Answer Minimum in 300 words. Should be in APA format

InformationSystemsforCompetetiveAdvantageMISCU.pdf

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Introduction

This lesson will focus on the competitive advantage of Management Information Systems and emphasize a few examples of MIS that bring value to organizations. Specific attention will be paid to the relevance of MIS in the 21st century. In short, why is MIS non-optional? This lesson will also highlight management information tools used for effective management in today’s business world, such as database, communication, and electronic commerce tools.

Role of MIS in an Organization

How do Management Information Systems help synchronize organizational groups? Why is competitive advantage so important in the 21st Century? Management Information Systems are not about singular-usage of technology tools; rather, an MIS is an integrated system that does three main things:

o An MIS integrates people and processes. o An MIS utilizes procedures and regulations. o An MIS provides a perceptual, contextual, and intellectual balance.

An MIS Integrates People and Processes

The following visual shows some of the departments, people, and processes that are usually involved in an MIS:

Accountin g &

Marketing

Executive Leadership

Safety

Customer Service

Information TechnologyMIS

Research & Developmen

Sales

Engineering

For the visual to translate into a functioning work environment, two such skills are needed:

o Networking o Communication

An MIS fails unless all parties involved are able to network and communicate very strongly. In fact, most systems fail because of the lack of these two factors. The key in any MIS is to get all of the parts to talk to each other. A smooth flow of communication produces the best outcomes.

An MIS Utilizes Procedures and Regulations

As part of the networking and communication above, each department within a company has its own specific policies and procedures. These need to be taken into consideration as Management Information Systems are developed.

Because of how costly and involved these systems are, the key to MIS success is planning. A high level of very detailed planning should result in A-B-C developmental patterns as opposed to A-B-A patterns.

o A-B-A Developmental Pattern: Such a pattern represents back and forth movements that cost a company.

o A-B-C Developmental Pattern: Such a pattern represents a consistently forward movement that results in cost savings.

Those working on the systems tend to sense what type of culture they are dealing with: A-B-A or A-B-C. It is oftentimes in the best interest of a company to have as many pre-systems development meetings as possible to clearly review policies, procedures, and regulations of the company, as well as specific MIS needs prior to beginning development. Moreover, after all team members have met regarding the design of the new system, a detailed report should be written reflecting all decisions made. In this way, constituents are held accountable for their input in the planning stages.

Even after the system development starts, interim meetings should be held so that possible problems can be caught early in the process. Such early intervention saves costs and allows for the implantation of contingency plans that circumvent delay.

An MIS Provides a Perceptual, Contextual, and Intellectual Balance

Besides helping to synchronize relationships in organizational departments, an MIS also helps team members balance their perceptual, contextual, and intellectual differences, as a system cannot work unless the many pieces flow together smoothly. Such smoothness cannot happen unless all team members are in synch. In this way, an MIS forces team members to work

together, to make space for each other, to accommodate differences, and to learn to recognize similarities.

In working with Management Information Systems, three types of differences or hurdles will inevitably present themselves:

o Perception  Each person perceives things in a unique manner. Several persons in

one room present a collage of perceptions and oftentimes compete for approval.

 Years of experience in the MIS field have shown consultants the value of achieving harmony in employee perceptions.

o Context  One’s perception is often based on one’s context. Context is the very

foundation on which one stands. This foundation includes one’s culture, past and present experiences, both personal and professional, and so forth.

 It is of much benefit for team members to understand each other enough to be able to appreciate each other’s context.

o Intellect  How one converts one’s context into how one perceives life is often

guided by one’s intellect.  When forming a team, one wants to be sure that its members are

intellectually able to contribute in a productive manner.

Why such a focus on team? Many management systems fail because team members are unable to work together. One can almost claim that an MIS requires teamwork. Thus, companies are encouraged to invest in team management and team building training as a precursor to MIS investment and planning.

In this context, then, an MIS forces a balance among the perceptual, contextual, and intellectual behaviors of those working together on the system. When one clearly understands that successful systems mean successful business (and more profits), the balance happens faster than normal.

The Importance of MIS in the 21st Century Market

While technology as a concept can be traced back to the beginning of the world, MIS are relatively new and gaining more attention now than ever before. Why is the 21st century so conducive to MIS?

The phrase that best answers this question is “competitive advantage.” Businesses live Darwin’s Survival of the Fittest, as only the best make it. It is each company’s goal to reach its peak in the market, and companies reach this goal by finding a way to marry the efforts of all of their constituents. Such constituents include:

o A Leadership team o Managers o Supervisors o Frontline employees o Customers o Suppliers o Legal entities o Government agencies

All constituents must work together in a very tightly locked position.

Companies seek to make profit while using limited resources. When implemented properly, an MIS can reduce a company’s overhead. Before proceeding with an MIS, a company should perform a cost-benefit analysis in order to determine if its ROI (Return on Investment) is satisfactory to move forward with such a system.

Here is a possible scenario:

ABC Company is trying to compete with BKC Corporation. BKC is known for its low prices based on heavy automation and minimal manual labor – that is, fewer employees.

