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Management Information On Decision Making Information Technology Essay

Paper Type: Free Essay Subject: Information Technology
Wordcount: 5316 words Published: 1st Jan 2015

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In today advance technological and competitive business environment Management Information System plays a vital role. This assignment report explains how information management changes the overall structure of the organisation and how it effects the different aspect of organisation business such as strategic decision making, Information sharing, production, financial, marketing and customer interaction. Some data and information evaluation methods are discussed which provides high quality information to the management information system for the completion of important task. Finally decision-making tools such as SWOT and ASHEN are discussed that how these tools helping in decision-making.

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With reference to your organization, identify strategic information system (IS) issues and critically analyze and evaluate the organization’s practice to solve the problems connected with implementing strategic information systems. Also discuss the wider organizational implications of the steps taken by the organization in the use of IS and their consequences.

Your report should cover the following learning outcomes and assessment criteria:-

LO1: Understanding the impact of management information on decision making

The basic concern of Management Information System (MIS) is the collection, processing, storing, exchanging and transmission of the appropriate information in the organization for the support of management operations. Therefore with help of this appropriate information collected from different process, an organization can make a successful decision. In the absence of Management Information System (MIS) there is small chances for an organization to achieve its targets and business growth.

Assessment Criteria

1.1 Identify the features of data and information


Data is defined as the collection of facts about events. This collection of facts is in raw form means that an unorganised and unprocessed form, which cannot be use for meaningful purpose for example Name, Age, Price etc.


Information is defined as a well-organised, well-processed and meaningful form of data generated from raw data. The end users utilises this meaningful data for making a decision easily for example Employees Records, Sale Report etc.

Accessibility, Relevance, comprehensibility, timeliness and accuracy:

In any organisation it is important that accessibility to information must be provided to all departments employees it means that availability of information to the management and other staff. The accessible information must be relevant to the processes, functionality and operations of that department. The information must be comprehensible i.e. clear, well organised and structured, must be timelines i.e. suitable to complete related task and must be accurate to generate the expected result properly.

Determine the criteria to be applied when selecting data and information to support decision-making

In business environment data is a valuable asset for any organisation. The data must be collected carefully because organisation decision-making processes are based on the generated information from this data. While selecting data and information for decision-making we must apply some criteria to this selection such as accuracy, validity, clarity etc.

Data selection criteria:

Accuracy, completeness, validity, consistency


Data accuracy is vital role in management information because an accurate data can generate highly valuable results. For data accuracy timeliness is important otherwise there will be errors in the result.


The completeness of the data means the availability of latest data for decision-maker. The incomplete data can lead to poor decision-making management information.


The validity of data mean data must be collected carefully and from an authentic source. The source of data must be known and verified.


The consistency of data is key role in good management information because it generates reliable, steady, well-organised and well-structured information.

Information selection criteria:

Data quality, definition clarity, relevance, presentation, timeliness, availability

Data quality:

To generate highly valuable and standard information data must be according to certain quality standards such as data must be in the appropriate format, well structure, well-organised and standard transferring method must be used.

Definition clarity:

The generated Information must be clearly and easily understandable, this will allow organisation employees to use the right information in the right place.


Information must be relevant to a task that it can be examined and packaged into an effective format. This is helpful that the management information is having to the point information but the information must not be incomplete.


The management information must be able to present information in the right format, order, well-structured and attractive design. This will describe a clearer picture of the organisation.


The information must not take longer time i.e. must be concise and to the point that the management information can quickly response.


The regular availability of information must be guaranteed to the management information that all tasks can run smoothly and the management information is able to generate up to date results.

Evaluate the impact of a management information system to an organisation

Increasing productivity and creativity:

Management information system provides knowledge to workers accessing information resources. Using this knowledge the productivity of organisation is increased rapidly i.e. manufacture more products in short time. Not only this but also it brings new ideas and inspiration into the organisation.

Developing policies:

Management information system helps organisations to get maximum benefits from the extensive use of these information resources in developing policies i.e. planning, implementation and evaluation in the organisation.

