Basics Of Management Information Systems

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Question :

College: Emirates College Of Technology

Code: BIT 203


1.Identify the major types of  information systems that exist in the organisation you are working in, or any other organization you are dealing with.
       A. What problems do the previous information systems solve?
       B. What is the impact of using the previous information systems on the organization?

2. Describe how information systems can support each of the following competitive strategies.
    - Low-cost leadership
    - Product differentiation.
    - Strengthen customer and supplier intimacies.

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Answer :

1. Identification of the major types of information system 

While identifying the major information systems of an organization it has always been noticed  that every organization has some basic types which they follows, Emirates airways  also follows systems with each supporting a specific organizational level. There are few of the major information system, which are applied on this organization; they are Transaction processing system, Management information system, Decision support system and Executive support system.

a) Transaction processing system- It is a system, which performs and records the daily routine based transactions of the organization. It serves the organizations operational level. It is the backbone of the institution. (Rothaermel, 2015).

b) Management information system- It is a system, which provides information and it is an integrated user-machine system to support decision-making functions, operation and management analysis. In an organization, it utilizes a database, manual procedures, control, planning and the models for analysis.   

c) Decision support system- It is a computer based information system, which supports and serves management, planning and operational level of an organization to help people making decisions about problems. This system can be either fully computerized or human-powered or a combination of both.  

d) Executive support system- This system is often unstructured, external and even uncertain, it is intended to be used by the senior manager in strategic management for non-programmed decisions. It is actually intelligence based: Technology intelligence, Market intelligence and Investment intelligence.    

A. Problems which previous information system solves

By the previous information system, which we had learned earlier a lot of problem has been solved like the delivery is just in time on the point of the sale inventory, and then it comes to the planning of the business, and in various states of manufacturing the costing of the good is settled. The integrated business to business via the middleware, in general the forecasting of business sales and analytics is solved thorough that system. The security of the business is hugely expanded and by that, the data of the intelligence is hyped. The qualities and the customer service issues have been improved which increased the business efficiency.   Even though it may be simple to explain, these two hurdles will probably continue in the short and midterm. However, as has happened many times in the past, there will be a person with enough resources and long-term vision to realize that it is viable to develop such system and that there is a tremendous market for it. To overcome the hurdle, a large investment is required. 

B. Impact of using the previous information system on the organization

However, the market seemed to have developed a lot because of the previous information system. With the recent growth of the applied system of information in business organization, the business productivity is on a high rate. The early efforts produced a long list of items, which had helped in the betterment of the business. Flexible, proactive short-term management requires cultivating and technifying it. (Phillips, 2016).

As the organization follows: 

1) Focusing on profitability

2) Increases productivity and efficiency

3) Identifying the problems and resolve the issues.

4) Gather and report maintain accuracy of the data.

5) Faster delivery of more services

6) Technical specification and correctness

7) It process information and compiles it to support decision-making process.

8) It follows a standard and compliance.

2. Evaluation of competitive strategies through information system 

Low cost Leadership

The information system helps Emirates to lower the cost of services by gathering information through information system and it helps them attract the customer to have their services.  As result the organization strengths its position in the current market scenario. Through the information system the organization, take low cost leadership strategies to produce services and deliver it to the customer of high quality at low cost. It also creates demand of the product and services which is being offered. Through the information system, Emirates is formulating its policies, which helps them to produce better services to the customer at low cost. This increases the goodwill of the business and profitability of the organization (Phillips, 2016)

Product differentiation

            Emirates uses information system in a diversified new product or services in the line of business they are carrying out. With information, systems it enables the organization to produce new product or service for distinguish the product from the other product or services. It also differentiates existing product or services by adding a new feature into it. This helps the organization to work for new services also helps to retain the existing services, which they offered to the customer. Customer also develops a broader sense in case of dealings with the services of the organization. In this way, it formulates its strategies to perform the duties, which help the organization to run its business in smooth and flexible way

Strengthen customer and supplier intimacy

Emirate Airlines creates good network of strengthens customer and supplier intimacy through its information system. Information system helps to develop strong ties and loyalty with their customers and suppliers. For every organization, both the above parameters are important. In case of business betterment, they also do the same to establish a strong connection between the customer and suppliers. Strengthening the customer and supplier intimacy is good competitive strategies to formulate its business plan according to the need of the customers and suppliers. It helps the organization to deal with the customers very conveniently. Customer intimacy is form of marketing concept so it is the usefulness of the information system to conduct marketing strategies, which increases the profitability of the organization.