Abstract
The use of integrated information systems in management is a trend used in all business corporations. Executives from a long time ago managed written records from different corporations of the same company to enable comparison of performance. This has gradually transformed into user friendly but sophisticated systems through the use of technology. The presence of computers and storage devices with large capacities has enhanced the collection of company data into one storage point called the data warehouse. Additionally, the art of programming has enhanced the development of software which automatically receives and analyses data. These software display trends and relationships between sets of company and consumer data and is able to detect whether values from two business entities conform. Corporations have utilized information systems to develop strategic measures that distinguish their business potentials. This is evaluated in form of competitive advantage between companies. Management Information Systems makes it possible to manage several businesses from one central point. Managerial decisions are made based on analysis and data evaluation from the central data collection point.
Globalization and competitive trends in organizational success has transformed the corporate world into a game of strategies. Businesses and other corporate firms are continuously performing researches to come up with the best strategies that would place them top and maintain their significance despite the competitive business environment. The development of a Management Information System is one fundamental strategy employed in corporate business. Information systems have a lot of applications used in the implementation of organizational objectives. All the aspects of the business like decision making, research, market waveforms, performance data and consumer trends are all derived from the MIS. It is, therefore, a strategic requirement for businesses that make new policies for the successful outcomes in their services. A comparative analysis of the various information systems of different organizations and an evaluation of the significance of MIS to each firm depicts its importance to an organization.
Toyota, a world class vehicle production company uses different levels of information systems which are integrated to a single database. It uses personal, departmental, organizational and inter-organizational information systems to emphasize warehouse management system in addition to the Toyota production system as well as in conducting a learning management system. Toyota uses its Warehouse data management system to control the movement and storage of materials in its various storage points, process the transactions like shipping, receiving and processing of orders as well as the optimization of stock to eliminate the dumping of their products. Moreover, Toyota conducts a comprehensive management of warehouses and logistic centers of their production and delivery systems. Through this information system, the corporation is able to analyze people, goods and information, eliminate waste and unevenness in their services as well as implement improvements in the quality of their services through establishment of market trends.
On the other hand, Unilever, one of the largest multinational companies that produce foods, beverages, cleaning agents and personal care products, also employs the art of information systems through its information management application systems. Like Toyota, Unilever has various business entities all over the world. The corporation uses an information system operated by a special department known as Kalido. It has Kalido's Master Data Management and Dynamic Information Warehouse, which it uses to organize information from its shops all over the world to a central warehouse for analysis. The data, once received is translated into a form that can be processed by the software from which the executives of the company can pick trends which help in decision making. A comparative analysis of the two corporations discussed above unveils a certain trend in the art of information systems. They both make good use of warehouse data systems. Moreover, Toyota has developed a central warehouse to act like a collection point for its other warehouses owing to the vast nature of its outlets.
On the other hand, the nature of the products produced by Unilever enables the use of a software system that traces customer data all over the world. The software is centrally placed where it serves as a warehouse for all the individual entities of the corporation. Both companies use information systems to compare the performance of their products in the distributed markets they have a presence in. Additionally, decision making and implementation are aided by these system which acts as an informant for the board of executive. Furthermore, the warehouses act as a source of research information and helps in the formulation of organizational policies and their implementation.
In essence, Toyota analyses market waveforms from its outlets to establish which region has higher concentration of customers. From this information, the company decides on the dynamics of supplies and distribution in consideration of the demands. As a matter of fact, low sales in one of its markets can be traced using customer profiles and transaction sheets which reveal the trends in sales. This may equally reveal any related problems, trends and occurrences associated with various markets. On the other hand, Unilever’s use of software enables the auditing of waveforms of different regions with respect to their products. Moreover, it uses the flow of information from its outlets and business entities to the central warehouse to trace the effectiveness of the supply chain. This enables the company to make adjustments in its supply chain to ensure perfect logistics of its products.
Toyota, using its customer profile system, traces and maintains relations with its customers. This gives it a competitive advantage against other vehicle production companies. It ensures that the customers do not seek services from other providers by offering after sale services such as discounts and bonuses to its esteemed customers. Moreover, the linkage of all its outlets through the warehouse information systems makes it possible to maintain high quality of services all over the world. On the other hand, Unilever uses a product availability project and an enterprise resource planning software which ensures that its products are availed at the market at all times. This ensures that there is no deficiency of its products in the markets. It is able to compute market trends through its software and determine the regions with the highest number of customers. With this information, it is able to prioritize its delivery schedules to make sure its customers are well served. This offers them a competitive advantage in the market over other corporations in the same industry.
However, the use of the information systems poses a big threat to the companies. Individuals with selfish interests within the data management departments may manipulate data to advantage a particular area or customers in turn introducing errors. Also, misinformation and errors in the records of one particular entity may affect the results of all the other entities. This is because the information from each area is assessed for emerging trends from which decisions are made to effect changes in the supply chain and business policies. Moreover, companies like Toyota which keeps customer information in the database for purposes of rewarding customers risk exposing confidential information which the client may have wanted to be left private. A leak of their information systems platform would also expose the market information to competing companies in turn reducing the company’s competitive advantage derived by using Management Information Systems.
In conclusion, Management Information Systems have transformed the whole world into a global village with linked markets. The systems have reduced the sophistication in the chains of supply leading to adoption of simpler ones. The use of the technology fuels the competitive nature of the business world which makes it more interesting and even more rewarding for both the customers and the companies. However, it is of great importance to safeguard the databases and clean the data before they are fed into the central warehouse for analysis to ensure that errors are not propagated in the process. Generally, the importance of communication in business interactions is enhanced by this strategic system which makes the globalization process a worthy outcome.
References
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