Use of strategic information resources:

In the management information system the strategic information resources helps organisation in increasing productivity and brings new innovation. Organisations are able to do better planning, implement new policies efficiently. Strategic information resources improve the use of information resources in business, government and non-profit organisations strategies.

Understanding ICT as a tool for accessing information

In the management information system the Information and Communication Technology (ICT) tools are the most commonly used source for accessing information. These tools allow organization to access any type of information such products, researches, new developments, quality standards, communication with employees and customers etc.

Managing external, corporate and internal information in organization

The management information system systematically and efficiently manages the external information i.e. customer needs and choices, corporate information i.e. organisation values, brand names, advertising and marketing procedure, and internal information i.e. effectiveness of tasks, quick processing, interpretation and response of the organisation staff.

Using information to support business processes

Information supports the following business process.

Market and customer information

Using Market information organisation can learn about the competitors in the market allowing them to improve product quality, increase productivity etc. using customer information organisation will have a better understanding of customer needs and choices.

Product information

Using product information organisation can improve products quality, increase production, price comparison and easily availability.

Specialist knowledge

Using specialist knowledge organisation can manufacture new innovative products, add new customer to business, reduced cost and expenditure.

Business process information

Business process information supports the internal information about the performance of the organisation such Finances, Customer, internal process and learning and growth.

Management information and plans

Management information and plans supports the developing policies, future planes, and improvement of services of the organisation.

Human resource information

Human resource information is essential for organisations reputation, product support, future planes and innovations.

Supplier information

The Supplier information allows the organisations to choose from a large number of suppliers offers affordable price, best quality and quick service.

LO2: Understanding the importance of information sharing within the organisation

Information sharing within the organisation making employees as team allowing them to put forward their ideas, inspiration, new creations, discuss different matter and find solution for critical issue. This improves the overall efficiency of the organisation in terms of employees, products, policies, customers and competitors.

Assessment Criteria

2.1 Determine the legal responsibilities in sourcing, sharing and storing information

Confidentiality and privacy:

Special care must be taken when sourcing, sharing and storing information such that this must fully compliance with the Data Protection Act. Information about organisation and employee must not be disclosed with out their consent.

Copyright and software protection

Any type of data, information and software must be used under copyright and software protection Act. This means that using someone work must be authorised by that person or any organisation to which it belongs.

Contractual obligations

In case of conditional agreement information sourcing, sharing and storing must not breach the conditions i.e. all these operations must be according to the terms and conditions of contract.

IS and Crime (criminal not civil law)

This includes frauds i.e. dishonestly use of information, infringement i.e. violation of rules and regulation, miss used of information i.e. for the purpose of making organisation or individual unpopular.

2.2 Discuss when information should be offered and access allowed.

Information obtaining, accessing and processing must be according to the Data Protection Act, which gives the right to individuals Person, organisation etc to know what information is held about them, the purpose of information holding as well ensures them that personal information is handled properly.

Anyone who is processing someone personal information must comply with the eight principles of Data Protection Act, which are explained below.

Fairly and lawful process:

According to 1st principle, Personal data must be processed fairly and lawfully. This means that the data subject i.e. person, organisation permitted the processing of their personal information for any legal and legitimate purposes such as employment, justice, health and safety etc.

Process for limited purpose:

According to 2nd principle, Personal data must be obtained and process for a limited purpose only i.e. one or more particular and lawful purposes. If the further processing of personal information is required for other purposes than the specified then the data subject must be informed and further processing should be according to the data object consent.

Adequate, relevant and not excessive:

According to 3rd principle, Personal data must be adequate, relevant and not excessive in relation to the purpose it is obtained and processed. This must ensure the data subject that the processing of personal data is relevant to the specified purpose and is not unnecessary.

Accurate and up to date:

According to 4th principle, Personal data must be accurate and up to date if necessary. This means that the accuracy of the data must be ensure whatever it is directly obtained from the data subject or it is through third party. It is the responsibility of the data object to inform the about any changes or inaccuracy in the data.

