MANAGING INFORMATION AND TECHNOLOGY Students Name Course Professor’s Name University Date Introduction The type of information needed bydecision makers in an organization is directly related to not only the level ofmanagement involved in the decision making process but also the amount ofstructure in the decision situation faced by managers. (O’Brien, p.
393) Thislevels of management must be supported by information technology for it to besuccessful. Executives at the strategic management level develop policies,strategies and the overall goals of the organization. Business unit managers onthe other hand at the tactical level of management develop short term mediumrange plans, budgets and allocate resources while monitoring the performance oftheir departments. Operating managers at the operational level of managementdevelop short range plans usually weekly schedules and direct the use of theallocated resources within the budget. (George M.
Markus, 2010). The way inwhich information systems have been classified is due to an attempt to conformto how the duties and responsibilities have been divided within theorganization and since most organizations are hierarchical in nature, classificationof this systems tend to follow the hierarchy. Information systems have alwaysbeen seen as a driver of efficiency since it has proven to be more productivefor those who use it compared to those who don’t. (Isenberg, 1984).
The objectives ofinformation technology in an organization are always focused towards improvingdecision making, creating a competitive edge and operational excellence. Theseobjectives can only be achieved by creating an understanding to improveresearch in practice, methods and techniques of information technology withindeveloped and developing systems. This essay therefore covers the differenttypes of information systems under strategic, tactical and operational levels,justify the integration of various stand -alone information systems and challengesthat always arise during deployment of the information system then offerrecommendations on the same.
Types of information systems Strategic level This is the top most level ofmanagement involved in the formulation and implementation of an organizationsgoals on behalf of the stakeholders with major focus on the availability ofresources and surrounding environment. Its mandate is to provide an overall directionto the firm and develop plans that aid in fulfilling the firms’ objectives.(Nag, R et.al.,2007) Decisions here are usually responses to strategicquestions like for example who the target customer is for the produced products,where are the customers located and what do they consider as value, whatdifferentiates the company from competitors in the eyes of the customer andsuppliers etc. Information systems at this level support strategy forcompetitive advantage. Executive support system (ESS) ESS is designed to help seniormanagement to make strategic decisions.
It collects, analyses and makes asummary of key external and internal information used within the business. Itcompares and highlights trends in important variables for purposes ofmonitoring performance to identify opportunities. (John Fralick, 2014). Withglobalization and intense competition increasing the need of fast and accuratedecision making, the use of this systems by executives has become a veryimportant component of their decision making behavior.
(Hugh J. Watson, 2007). Wellness Inc., is a healthcare distributioncompany. When Paul Dawnson who is its current president joined two years ago,it had been ruined by problems.
It was its first time in a decade that it washeading for a loss, during the past year, Dawnson and his associates haveutilized a computer based information system to reorganize their salesapproach, analyze markets, restructure and sell part of a manufacturing unitand change their product mix. The use of this tool has revolutionized Wellnessand turned it into a profitable company. Tactical level Executivemanagement relies heavily on this level to make the right decisions. Managersat this level are responsible for overseeing the regional market and makingdecisions on how to achieve the short term goals of the organization. (JeffStein, 2006). Decisions here might involve marketing a new product andcommunicating with the lower management. The plans that are arrived at thisstage are always directed towards some functions like production, where apossible objective could involve quality improvement and measurable efficiency.
Management Information System (MIS) This system providesinformation inform of reports and then displays it to managers. The informationis usually specified in advance to meet expectations. They are used by middlemanagers to help ensure smooth running of the organization on a short termbasis. It provides highly structured information that permits managers to examinean organizations performance by assessing current with previous output. Someexamples of MIS include inventory control systems, sales management systems, budgetingsystems and management reporting systems. (Kenneth C., et al.
, 2009). Thissystem reports information related to cost and profitable and unprofitableprojects while identifying individual accountability on both current and thepast. MIS is useful in forecasting and long term planning. It creates astructural database and knowledge base for all people in the organization.Verizon cooperation for example uses a web based digital dashboard that relaysto manager’s accurate real time information about customers’ complaints andnetwork performances. Managers use this information to inform customers of therepair work, assign repair resources then restore services promptly.
