MIS: Benefits and Risks for Organizations - Essay Sample

Management information systems (MIS) are a computer system that contains both hardware and software components that serve as the fundamental support of any organization’s daily activities (Abu Naser & Al Shobaki, 2016). MIS collects data from various online systems, which it analyzes and reports, thus helping organization in decision making. However, some risks accompany the implementation of MIS in the organization ranging from those concerning the security of data and the cost of implementation. Thus, assessing MIS's requirements and concepts would help the company upgrade to a better MIS version.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Among the major enablers of the proposed upgrade of XYZ's management information systems is the computer hardware available at the organization. The computer hardware is made up of the physical parts used to aid in the operations of the system, such as the CPU, Monitor, servers, and speakers, among others (Mullins, 2020.). Without these hardware components of a computer system, the system will not perform its functions as desired. Computer hardware such as a hard disk drive store information collected from an organization's activities to be used for future decision making. Without sufficient storage space in such hard disks within the system, it would be hard to implement the upgrade. Also, it is vital to have a good hard disk free from any external attacks that could damage the information. A computer's hardware works in collaboration with the computer software, which consists of a collection of programmed codes and programs that are always installed in the computer hard drive to aid in the execution of the programs (Mullins, 2020.). Hence, based on the collaboration between a computer’s hardware and software, it is key for an organization that seeks to implement computer systems to have the required software and hardware for a successful implementation of an upgrade.

Another important aspect of an information system would be networks and telecommunications. Networks such as intranet and internet communications systems help users in the organization to connect among themselves and with client outsides the business (Eroshkin et al., 2017). With the proposed MIS aimed at increasing security and decision-making capabilities, excellent networks that guarantee effective communication within and outside the organization will be needed (Eroshkin et al., 2017). Experts that work on network and telecommunication link the employees with the management for easier completion of tasks or objectives set by top management. Organizations have realized that keeping computers in their business no longer meets the purpose of those machines in the enterprise. Therefore, XYZ will have to invest in networks and telecommunication to ensure that the upgrade is not failed by network and telecommunication networks.

Further, incorporating a decision support system within an organization can help make informed decisions as it is the agenda of XYZ. A decision support system refers to an interactive software-based system that collects information generated from various ends of an organization, which helps managers in quick decision making (Ancker et al., 2019). DSS uses analytical methods to integrate the information for decision making, but it does not give the final decision itself but the user of the system. Therefore, by using DSS at XYZ, the organization will be better positioned to analyze client information, understand the market forces better, and improve competitive advantage.

Other benefits that XYZ will reap from the implementation of an information system are increased efficiency since the information provided by the MIS will be utilized to formulate the organization's goals and strategies (Deniz, 2020). Goal Setting will also be enhanced since the MIS uses current business trends that put the organization in a better position to make future goals and plans. Further key performance indicators and the company's overall performance have been enhanced with the comparison of business performance with previous times and, thus, evaluate business success. Through enhanced data collection, analysis, and reporting, the company can also identify problems better since the MIS reports and data can be accessed at any time. If a problem arises, the management can track the problem and solve it efficiently (Deniz, 2020). Besides, planning and analysis of current trends will place the company at a better position than its competitors. Management is required to make forecasts when determining future goals and thus making it important to have accurate reports about the market trends when creating a strategy.

Additionally, data produced by the system can be used to generate different opinions in the organization’s departments. The decisions made from information systems generated data would offer insights on how XYZ Company can remunerate, promote, hire and fire employees, make sales plans, and advertising. Such inputs should be applied to attract more production, reduce employee absenteeism, among others. With all these data well analyzed, the management can trackback the projects it started and know whether the project is viable. Through observing variables produced by the systems in the organization, statistical hypothesis testing is required to measure types of errors that may occur after comparing data collected. An alternative hypothesis is proposed for the statistical relationship and compared to an idealized null hypothesis. These two variances are used to assess the strength and weaknesses of the organization effectively.

Thus, from the above observations about the advantages of an MIS, XYZ Company requires an MIS upgrade to improve the company's better and convenient performance. Therefore, relevant departments need to set up both the hardware and software components of the computer system as well as networking and telecommunication requirements to usher the new implementations that will help the company attain the needed security and decision support.

References

Abu Naser, S. S., & Al Shobaki, M. J. (2016). Enhancing the use of decision support systems for re-engineering of operations and business-applied study on the Palestinian universities. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2814456

Ancker, J. S., Edwards, A., Nosal, S., Hauser, D., Mauer, E., & Kaushal, R. (2019). Correction to: Effects of workload, work complexity, and repeated alerts on alert fatigue in a clinical decision support system. BMC Medical Informatics and Decision Making, 19(1). https://doi.org/10.1186/s12911-019-0971-0

Deniz, R. B. (2020). Marketing information system and its benefits for contemporary management. Öneri Dergisi, 235-237. https://doi.org/10.14783/maruoneri.727163

Eroshkin, S., Kameneva, N., Kovkov, D., & Sukhorukov, A. (2017). Conceptual system in the modern information management. Procedia Computer Science, 103, 609-612. https://doi.org/10.1016/j.procs.2017.01.079

Mullins, P. (2020). Introduction to computers: Hardware and software. Introduction to Computers. Retrieved July 23, 2020, from https://cs.sru.edu/~mullins/cpsc100book/module02_introduction/module02-03_introduction.html