Managing Information
Introduction
Management information system (MIS) in any organisation whether in manufacturing or service based production, utilises MIS in analysing, collecting and distribution of information that is crucial in planning and controlling the organisation or business operations. The ultimate goal of the management information systems in organisations is to provide optimization of all the resources disposable to them for the optimum benefits of the organisation inclusive of all stakeholders. Organisations require management whose function is to gather data through functional activities and analyse in order to make an informed management decision. An integrated MIS should achieve optimization by performing the core three main functions that entail; providing information across various departments in the organisation, facilitating decision making at the three tiers of management, and serve as efficient means for managing business processes in the entire organisation. The aim of this study is to evaluate the application and integration of management information systems in the logistics industry which is service based on how it has approached the various challenges and the technologies that have been enhanced through implementation.
Executive Summary
Globalisation is presenting numerous challenges to organisations in various sectors of operation with increased competitiveness making the various firms to develop strategies that will give an edge in the market place. These strategies range from development of the workforce and continuous training to innovativeness of services and product development in different industries. Business leaders and management in organisations face the challenging task of making their organisations perform better than their rivals. These challenges have made organisations factor in other aspects such as collaboration of human knowledge and integration of technologies from the traditional forms of gaining competitive advantage so as to change the organisations performance levels in the different industries. Therefore, organisations have embraced the driving propellers in managing information through different appropriate systems that are flexible to change that also collaborate the main the core idea of information technologies, knowledge and human skills.
Managing Information
The key challenge that faces many organisations in different fields lies in its ability to maintain and improve its operations and performance. However, there is increasing global competition and complexities in the operating environment where certainty of performance in an organisation will rely on differentiated service or production techniques to counter rivalry. In the challenging world, organisations have developed various strategies and applications in order to effectively handle the information they gather to gain more advantage (Bitner, 2000). Some of these strategies include Total Quality Management (TQM), Enterprise Resource Planning (ERP), Decision Support Systems (DSS), Executive Information Systems (EIS), and Management Information Systems (MIS). All these strategies support management at the three tier levels in making decisions that affect the organisation internally and externally on its operations. Management of information is the critical tool that determines the success of that company in the market place. Both service and manufacturing based companies utilise information systems that guide them on consumer trends and preferences on the particular product they provide thus generally influencing their production processes and service delivery.
Definition and Role of MIS
MIS is an abbreviation of Management Information System which provides an organisation with the necessary information through systems and processes in the entire organisation in which effective decisions are made by management through analysis of data collected from the information systems. This makes it possible for development in organisations in the different industries through innovation and adaptation in such management systems. MIS provides an organisation with clear frameworks and guidelines that govern practices, procedures, standards and policies relative to the nature of the organisation’s operations whether in service or manufacturing industry (Braithwaite, 2000). In order to achieve corporate goals, organisations must embrace and integrate information systems like MIS for effective and improved performance.
Overview of MIS in Service Organisations
The application and integration of MIS in service based industries is intertwined with the company’s objectives and long term goals where assurance of continuous practice and aid of MIS influences the organisations’ success and overall performance. In service industries, MIS application is developed towards achieving the goals of the systems design to connect people to customers. This management system explores three areas with the first being enhancement of communication at all levels and departments among the employees. It is an essential role in delivering services according to consumer preferences, example in the hotel Industry where the different departments have to communicate effectively through information systems like Fidelio to dispense the correct information regarding a guest that will aid in service provision and billing. Barriers in effective communication will hinder service delivery based on consumer needs thus affecting the organisation performance. The second area details delivery of materials or resources throughout the institution and also utilising efficient means for managing the business processes. This sequential approach will rely on effective communication systems and the active actions propagated through the different levels of management. Moreover, MIS explores the provision of an objective system that includes aggregated information for effective decision making and establishes processes in the service industry that outline the importance of coordination of all departments in the organisation.
Coordination functions may entail data collection and brainstorming activities that will provide the organisation with a platform to deliver successfully and reduce its operation expenses. Integration and application of MIS ultimately improves decision making processes in all the three tiers of management that include senior level, middle level and departmental level management which consequently affect strategic, tactical and operational aspects respectively. Application of MIS will also affect the performance and improvement of the organization’s workforce through the different job categories. The effective application of management information system in an organisation moreover should guarantee the entire organisation framework can avoid or endure risks in managerial decisions affecting the business operations (Bensousssan, 2003). Service implementation is affected by four common elements which dictate practices or policies, staff and management, operational processes, and adaptation of feedback devises which affect the overall alignment of MIS in the organisation’s objectives and goals.