Operational level This level directly deals withemployees. Manager here accomplish the objectives of tactical management.(Sophie Johnson,2009) Operation decisions affects daily tasks and are usuallyhandled by lower level of management. Managers at this level are supposed toidentify what impact their decisions will have on them and other involvedparties like the customers. Departmental leaders at this level make decisionson employee related issues such as promotions, overtime, hiring, training, payrate etc. (Jeff Stein, 2006) Transactional processing system (TPS) It’s designed to process dailytransactions accurately.
The transaction TPS systems that an organization mighthave include, system to calculate the weekly tax and payroll, billing systemsfor sending invoices to customers, stock control systems and purchasingsystems. Automated and semi-automated information is usually obtained by meansof tracking low level activities and operations which are very basic. Integration of stand -alone informationsystems This are systems that operateindependently and are not connected to any electric transmission ordistribution network. They do not require any other device to function. A faxmachine for example does not need a computer, printer or modem the way aprinter requires to be fed data from a computer. Printers in this case are notstand alone as they depend on the computer for data to function. They can’tfunction independently.
A standalonebusiness application is limited to a specific functional area, for example inan accounting function, the application does not seamlessly integrate withother functional areas. The best example of a stand -alone information systemis the Practice Management System that is used in hospitals. It deals withdaily routine affairs of the hospital like scheduling appointments forpatients, processing their billings, compiling their demographic informationand even maintaining a list of those who have been insured. This system ensuresthat payables and receivables are well defined for purposes of costminimization.
This system enhances productivity and this can be witnessed inany organization that uses it. It is simple and user friendly in that itpermits the user to complete his work in a short duration of time. It alsoallows flexibility in booking appointments due to the scheduling aspect that ispart of it.
Since this system is easy to use, only few mistakes can be detectedwhen billing as it allows you to correct immediately which makes its usagesimple and straight forward. ReviewCriteria is a personal computer (PC) application program used in evaluating inpatientadmission appropriateness under state-specific guidelines, (Angell M, 1985). It’sa frame-based expert system.
In stand-alone operation, the user of ReviewCriteria enters demographic and clinical information in text form. The expertsystem uses menus to narrow the textual descriptions to a set of codeddescriptions of the patient diagnosis and treatment. Based on the treatmentplan, Review Criteria makes a recommendation about the appropriateness ofinpatient admission and returns codes representing the specific criteria met orunmet that led to the decision. (Kuperman G.
J, 1991). It is however veryimportant to select the best stand- alone practice management systems. The selectedsystem for example should be easier to use without requiring any computerexpertise. It should also be compatible with other software’s that you intendto use and allow easy retrieval of information basing on your requirements. Challenges to deployment ofinformation systems Information systems are powerfultools that can help your organization to achieve so much and aid in meeting theorganizations goals.
It makes you to have the ability to make valid decisionsand discover trends in the data your company generates. (T.D Wilson, 1989)These systems however are not 100% dependable as they are also faced with avariety of challenges which include among; Human challenges. This occurs whenthere are challenges in the use of resources to engage in user education,inability to employ experts who efficiently accomplish the informationtechnology capabilities and inability to recruit the qualified staff. (PetriAaltonen, 2002) These people lack the required skill needed to efficientlyutilize the information systems available.Managementchallenges. Aligning information strategy to a business strategy has proved tobe a challenge. Management is not able to identify the gap between where theorganization is and where it intends to go.
A lot of persuasion has to be doneto convince managers to implement the suggested systems. (A Lederer and v Sethi,2003). Environmentchallenges. This involves factors which are less visible and naturallyuncontrollable. They include factors like organizations culture, behavior, andeven poor coordination and distribution of responsibilities. (Petri Aaltonen,2002). Negative attitude of senior and middle level management towards thedeployment of information systems has also been a challenge.
