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It is a raw facts, figures, and numbers, symbol which represents events or physical environment that supports to produce the meaningful information, (Laudon and Laudon, 2010). For example, the total numbers of states in America.
It is data which is meaningful and useful that represents certain criteria or circumstances and does give some sense which can be easily understood and exist who use to make decisions.
The perfect information system try to show positive effects in any organisation through reducing operating cost, increasing investment with certainty, developing business network and relationship, provide excellent customer service and satisfaction, making business digital enabling and mediating, maintaining accuracy, reliability, integrity and agility for organisation to perform well in the world of information age. It combines, link and measure the importance of data and information in business. Today information system are so useful.
Data and information are the back bone of every decision making process. As they are of the vital significance, they should be accurate, complete, valid and consistent. Only the precise data may lead to the précised result and goals. Likewise , information quality can be judged in terms of data quality source, clarity of the data, its relevance , how well and reliably it has been presented, whether it holds timeliness and to what extent it is available.
1.3.Evaluation of the impact of a management information system to an organisation
Once management information system is launched into an organisation, it should be evaluated in due time whether the introduction of it has been beneficial to the organization or not. At the beginning while launching the system, it may raise the cost factor of the organisation but in long run it might be proved profitable increasing its overall productivity and creativity. It may further help to develop better organisational policies to the betterment of the organisation. There might be numerous factors of strategic significance in organisational life and physically in its premises too which can be better utilized by the introduction of management information system. It also helps manage the internal and external information in the organisation. As per the structure and nature of the organisation, it may undergo numerous processes to better achieve its set goals and objectives. Management information system ensures better support for those business processes.
Not only this, it also collect market and customer information along with product information. In course of running, there might be various other types of information as well which can be managed well by the management information system. For ensuring uninterrupted stock supply for the production of goods and services, it also plays a vital role.
Management information system helps manager to monitor and control by providing information on firms performance and address structured problems.
Inputs to a MIS: It comprises both internal and external resources of any organisation.
Outputs of a MIS: It is a collection of reports allocated to managers.
Recommended software for MIS:
LO 2 Information sharing within organisation
As the information is of paramount information for the organisation, a due
Consideration is to be paid while getting those information, to make them usable
Organisation is an association or house where business functioning will be performed and maintained to achieve the goals, objectives, mission, vision, target and strategy through accomplishment of tasks. It consists of use of hierarchical structure for accountability, authority and adherence to the principle of success which helps to maintain efficiency and effectiveness at workplace. It consists of routines and business processing, organisational policies and politics, culture, environment and structure. The importance of information sharing within this company helps for following: (Robbins, 2008)
Fulfilment of organisational goals, mission, vision and target
Showing relationship between organisation and information technology
Link organisation environment, culture, management decisions, business process and policies
Separate work from location
Reorganise work flows and increase flexibility
Mass customization ( use software and computer hardware for production check and control)
Help for change and control over resistance to change
Establishment of internet, extranet, intranet and ecommerce (Robbins, 2008) / (Lead, 2007)
There are two main sorts of information sharing. The first involves two or more organisations
sharing information between them. This could be done by giving access to each other's
information systems or by setting up a separate shared database. This may lead to the specific
disclosure of a limited amount of information on a one-off basis or the regular sharing of large amounts of information, for example bulk matching name and address information in two databases. The second involves the sharing of information between the various parts of a single organisation, for example between a local authority's various departments. The content of the framework code should be relevant to both types of information sharing.
The framework code is for use mainly in circumstances where information is being shared
on a routine, systematic basis. However, in some cases information is shared in a more ad hoc
way. For example, a teacher might use his or her professional judgement to decide to share
information with a social worker because there is concern about a particular child's welfare. The framework code is not primarily intended for use in cases like that, although it may still be of use if read alongside the relevant professional guidance.
2.2 When to offer information and allow access on it?
To offer information to the concerned parties, there should follow certain and specific processes otherwise dinformation offering would be affected in one or another way. Information should be for the limited purpose. Only the relevant an adequate information should be used but not to use excessive information which may cause further inforamaion overload an may be worthless. Information should not be held longer time unless provisioned by existing law of the country mandatory for certain time period ahead. Information sharing and storing should come under the right of the individual and sharing it should come secure and safe as well.
2.3. Formats for offering information
Information can in one or otherway be saved for longer time period. Not all the information are of equal significance. So , the time for their retaining too may differ as per the nature and significance of the organisation. To keep the information upto date, the information can be carried and offered in the following forms and formats.
In electronic forms or in a manual way
As a list of individual
In libararies , the information of vatrious time frame can be saved in terms of literature.
In folders too, letters and papers can be tied up safely.
In terms of developing text documents.
