CHALLENGES AND SECURITY ISSUES 7
Challengesand Security Issues
Challengesand Security Issues
ManagementInformation System involves proper channeling of information toimprove the management of a company (Allen, Heurtebise &Turnbull, 2010). This crucial business aspect has been incorporatedin the management of several organizations across the globe includingthe GM and the Chrysler Company successfully. MIS can be used invarious ways by various individuals or companies to achieve onedesired goal (Al-Zhrani, 2010). It is also important in helping thecompanies manage and protect their systems as well as improvingaccountability and consistence in terms of productivity. This can beachieved through the MIS multi tasking ability in monitoringconsistency and improving where necessary by the many people who canshare the system simultaneously (Vittal & Shivraj, 2008).
Accordingto Allen, Heurtebise & Turnbull, (2010) management informationsystem involve a kind of system that uses information within a givenorganization, to facilitate a good management of the organization. Itinvolves the three elements of MIS to ensure a consolidated outcomewithin the systems of an organization. It is equally imperative thatall the element of management information system coordinate togethersince, they are designed to achieve a synchronized overall efficiencyof a system in its entirety (Allen, Heurtebise & Turnbull, 2010).Consequently, a good management Information System is an importanttool in as far as informed decision making is concerned with regardto the opposite being on the contrary. Looking at this significantbusiness management skill, it is imperative to note that the skillhas played an important role in the management of two leading automobile corporations in the United States of America. The two includethe Chrysler and the General Motors’ Companies.
Thegeneral motors with an aim of turning over its losses and increaseproduction as well as regain its market share, adapted a managementInformation System (Allen, Heurtebise & Turnbull, 2010). Themanagement chose to incorporate the information system to improvetheir production line to compete better with other auto mobileindustries in the market. These included both foreign and domestic.Similarly, the Chrysler auto mobile industry also incorporated thesame management aspect to better improve its marketing, sales andexpand the company’s communication systems as well as timelyresponse of their suppliers (Allen, Heurtebise & Turnbull, 2010). The GM Company had no centralized computing system to coordinatetheir production. They were initially divided into variousdepartments that were expected to run autonomously without sharingany information through their systems (Allen, Heurtebise &Turnbull, 2010).
Thecompany later adopted a system of MIS which they hoped would helpthem transform their business management. The MIS helped the Companyto integrate its information sharing across the various departments ostreamline the chaos that existed within the administration. Thiscalled for extensive spending in implementing the MIS policy, by abudget that was higher than all her competitors to enhance productionmostly (Al-Zhrani, 2010). On the other side the Chrysler auto mobileadopted the system to enhance it’s just- in- time inventory system,since 70% of its production was out sourced. This lowers theinventory levels as it reduces the cost of production (Al-Zhrani,2010). The Chrysler Company came up with an integrated computernetwork that enabled various departments, engineers, vendors invarious companies’ work stations to access dissimilar informationat the same time.
Thissystem of information managed the company’s production at variousstages and enhanced improvement of the design specification in thelast minutes by having the engineers share the information throughthe system in time (Al-Zhrani, 2010). Chrysler adopted the MIS tocreate a centralized business operations amidst other activitiesrelated to its business venture for easier control and orcoordination. Chrysler had priory launched a communication satellitenetwork which h enabled it to relay a two way information channelacross its dealers across the United States (Al-Zhrani, 2010). Thisis a practice that is aimed at being extended to other dealersoutside the United States. They have also built a computerizedinformation management link with their suppliers to facilitate atimely response to their demands and as well as their requireddesigns. This connectivity also enhances their verification of theirshipments notices as sent electronically by their suppliers andpayment modes being verified closely and in good time (Vittal &Shivraj, 2008).
