The competitiveness of most companies is in a large degree based on the effective use of information technologies and information systems especially. The main purpose of information systems are provide the right information to the right people at the right time. It is used to track, store, manipulate and distribute the information from gathered data to appropriate persons when necessary.
In this post I thought to think about what advantages and disadvantages can bring to the businesses and society the integrating information systems. Of course, without any doubt the efficient usage of information systems will give a lot opportunities to the companies and advantages to their business. Sometime it can make kind of new job environments but on the other hand it can make some group of employees unemployed.
Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient.
Globalization and cultural gap – by implementing information systems we can bring down the linguistic, geographical and some cultural boundaries. Sharing the information, knowledge, communication and relationships between different countries, languages and cultures becomes much easier.
Availability – information systems has made it possible for businesses to be open 24×7 all over the globe. This means that a business can be open anytime anywhere, making purchases from different countries easier and more convenient. It also means that you can have your goods delivered right to your doorstep with having to move a single muscle.
Creation of new types of jobs – one of the best advantages of information systems is the creation of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and Software developers and Web designers are just some of the many new employment opportunities created with the help of IT.
Cost effectiveness and productivity – the IS application promotes more efficient operation of the company and also improves the supply of information to decision-makers; applying such systems can also play an important role in helping companies to put greater emphasis on information technology in order to gain a competitive advantage. IS has a positive impact on productivity, however there are some frustrations can be faced by systems users which are directly linked to lack of training and poor systems performance because of system spread.
Unemployment and lack of job security – implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc. As technology improves, tasks that were formerly performed by human employees are now carried out by computer systems. For example, automated telephone answering systems have replaced live receptionists in many organizations or online and personal assistants can be good example also. Industry experts believe that the internet has made job security a big issue as since technology keeps on 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.
Dominant culture – while information technology may have made the world a global village, 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. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else.
Security issues – thieves and hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management. The hackers distribute the information over the Internet, sell it to rival companies or use it to damage the company’s image. For example, several retail chains were targeted recently by hackers who stole customer information from their information systems and distributed Social Security numbers and credit card data over the Internet.
Implementation expenses – to integrate the information system it require pretty good amount of cost in a case of software, hardware and people. Software, hardware and some other services should be rented, bought and supported. Employees need to be trained with unfamiliar information technology and software.
Information systems contribute to the efficient running of organizations. Information systems are showing the exponential growth in each decades. Today’s information technology has tremendously improved quality of life. Modern medicine has benefited the most with better information system using the latest information technology. By understanding and learning what advantages and disadvantages it can bring, we have to try, believe and put an effort with our best to make that existing advantage much better and navigate the disadvantages to have a less impact on organizations and society.
Filed Under: Sistemas de Información Empresarial
Management information system consists of three words.
Management: We can manage data
Information: Get information from raw data
System: Computer/hardware system used to process all data
So it is clear now that a large amount of data is collected by some company and then convert to precise information that summarizes future planning of the company.
Let us take an example of car manufacturing company. The company has staff that collects data. That data is then used by managers and company owners to make future plans. Company owners make a decision on what type of cars they have to make and how much quantity of cars they can make in next 6 months or next 5 years.
In MIS database plays an important role in storing a large amount of data. All data is stored in files, databases. This type of data may be used for:-
- Making next salary of employees
- Hiring staff
- Removing unwanted staff
Advantages of MIS:
By using management information system, managers can have an overall brief look at the company. They can use these statistics to compete in the market. Company owners can make actions in quick time. Also, they can make better communication within the company. So the company can now better manage different departments, and coordination within company becomes better.
Quality of products also becomes good because all the past experiences and customers responses are noted. The decisions in the company are made in a timely manner.
The information delivered to managers are well-structured and they can improve company performance. As information is stored in digital form so this type of information is always available in a timely manner. Creation of jobs in the company is better handled in MIS.
Disadvantages of MIS:
Management information system is expensive to set up and maintain. Managers and company owners have to learn skills to use MIS. As with passage of time, new tools are introduced so updating with latest trends is also required. Up gradation of the system is also another problem in MIS and it involves extra fees and staff.
As MIS in online connected so hacking is also done by 3rd party people. In some cases, some sensitive data is stolen like credit card details of customers.
If the type of data gathered by the company is not beneficial then the result of information is useless and wastage of time and resources.
MIS works on quantitative data and not quality data that is another drawback of this system. Effectiveness is also a problem in this system which means top management team can be fired at any time and the new team can change company policy that effects overall company decisions and employees interactions.
Examples of MIS:
Any large company using tools to manage customer data, outcome information and make a decision on that data. Like car manufacturing company, supermarket, Brokerage Company etc.
I am a blogger and freelance web developer by profession. I love to blog and learn new things about programming and IT World.