Despite massive advances in information technology, computers (which are based on modern IT) still cannot take over business management. However, the business information system has changed the effectiveness, power and efficiency of management.
In an earlier article on business management software, we looked at the surface aspects of how modern information systems help businesses. We saw how computers have improved speed and quality of work. We also mentioned the presence of a wide variety of business software – office suites, functional software such as accounting and inventory, and industry software such as retail management software. In this article, we try to look at the role of information management systems in a more analytical way.
Decision support, problem analysis and overall control
Business managers often need to make decisions that affect their business or otherwise. For example, a company with outlets or distributors spread across a wide geographical area wants to improve the logistics operation of selling goods in stores. The best solution can be influenced by a number of factors such as demand pattern, trade availability, distance involved and the option to use an external carrier (which can find a two-way load and may be a low cost alternative over long distances). Instead of your cars.
Although it is possible to use complex mathematical formulas to calculate the best solution by hand, the computer is accustomed to the whole process of feeding certain information as input and receiving suggestions for the best solution as output. Turn into work. This can usually be done in a matter of minutes (instead of hours or even days) and it is possible to examine a number of alternatives before making a decision that seems very realistic.
Identify the problems and analyze the factors that have changed them through modern computer information systems. In a typical MIS environment, standard reports are routinely generated that compare actual performance to actual estimates. The report that the software produces may be directed to highlight the exceptions, i.e. significant changes between actual estimates and actual performance. In this way, managers will be aware of the day-to-day work of their work without collecting and counting their data just by looking at the information they receive.
Identifying the factors responsible for this problem can also be normalized to some extent through such analytical tools. Variation analysis is an element of a standard cost system that distinguishes deviations from estimates (or standards) such as increased prices of used materials, overuse of materials, unpredictable machine downtime, and so on. Managers can disclose this matter through such a detailed report. The depth of the problem element, such as why the material is overused.
Control is also used through variable analysis. Budgets for all business operations are prepared by relevant managers who work in a coordinated manner. For example, the estimated sales volume will determine the level of production. The level of production will determine the purchase of raw materials. and so on. With good information system management, it is then possible to make timely reports when comparing actual sales, production, supply of raw materials, etc. to the level of estimates.
This information will help managers keep an eye on things and speed up corrective action. For example, the production manager will be aware of declining sales (or rising sales) of specific products and may be prepared to make adjustments to production schedules, and the purchasing and inventory manager will be aware of increasing inventories of unused materials. Will be aware of quickly. In this way, MIS enhances the quality of all-around communication and can significantly improve the effectiveness of operations control.
Efficient MIS involves humans and computers working together
The important thing is that MIS only provides information. It is the responsibility of the relevant managers to process the information. It is the coordination between efficient, accurate and fast equipment and commonsense, intelligent and decisive human beings that really empowers MIS.