In the forms of catalogue
SAFE INFORMATION SYTEM MANAGEMENT
SISM helps to manage the overall information required for better decision in an organisation. It consists of how to build a system which may not be easily affected by vulnerability, destruction, error and abuses. It needs to be safe from security, control, hardware failure, software problems and disasters. Even it talks about tapping, shifting, message alteration, theft, fraud, radiation, hacking, viruses and copy of data. The safe information system management will make high alert about system controlling, performance and management without any problem in an organisation. It focuses on information system and application controls, disaster recovery and MIS audit as well as security measures to use, ethical consideration and legal threats through best use of knowledge management. (Post and Anderson, 2006)
They are the policies, procedures and technical measures used to prevent unauthorised access, alteration, theft or physical damage to information system. The security consideration consists of tapping, shifting, message alternation, viruses, hacking, vandalism, attacks and radiation. Even it covers the security problems of copy of data, hardware and software failure. The security problems can be solved by access control, use of firewall and anti viruses, securing wireless network, establishment of encryption and digital certificate, controlling network traffic, security outsourcing and insuring software quality of a system. (Laudon and Laudon, 2010)
ETHICAL CONSIDERATION FOLLOWED BY THIS COMPANY
Ethics is related with what to do or not about what is wrong or right i.e. principles of right and wrong that individual acts as a free moral which will guide the behaviour. It consists of frauds (online), software viruses, hacking, piracy and destruction of MIS. It has rise in the world due to threatening social change, distribution of power, obligation, and increase in crime and value of money. It has affected everyday's life due to rapid change, dependence, vulnerability, abuse, inequality, maintaining boundaries and number balance over power in the MIS in the age called information age. It will totally affect the organisational working system. (Robbins, 2008) / (Chaff and Wood, 2005)
LO 3 Information for supporting strategic decision making
3.1. Patterns and trend analysis of information
Information system means Computer based system which help to collect categorise, link, hybrid, standardise, reduce data redundancy and increase functioning of information through achievement of operational excellence in a business. It shows intimacy, integrity, agility, scalability, sustainability and security of information by link to provide the meaning as a system. (Rai and Sharma, 2008)
Business decisions are made by middle level managers like different department heads with the help of MIS and DSS to complete the daily routine activities through the use of TPS system in an organisation. It also consists of decision making with sub department by getting approval from strategic decision or top level authority. (Laudon and Laudon, 2010)
Functional decisions are made or perform at low level with the help of low level managers by using the system called TPS. It helps to solve daily routine activities in this company. (Laudon and Laudon, 2010)
Decisions are the concrete valuation and evaluation of final point about how to apply strategy in a systematic arrangement of information through the use of data in an organisation. Simon (1977) describes the process of decision making with four steps: intelligence (collection, classification, processing and presentation of data), design (methods or procedures), choice (among alternatives) and review (recall and see feedback with best implementation). Figure level of management with decisions made: (Laudon and Laudon, 2010)
Low Level Management
Top Level Management
Strategic decisions are made by top level managers like CEO or board of directors with the help of executive support system about organisation mission, visions, goals, target, strategy, objectives, rules, regulation and procedures to govern the organisation in a smart and perfect way. (Laudon and Laudon, 2010)
While making decisions, some critical factors will affect:
Understanding top level management ability, risk taking and power of decisions
Providing sufficient training
Using clear performance measures
Building groups and teams
Facilitation and support
Participation and involvement
Technological expertise and creativity
Risk taking and making
Networking and relationship
Applying disruptive technologies
Enlargement of scope in terms of management thinking
Sustainability of competitive advantages
Make wise technology purchasing decisions (Fitzsimmons and Fitzsimmons, 2007)
3.2 Decision making tools to support a strategic decision
Decision Support System:
It is an organized collection of people, procedure, software, database and devices which support to middle management for non-routine decision making and systematic performance of work.
Capabilities and performance of a DSS:
Support for daily routine work problem-solving.
Support for different decision and methods use.
Support for different problem structures.
Support for various levels for decision-making.
Components of a DSS:
The Database as well as software system and user interface.
The Model base and data mining.
It is management information system which use knowledge for various analysis of problems and finding the structural solution to a given problems.
Components of an Expert System:
The Knowledge Base and Inference Engine.
The Explanation Facility.
The Knowledge Acquisition Facility and User Interface.
Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.
Critical Success factors
Critical Success Factors (CSF's) are the critical factors or activities required for ensuring the success your business. The term was initially used in the world of data analysis, and business analysis.
Most smaller and more pragmatic businesses can still use CSF's but we need to take a different, more pragmatic approach.
Critical Success Factors have been used significantly to present or identify a few key factors that organizations should focus on to be successful.
As a definition, critical success factors refer to "the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department, or organization".
LO 4 Monitoring and reviewing management information
4.1 Methods of evaluating MI within organisation
Business Impact Analysis Goals
The purpose of a business impact analysis is to determine what impact a disruptive event would have on a financial institution. As such, a BIA has three primary goals:
Determine Criticality-Every critical business function must be identified, and the impact of a disruption must be determined. While non-critical business functions and processes may likely warrant a lower priority rating, consideration should be given to the impact of interdependencies between various departments and functions before ultimately determining their criticality and priority.Â
Estimate Maximum Downtime-Management should estimate the maximum downtime that the financial institution can tolerate while still maintaining viability.Â Management should determine the longest period of time that a critical process can be disrupted before recovery becomes impossible.Â In some instances, the BIA process may provide evidence that a business interruption can be tolerated for a shorter period of time than originally anticipated.
