Abstract
This paper is about the management information system of two renowned multinational companies Unilever and DHL Express. They have enhanced their productivity and profitability with the help of latest technologies. These companies differ in a lot of aspects from each other. However, both used advanced information systems to reach their target market before their competitors. Even all the internal operations and business decisions rely greatly on computer systems in both the companies; however methods are different in each company. Information systems have helped them build competitive advantage that keeps them on top of their games against their competitors. Lastly, we have discussed the various benefits that information technology provides companies with but they are also unreliable to some extend as this is a competitive age and there are lots of individuals who try to violate the security rights of the companies. No such case has been witnessed in Unilever or DHL Express because of their strong lock systems in the computers though.
Introduction
Today, every organization manages its data through computerized system. The computers contain all the organizational data needed to make operational, tactical and strategic management decisions at every level. These computers along with the people who handle the date on these computers form the Management Information System. In big companies, there is a separate department for MIS that contains the latest computers and computer experts who are working on the data that is vital for the whole organization. This system contains information about sales, all worker’s data, inventories, project management, decision support system, etc.
In this paper, we are going to do comparison and contrast of the management information system of two companies; Unilever and DHL. Both of these are multinational companies; however one sells products and the other sells services. The MIS of both these companies differ to a great extend.
Unilever came into existence in United Kingdom during 1930 by Anglo-Dutch businessmen. Now its shares are quoted in stock exchange markets in different countries. It sells consumers products ranging from personal care products, clothes cleaning agents, home care, beverages and foods. It sells total 400 brands in more than hundred countries around the world.
DHL came being in 1969 by Larry Hilblom and his co-partners and was used to transfer packages between Los Angeles and San Francisco from the last flight of the day to the first flight of the next day overnight. Afterwards, it expanded to different cities and even some cities of Canada. In 2001, Deutsche Post acquired majority of the shares of DHL and so this company became DHL Express. It then expanded its line of services to DHL supply chain, DHL global mail, DHL global forwarding and DHL freight. Now DHL Express functions in almost 220 countries.
The management of Unilever has provided managers at every level mobile handset and laptops through which they can check their emails and other attachments instantly whenever and wherever they want, they just need wireless internet. These electronic devices will help these managers make timely decisions and boost the productivity of the company. These devices are protected by strong passwords that only the company employees can access and no matter how much an outsider tries to break through. Hence, if these devices get stolen or lost there is no need to worry because the employee will immediately report to the MIS staff who will secure his or her data. On the other hand, DHL Express uses Network Management Systems (NMS) to protect the data that is being exchanged between the employees of the company. The IT experts of the company frequently monitor the data and if they find any breach or fault in it then quickly display the message on all the computer screens or email it to all the employees.
Thousands of consumers buy thousands of Unilever products from different stores where Unilever products are dispatched but if you directly ask the company to give you the history of the products they have purchased previously then it will be quite difficult for them to do so because they sell their products through third-party contractors. On the other hand, DHL Express through its Record Management keeps the data of the consumers physically and now digitally safe and secure in their system. Whenever consumers want history of their consignments, they can easily extract it by directly asking the company.
Unilever control all its financial and management functions through SAP, called Victory. Conversely, DHL Express relies on different information systems like Order Management System, Transport Management System, Warehouse management system etc. to complete its financial and management needs.
Comparisons of the information systems at Unilever and DHL Express to help manage internal operations and to make decisions
Since 1984, Unilever handles its internal operations and make decisions with the help of Best Proven Practice (BPP), Total Quality Management (TQM), Business Process Re-engineering and Just in Time (JIT). It focuses on ‘state-of-the-art’ technologies which require less labor force.
DHL Express uses Global Standard Operating Procedures through which it operates all its internal operations and makes decision. This system is operated on the web. Everyone in the company uses this system to acquire solutions to the problems that face.
Assess how these two organizations use information technology for competitive advantage
DHL Express’s competitive advantage is to help consumers exchange their documents or packages as early as possible. This company uses information technology to find the fastest route that will make your delivery as quickly as possible. Moreover, they know that not only the package delivery is important to reach at the doorstep of the consumers but the information of the delivery is also very important for you; hence, DHL has a very sound and secure system through which it records all deliveries’ data. DHL has given their competitive advantage a name Same Day. Only the team that handles ‘Same Day’ is able to provide consumers with the information of the route of their delivery within seconds.
