisions related to the initial event or later events. 

 

The business owner has the option of buying various software packages for various problems and then gradually linking them into a system with the help of a value-added reseller or a systems integrator. There are sometimes also reasons for not automating things too much though MIS is a great tool for a company, business and people in general.

 

References

 

http://www.businessdictionary.com/definition/management-information-system-MIS.html

 

http://en.wikipedia.org/wiki/Management_information_system

 

http://www.ehow.com/list_6814617_functions-management-information-system_.html

 

http://www.scribd.com/doc/37325774/Functional-Management-Information-System

 

http://www.fao.org/docrep/W5830E/w5830e0k.htm

 

http://osait.articlealley.com/the-functions-of-mis-865484.html

 

http://blog.maia-intelligence.com/2008/04/26/functional-management-information-system-mis/

 

http://www.ehow.com/about_5494879_advantages-disadvantages-information-management-systems.html

 

http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_MIS

 

http://wiki.answers.com/Q/What_are_the_Disadvantages_of_management_information_systems

 

https://sites.google.com/site/assignmentssolved/mca/semester4/mc0076/2