Information Systems: The MIS and KMS
Instructions:-
Instructions for Assignment Read the unit overviews, the associated chapters in the book, participate in the online discussions until week 4, read related research and answer the associated questions.
Questions
1) Explain the differences and focus of MIS systems and KMS systems. Research online, present a specific company that most benefits from each type of system, analyse how each company uses the system and explain the benefits that each system provides for the specific company. (1000 words)
2) Based on the theory presented in the course and other research on IS, present an outline of an MIS solution for a medium to large company that offers either products or services to its clients. Consider the organizational strategy, the functionalities and the applications. (700 words)
3) Apply Porter’s competitive forces model in a bank. Make recommendations on how current IS, online collaboration, Web 2.0, Social Networks and the increasing popularity of mobile devices could benefit the bank and its customers. In your analysis have a separate section that discusses the security implications of the above technologies for the bank and for the customers of the bank. (800 words)
Solution
Information Systems: The MIS and KMS Essay.
The efficiency of an information system (IS) attaches effectiveness in the management of information/data by facilitating efficient collection, storage, access, retrieval and use of the information. Companies adopt and implement IS for the effective management of their data and information. The integration of an IS into management facilitates planning, management and control of business functions, target-setting, operational efficiency, decision-making, and competitiveness (Smart Oruh, 2013; Biswas, 2015). The management information system (MIS) and the knowledge management system (KMS) are some of the broadly used information systems. The application of the KMS allows the improvement of organizational performance, innovation, information sharing, competitiveness, and continuous improvement (Xiaojun, 2017). On the other hand, according to Abu-Musa (2006), the use of the MIS in an institution allows the effective management of information and the development of reports. The discussion of the difference between the systems and the analysis of their application in different companies is critical to developing an in-depth understanding of information systems. This research offers an articulation discussion of the KIM and MIS systems, the application of the MIS, and the application of the Porter’s model in a bank.
The MIS and KMS
The KMS and MIS are critical information systems that influence business management, operational efficiency, decision-making, and organizational capacity significantly. The choice and implementation of either of the system depends on what the organization seeks to achieve. The major focus is directed towards the achievement of a competitiveness, improvement of efficiency operation, management, and performance, and the enhancement of the capacity to offer quality services (Oz, 2009). The MIS and the KMS differ significantly. As the most common management support system, the MIS focuses on the provision of information for the management to enhance decision-making in organizations. It focuses on the provision of reports in different formats to assist managers in the management roles. It applies internal and (sometimes) external data bases and transactions from the processing system for updating the information. On the other hand, the KMS integrates a group of technologies for the management of knowledge in organizations. The system uses knowledge stored in mind (tacit) and explicit knowledge (stored in database). According to Sarnikar and Deokar (2017), the KMS allows the creation and sharing of knowledge for reuse and depends greatly on knowledge bases, discussion forums, intranets, and internet websites as sources of information.
One of the companies that applies and benefits significantly from the MIS is the Fair Isaac Corporation. The application of the system enables the achievement of critical organizational goals by facilitating improved operation, effective performance and decision-making, and better management. As a company that engages greatly in decision management solutions, the Fair Isaac Corp. must adopt and implement efficient systems to guarantee quality and satisfactory services. According to the Wall Street Journal (2017), the Corp. uses the MIS to facilitate excellent decision-making. The use of the management information system improves the efficacy of the different segments through which the organization operates. These segments include Scores, Applications, and Decision Management Software. The integration of the MIS into the segments makes it possible for Fair Isaac Corp. to cater for the needs of different business problems using the decision management applications.
In view of the effectiveness of the MIS in guiding the processes of the Corp.’s, its integration into the functions and processes of the different segments enhances its capacity and performance. According to Galliers and Stein (2017), the application of the MIS allows efficiency in decision management. The Fair Isaac Corporation uses the MIS to improve the management aspects and solve problems in marketing, customer management, account origination, insurance claims management, collections, and financial management among others. As a Software and Technology Company, the Fair Isaac uses the MIS to implement its Decision Management Software unit for the effective implementation of software tools for analytic and decision management (FICO, 2017). The system comes with different benefits which include increased performance and operational efficiency, productivity, customer satisfaction, competitiveness, and a higher profitability. The MIS improves decision-making, facilitates good management, and elevates the company’s ability to address the needs of the clients by offering solutions to the problems presented.
