Management [ edit ] While management information systems can be used by any and every level of management, the decision of which systems to implement generally falls upon the chief information officers CIO and chief technology officers CTO. Types [ edit ] The following are types of information systems used to create reports, extract data, and assist in the decision making processes of middle and operational level managers. Decision support systems DSS are computer program applications used by middle and higher management to compile information from a wide range of sources to support problem solving and decision making.
A DSS is used mostly for semi-structured and unstructured decision problems. Executive information systems EIS is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations.
Marketing information systems are management Information Systems designed specifically for managing the marketing aspects of the business. Accounting information systems are focused accounting functions. Human resource management systems are used for personnel aspects. Office automation systems OAS support communication and productivity in the enterprise by automating workflow and eliminating bottlenecks.
OAS may be implemented at any and all levels of management. Enterprise resource planning ERP software facilitates the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Advantages and Disadvantages [ edit ] Management Information Systems Textbook … The following are some of the benefits that can be attained using MIS: [9] Improve an organization's operational efficiency, add value to existing products, engender innovation and new product development, and help managers make better decisions.
Identifying these aspects can help a company improve its business processes and operations. Giving an overall picture of the company. Acting as a communication and planning tool. The availability of customer data and feedback can help the company to align its business processes according to the needs of its customers. The effective management of customer data can help the company to perform direct marketing and promotion activities.
MIS can help a company gain a competitive advantage. MIS reports can help with decision-making as well as reduce downtime for actionable items.
Some of the disadvantages of MIS systems: Retrieval and dissemination is dependant on technology hardware and software. Potential for inaccurate information. Enterprise applications [ edit ] Enterprise systems —also known as enterprise resource planning ERP systems—provide integrated software modules and a unified database that personnel use to plan, manage, and control core business processes across multiple locations.
Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management, and distribution. This may include suppliers, manufacturers, wholesalers, retailers, and final customers. This may include documents, accounting records, unrecorded procedures, practices, and skills. Knowledge management KM as a system covers the process of knowledge creation and acquisition from internal processes and the external world.
The collected knowledge is incorporated in organizational policies and procedures, and then disseminated to the stakeholders. Recently, however, due to a significant decline in the cost of information technology IT and greatly improved speed and power of computers, MIS moved from its traditional role as an application of back office support to one offering opportunities for gaining significant competitive advantage.
It is being increasingly viewed as having the capability to alter core organizational directions, reorient corporate strategy, and redefine industry structure.
In recent years, there has been increased awareness among organizations of the potential of IT and use of MIS to exploit its potential and use it effectively.
Many successful local financial institutions like Eastern Bank Ltd. Finally……… There is a significant need for determining the role of MIS in banks. This would assure the top management that the MIS development is in the right direction. This would also help in exploring the intended and the real role of MIS in banks.
The knowledge of the real role of MIS in banks would help MIS managers in managing information systems by judging the business needs of the MIS projects, associated risks, importance and ranking of MIS managers in organizational hierarchy, need for innovation and flexibility in MIS planning approach, etc.
The MIS practitioners may use the variables used here for self-evaluation and for deciding about the IS development. Foreign and few private banks, though in the strategic group today, have to constantly track MIS for strategic advantage to maintain their position. Sustaining competitive advantage is very difficult, because MIS managers have to continuously evaluate the bank's applications portfolio with respect to technology and their competitors.
Public sector banks have to search for ways to shift from support group to the strategic group in order to enjoy a strategic advantage from the use of MIS.
In order to achieve this objective, they may have to formulate a different MIS strategy so as to make them competitive enough to survive.
To achieve its aims and objectives, a business puts in place strategies. This approach applies regardless of the size of the organization Management information system is a flow of procedures for data processing based on the computer, and integrated with other procedures in order to provide information on a timely and effective manner to support decision making and other management functions.
The use of management information systems for more effective decision is a key factor for the production of new products and services, to collect information on activities, products produced, productivity, hiring new employees, tracking stock and setting target of performance.
The goals and objectives of the Management Information system are the products of business goals and objectives. It helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the organization. Literature review Strategic decision-making Initially, strategic decision making was of most use to large corporations operating in multiple industries.
The first step in the evolution of strategic management was taken in the late 's, when firms developed a systematic approach to deciding where and how the firm will do its future business Ansoff, Strategic management is a set of managerial decisions and actions that determines the long run performance of a corporation.
It includes environmental scanning both external and internal , strategy formulation strategic or long- range planning , strategy implementation, and evaluation and control. So a strategy is a pattern in the organization's important decisions and actions, and consists of a few key areas or things by which the firm is distinguished from others Digman, To Drucker, strategy is a purposeful action while to Mintzberg it is a plan, a ploy, a pattern, a position, and a perspective five Ps.
Realizing that even the best strategic plans are worthless without the input and commitment of lower-level managers, top management forms planning groups of managers and key employees at many levels, from various departments and workgroups. Strategic plans at this point detail the implementation, evaluation, and control issues. Rather than attempting to perfectly forecast the future, the plans emphasize probable scenarios and contingency strategies. The sophisticated annual five-year strategic plan is replaced with strategic thinking at all levels of the organization throughout the year.
Strategic information, previously available only centrally to top management, is available via local area networks and intranets to people throughout the organization.
Instead of a large centralized planning staff, internal and external planning consultants are available to help guide group strategy discussions. Although top management may still initiate the strategic planning process, the resulting strategies may come from anywhere in the organization. Planning is typically interactive across levels and is no longer top down.
People at all levels are now involved in the process. SWOT analysis A SWOT analysis is a common strategic planning tool that managers can use to examine internal and external factors that may influence the ability to achieve goals.
Cost-benefit analysis Gregory Hamel opined that a cost-benefit analysis is a strategic decision making tool that can help managers choose between two or more different courses of action. In a cost-benefit analysis, managers estimate the amount of revenue they expect a certain project to generate and the related expected costs of pursuing the project.
By estimating the costs and benefits associated with several different projects, managers can determine which project is expected to produce the greatest benefit. Outside advice While entrepreneurs and small business owners may be experts in their chosen industry, they are often not experts in actually managing businesses, entrepreneurial myth.
Business owners often seek outside help to aide in the strategic decision making process. The U. Small Business Administration says that mentors can be a vital source of advice for small business owners. Some businesses hire professional consultants to help them make strategic decisions. Gregory Hamel, studio It is always a good habit to see what practices other companies are using to execute successful strategic decisions.
Strategic decision making and planning is ultimately about resource allocation and would not be relevant if resources were unlimited. Financial goals and financial performance can play a more central role in the strategic planning and decision- making process, particularly in the implementation stage. Benefits of strategic management Strategic management emphasizes long-term performance. Many companies can manage short-term bursts of high performance, but only a few can sustain it over a longer period of time.
For example, of the original Forbes companies listed in , only 13 have survived to the present day. To be successful in the long-run, companies must not only be able to execute current activities to satisfy an existing market, but they must also adapt those activities to satisfy new and changing markets. Research reveals that organizations that engage in strategic management generally outperform those that do not.
Strategic planning becomes increasingly important as the environment becomes more unstable. For example, studies of the impact of deregulation on the U. To be effective; however, strategic management need not always be a formal process.
It can begin with a few simple questions: 1. Where is the organization now? Not where do we hope it is! If no changes are made, where will the organization be in one year?
Two years? Five years? Are the answers acceptable? If the answers are not acceptable, what specific actions should management undertake? What are the risks and payoffs involved? A study by Joyce, Nohria, and Roberson of firms in 50 sub industries found that devising and maintaining an engaged, focused strategy was the first of four essential management practices that best differentiated between successful and unsuccessful companies.
Based on these and other studies, it can be concluded that strategic management is crucial for long-term organizational success. Research into the planning practices of companies in the oil industry concludes that the real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process than in any resulting written strategic plan.
Small companies, in particular, may plan informally and irregularly. Nevertheless, studies of small- and medium-sized businesses reveal that the greater the level of planning intensity, as measured by the presence of a formal strategic plan, the greater the level of financial performance, especially when measured in terms of sales increases. These issues can represent problems or opportunities to decision makers.
Decision-making on strategic issues generally is treated as strategic decisions and therefore deserves strategic management consideration. Process of strategy Strategic Management is the organized development of the functional areas; financial, manufacturing, marketing, technological, manpower etc in the pursuit of its objectives.
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