Management Information System in Logistics Industry
Management information system in the logistics industry gives the emphasis of organising, collecting, analysing and distributing data which is effective in business operations. The information obtained is colleted from various resources through integration of MIS. Management in the logistics industry utilise this management strategy at the different levels of management with inclusion of other information systems like EIS and DSS to make informed decisions on aspects that affect the company on inputs, processes and outcomes by organising, planning, controlling and directing the business operation in accomplishing organisational objectives. These inputs include economic and human resources which are planned and directed to produce services and goods desired by customers. The various subsystems of MIS in logistics also utilise Idea Processing Systems that capture, evaluate and synthesize various data in the basic level of employee inputs that drive the objectives of the organisation (Sanchez, 2004).
Implementation at this level enables effective feedback or communication that enhances service delivery to customers based on their needs and preferences. The logistics industry focuses on the integration of quality control, service processes, planning and scheduling in evaluating the organisation’s activities. Technology and information has a significant role in modern logistics where highly integrated systems throughout external and internal are applied in supply chains. Services in the logistic industry vary along the continuum of general haulage, inventory management, storage, integrated logistics and distribution management with are associated with management information systems for increased profitability. The trend in logistics today is moving towards the ascent of optimising of the organisation’s processes effectively and understanding its operations in the dynamic market environment on a daily basis. Integration of MIS enables interconnectedness of E-commerce with suppliers and customers beyond the organisation’s boundaries. This interface provides various agents in the logistics industry including smart agents in accessing timely and critical information, intelligence and knowledge in order to optimise the firm’s operations. Decision makers in a company realise optimum strategies in supply chains by accessing data services that are provided by logistic partners. Organisations engaged in related activities find a collaborative smart business platform that makes management decisions to be effective in having central data.
Integration of Enterprise Resource Planning (ERP) Information Systems
The integration of any information system in an organisation should first evaluate the design of an organisation activity within the framework that emphasises control at all levels, profit planning, and performance planning. Enterprise Resource Planning ultimately integrates essential business information in various subsystems, including both non-financial and financial aspects based in an organisation. ERP in the logistics industry has been integrated to provide the essential connections of data exchange that enhances business operations (Slater, 2002). Former interest of information systems in business were primarily based in developing financial statements for the company, but ERP has revolutionised the importance of integrated management information systems which produce tangible reports that assist management to make critical decisions that are important for daily operations. The integration of ERP in the logistics enterprises has more significant benefits than mechanical linking of enterprises across organisational functions with its major purpose of helping management decide on the appropriate course of action to take to accomplish organisational strategies and goals. Integration of related sub systems through the information system network provides a platform of functional activities throughout the enterprises.
Technological and scientific advancements compounded with global development and boom in the world economy has propagated emergence of logistics taking its place among various industries. This industry is considered a new economic sector that is growing in various countries around the world. Activities in logistics include controlling, planning and implementing flow of goods across numerous and diverse industrial enterprises in the modern economies that is vital to business operations (Bowersox, 1996). Logistic as a service in managing and organising flow of goods is emerging as a competitive industry in the supply chain where it is a significant constituent of a nation’s economy. Development of logistics service is among the most important indices that depict a country’s level of industrialisation and the position of general competitiveness where it acts as a medium of for development of a nation’s economy. Growth in the logistics industry is supported by management information systems.
MIS International California Inc located in Torrance California in the United States, is one such company that operates in the logistics industry by providing services in transportation and logistics trucking. They have employed management information systems that have enabled them to link to their clients in provision of services and better deliver based on their needs and preferences to enhance optimisation of business operations. The information system used by the company provides the demand base of the type of services that can be accessed by clients or other businesses in the logistics industry. MIS International California Inc. has adopted advanced information systems like Enterprise Resource Planning (ERP), in improving quality management in decision making. ERP helps the organisations in the logistics and transport industry communicate and share information with the use of internet technology. Management information systems integrated by logistics industry such ERP, has ultimately fostered development of information platforms through efficient communication and collaboration of information across the different subsystems involved in these organisations (Fleisher, 2007).
The ERP software integrates the business applications in the processes that link across enterprises to a common database. Repository of this data enables organisation’s to access accurate information which consequently raises the business results outcomes by utilising tangible facts across organisational boundaries. MIS International California Inc. is using ERPs to upgrade leverage in software’s of information systems through the internet to have greater business intelligence by employing product extensions. Accurate financial reporting and effective business management by been driven through application of ERP by this company in its day to day operations, where employees use the systems to check the orders placed by clients and the form of service to be delivered. The operations manager then assigns tasks to the various haulage employees to collect and deliver the various goods to clients. Communication between the different departments through the integration of ERPs has also enabled core operational areas to improve performance in outputs as the integrated data is available, therefore effectively disseminated throughout the enterprise. Reliability and accessibility of data in the enterprise exposes weaknesses and bottlenecks across the supply chain which enables timely resolution of conflicts and barriers. Moreover, rapid decision making is efficient with support from visibility of information and simultaneously improving streamlining of business processes and better operational control that ultimately leads to reduced costs.
