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Planning for Management Information System

Essay by   •  August 23, 2010  •  Research Paper  •  2,361 Words (10 Pages)  •  4,104 Views

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Planning for Management Information System

Planning for Management Information System

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



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