Not kept for longer than is necessary:

According to 5th principle, Personal data must not be kept longer than is required for the purpose or purposes after it is processed.

Process in line with a person’s right:

According to 6th principle, Personal data shall be processed with the data subject rights under the Data Protection act. This means the data subject has the right to request for the correction, blocking and deleting of their personal data after processing.


According to 7th principle, the security of personal data must be ensures. This means that in case of unauthorised or unlawful processing, accidental loss and destruction to the personal data appropriate technical and organisational measures should be taken to prevent such incidents.

Data Transfer

According to 8th principle, Personal data must not be transferred outside the European Economic Area i.e. to outside countries. If the outside countries can ensures that personal data will have adequate level of protection and will be processed with the consent of data object and for the specified purpose, then in such situation data can be transferred.

2.3 Evaluate the formats in which information can be offered.


In Electronic format information are provided through electronic means computer generated such as E-mail, Ms Word file, Excel sheet, Data Bases etc. while manual information are almost are provided on papers i.e. printed or handwritten such as log books, manual order book, letters, books, reports etc.

Lists of Individuals

List of individual could be computer generated or manual, which contains details about organization employees, managerial stop and other staff responsible for different task. Usually this contains names, designation, contact etc.


Libraries are well organized and well-structured data storage system used in computer to holds data files, folders, records, pictures, and videos in a proper order etc. now days there are many electronic libraries holding e-book, e-journal etc. not only electronic libraries are used still most organization using large number of manual libraries contains books, journal, research papers, reports etc.


Folder is container used by computer system for organizing folders, programs and files on a disk in graphical user interfaces mostly represented with a graphical image (icon) of file folder on the screen. Manual folders normally used for holding papers i.e. invoices, report, expenses etc.


Computer generated document is any self-contained piece of work created with help of any application program is saved with a unique file name. This unique name is used to retrieve that document. While manual documents are hard copies or handwritten records, personal detail, manual etc.

List items inside the lists

This is heretical or tree structure, similar items are list under single category the inside list are known as sub categories of the main category. This keeps items in an organized structure and it is easy to find and locate a specific item.

List items present in the libraries:

In the libraries all items are divided in categories, each category contains a list of interrelated items as well sub items, this categorization helps in searching and locating items within the vast amount of the available items.

LO3: Use information to inform and support strategic decision-making

Assessment Criteria

3.1 Analyze information to identify patterns and trends

With the help of information system organisations can identify and predict the patterns and trends in all aspect of the business such as market, competition, customer demands etc and based on the information analysis they can make good strategic decisions.

The market

The Information system analyses the data collected from the market and based on the analysis the organisation can decide about the product quality improvement, increase productivity, adjust product price and can decide about the launching of new products and organisation future planes.

The competition

Based on the Information system analysis of the market data organisation can decide about the product price reduction, improves quality, improve advertising campaign, more facilities to customer and shareholder, easily availability etc as competition with other organisation.

The state of economy

Based on the Information system analysis organisation can manufacture economical product with low cost and can utilise available resources efficiently i.e. reduction in manufacturing time, proper use of material, required amount of product, reduction in manufacturing defects etc.

Legislative development

Information system improves the legislative system of the organisation. They are fully compliance with the data protection act, international laws and standards, legal rights. Based on the information analysis the organisations can take legal steps to attract Customers, compete with their competitors, can utilise information resources, shares information’s, utilise hardware and software etc.

Customer demands

Based on the Information system analyses of the collected data from the market organization can predict the customer demands such as what customer wants, is their need of improvement in products, is there a possibility to launch new product, are products easily available to customer, is there a need of change in the policy and legislation, are customers able to commits complains and advices etc, are they happy with prices etc.

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Evaluate a range of decision making tools and techniques available to support a strategic decision


SWOT (Strength weaknesses opportunities and Threats) analysis tools provide an organization a structural analysis of its Strengths, Weaknesses, the opportunities and threats they are facing. The SWOT analysis is based on the discussions and people viewpoints and it is not the end but step before any action planning take place. The organization use the analysis result to appreciate its strength (personal, competition, knowledge, production etc) for taking decision to minimize its weaknesses (improve developments, competition, product quality, customer communication etc), utilize most of the opportunities (possibilities, value in next five years, product demands etc) available and treating possible present and future threats (limitations, losing product values, equipment and software fault etc) in a planned and well organized way.