Analysis of ERP system
Enterprise Resource Planning information systems support both medium and small enterprises many of which are extremely interdependent where coordination and cooperation broadly and intricately across these logistics parties. All stakeholders are highly integrated enabling the organisations to achieve efficient logistics chain management platform with application of uniform information systems through ERP integration (Berglund, 1999). However, implementation and introduction of ERP systems is challenging aside from the benefits it has for good investments by organisations in the logistics industry in the long term. Challenges occur in selection of proper software for integration of information systems. The three tiers of management have to clearly examine the organisation’s business processes in order to choose the specific functional requirements that will determine the software required. Information Systems evaluated for implementation must meet the company’s business processes.
A major barrier to the logistics chain industry is the alignment of data exchange as various enterprises use their individual MIS systems for functions management and storing data. Incompatibility, possible misinterpretations or eventual errors are driven by the different methods of archive and data exchange across enterprises. Moreover, enterprises may also have efficient enterprise management systems of their own which work for their advantage in the midst of challenges and barriers. The following include the advantages of ERP systems to organisations like MIS International California Inc in the logistics industry: Reliability in accessing information through improved reporting and data repository; reduced operations and data redundancy in availability and access of information from the interconnected network of enterprises; decreased cycle time and delivery through minimised retrieving of data; cost reductions through time savings and improvement of company wide analysis; easy adaptability via flexible business channels; improved scalability through prearranged operations; improved maintenance through vendor support; and global outreach in extended modules.
However, the disadvantages of enterprise resource systems include: time consumption where the solution can be based on minimising sensitive issues by the management and raising general consensus across the network; expensive where costs may vary because of reengineering costs and business, and vendor dependence where company’s can find solutions in long term commitment support and consideration of multi-vendor versus single vendors.
Advantages of Management Information System
Management Information Systems are usually centralised in an organisation with data stored in the computer systems being utilised by managers to make effective decision. The repository data provides management with quantitative, qualitative and financial information at all the three tiers of management in a company through integrated information systems (Grant, 2002). Most of the modern information systems nowadays in both manufacturing and service industries use the application of integrated computer database information linked to the whole organisation network in a structural way and constantly updated at the different terminals.
Thereby, updated information is made reliable and easily accessible to management and consequently disseminated to other levels and departments in the organisation. Information systems constantly provides management on past, present and future statistics on success rates or flaws of business operations that can be developed, differentiated, or improved to enhance the overall organisation performance with relevant projects outside and inside the organisation. Managers restrict useful data to certain areas, and that which is regarded confidential is limited to top management only, especially customer details. Moreover, the following detail the benefits associated with successful integration and application of management information systems in an organisation:-
MIS facilitates planning through improving quality of plants or organisations in provision reliable and relevant information for efficient decision making.
- The information systems minimises information overload in a process where large amount of data is put in summary form and consequently minimising confusion instances which may develop as managers handle a lot of detailed facts.
- Management information system encourages decentralisation of authority which is made possible when information systems are integrated at all levels of management in monitoring operations. MIS successfully measures performance by making necessary and vital changes throughout the organisational procedures and plans.
- This system also brings coordination through integration of specialised facilities and activities across the different organisational departments where each has a role of facilitating awareness and requirements in facilitating the optimisation of its processes in service delivery to customers. All decision centres are connected in the entire organisation.
- Control is made easier through MIS where it links managerial control and planning. Management has a more effective platform to improve and evaluate performance in the organisation. Computers used, enable fast data processing, efficient storage capabilities which lead to reduced costs.
- Finally, MIS processes, assembles, stores, evaluates, retrieves and disseminates important information for the management.
Conclusion
Management Information Systems applied in industries whether manufacturing or service based organisations has ultimately enabled management in those particular companies to make effective decisions pertaining to organisation process and business operations. Integration of MIS in the service industry has improved the overall performance and optimisation of organisation’s resources through inputs, processes and outputs towards customer satisfaction which consequently translates to better company performance compared to its competitors. Heightened rivalry has eventually forced organisations to develop differentiated approaches and strategies through MIS in order to compete effectively. The logistics service industry is experiencing rapid growth driven by globalisation factors and emergence of new technologies and scientific advancement. This Industry has emerged as a key index to economic development and growth in many countries across the globe. It also benefited other industries based in manufacturing facility and e-commerce on the internet. Information systems used like ERP have provided platforms essential in the growth and development of the logistics industry. Enterprises are able to communicate and share information which helps the management to make effective decisions. Management of these information systems enhances business insight through support of informed decisions and business process through management in the organisation.
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