Management Information System
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Management Information System
Organization management and operations have become complex, complicated and advanced as occasioned by growth, development and globalization; thus, there is a need to incorporate management information systems in the organizational operations to achieve efficiency and effectiveness in the management. The management information systems provide management solutions as the systems are integrated, machine user systems and computerized, thus providing the support and the relevant parties’ information for effective operations and decision making. In the regard, the management information system has different vital elements that include an integrated system that enables is to serve many users, a computer system linking information system software through the database, the user-machine interface that ensures that response to searches is achieved directly and immediately, the presentation of information to the different management levels for decision making and supporting operations and decision-making process. The different elements make it possible to achieve the management aspects of planning and controlling the organization operations directed towards achieving the different organizations’ goals and objectives. Equally important, there a wide range of management information systems with different characteristics and customization that enables them to perform specific management operations. For instance, cloud computing, database management systems, Supply chain management, electronic records management and decision support system. Management information system solutions have been a key element in the management of organizational operations across the globe. There is a need to understand them in terms of their definition, position, aim, classification, dimensions, concept benefits and challenges to ensure that organizations use them to their advantage.
Abstract
The management information system has been occasioned by the increasing growth in Information Technology and the global needs and challenges in organizational management. The management information system has made a substantial change in management since it increases productivity in public and private organizations worldwide. In this regard, there are five notable management Information Systems Solutions that include Cloud Computing, Decision Support System (DSS), Electronic Records Management (ERM), Supply Chain Management (SCM), and Database Management System (DBMS). The different management Information Systems Solutions have different roles, aspects, benefits and challenges.
Management Information Systems Solutions
Cloud Computing
Organizations across the globe have increasingly adopted cloud computing to enhance the management and storage of data. Cloud computing provides on-demand computer system resources such as computing power and data storage facilities without the user’s direct involvement and management (Rittinghouse and Ransome, 2016). In this regard, the management and storage of data are handled by a third-party organization to ensure that burden and challenges associated with data management are effectively eliminated. Cloud computing solutions ensure that organizations can run software programs without installing them on computers. It enables one to store and access data content through the internet. It enables the organization to develop and test programs without having resources and equipment such as servers and computer systems.
Types of cloud computing
Cloud computing solutions are divided into different categories for the different services and operations involved (Rittinghouse and Ransome, 2016). In this regard, cloud computing services include infrastructure as a service (IaaS), software as a service (Saas), Platform as a service (PaaS) and function as a service (FaaS). Infrastructure-as-a-service is the most basic category cloud computing service that enables the user to rent IT infrastructure such as virtual machines or servers from the cloud providers on a pay as you go basis. Consequently, Platform as a service entails the supply on-demand environment for managing, delivering, testing and developing software applications. PaaS is developed and modeled in line with creating mobile applications and web applications without having to set up and manage the underlying infrastructure such as databases, networks, and servers. Furthermore, the software (SaaS) software ensures that software applications are delivered over the internet on-demand and subscription basis. SaaS enables the user to host and manage underlying infrastructure and software applications and maintain them through security patching and software upgrades. Additionally, function as a service, which entails a layer of abstraction on the PaaS to ensure that the users are insulated and protected from the stack below their code.
Benefits and disadvantages of cloud computing solutions
The cloud computing solution has its share of advantages and disadvantages. On the advantages, cloud computing enhances efficiency in the operations achieved through accessibility, cost savings, security and disaster recovery associated with the technology (Stergio et al., 2018). Cloud computing is flexible as established from its scalability, tools selections, cloud options and control of choices to ensure that different goals and objectives are attained despite their challenges. Additionally, cloud computing enables businesses to gain a strategic edge in their niche through increased productivity, automatic software updates, competitiveness and increased collaboration in business operations.
On the other hand, cloud computing had its share of disadvantages that decline organizational management gains. In this regard, cloud computing is a network connection dependent since one has used a network to link with the virtual machines and servers (Stergio et al., 2018). Cloud computing has limited features since the services providers cannot sufficiently or completely provide all the storage, backup and virtualization services in the current times and the future when the business grows. Cloud computing makes the users lose their control as their data is managed by third parties who hold all the resources such as servers and computer systems.
