In the contemporary business environment, the management of information and data forms a critical component of the business entity. One major role played by the management systems is the ability to provide information that can be used to develop trends. Upon these trends lie the capability of the business entity to come up or predict the market abilities and the opportunities. At a time when competition is at peak high in the market and the market share is under threat of diminishing every day, there is a need for the business entity to have a clue as to what expectation the market holds for the goods or services being produced and how preferences are changing over time (De Groot et al., 2010). With a thorough management system, the business entity is at a position to predict the market changes using previous market trends as shown by the demand and supply variations, this then helps cope with the competition and the ever-changing market characteristics as prediction of trends facilitates decision-making (Simons, 1990).
According to Laudon & Laudon (2011), management systems provide the information that can be relied upon by external and internal auditors. Since the managements systems act as a database for the operations and financial aspects of the business entity, the auditors can thus rely on them without necessarily having to refer to any external sources which would provide misleading or inconsistent forms of information. In the ability to provide this information, the management systems ensure that the company or the business entity operates only within the regulated modes or limits since they notify the managers when a law or regulation has been violated during operations. Upon this information the auditors and in particular the internal auditor recommends the reorganization of responsibilities within the workplace to suit the needs of the business (De Groot et al., 2010). Thus, in an indirect way, the management systems help in assignment and organization of the workforce to reflect the operational and financial capabilities.
References
De Groot, R. S., Alkemade, R., Braat, L., Hein, L., & Willemen, L. (2010), Challenges in integrating the concept of ecosystem services and values in landscape planning, management and decision making, Ecological Complexity,7(3), 260-272.
Laudon, K. C., & Laudon, J. P. (2011), Essentials of management information systems, Upper Saddle River: Pearson.
Simons, R. (1990), The role of management control systems in creating competitive advantage: new perspectives, Accounting, organizations and society, 15(1), 127-143.
