Management Information Systems Coursework Example | Topics and Well Written Essays - 1000 words

Management Information Systems - Coursework Example Laudon and Laudon (2007) also placed emphasis on the importance of information technology in ensuring business survival. The speed with which businesses have to respond to customers requests makes this a very important point. Information is the lifeblood of an organisation and without information important decisions that determine the continuation of the business cannot be made. The major types of information systems that exist at a company that I am familiar with are inventory management, sales and accounting. These information systems are required in order for management to obtain information on a timely basis so that the right decisions can be made. The major types of problems that these information systems have helped to resolve in an organisation that I am familiar with include: i. The provision of inventory information in real time; ii. The provision of sales information; iii. The provision of timely accounting information. Inventory information is important in the prevention o f under-stocking and over-stocking of items. Stock-outs result in loss sales which eventually go to competitors. Additionally, holding too much of a particular item means that warehouse space is used to hold items that are not moving as fast as expected. The cost of holding stock can be very high especially for inventory items that are moving slowly. Furthermore, items that are moving slow takes up space that other fast moving and profitable stock items could do well with. An inventory management information system helps businesses to manage inventory effectively. Information relating to sales is important for management in service, production and retail businesses to determine if sales targets are being met. In the case of an organisation that provides services it helps management to determine which service area is generating the most revenue and which area is generating the least revenue. In the case of production and retail organisations it provides information on which products are doing well and which ones are doing poorly. Additionally, they will also be able to determine which geographic region they are performing best and worst in. It allows management to make decisions that are well informed and allow them to channel more resources if necessary towards the areas that are performing well and make corrective actions in other areas. Management require accounting information in order to determine which expenses have almost reached or have surpassed the budget. Information on receivables from customers and the amounts payable to suppliers can also be obtained. They also need to know the amount of profit that the business is making on a monthly, quarterly or yearly basis. It therefore means that an accounting system that is linked to other areas of the business becomes critical. When a sale is made and when a purchase takes place the information goes straight to the accounting system and updates the records of customers and suppliers. This allows informatio n to be readily available on critical areas of the business. Therefore, management is able to take the necessary information to achieve the level of profit required. If targets are not attained in a particular month management can then focus on putting the necessary controls in place. Part 2 In order for businesses to compete effectively they need information from within the organisation as well as from outside. This information has to be available quickly in order to enable management to make the right decisions. Therefore, the need exists for