Information is wealth. Accurate information plays a major role in taking informed decisions in large organizations. Lack of availability of accurate information at an appropriate time leads to poor planning, poor scheduling and poor decision making. The reason behind non-availability of the required information is poor management information systems in organizations. Unless, an impeccable management information system is in place in the organization, the top management will not be able to draw perfect business strategies that help organizations to reach long-term goals. Depends on the complexity of the organization structure and integration levels of functional departments, companies use Management Information System (MIS) to gather information from all departments. MIS is nothing but an integrated user-machine, which provides information to the top management of the organization for effective decision making (O'Brien, 1999). Management Information System is very different from Information System, which is used to analyze operational activities in the organization. Majorly, there are three resources involved in MIS. They are; technology, people and information.
By taking various companies like BASF and Sage Group into consideration, this research paper elaborates on how MIS can contribute to objective of organizations and role of MIS in an organization. The paper also appraises the processes that an organization uses to plan its information systems requirements by taking Sage Group as an example.
[...] As BASF is one of the top 3 chemical companies in the world, it just needs to look at competitor's strategies to stay apart from the competition (Kumar, 1989). Management Information System, with the help of ERP and CRM applications, helps top management of BASF in providing accurate information, which is needed for decision making. Simply, MIS acts as a Decision Support System in BASF. MIS Contributes to Inventory Planning Activities Other most important issue with manufacturing companies like BASF is inventory planning. [...]
[...] A decision, which is made without taking limitations into consideration, will become a poor decision (Burch and Strater, 1974). References Agarwal, R., Lucas, H. (2005), information systems identity crisis: focusing on high- visibility and high-impact research', MIS Quarterly, 381-398. Benbasat, I., Zmud, R. (2003), identity crisis within the IS discipline: defining and communicating the discipline's core properties', MIS Quarterly, 183-194. Burch, J.G., Jr., & Strater, F.R., Jr. (1979), ‘Information Systems: Theory and Practice', New York, NY: John Wiley Gorry, G., & Scott Morton, M.S. (1971), framework for management information systems', Sloan Management Review, Fall 1971. Kumar, H. [...]
[...] (1989), ‘Management Information Systems: A Conceptual and Empirical Approach', New Delhi: Ashish Publishing House. Laudon, Laudon, J. (2010), ‘Management information systems: Managing the digital firm(11th ed.)', Upper Saddle River, NJ: Pearson Prentice Hall. Lindsay, John (2000), ‘Information Systems Fundamentals and Issues', Kingston University, School of Information Systems. Murdick, R.G., & Ross, J.E. (1975), ‘Information Systems for Modern Management', Englewood Cliffs, NJ: Prentice-Hall. O'Brien, J (1999), ‘Management Information Systems Managing Information Technology in the Internetworked Enterprise', Boston: Irwin McGraw- Hill. [...]
[...] Planning needs wide range of information from all the corners of the organization. Top management of Sage Group should provide required information to the planner in each step of planning 2. As information scatters across the organization, establishing right procedures to obtain information is also an important task 3. Designing right methods to communicate plans within the team or organization (Kumar, 1989). Monitoring and Controlling As Murdick and Ross (1975) explains, monitoring and controlling forces activities to obey the rules of plans. [...]
[...] Information Systems Management with the help of existing ERP application can gather relevant information, which helps top management in strategic decisions (Agarwal and Lucas, 2005). MIS Contributes to Business Development Activities Though, business development is purely external factor, without knowing strengths of inside team, and product, it is very difficult for sales managers to plan business development strategies. Information Systems Management, which is integrated with Customer Relationship Management can help sales managers by providing accurate information on past clients, their purchase behavior, previous transactions and market trends (O'Brien, 1999). [...]
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