The application of the MIS in Fair Isaac Corp. depicts the elements of information systems including effective planning and controlling, which are important in the management of the corporation (The Wall Street Journal, 2017). As a technological company dedicated to offering solutions to problems facing other companies, the FI Corp. uses relevant information to understand the issues of concern, plan, and control thus improving performance effectiveness (FICO, 2017). The application of the MIS in the corporation allows the provision of the necessary information for the effective functioning. As Laudon and Laudon (2016) state, the management information system provides information to managers in accordance with their levels within the organization and allows the use of such information to foster better management targeted towards the achievement of the set institutional goals. The top management of the Fair Isaac Corporation requires information for the formulation of policy, setting of goals, and the continuous improvement of organizational efficiency. Moreover, the middle-level management of the Fair Isaac applies the MIS in solving problems, in checking the progress of the organization in relation to its goals, planning, and scheduling organizational processes (The Wall Street Journal, 2017; FICO, 2017).
The Xerox Corporation uses the knowledge management system. In the quest to achieve a competitive advantage over other global players, the Xerox Corp. continues to implement strategies and measures that guarantee its operational efficiency, performance, quality products and services, and effective management. The application of the KMS allow the company to capture the tacit knowledge of the staff and manage its data effectively. By implementing the KMS, Xerox enables the sharing of knowledge and information (Doyle, 2016). It continues to enable the sharing of solutions for different problems as developed by its staff. The system was developed from the acknowledgement that members of the customer service unit experience different challenges and solve numerous problems but lacked a platform for sharing such information. The creation of the Eureka (a KM system) allowed the effective sharing of knowledge across the platform between the staff. The integration of the KMS in its management played a critical role in promoting efficiency in customer service, performance, and productivity (Buřita, Halouzka, Malý, & Ondryhal, 2017).
Xerox Corp. records numerous benefits from the implementation of the KMS. Eureka promotes the quality of services, empowers and improves the efficacy of the customer service unit, increases productivity, reduces wastage and delay, and creates a platform for the achievement of the set organizational goals. The application of the system allows the integration of tacit and explicit knowledge, and the excellent management of such knowledge to promote organizational efficacy. The Eureka gives employees a chance to share knowledge/solutions for different solutions thus making the KMS idea of “learn once, use again and again” feasible in Xerox Corp (Mottl, 2001; Sarnikar & Deokar, 2017). The KMS makes the learning and organizational knowledge usable by all staff for the benefit of the company. According to Buřita, Halouzka, Malý, and Ondryhal (2017), one of the benefits of the KMS is that it allows the use and reuse of knowledge tapped from books and staff by all employees in the delivery of services or in production. The platform (Eureka) allows discussions between experts and acts as a knowledge base (Doyle, 2016; Otstott, 2016). Therefore, KMS contributes to effective management of information contributing to improved services/products, operational efficiency, higher productivity, greater cost-effectiveness, timely delivery, and profitability.
MIS Solution for a Medium to Large Company
Information systems promote efficiency in the management of critical functions in organizations. Karlinsky-Shichor and Zviran, 2016) state that the integration of the information system allows the improvement of efficiency of business operations and facilitates effective decision-making, and the achievement of strategic advantage. The integration of key IS technologies into the management business and organizations plays a fundamental role in promoting decision-making, management, and organizational effectiveness. The management information system targets the improvement of the capacity of the management to solve problems by supporting the key functions of management. The consideration of the size of the business is important in implementing the MIS. This part offers a MIS solution for a medium service company considering its organizational strategy, functionalities, and applications.
The application of the MIS in the functional level of the ICICI Bank Ltd. allows effective management and the provision of quality financial products and services (ICICI Bank Ltd., 2017). The MIS solution should be guided by set organizational objectives. A large level bank should investigate its readiness to implement a financial MIS, plan and prepare, define the system’s functionality including its design and technical requirements, and focus on ensuring effective procurement (Smart Oruh, 2013). The procurement process should look into technical assistance and training and a competitive selection for ICT solutions. Additionally, the solution should consider the implementation, monitoring/evaluation, and the maintenance/support processes. The organizational strategy should be focused on the effective management of monthly accounts of transactions, the cash flow, processing of returns and statements, keeping ledgers and journals, accounting, and balancing sheets ( Becker Professional Education, 2017; