A strong information system ensures a smooth running for any company. It is the engine behind the organization’s process of coming up with outstanding decisions thus becoming the integral part for the management system to be an effective one. The manager of the information system makes use of techniques, tools, and concepts with orientation from several disciplines, which include management science, computer science as well as organizational behavior. The interlinking of these tools together with the understanding of the organization’s basic needs enables a wide application of the computer technologies to offer solutions to the many problems of the business
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It is hard for a company without a good flow of information. Through the application of computer technology, the correct information is availed to the right people at the right time and the cost of the process is minimized. It is imperative at all management’s levels ranging from operational to strategic; nevertheless it is applicable in all the organization’s functional areas (Stephen Haag and Maeve Cummings).
If we take MIS to define a computer-based information display assisting the function of the management of small businesses then even using a single computer to monitor the flow of information can be termed as operating an information management system.
The motivation to organize the company’s information comes from the desire to have a good control of the inventory. It may also arise from getting information on other businesses, which are applying the same resources. Reasons may be there for a company not to automate the system too much since this can be dangerous for the company if network is crippled. To upgrade the information system, one has to identify a problem and then think on how to offer a solution for such. Therefore a resourceful person brought into the company can work on something to provide immense information on the overall operations.
The success of a company is determined by how information flows through the various departments. From the start of the business through the marketing up to the finance and the payroll of the employees among others perform well in a connected environment. If the management wants to give any directives on how to run the business, records from the departments involved will be retrieved from the information system and thus a well ironed out agreement is realized (Stephen Haag and Maeve Cummings).
I will cite my example with McDonalds. This is the largest fast food chain of restaurants in the world. The company has been successful in business due to efficient systems that enable smooth operations. The systems have motivated the dedication of the employees towards the operations of the company. Each department in the organization has a system designed specifically for the tasks taking place in the respective department. Therefore, it is the interconnectivity within these systems that have made the organization to succeed The systems are discussed as below:
Transaction Processing System (TPS)
The first transaction takes place the time two parties participate in an exchange followed by data collection and this is termed as transaction processing. Therefore transaction processing can be described as the collection, modification and retrieval of the organization’s transactions. The system for transaction is very crucial when it comes to answering routine questions and it helps in conducting the business of record keeping for the employee, the payroll or employees’ payments. The transaction data should be handled in a right manner since transactions generally deal with money, which is important to the running of the business (McDonalds Information System 2013).
How the Transaction Processing System works
Each day the company sells large amounts of hamburgers. Therefore, raw materials should be ordered from the suppliers. Every single moment an order is placed, a transaction is recorded. Therefore, the processing system for transactions captures relevant information such as the name of the supplier, the address, the quality that the purchased items have and invoice amount of the items (McDonalds Information System 2013).
Decision support system (DSS)
Data in McDonalds is modeled for quality decision making. This is achieved using Decision support system. To make right decision, the quality of the data is paramount and makes the work of the one analyzing the data easy. The DSS is usually a computer application, which has a human component. The system can filter through huge data amounts and select between many choices (McDonalds Information System 2013).
How decision support system works in McDonalds
The business just started small as a restaurant where it sold food to its customers. The business grew with a steady expansion. McDonalds made a good analysis of the market and came up with an opportunity. They embraced technology and thus provided wireless services where the company was able to collect information about the usage of the wireless services by the customers, the length of their stay in the restaurant and the level of their sales. Therefore, it was a wise decision to install wireless in their restaurant (McDonalds Information System 2013).
Management Information Systems (MIS)
This is the system, which functions to provide information essential for the effective management of the organization. It entails primary resources, which can be categorized into three: information, technology, and people, with the most important resource being people. The information that is obtained supports the making of decisions (McDonalds Information System 2013).
How Management Information System works in McDonalds
The MIS system in McDonalds is useful in producing periodic reports. These reports include a daily listing for the employees as well as the number of hours worked. They even include expenses monthly report in comparison to the budget. Therefore the MIS in McDonalds is useful for it provides information on profitability thus helping managers as well as the staff to understand the performance of the business thus planning for its future (McDonalds Information System 2013).
Made for you system
Here McDonalds make use of the modern technology for assisting in its operations. A customer on placing an order, the item will instantly appear on the monitor of the computer in the kitchen. The kitchen staff is then alerted by the tone sound from the computer thus acting accordingly (McDonalds Information System 2013).
Point of scale system
The restaurant is always busy due to influx of customers. It is a top priority for the company to leave its clients with the best experience ever. Therefore this forms the basis for the company to use the POS system thus ensuring a fast and an accurate order. The system speeds up the processes of the business thus it is able to track massive data amounts in seconds. Through the aid of this system, every order instantly is transmitted to various workstations in the organization. Here a variety of happens does occur. The cashier right away knows the amount of money the client has to pay. The kitchen is made aware of the orders expected and the length of time the customer has been in waiting (McDonalds Information System 2013).
Hyperactive Bob system
The system was implemented to notify the McDonalds’ employees on when a busy moment is approaching. The system makes use of rooftop cameras and computers to monitor when traffic is entering the parking lot of the restaurant as well as the drive-thru. This ensures that they are not (McDonalds Information System 2013).
The solution of a problem in a business is always the starting point if there would be installation of a fresh information system, which also influences other business aspects. The question, which is a primary interest to the consultant, will be seeking to know how management of various things is done. As the process is being defined, potential solutions start to appear. It is always to consider two to three firms for the initial consultations. When the owner feels that he is comfortable and can trust one of the vendors, then the whole process can start to be put in place (Inc.com 2010).
The owner of the business can opt to buy various packages of the software to address the problems in place and then gradually link them to a main system with the help of the system integrator. This solution best suits small business that has employees being less than 50. However larger companies might also want to try the options offered by management and application service providers. ASPs are for example known to deliver applications, which are high-end from a website that is located in a central place. It is true that information system management is necessary in the recipe of coming up with a powerful organization (Inc.com 2010).
Works Cited
Inc.com, ‘Management Information Systems (MIS)’, 2010, Web, http://www.inc.com/encyclopedia/management-information-systems- mis.html
McDonalds Information System, ‘McDonalds Information system’ 2013, Web, http://mcdonaldsmis.blogspot.com/p/mcdonalds-is_04.html
Stephen Haag and Maeve Cummings, ‘Management of Information System for the information age 9th Edition’ (McGraw-Hill) ISBN: 978-0073376851
