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MIS and its role in the decision-making process - Essay Example

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MIS and its role in the decision-making process

It is evident from the study that information systems have come a long way from the time electronic data processing (EDP) was introduced in the 1960s, moving out of the large super-cooled computer facilities that housed the macro computers, punched card readers and peripheral magnetic tape and drum readers, into the homes and even on the persons of ordinary people who need not understand the technical jargon to use them. With the huge advances in technology, the social development of digital communications have likewise transformed the way the typical consumer is regarded and related to by business organizations. Management information systems have enhanced this relationship bi-directionally, altering the ways businesses compete against each other for the customer’s attention and patronage. Today, the key to effective and successful competition lies no longer in corporate size and strength, but in the speed and agility with which firms take advantage of their information systems. Organizational form is another variable affecting the responsibilities which the IT system is tasked to perform. There are two general organizational forms: the functional organizational form, and the product organizational form. The organization structured according to the functional form is one where the designation of departments, sections, or units are according to the business functions – i.e., marketing, accounting and finance, production and operations, human resources, and so forth. When the organization is structured according to the product form, the departments and other units are designated according to product or market lines. The form of the organization is seen in conjunction with the IT function and structure; generally, when activities are organized according to functions, IT structure is generally centralized, and for activities organized around products and markets, IT structure is decentralized (Travakolian, 1989, p. 310). Finally, organization size is a factor that influences IT structure. It was observed that size in terms of revenue is directly related to the degree of centralization of IT, although the number of employees appears to have no impact upon IT structure (Ein-Dor & Segev, 1982, p. 55). Categories of competitive strategies An IT system is generally successful if its activities support the firm’ ...Show more
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Summary

This essay provides support to the idea that management information systems provide support to effective competitive strategy. This essay set out to describe how information technology in general and management information systems, in particular, assist in the strategy implementation of a business. …
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