Technical challenges. This involvesfactors to do with the hardware and software’s of the information systems. Itbecomes a challenge since there is need for regular updating of software’s andit’s also an expensive affair migrating from old to new systems.
(Ossai, E., & Degoke, 2014). Recommendations Management should involve employees instrategies involving information technology implementation since they are theones that directly use the systems Management should also provideinternal training for technicians of information system who will be responsiblefor managing them by making sure they perform the intended tasks and software’sare always updated regularly to be up to date. Management should look for ways ofdealing with the organization culture by rewarding success in terms of thosewho effectively use the system in their respective departments and achievetheir intended goals. Provide adequate information systemsto share and facilitate knowledge distribution among departments so that everyemployee should have the chance to share views for purposes of reducingmiscommunication between various departments.
Top management should implement suitablebusiness strategies with the use of information technologies that support theorganization and make the best use of its resources and as a result, reach itsgoals. Conclusion Information systems have proved tobe more helpful when utilized than when not used. The benefits of using themoutweighs the disadvantages. Organizations have been able to reap maximumprofits and attain their intended goals much easier while also setting a competitiveedge against potential competitors. Managing information has become easier aslarge rooms to keep files are no longer required. An organization thereforedoes not need to have a lot of resources in terms of buildings where files haveto be stored. Security of vital documents has also been safeguarded.
Due to alot of hierarchy in most organizations, decision making used to be a very bigchallenge since middle level managers always brushed shoulders with topmanagers in terms of management decisions but with the implementation ofinformation systems like Decision support and executive support systems,decision making has been simplified and made much easier. With the availabilityof readily information about sales data, insights about what customers arebuying mostly and what quality of products they prefer is easily predictedhence the organization only produces goods and products that conform tocustomer requirements. This has helped to cut down costs related to wastages inproducing products that stay on the shelves long enough until they expire whenthey have not been purchased. This has also made inventory management mucheasier as only what is required is produced. Since customers want products andservices to be provided exactly when they need them, with the help ofinformation systems, customer intimacy has greatly been boosted. This isbecause these information systems have offered one on one interaction betweenevery customer and the organization. Any customer who is not satisfied with theorganization can easily file a complaint and be addressed almost immediately.
Managingof this information systems however has proofed to be a challenge for manyorganizations. Using them without having the knowledge of how you are supposedto utilize them can bring more loses to your organization than the muchintended profits. The organization needs to be more aware of the issuesassociated with the management reduce project failures instead of spending muchresources on operating systems. REFERENCES Alter. S (1980); Decision Support Systems; Reading MS; Addison-Wesley Goslar, M.; Green G.;and Hughes, T. Decision support systems: an empirical assessment for decision making.
Decision Sciences, 17, 1 (1986), 79–91. Crossref, Web of Science ®, GoogleScholar Isenberg,Daniel “How managers think”,Harvard Business Review, November–December 1984. Laudon, Kenneth C.; Laudon, Jane P. (2009).
Management Information Systems: Managingthe Digital Firm (11 ed.). Prentice Hall/Course Smart. p. 164 Nag, R.; Hambrick, D.
C.; Chen, M.-J (2007).”What is strategic management, really? Inductive derivation of a consensusdefinition of the field” (PDF). Strategic Management Journal. 28 (9):935–955.
doi:10.1002/smj.615. Retrieved October 22, 2012Peterson,H (1982); Developing computer solutions for your business problems; Englewood,NJ; Prentice-Hall Inc.PetriAaltonen Heini Ikävalko, “Implementingstrategies successfully, “Integrated Manufacturing Systems, Vol. 13, pp.
415– 418. 2002.Porter,Michael E. (1996). “What is Strategy?”.
Harvard Business Review(November–December 1996).Tekworld;Application Development, Business Intelligence, C#, Case Study, Consulting,Data Management, Financial services, MS .Net, MS SQL ServerT.D.Wilson, “The Implementation of Information System Strategies in UKCompanies: Aims and Barriers to Success,” International journal of informationmanagement. 13,245-258. 1989