Information Systems vs Information Technology
Studies and research show that information technology increases the ability of relationship between Lean management and information systems management. Information system and information technology are same in many ways but at the According to Information Technology Association of America, information. Information technology and MIS used to be synonymous. Customer Relationship Management System (CRM): A CRM system stores key information about.
Information is essential for the endurance of a financial organization in the global and competitive market. The nature of globalization and competitiveness in the market stress on the importance of developing an organization capability through better enhancing MIS. Accordingly, the stored information must then be recalled and distributed for the use of an organization leadership and top management as well as mid-level managers to take effective long term strategic and short term Tactical decision-making.
MIS is deemed to be a system which provides organizations top management and, even lower level management, with appropriate information based on data from both internal and external sources, to allow them to make effective and timely decisions that best achieve their organization goals and satisfy stakeholder requirements Argyris,p. The conception of information catches the attention of different professionals from different fields such as computer science, economics, business and management, political science, statistics, communication and information studies Newman However, the question is "what type of information"?
How Information management can play an essential role in the decision making process? This paper focuses on how information management is needed to generate proper planning and then decisions at both strategic and tactical levels in the two selected financial organizations. The process of dealing with the financial institutions was tainted by a lot of sensitivity, because of the refusal of those institutions to reveal their decision-making mechanism due to their Disclosure Rules.
So we decided to call the first selected institutions case one and case two referring to the second selected organizations. A small amount of research has deliberated that the limitations and deficiencies in the process of management information system performance are the main reason for diminishing the efficiency of decision-making process in the organization Fabunmi, ; Knight Moore, The questions related to what extent the managing of these information systems assists different decisions at different management levels and the type of responsibility of the financial institution's senior and tactical management in enhancing the management information has been raised with low empirically investigation and examination.
The study will examine whether the government financial institution Case one and the Private financial institution Case two differ as to the use of management information systems for leadership decision makes in short and long term planning. This paper aims to evaluate the impact of current MIS models being developed at the selected organizations, and how far they practice this concept in order to enhance their tactical and strategic planning.
Sections 2 and 3 discuss the literature review and research methods. In Section 4, we present results and analysis. In section 5, a discussion will be presented. Finally, conclusion and recommendations are presented in sections 6 and 7, respectively.
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However, there are a few articles that cover the impact of Management Information Systems on planning strategies and decision making.
While there are no universally accepted definitions of MIS and those that exist in literatures are just prejudices of the researchers Adeoti-Adekeye, Lee, defined MIS as "a system or process that provides information needed to manage organizations effectively". Additionally, Baskerville and Myers broadly define MIS as "the development, use and application of information systems by individuals, organizations and society". In his study, Becta describes an information system as "a system consisting of the network of all communication channels used within an organization".
In their study, Laudon and Laudon have defined MIS as "the study of information systems focusing on their use in business and management". The abovementioned definitions showed that MIS has underlined the development, application and validation of relevant theories and models in attempts to encourage quality work in the area. Referring to the literatures, the field of Management Information Systems MIS has had a variegated development in its relatively short life span.
MIS has developed its own theme of research and studies Baskerville and Myers, Tracing previous literatures, we can report that during its first few decades, MIS concentrated on the information in the context of: Only during the last two decades, the MIS field has shifted to the primary, considered the second type of communication, namely, instruction-based.
This has become known as the domain of expert systems Sasan Rahmatian, In attempts to review published studies on MIS and articles, Alavi and Carlson have identified popular research topics, the dominant research perspective, and the relationship between MIS research and practice. In contrast, Baskerville and Myers have examined the MIS field and found a constant shift of MIS research from a technical focus to a technology-organizational and management-social focus.
Skyrius underlines the decision maker's attitudes towards different factors influencing the quality of business decisions; these factors include information sources, analytical tools, and the role of information technologies.
Handzic also pays attention to the impact of information availability on people's ability to process and use information in short and long term planning and in decision making tasks. He revealed that the better the availability of information, the better the impact on both efficiency and accuracy of business decisions. Liu and Young talk about key information models and their relationships in business decision support in three different scenarios.