Unilever relies on quickly getting and acting on market information because they come under the category as fast moving consumer goods (FMCG). If they did not do so then their future will suffer. Research in done by checking the internal and external material and Hamilton SFA system is used to fulfill the additional research needs. This information technology is based on SQL and is a complex system used for sales force automation. It is designed by iAnywhere. The employees of the company use PDA mobile phones and use Hamilton SFA from them. Hence this information technology provides Unilever with the competitive edge that no other company offers. This company offers consumer products that are uniquely designed to cover the needs of a large portion of the market. These products perform really well and meet the expectations of the consumers in the market in the best way possible.
Appraise the individual and organizational consequences of the use of information technology and recognize potential security breaches and computer crimes.
In this advanced and competitive age, every large and small business uses information technology at different levels because it helps them in minimizing errors and maximizing productivity. Information technology contributes in making a paperless environment, which is a very eco-friendly thing. All forms of data are stored in computers systems and can easily be extracted within few minutes. Earlier paper documents and files were very difficult to manage and one had to put sort them for hours to put them in order. Now computer systems helps a company saves a lot of time of the employees. Moreover, this technology also helps in saving huge chunk of operational costs as lesser labor force is employed and investments also lower down. Employees work in a hassle-free and stress-free environment as they can now clearly focus on the functioning of the projects rather than gathering the sources that will be used in the project. Communication between consumers, suppliers, vendors, etc has become really very quick and simple. Now companies can better serve their client by responding rapidly to their queries and make their relations stronger and long-lasting. This way of communication has helped companies become more profitable by bringing in new business opportunities. A company can conveniently function globally in anyway they prefer. Information technology has brought the concept of Outsourcing, which means that for a particular business task one can hire someone outside the company who is more professional and experienced in doing that task. This way a business can save the cost of investing a huge amount of money on making the existing staff trained or appointing a new employee.
However, information technology has some disadvantages as well. First of all, because we live in a very competitive environment, many people become expert in this technology and unwind the systems to extract company’s highly secured information; hence making information systems unreliable. However, this happens when the systems in the companies are not secured by powerful methods and the loop hole lies within the system. Unless someone inside the company is interested in breaching the security rights, no outside person can get access to the company’s resources. There lots of fraudulent individuals who can give important information regarding a company to its competitors who can accelerate their productivity, who can access to the bank accounts of the company and steal company’s money, who can destroy the programs so that the company incur huge losses, etc.
The bigger an organization is, the greater threat of security breach it holds. But bigger organizations like Unilever or DHL Express secure their computer systems with complex passwords and other lock systems that only the IT professionals are aware about. Hence, up till now there are no security breaches witnessed in these companies.
Conclusion:
Management Information System helps an organization in variety of ways that can make it really productive and competitive. Unilever is a more complex organization that is why it uses more complex information systems. DHL Express is less complex that Unilever and that is why it is using fewer systems. Internal and external both business operations require involvement of computer systems. It is highly important that the employees are trained to work on these state of the art information systems to save costs and increase retained earnings to survive in these tough economic conditions.
References
DHL Express Network Management. (2012, May 2). Retrieved from BusinessExcellence: http://www.bus-ex.com/article/dhl-express-network-management
Laudon, K. C., & Laudon, J. P. (2007). Management Information Systems: Managing the digital firm . New Delhi: Pearson Education, Inc. .
Management Information. (n.d.). Retrieved from freewebs: http://www.freewebs.com/mohdallif/dhl.htm
Our Competitive Advantage. (n.d.). Retrieved from DHL Express: http://www.dhlsameday.com/Pages/about/advantage.aspx
PRESENTSOFT. (2010, August 3). The Impact of Information Technology on Business. Retrieved from PresentSoft: http://www.presentsoft.co.in/2010/08/03/the-impact-of-information-technology-on-business/
Rose, M. (2007, March). MIS (Management Information System). Retrieved from SearchDataCenter: http://searchdatacenter.techtarget.com/definition/MIS
Unspun. (n.d.). Retrieved from The Berkeley Partnership: http://www.berkeleypartnership.com/unspun/unspun-22/be-prepared.
