Management Information System

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MANAGEMENT INFORMATION SYSTEM
Question 1(10 Marks)
Discuss five (5) challenges of Management Information System (MIS). Answers
Introduction
A Management Information System (MIS) provides information which is needed to manage organizations effectively. Management information systems involve three primary resources such as people, technology and information or decision making. Management information systems are distinct from other information systems in that they are used to analyze operation activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation support of human decision making, e.g. decision support systems, expert systems and executive information systems. The Challenge of Management Information System (MIS)

Although information technology is advancing at a blinding pace, there is nothing easy or mechanical about building and using information systems. There are five major challenges confronting managers: 1. The information systems investment challenge

It is obvious that one of the greatest challenges facing managers today is ensuring that their companies do indeed obtain meaningful returns on the money they spend on information systems. It’s one thing to use information technology to design, produce, deliver, and maintain new products. It’s another thing to make money doing it. How can organizations obtain a sizable payoff from their investment in information systems? How can management ensure that information systems contribute to corporate value? Senior management can be expected to ask these questions: How can we evaluate our information systems investments as we do other investments? Are we receiving the return on investment from our systems that we should? Do our competitors get more? Far too many firms still cannot answer these questions. Their executives are likely to have trouble determining how much they actually spend on technology or how to measure the returns on their technology investments. Most companies lack a clear-cut decision-making process for deciding which technology investments to pursue and for managing those investments.

2. The strategic challenge
What complementary assets are needed to use information technology effectively? Despite heavy information technology investments, many organizations are not realizing significant business value from their systems, because they lack—or fail to appreciate—the complementary assets required to make their technology assets work. The power of computer hardware and software has grown much more rapidly than the ability of organizations to apply and use this technology. To benefit fully from information technology, realize genuine productivity, and become competitive and effective, many organizations actually need to be redesigned. They will have to make fundamental changes in employee and management behavior, develop new work models, retire obsolete work rules, and eliminate the inefficiencies of outmoded business processes and organizational structures. New technology alone will not produce meaningful business benefits.

3. The globalization challenge
How can firms understand the requirements of a global economic environment? The rapid growth in international trade and the emergence of a global economy call for information systems that can support both producing and selling goods in many different countries. In the past, each regional office of a multinational corporation focused on solving its own unique information problems. Given language, cultural, and political differences among countries, this focus frequently resulted in chaos and the failure of central management controls. To develop integrated, multinational, information systems, businesses must develop global hardware, software, and communications standards; create cross-cultural accounting and reporting structures; and design...
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