Information Systems vs Information Technology
In order to improve the financial organizational capability and enhance its level of competition in the market, financial organizations should understand the dimensions of the Information Management, and clearly define and develop the resources in case of human, technological, and internal operations, among others, and manage them well across the organizational boundaries.
However, establishing the link between Information System Management, planning and decision making is, at best, tricky. In an article by Shu and Strassmanna survey was conducted at 12 banks in the US between and They noticed that even though Information Technology had been one of the most essentially dynamic factors relating all efforts, it could not improve banks' earnings.
However, conversely, there are many literatures approving the positive impacts of Information Technology expenses on business value. Kozak investigates the influence of the evolution in Information Technology on the profit and cost effectiveness of the banking zone during the period between and The study indicates an optimistic relationship among the executed Information Technology, productivity and cost savings.
MIS enables the exchange of experiences, which transfers the required information to the management levels to sustain competitive advantage since it affects the decision making to improve the quality of services provided. Therefore, Barachini et al. Management Information System will give the banking management a new dimension in managing its knowledge and help in carrying out and maximizing the management's initiatives in harmonizing the appropriate strategies in the short and long planning Edmondson, In his study, Obi suggested that MIS is indispensible in the area of decision-making as it can monitor by itself the instability in a system, verify a course of action and take action to keep the system in control.
Literatures also suggested that non-programmed decisions are relevant as they provide support by supplying information to the search, the analysis, the evaluation and the choice and implementation process of decision making. More recently, Adebayo explained that the existence of MIS is needed to improve and enhance decision making on the issues affecting human and material resources. From the literatures presented, we can easily perceive that the importance of the role of both middle and top management to maintain a consistent approach to develop, use, and evaluate MIS systems within the institution.
To financial institutions, MIS is used at various levels by top-management, middle and even by the operational staff as a support for decision making that aims to meet strategic goals and strategic objectives. The above literatures also explore the importance of MIS in providing decision makers with facts, which consequently support and enhance the entire decision-making process. Furthermore, at the most senior level, MIS and DSS supply the data and required information to assist the board of directors and management levels to make an accurate and on time strategic decisions.
Due to the nature of the current study and its hypothesis, the primary research purpose of the current study is, thus, explanatory.
Explanatory or causal explains the complexity of the interrelated variables identified that were posited in the hypothesis and research By developing several hypotheses, the study thus adapt the quantitative research design to better test those hypotheses. Quantitative research uses survey as the main instrument to collect data.
To what extent is MIS being utilized to support Strategic planning for decisions in Bahrain's financial organizations? To what extent is MIS being utilized to support Tactical planning for decisions in Bahrain's financial organizations? To answer these questions, the current study carries out various hypotheses that developed from previous literatures and studies Ajayi et. Figure 1 presents the proposed model and factors affecting the process of decision making.
Thus, we consider the hypothesis below: The Tactical Planning short term generated by MIS is positively affecting the decision making process. The Strategic Planning long term generated by MIS is positively affecting the decision making process. The collected data were analyzed based on correlation and regression analyses using the statistical package for social sciences SPSS.
The questionnaire of this study is adapted from previous literature and studies e. The main reason why we need to refer to literatures when developing a questionnaire is to ensure the high reliability and validity of the survey.
The questionnaire we prepared for this paper was divided into 2 sections. In the second section we were interested in gathering information about the importance of MIS and its use in Case one and Case two of financial institutions in Bahrain. This improved the questionnaire, which has been used for the research presented in this study.
This population is deemed to be fully aware of the MIS use at the bank level. A total of forms were distributed equally each bank with 95 survey forms. In a convenience sample, the managers and bank staff were randomly approached. The distribution took place for a three-week period in early March, The survey was designed in English language. The research tested the time to fill the survey and it took approximately minutes to be completed. The questionnaire we prepared and used had been pre-tested initially with few people 5 users working in different sectors to ensure consistency, clarity and relevance to the Bahraini case.