In its efforts to compete, ABC did an analysis of the cost to implement a small MIS. It realized that Phases I and II will cost a one-time amount of $985,500 but will result in the company not needing to keep about nine of its supervisors whose salaries total about $720,000 per year. This means that from Year II of the system’s implementation, the company will enjoy substantial savings. This does not include the savings to the company that could be realized from the implementation of quality automation. These types of analyses help companies make solid long-term decisions.

MIS Tools for Effective Management

Many different Management Information Systems are utilized today in order to help companies find their competitive advantage. The three systems emphasized in this lesson are:

o Database Management  Quality information is

necessary for competition. Database systems provide

quality reports that help managers enjoy quick analyses so that decisions can be made promptly. With the presence of databases, companies can cross-evaluate different types of data in order to arrive at conclusions on multiple fronts and issues.

o Communications  With the growth of global corporations, companies need sophisticated

communications systems in order to manage offices and people located worldwide. Quality communications systems make the world smaller and make work more efficient.

o eCommerce  At a time when companies need to reach their peak in both quality and

quantity, sales must occur at the fastest rate possible. This is easily achievable through e-commerce systems that help companies provide goods and services to customers worldwide via the Web.

Subsequent sections of this lesson will focus on each of these tools in more detail.

The Value of the Database Tool

What value do databases add to a company? There are multiple purposes for databases. The following are some of the main areas of usage:

o Track employees’ general information  There is a legal need to securely store and maintain the latest employee

information. Such a task can be difficult once a company exceeds 200 employees and especially when they reach 6000 and higher.

o Track employees’ attendance  Paying employees for their services is also a legal issue. The only way to

do this efficiently is to track data as accurately as possible. Again, this becomes more involved when there is a high level of employees.

o Track employees’ performance  A company is only as good as its team of employees. Each team member

needs to carry his/her weight in order for the entire team to succeed. Tracking employee performance using a well-constructed system helps keep the workflow in order and helps managers correct anomalies quickly through the informative reports produced by databases.

o Track employee training and development  Over the past ten years, HRD (Human Resource Development) has

encouraged companies to track their investments in training and development. Now that companies have come to realize that their human capital is their greatest asset, they are willing to spend but must be able

to track their ROI. A database system is an excellent solution to getting this done.

o Track supplies usage  Overhead must be tracked to ensure that expenses remain below

revenues. This process can become very difficult, especially if the company has many processes working both simultaneously and consecutively. Properly tracking such processes via a database helps reduce the time and cost involved with tracking supplies manually.

o Track customer feedback and overall quality  At the end of the day, customers are a company’s bloodline. As such, it is

crucial that the company implements a system that can adequately track customer input.

o Track sales trends  A company’s products and services are only as good as its sales of each.

Tracking sales reveals information that helps the company decide whether to keep, to increase, to decrease, and/or to change its current production patterns.

o Track processes and operation flow  All of the company’s processes and operations need to be tracked to

ensure smooth flow. Such flow results in long-term savings for the company.

The various departments in a company need to work together in order to avoid the development of separate database for each department, which is costly. Most of the above databases end up overlapping since the various departmental procedures overlap at some point.

Please note one serious caution in relation to database management:

Garbage in – Garbage out!

Accurate data entry is imperative. Some companies invest in sophisticated systems and then refuse to spend the additional monies on qualified data-entry operators. It does not matter how brilliant the database designers are; the system will simply not work on its own.

The Value of the Communications Tool

Communications management has become even more crucial due to business globalization. How does a company enjoy daily and consistent communication when its offices are separated by large bodies of water and land? The answer: through quality communication systems that narrow distance. However, communications is more than just being able to share thoughts and ideas. New sophisticated communications systems aid in the marketing processes of goods and services. As an author shares:

However, the new technologies can do more than move messages rapidly or over great distances. When fully integrated into the functioning of an organization, new technologies have the potential to serve as a tool for marketing products and delivering services (Turner, 2004).

Communications systems close gaps through telecommunications, video-conferencing, and Voice Over IP, along with online meeting software such as Go-to-Meeting.

Again, all members of an organization need to work together in order to ensure that the communications system implemented allows everyone to “speak” to one another in the most efficient and productive ways. Through intranets, extranets, and the Internet, companies can now connect internally and externally with all of their constituents.

The Value of the Electronic Commerce Tool

Electronic commerce has made its mark, as companies now enjoy reduced overhead while selling their products and services.

Companies such as eBay, Amazon, and so forth have capitalized on the value of eCommerce. However, eCommerce is not just in the best interest of companies, but also of customers who are able to consume without going to stores. Customers can also purchase items that are not produced or located in their area, as the Web transcends geographic limitations.

Company transactions also benefit from eCommerce. As companies enjoy storefront presence in B2B (Business to Business) and B2C (Business to Consumer) transactions, they save many of the costs associated with intermediaries and the time associated with enjoying these same purchases off-line.

As long as companies decide to remain global with their products and services, eCommerce will flourish. Also, eCommerce allows companies to maintain consistency in their vendors and so forth. eCommerce will continue to change the world, as it puts local, national, and international stores right into the hands of businesses and consumers with just a click of a mouse. Moreover, tools such as eCommerce help companies form competitive advantages through sophisticated Management Information Systems that enable them to survive in the fierce 21st Century marketplace.