MISfacilitates a good and informed decision making tool within anorganization (Allen, Heurtebise & Turnbull, 2010). This in otherwords proves the fact that failure to implement the managementinformation system within an organization, is tantamount to impedingthe decision making process. According to Allen, Heurtebise &Turnbull, (2010) MIS enhances the basis upon which long term timelydecisions, policies and regulations are made by the managementwithout necessarily overstepping their mandate. The latter is a verycritical aspect in a business environment especially in regard to theGM Company. The GM Company to improve its efficiency was divided intovarious departments that were autonomous (Allen, Heurtebise &Turnbull, 2010). This in the long run brought some managementchallenges considering the stiff competition that came to existacross the same company’s departments, as opposed to competing withother auto mobile companies. This brought many management hitchessince their existed great lack of centralized information sharing tohelp ease coordination within the various departments.
Chrysleron its part used the MIS effectively and efficiently in helping itsvarious departments coordinate their activities for a common goal(Al-Zhrani, 2010). For instance, they established a computerizedsystem that was connected to all their stakeholders. This networklinked not only the production line but also the dealers and theirsuppliers. This ensured that there is coordination across theirvarious departments enhanced by sharing of information to achieve acommon goal. Whereas the General Motors’ Company was earlier on notkeen on the power of sharing their integrated information acrosstheir respective departments, Chrysler adopted the policy and itproved beneficial (Al-Zhrani, 2010). This evidence proves thatManagement Information System is crucial bringing checks and balancesin the business management based on the flow of the informationavailable. Chrysler was able to respond to the necessary changeswithin their production irrespective of the stage of production bysharing information and proper management in real time.
Managementinformation system gives the management a head start in dealing witha challenge during all stages of production or crises within acompany (Al-Zhrani, 2010). This is very vital since in today’scompetitive field, information is key in managing the productivity ofany corporation in dealing with day to day challenges in good time.For instance the GM management Information System was geared towardsmechanization of their production and lowering the cost of productionto gain the market share and thus, gain competitive advantage. TheChrysler Company also embarked on streamlining their production bysharing the information across their various departments, to come upwith more appealing brands to gain competitive advantage (Al-Zhrani,2010). These two companies used the same MIS to achieve the sameobjective but in a very much different aspect.
Informationtechnology is very important both at an individual level and at acompany level thus exposing both entities to various risks and orchallenges, as well as solutions. According to Vittal & Shivraj,(2008) information technology is very important in enhancing thesecurity of a company. When for instance the management involves theadoption of a tailor made management information system, the latteris able to monitor the activities within its systems at given momentsto improve system’s security. It is also imperative to programmethese MIS to save on time and resource management as well, both atpersonal and corporate level (Vittal & Shivraj, 2008). This canbe achieved if the management information system is programmed todetect certain deficiencies and raise flags to deal with thechallenges saving good time to use in other areas of business.
Accordingto Vittal & Shivraj, (2008) most of the MIS used in the businessworld today have the power to multi task thus enhancing theefficiency and effectiveness of an organization’s operations.Similarly, the fact that several people can access the sameinformation at the same time without any alterations proves the factthat accountability and consistency can be monitored, improved andverified (Vittal & Shivraj, 2008). This ability of the MIS toprotect such data and use it to safe guard both an individuals andthe company’s interest make it a tool necessary for any seriousorganization and not just GM and Chrysler. Similarly, thisconnectivity is as well posing several system frauds and crimesrelated directly to breach of production confidentiality.
ManagementInformation System is a very instrumental tool in as far as managingthe information for both personal and corporate advantage isconcerned. The tools can be used in various ways by various companiesas is the case stated above involving the GM and the Chrysler automobile companies. It is also very vital in coordinating the functionsof the various departments to achieve a common goal and raise thestandards of accountability. This is not forgetting the vital role itplays in detecting and protecting the system breach in safe guardingthe information for the greater good of both the company and themanagement.
Allen,B., Heurtebise, A., & Turnbull, J. (2010). ImprovingInformation Access. Business Management US.> Retrieved on June 25, 2015 fromhttp://www.busmanagement.com/article/Improving-information-access/
Al-Zhrani,S. (2010). Management information systems role in decision-makingduring crises: case study. Journalof Computer Science,6(11), 1247-1251.
Vittal,A., & Shivraj, K. (2008). Role of IT and KM in improving projectmanagement performance. VINE,38 (3), 357 – 369.