Database Management Systems (DBMS)
Database management systems (DBMS) are vital in manipulating different aspects of data to enhance effective, timely and efficient decision making for the management. Database management systems entail a software package modeled to define, retrieve, manipulate and manage data in a database, thus making it useful (Pavlo et al., 2017). The manipulation of data ensures that data is arranged and formatted into file structures, record structures and filed names to make it possible to derive meaning and information from data in proper decision-making. Additionally, the DBMS solution defines the rules that are used in the validation and manipulation of data. Organizations using DBMS ensures framing programs are eliminated from the purpose of data maintenance. The DBMS package incorporates the fourth-generation languages such as SQL to interact with the database. Different examples of DBMS include FoxPro, Dbase, Oracle, SQL Server and MySQL. The database management system operates through receiving instructions from the database administrator (DBA), who initiates and instructs the system to make the appropriate changes. The commands and instructions given in this case entail loading, retrieving and modifying the existing data from the database. The DBMS is defined by different characteristics that include its ability to remove redundancy and maintain security; it has self-describing nature, effective insulation of programs from data abstraction, sharing of data and multiuser transaction processing, and it follows the concept of ACID (Atomicity, Consistency, Isolation and Durability.
Types of DBMS systems
Different types of DBMS systems include hierarchical database, network database, relational database, and object-oriented database. In the hierarchical database, data is stored and arranged in a hierarchical format, either top-down or bottom-up. Data is presented by connecting different aspects of data to the main database. Consequently, the network model database ensures that different sub-branches are arising from the database, thus breaking it further. In this case, the different entities are organized in graphs that can be derived from different paths. Furthermore, the relational DBMS remains to be the most common since it is the easiest. The model is based on normalizing data in various forms, such as tables, columns and tables. Additionally, the object-oriented model ensures that data is structured in the form of objects. Data is presented in classes that define a database as a collection of objects that keep data operations and values.
Advantages and disadvantages of DBMS
The advantages of DBMS include that it has various data storage and retrieval techniques. The DBMS solution efficiently balances the needs of multiple applications for the same data (Pavlo et al., 2017). DBMS ensures that uniform administration procedures for data are used. The DBMS solution offers data security and integrity.
On the other hand, DBMS has its share of disadvantages that include the high cost of hardware and software that increases the organizational budget (Pavlo et al., 2017). The DBMS is complex; thus, a lot of time and resources are used in the training process. The use of the DBMS solution by many users simultaneously results in loss of data, and the system cannot perform sophisticated calculations.
Supply Chain Management (SCM)
Supply chain management enhances the management of the flow of goods and services across the organizations and its customers. For instance, the SCM enhances the processing of goods from raw materials to finished products. The SCM management solution enhances the streamlining of supply-side business activities to maximize customer value and gain a competitive advantage (Khan et al., 2018). Under the SCM, suppliers engage different opportunities to ensure that they develop and implement supply chains that are efficient, effective and economical. The supply chain addresses all aspects, from the production to product development to the information system solutions needed in direct production operations. The SCM works by way of controlling and linking the production, shipment and distribution of products. The use of the SCM in the supply chain makes it possible to cut excess costs and deliver goods faster to the consumers. In this regard, SCM achieves success by making effective control of company vendors’ inventories, control of sales, distribution, internal inventories, and internal products.
Supply Chain Management components
The success and effectiveness of the SCM are dependent on effective observation and operation of its different components. The planning component oversees the beginning to the final aspect of the project before starting the project. The planning component evaluates the demand for goods and services, manpower, profit, costing, viability and resources. The information component ensures a continuous flow of information across the different management levels in terms of production, supply, market trends, supply and demand and the general economy (Khan et al., 2018). The source components evaluate the supply of raw materials from the different players in the market. In the supply component, the system evaluates the quality of raw materials, cost-effective rates, timely supply, supply remains within the set budget and the business is protected from loss. The system’s inventory component ensures that there is a ready list of items, raw materials, and essentials for products and services. The production component ensures that all other components are aligned with the production needs of an organization. The production component is followed with testing, packaging and final preparation of the products. Finally, there are the location and transportation components. Location components ensure that the business is positioned strategically for profit-making. The transportation component ensures that goods are distributed to the consumers at the right time and quantity.
Advantages and disadvantages of SCM
The SCM has different advantages regarding meeting the organizational management goals and objectives (Lin, 2014). The SCM advantages include that it improves customer service by improving organizational operations; the SCM major advantage is that it decreases operational costs, balances the operations to ensure that there not stress or conflicts in the production operation.