Critical success factor (CSF)

Critical success factor is an approach takes by the organisation to determine organisational need for information. There are a numbers of key factors required for any organisation to be successful, these factors are known as critical success factors. If organisation is unable to achieve these critical success factors, then this will have a high impact on the organisation and as a result there is possibility of organisation failure.

The diagram below describes how CSF helping organisation in the determination for need in key decision (KD) and information Required (IR)











Where CSF represents Critical success factor, KDs represents key decision and IR represents information required to support key decisions.

Model Driven DSS

Model-driven is a complex Decision Support System (DSS) system helping in analyzing decisions or choosing different options between the available. This type of system is used by the organization / Business managers and staff members, or by other peoples usually interact with the organization. The use of the system is for a number of purposes, which is depending on the setup of the model such as scheduling, decision analyses etc. there are a number of ways for the deployment of Model Driven DSS system such as in stand alone PCs through hardware and software in, through client / server systems, or through the web.

Data Driven DSS

The organization manager mostly uses the Data Driven Decision Support System (DSS) system as well staff and the product/service suppliers used it. The use of the system is for a specific need by sending query to a database or data warehouse, which then returns the requested specific information. This type of system is mostly deployed through a mainframe system, client/server system and trough the web. Computer-based databases are the example such system, having the capability to response to query and valuable results value from existing databases.

Data Mining

Data Mining is the data analyzing process from different perspectives and after processing generation of useful information summary. This summary information are utilized by the organizations to increase revenue, cuts costs etc. Data mining software is one of the analytical tools available to analyze data. This tool allows users to do analysis of the data from different angles, categorize data, and finally identification of the relationships in a summarized data.

Determine the source available to assist in analyzing data information

Information resources such as Data, Information and knowledge

In business environment information resources are the most valuable assets for any organisation. The information i.e. data, information or knowledge must be collected carefully and with authenticity because the organisation decision-making processes are based on these information. These sources of these information resources could be organisation employees, customer and other organisations but there must be some criteria for using these resources such as accuracy, validity, clarity etc.

Technology resources such as hardware and software

For the processing of organisation data and information such as products detail, employee’s details, manufacturing, stock and accounts information appropriate technology resources such hardware i.e. computer systems, printers etc and software database system, data analysis tools etc must be available to managers and staffs of the organisation. Using such resources reduces production time, cost, improves communication within the organisation and with the customers.

People resources such as employee and managers in organizations

Organisation employees and managers are the vital part in analysing data because they provides the organisation internal data such as manufactured quantity, cost, stock etc and as well they are operating the available equipments, computer systems and software. In organisation mostly there are people specially trained for operating specialised hardware and software for information processing, analysing, report generation.

LO4: Monitor and review management information

Assessment Criteria

4.1 Identify methods of evaluating management information within an organization

For high level of management information organisations utilise different information evaluation methods to ensure a reliable, trusted and quality of information management system.

Data governance

Data governance (DG) is the overall management of the data employed in the enterprise. The Data governance ensures the availability, usability, integrity, and security of the employed data. A governing body or council runs a well-organized data governance program with a well-defined set of procedures and plans for the execution of defined procedures in the right direction. The followings are the three key elements of the successful data governance in an organization.

The ability to use timely, reliable, trusted information to drive the business

The data governance program must be able to ensure the information availability within the prescribed time frame to the recipients that it can be processed at in early stage. This information must be reliable i.e. consistent that execution of different processes can be performed in proper order and in the right direction. As well the information must be trusted i.e. accurate, update and must be gathered from the trusted source otherwise it will lead to program failure.

Improving the quality of business decision- making

The data governance programme must be able to utilise certain standard decision support systems for the achievement of high quality of business decision-making such as Model Driven DSS, Data Driven DSS etc. The available data for decision-making must be according to certain quality standard, appropriate format, well structured and well organised.