Minor changes related to the questions content, wording, and sequence were requested by those people, which we implemented before carrying out the final copy. Moreover, the simple Regression was implemented to test the hypothesis and the linkages between dependent and independent variables. The main improvement was the introduction of high speed enterprise networks that enabled faster access to information. This provided a better and more complete management structure since decision making was easier thanks to the better access of information from different parts of the company.
Essentially, the applications used by departments in the company were consolidated and woven together into a single platform that was accessible from the company network. High-speed networks were also added into the mix to increase the efficiency of the platform. This meant that business operations such as finance, accounting, sales, marketing, inventory and even human resource management could be harmonized to ensure cooperation and efficiency throughout the entire company.
Although the applications used by different departments differed and measures of access control were introduced to limit access to sensitive company information, this era gave top management officials a complete view of the current standing of the entire business. Cloud Computing This is the current era that employs the latest networking technology to further enhance information processing and access by business officials and management executives.
The added element in this era is the fact that the networking technology adds a level of mobility to the systems. With the improvement of cellphone networks to provide high speed mobile data access and the increase in popularity of Wi-Fi networks, managers have ready access to the Management Information System around the clock hence better decisions can be made faster. This era frees management from the chains of office-bound computers with local network access.
With the rise in popularity of mobile devices such as laptops, smartphones and tablet computers, great levels of mobility are achieved while still improving on efficiency. Knowledge workers are more empowered and hence more productive naturally.
This means that the command-and-control method of management will no longer be the most effective management style for this worker. As a result, employee autonomy is gradually becoming more and more inevitable. These systems have been designed to collect, process and store transactions that occur in the day to day operations of a company. The system can also be used to cancel or modify transactions done in the past if the need arises.
One property of this system that enables them to work effectively is the ability to accurately record multiple transactions even if the different transactions take place simultaneously.
They are built to be able to handle large volumes of transactions. Examples include stock control systems, payroll systems, order processing systems etc. These systems help decision makers to make the best decisions by generating statistical projections from analyzed data.
These systems compile information from several sources for purposes of aiding in decision making. Examples of these systems include computer supported cooperative work, group decision support systems, logistics systems and financial planning systems. Also known as Executive Support System, this is a tool used for reporting enterprise-wide data to top executives.
These systems provide quick and easy to use reports that are presented in graphical displays that are easy to compare. They can be taken as specialized decision support systems because they provide information necessary to help improve the quality of decisions. Owing to the high expectations from such a system, these systems need to be highly individualized hence they are usually custom made for specific clients.
They are also customizable to fit the specific needs of the clients. These systems make use of information technology to help managers ensure a smooth and efficient running of the organization.
Some of the common types of Management Information Systems include process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems. To achieve this, these systems use the following four components: This is a combination of software, hardware, personnel and infrastructure.
This component helps in the collection of data that is stored in the MIS. The hardware includes computers, scanners, printers and network devices. This component makes it possible for employees to interact with the system and thus information can be collected Database Management System. This component is primarily made up of computer programs that help in the storage and retrieval of data. Of course, it also includes the actual physical databases where the information is stored after it has been captured.
There are several different database management systems that can be used in Management Information Systems. The suitability of the systems will depend on the amount of data that will need to be processed and stored in the system. There are small database management systems that can comfortably work on personal computers and there are huge ones that will need larger and more complex machines like mainframe computers.
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This component is concerned with processing of the data collected and presenting it in a manner that is easy to comprehend. Everything from the processing of the data to the displaying of the data is designed to give top executives an easy time as they try to make decisions concerning the business. It is sometimes referred to as business intelligence which stores human knowledge and uses the logic to formulate quick solutions for future problems where patterns match.
This component is concerned with identifying the main management problems in the organization and coming up with alternative decisions that could have sufficed in a particular situation. This helps ensure that all the possible options are analyzed and the best decision made.
The best decision is not always the most obvious one.
This component of Management Information systems ensures that the best decision is reached even in those instances. This is to ensure that the organization is managed in a better and more efficient way so that it can be able to achieve full potential thus gain competitive advantage. To provide information readily to company decision makers. Management Information Systems enhance this by strategically storing vast amounts of information about the company in a central location that can be easily accessed by managers over a network.