On the other hand, SCM’s disadvantages include failure to properly manage the SCM results to service redundancy, wasted labor, and missed deadlines (Lin, 2014). The SCM training is complex and requires team member restructuring, meaningful communication, and detailed planning that, if not effectively implemented, can result in excessive employee turnover and costly mistakes.
Electronic Records Management (ERM)
Electronic records management solution enhances coordinated and effective management of records which uses automated techniques to handle data and records in the different formats (Mukred and Yuso, 2015). Under the ERM records are responsibly, efficiently and systematically controlled through maintenances, receipt creation and disposition of records. Additionally, the records under the ERM records are captures and maintained as evidence for future reference on forms of transactions and business activities. It is vital to note that information and record have become a vital aspect of business in attaining a competitive advantage over the other players in the market. The ERM ensures that an organization gets records when it needs it. Records management under the ERM takes the combination of activities for systematically controlling creation, disposition, maintenances and distribution across all the management levels and internal and external purposes.
Best practices under the ERM
The ERM solutions ensure that ensures that the best practices are adopted in ensuring that records are safe, easy retrieval and proper management. In this regard, the different approaches adopted include the backing up of the record regularly to ensure that additional copies of the records are maintained (Mukred and Yuso, 2015). ERM solution ensures that privacy and security compliance measures are maintained, thus achieving internationally accepted data safety measures. The ERM solution ensures shared access for the different parties, and regular software updates are maintained to eliminate vulnerability and security gaps existing in the system.
Advantages and disadvantages of ERM
ERM solution for business management has a wide range of advantages that include improving user engagement by allowing the users to own the system, records are safely stored and shared across the interested parties, and the system systematically reduces the error and security risks and threats associated to sensitive data (Manikas, 2015). On the other hand, the disadvantages include increased risk of data breaches from advanced techniques used by cybercriminals. The electronic record improves convenience and efficiency due to the ease of storage and retrieval. Additionally, electronic records save on space since compared to manual storage of information that involves storing documents in files.
Decision Support System (DSS)
The decision-making system is a vital aspect of any component since decision making determines the competitive advantage of the business and organizational management operations. DSS takes the operation of a computerized program to support judgments, determination and course of action in organizational and business operations (Jalaei, Jrade and Nassiri, 2015). The DSS works by analyzing big data available to the organizations and compiling comprehensive information that can be incorporated in solving problems and effective decision making.
Types of Decision support system
Different DSS assists in decision makings, such as communication-drive DSS, data-driven DSS, document-driven DSS, knowledge-driven DSS and model-driven DSS (Jalaei, Jrade and Nassiri, 2015). Communication driven DSS uses data inform of chats, net meetings, online collaboration and instant messaging software derived from client-server and web to make effective organizational data. Consequently, data-driven DSS uses data from computer-based databases from warehouses, mainframe system web and client/server link to make organizational decisions. Furthermore, document-driven DSS takes the gathering of documents from web pages, the broad base of user groups and search engines to gather data and information to enhance organizational decision making.
Advantages and disadvantages DSS
The advantages of DSS include improved efficiency and speed in decision making in organizations. DSS increases control, competitiveness and capacity for decision-making (Ferretti and Montibeller, 2016). DSS encourages interpersonal communication between different parties within the organization for effective operation in the organizations. Additionally, DSS enhances the automation of the managerial process, thus improving efficiency.
DSS introduces limitations in the organizational operations, thus negatively affecting the organizational operations and management (Ferretti and Montibeller, 2016). The information overload results in improper decisions since not every information is necessary for decision making, and too much dependency on DSS makes people lazy and unwilling to engage in active decision making. Additionally, DSS devalues decision making subjectivity since alternative decision making. DSS decisions are based on objectivity and rationality; thus, subjectivity that is vital is not incorporated in decision making.
Conclusion
The management information system has effectively improved organizational management operations through the automation of organizational operations and processes. In this regard, cloud computing enhances and improves the storage and management of data. Database Management Systems (DBMS) manipulates organizational data to enhance easy and certain decision making. Supply Chain Management (SCM) improves the flow of operations in the production process of delivering goods to consumers. Electronic Records Management (ERM) brings in automated record management techniques and processes. Decision Support System (DSS) enhances the gathering of relevant data and information to enhance effective decision making. Management information system solution improves organizational management.
References
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