Ensuring consistent use of information

The data governance program must ensure the consistent use of information in organisation for reliability and smooth flow of business different process. The information flow must be regular to different component of the overall system that the system can generate reliable, trusted and high quality of result otherwise inconsistency will generate incorrect result and will lead to system failure.

Management information value


Timeliness is a high importance in management information, which means that the recipients must receive information within the prescribed time frame. The timeliness can ensure an early stage information execution, which generates the accurate information result. The characteristic of timeliness of information must be effective as well must includes the current up to date information.


Management information system provides valuable contents for organisation internal and external process support. These contents support business different process such as contents for decision making process, for manufacturing process, for marketing process, financial process, customer and services support etc.


Management information system provides information in an appropriate and clear format, which is easily understandable. The provided information clearly describe the need, the purpose and place where it can be used such as market related information clearly describes the value of the organisation and its product that can be used to improve quality and services.


Management information systems help organizations in cost reduction in the overall business i.e. internally and externally. It allows organizations to deliver their products and services to customers at lower price than their competitors. Therefore, due to information system organizations can survive in difficult situations and can grow rapidly.

4.2 Discuss process for analyzing impact of information on strategic decision made

Set objective of process or organization

The information analysis allows the decision-maker in the organization to develop and set objectives and allocates resources required for the achievement of these objectives. Thus the organization top-level management is benefiting from information analysis in making strategic planning.

Evaluate weather goals achieved

The information system allows the organisation to evaluate weather the desired goals are achieved from the information analysis or not. In case of failure the process is refined with utilising more resources, expertise, care and thoroughly investigation to make sure a quality of result achieves. Gap analysis is used for the evaluation of weather goals achieved or not.

Assess reasons for variance from target to actual

The performance diagnosis is done by applying knowledge to performance to check weather the processes, operations and functions are generating the quality results or not. Each process is judged thoroughly weather the overall process is running smoothly and will complete successfully.

Revise and implement new approaches or modify goals

If there is any mistake in the process it is revised and retest. Some times the achievement of the desired resulted new approaches is implemented and some time the difficulties in achieving result can lead to modification in goals.

4.3 Determine methods of developing information capture to inform and support strategic decision-making

DIKAR: Data Information Knowledge Action Result

The DIKAR model is used for information quality, which is very helpful in understanding the attributes of management information quality. The diagram below is the description of the overall model.

Source: Dr.L.Ali,” 7004_Strategic Information Management, 2009″, Lecture Notes, Cromwell college of IT & Management

As shown in the diagram the DIKAR model is based on the attributes of the Data, Information, Knowledge, Action and results. These attributes ensure the quality of the each component of the DIKAR model as from the start to the end quality is maintained in all processes. The table below explains the attributes of each component.

Data Quality

The provided data must be accurate i.e. up to date, the whole data to complete that task i.e. completeness, collected from authentic and trusted source i.e. validity and regularly available for smooth flow i.e. consistency.

Information Quality

Information must be generated from a quality data, all definition must clearly describe the purpose, only relevant information should be used related to a task, the presentation of information should be in the proper order and right format, information must be provided to the recipient in the prescribed time frame and finally availability of information must be ensure to the end user related to that task.

Knowledge Quality

For knowledge quality the information quality must be maintained as described in the previous section, ASHEN factors (is explained in the next section) must be taken into account, the end user must be experienced in using such knowledge i.e. prior experience, knowledge must be clear and easily understandable i.e. explicit knowledge and finally must be understood clearly by the end user i.e. tacit knowledge.

Action Quality

An appropriate action must be taken for the solution of the task, this action must be with in the prescribed time frame and must generate results with clarity that ends user can utilise results in the right place and in the right direction.

Result Quality

The generated output must clearly state the achieved objectives and consistency of results. The achieved result must be the right and desired and efficient for the task.

ASHEN: Artefacts Skills Heuristics Experience Natural talent

The ASHEN factors is used for the assessment of knowledge quality at the points des


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