Evaluate Resource Requirements-Realistic recovery efforts require a thorough evaluation of the resources required to resume critical operations and related interdependencies as quickly as possible.Â Examples of resources include facilities, personnel, equipment, software, data files, vital records, and third-party relationships.
Â There are generally four cyclical steps included in the BIA process:
Performing a vulnerability assessment;
Analyzing the information; and
Documenting the results and presenting the recommendations.
The first step of the BIA is to identify which departments and business processes are critical to the recovery of the financial institution.Â The Business Continuity Planning Committee and/or Coordinator should review organizational charts, observe daily work flow, and interview department managers and employees to identify critical functions and significant interrelationships on an enterprise-wide basis.Â Information can also be gathered using surveys, questionnaires, and team meetings.
As information is gathered and critical operations are identified, business operations and related interdependencies should be reviewed to establish processing priorities between departments and alternate operating procedures that can be utilized during recovery.
Performing a Vulnerability Assessment
A vulnerability assessment is similar to a risk assessment; however, it focuses solely on providing information that will be used in the business continuity planning process.Â The goal of the vulnerability assessment is to determine the potential impact of disruptive events on the financial institution's business processes.Â Financial industry participants should consider the impact of a major disruption since they play a critical role in the financial system.Â As part of the vulnerability assessment, a loss impact analysis should be conducted that defines loss criteria as either quantitative (financial) or qualitative (operational).Â For example, quantitative losses may consist of declining revenues, increasing capital expenditures, or personal liability issues.Â Conversely, qualitative losses may consist of declining market share or loss of public confidence.Â While performing a vulnerability assessment, critical support areas and related interdependencies, which are defined as a department or process that must be properly functioning to sustain operations, should be identified to determine the overall impact of a disruptive event.Â In addition, required personnel, resources, and services used to maintain these support areas must also be identified.Â Critical support areas and interdependencies should include the following, at a minimum:
Transportation and delivery services;
Shared physical facilities, equipment, hardware, and software;
Third-party vendors; and
Back-office operations, including accounting, payroll, transaction processing, customer service, and purchasing.
The steps needed to perform a vulnerability assessment include the following:
List applicable threats that may occur internally and externally;
Estimate the likelihood that each threat might occur;
Assess the potential impact of the threat on employees and customers, property, and business operations; and
Assess the internal and external resources available to deal with the identified threats.
Analyzing the Information
During the analysis phase of the BIA, results of the vulnerability assessment should be analyzed and interpreted to determine the overall impact of various threats on the financial institution.Â This analysis process should include an estimation of maximum allowable downtime (MAD) that can be tolerated by the financial institution as a result of a disruptive event.Â MAD estimates that may be used include the following:
Nonessential- 30 days
Normal- 7 days
Important- 72 hours
Urgent- 24 hours
Critical- minutes to hours
Each business function and process should be placed in one of these categories so that management can determine applicable solutions to ensure timely recovery of operations. Management should then determine which business functions represent the highest priority for recovery and establish recovery objectives for these critical operations. The Business Continuity Planning Committee or Coordinator should discuss the impact of all possible disruptive events, instead of focusing on specific events that may never occur. For example, the impact of a disruptive event could result in equipment failure, destruction of facilities, data corruption, and the lack of available personnel, supplies, vendors, or service providers. Once the impact of a disruption is determined, management should estimate MADs.
After completing the data analysis, the results should be reviewed by knowledgeable employees to ensure that the findings are representative of the true risks and ultimate impact faced by the financial institution.Â If notable gaps are identified, they should be recognized and incorporated into the overall analysis.Â
Documenting the Results and Presenting the Recommendations
The final step of the BIA involves documenting all of the processes, procedures, analyses, and results.Â Once the BIA is complete, a report should be presented to the board and senior management identifying critical departments and processes, significant interdependencies, a summary of the vulnerability assessment, and recommended recovery priorities generated from
Information technology is a measure competitive tool in business sector. The overall management information system incorporates total information of organization by changing the traditional business management which combines modernization with doubling the speed of work and eliminating work force and cost. It creates innovative ideas and smart use of information for making business well competitive. It helps to understand your business positions, market environment, customer wants and desires, enabling people to share information, understanding competition among different competitors, what is your target group and leading organization in part of success.
For all level of management, today implemented management information system is totally new. They may fall into problems, so after implementation of software and all necessary hardware with total package of system, they need to go through well training, understanding of IT tools, techniques, benefits, infrastructure with different laws how to protect management information systems. The utilizing of information system may enhance Himalayan shopping centre's operation profitable, increment of goodwill; understand market competition and competitors with well achieving of organizational success.