FREE ESSAY ON PLANNING INFORMATION SYSTEMS

PLANNING INFORMATION SYSTEMS

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 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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