Management Information Systems also help in data collection. Data from everyday operations in the company is collected and brought together with data from sources outside the organization. This enables a healthy and functional relationship between distributors, retail outlets and any other members of the supply chain.
It also helps keep good track of performance since production and sales numbers will be recorded and stored in a central database that can be accessed by all members of the MIS.
Access to this information also helps ensure that problems are detected early and decisions are made quickly using the latest information. To promote collaboration in the workplace. In any large company, there are many situations that call for input from several individuals or departments before decisions can be made. Without an efficient communication channel, these decisions can take a very long time. To run possible scenarios in different business environments.
The significance of management information systems for enhancing strategic and tactical planning
Before making a decision that will affect the overall standing of the business, a lot of precaution must be taken. There is a need to check and verify that the company will not suffer after making a decision. Management Information Systems enable executives to run what-if scenarios so that they can see how some of the important metrics in the business will be affected by a given decision. The data is presented in easy to understand reports and graphs that make interpretation easy.
For example, a human resource manager will be able to tell what will happen to the revenue, production, sales and even profit after reducing the number of workers in a manufacturing department.
Another example would be the effect of a price change on profitability. Once executives have been able to see whether or not the decision will be beneficial to the company, it is easier to make good decisions that will not leave the company in chaos.
Most of the decisions made by top executives in companies have an effect on the company strategies.
As a result, some of them may need some modifications done on the company goals or strategies. Most Management Information Systems come with trend analysis features that will enable you to project the performance of a business with the current configuration and how they will be affected once you have implemented any changes that you are considering.
Management Information Systems help track the implementation of particular decisions in a company. Before making a decision, executives use these systems to make projections of the expectations from the particular decision.
If they decide to go ahead with the changes, there will be a need to keep monitoring the performance to see if you are on track to achieving the desired results. Management Information Systems give detailed reports and recommendations so that the evaluation of the goals moves smoothly and effectively. You get data that shows if your decisions have had the desired effect. If not, you will be able to take the necessary corrective measures early so that you can get back on track.
One of the reasons why Management Information Systems are favored by large companies is the effectiveness of the reporting features. The decisions can be made quickly because the information is presented in an easy to understand format. The fact that the system is accessible by people from different parts of the organization makes it an effective reporting and communication tool. Findings can be shared among colleagues with all the necessary supplementary data.
It is also possible to create brief executive summaries that sum up the whole situation for review by senior company executives in situations that need their approval. Some of these benefits help make work easier for management while the rest of them help the organization as a whole.
All stakeholders in the company have access to one single database that holds all the data that will be needed in day to day operations. If the MIS is used for project managementthe contractor, client and consultant will be able to achieve a high level of transparency hence it will be easy to develop trust.
Operations will also be smoother because information will always be readily available and data collection methods like forms or questionnaires will be standardized.
Employees and other stakeholders in the organization will be able to spend more time doing productive tasks. This is because a big chunk of their time is saved thanks to the more efficient information system. This time would have otherwise been spent setting up or retrieving traditional information recording systems such as forms and files. As a result, the company is able to save on manpower costs, while at the same time producing more output in a fixed time span will now be spent productively.
Another benefit of Management Information Systems is that they bring the power of data processing tools that help significantly improve the quality of decisions made in the company. A majority of Management Information Systems have built-in data processing tools that are able to draw conclusions based on the inputs received from the different sources. This helps make better plans for material management, manpower allocation and even the overall execution of the project.
Owing to the flexibility that is brought by the use of mobile devices such as tablet computers and smartphones, Management Information Systems ensure that employees have easier and closer interaction with information about the progress of any process within the organization.
This also ensures a higher degree of accuracy in data collection since it will be possible to record the progress in smaller milestones throughout the day on mobile devices as opposed to recording once at the end of the day.
As a result, management is able to get a better idea of the progress due to the availability of the latest information. Inputs and modifications in these systems are logged and the authors noted.