Disadvantages of Management Information System

PITFALLS IN MANAGEMENT INFORMATION SYSTEM

A Management Information System (MIS) converts data from internal and external sources into information. This information is communicated in an appropriate form to managers at different levels in a business to enable them to make effective decisions for: •

 planning,  planning,

•

directing,

•

forecasting,

•

coordinating,

•

controlling

activities for which they are responsible. A MIS uses a database system relying on data from one or more databases. The data is usually held in the computer as a result of normal data processing activities. The information provided  by the MIS should be: reliable, consistent, appropriate appropriate to the level of management, management, accurate, accurate, timely, precise - provided at a suitable level of detail, clearly understandable, regular. Manage Managemen mentt Informa Informatio tion n System System is an import important ant at all levels levels and in all organiz organizatio ations. ns. A mana manag gemen ementt

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various business various business decision decisions. s. Busines Businesss owners owners and manage managers rs are respons responsible ible for operati operational onal,, technical and strategic decisions. Using an information system helps these individuals gather   pertinent documents documents that will help them make the best decision possible. While these systems were were manual manual in previou previouss decades decades,, busine business ss technolo technology gy allows allows compani companies es to implem implement ent electronic systems. Some pitfalls can exist when using a management information system in a company.

Unemployment  - While information technology may have streamlined the business process it

has also crated job redundancies, downsizing and outsourcing. This means that a lot of lower  and middle level jobs have been done away with causing more people to become unemployed.

 Privacy - Though information technology may have made communication quicker, easier and

more convenient, convenient, it has also bought bought along privacy issues. From cell phone signal interceptions interceptions

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to email hacking, people are now worried about their once private information becoming public knowledge.  Lack of job security - Industry experts believe that the internet has made job security a big

issue as since technology keeps on changing changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure. information technology technology may have made the world a global village,  Dominant culture - While information it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and  behave.  behave. Languages Languages too have become overshadowed, overshadowed, with English English becoming the primary primary mode of communication for business and everything else.  Expensive - Installing a management information system can be expensive for a company.

Information technology---while cheaper today than previous years---can represent a significant expense, especially for larger organizations. These systems may also require ongoing support or upgrade fees, which can represent future fixed cash outflows. Companies must create a  budget  budget to pay for these items to ensure the information information system stays current with business business technology. Attempting to integrate these systems with technology currently in use can also increase expenses.  Maintenance  Maintenance - Companies may need to hire maintenance individuals to help keep an electronic

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in computer  computer science science functions and other business topics. Not only does this increase labor  costs, costs, but it also requires requires addition additional al training training and ongoing ongoing education for these individuals. individuals. Business technology can change frequently, creating an environment where companies must have trained individuals who can properly maintain computers, websites, servers and other  equipment in use by the management information system.  Ineffective  Ineffective - Management information systems have the potential to become ineffective in a

company's operations. As with all computer systems, the management information system is only as good as the programmer. Gathering unimportant or non-essential information can delay  business decisions because managers must request additional additional input. Spending too much time

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Why an MIS Might Fail

MIS systems are complex and expensive pieces of software, and many people are involved with the design both both within the organisation and from outside. outside. Often they are built built by software houses to the precise requirement requirementss of the organisation. So the client organisation organisation needs needs to be very clear as to what it wants, and the software house analysts analysts need also to be very clear about the requirements.

MIS failures can be expensive and bring bad publicity to all parties. They can arise due to:

•

Inadequate analysis - problems, needs and constraints aren’t understood in the early

stages. •

Lack of management involved in the design – wrong expectations of a new system /

no-one understands the system. •

Emphasis on the computer system – Need procedures for handling input and output /

select the right hardware and software •

Concentration on low-level data processing – Information must be easily accessible

and understood •

Lack Lack of manag manageme ement nt knowle knowledge dge of ICT ICT (Infor (Informa mation tion and and comm communi unicat cation ion technologies) systems and capabilities – managers know what they want from the

system but don’t understand the technology •

Lack of teamwork  – An ICT manager must co-ordinate the accounts, marketing, sales

etc. departments and help everyone understand the benefits of the system •

Lack of professional standards – All systems need clear documentation that all users

can understand (not just the ICT literate)

Organisations can judge how successful the implementation of an MIS system has been by applying the following evaluations: •

High level of use - Is it actually used? Some systems don’t become operational for 

reasons such as it taking too long to enter data. •

High level of user satisfaction - Do users like the systems?

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Has proper training been given? •

Institutionalisation of the system - Has it been taken on board enthusiastically?

Disadvantages

•

Highly sensitive requires constant monitoring.

•

Budgeting of MIS extremely difficult.

•

Quality of outputs governed by quality of inputs.

•

Lack of flexibility to update itself.

•

Effectiveness decreases due to frequent changes in top management.

•

Takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

•

lack of terminals for staff to use.

•

insufficient storage for the volume of data.

•

lack of operational support.

•

training issues.

•

maintenance issues.

•

 bottlenecks  bottlenecks in interfacing interfacing between between the data data and the the user.

•

staff ignorance of the capabilities of the MIS.

•

inadequate security.

•

inadequate expansion capability.

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**************extra*****************

An MIS provides the following advantages. 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision - making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization Decentralization : Decentralization Decentralization of authority is possibly possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring  performance  performance and making necessary change change in in the organizat organizational ional plans plans and procedures. procedures. 4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each departm department ent aware aware of the proble problem m and require requiremen ments ts of other other departm departments ents.. It connec connects ts all decision centers in the organization . 5. It makes control easier : MIS serves as a link between managerial planning and control. It impr improv oves es the the abili ability ty of mana manage geme ment nt to evalu evaluate ate and and impro improve ve perfo perform rman ance ce . The The used used computers has increased the data processing and storage capabilities and reduced the cost . 6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information. reference: http://www.management-hub.com/information-management-advantages.html

Read more: http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_MIS#ixzz1 FzGtpjTa

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updated: August 23, 2010 1.

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MANAGEMENT INFORMATION SYSTEMS ADVANTAGES OF MANAGEMENT INFORMATION SYSTEMS

Use of MIS leads to; 1. improv improveme ements nts in price/pe price/perform rformance ance ratios, ratios, 2. a more more relevant relevant service service for for custo customer mers, s, 3. a better better quality quality service service for for custome customers, rs, 4. bigge biggerr profi profits ts for for MIS MIS user users, s, 5. more more accur accurate ate sales sales data, data, 6. bette betterr market marketing ing info inform rmati ation on,, 7. better better trend-in trend-inform formatio ation n on profits. profits.

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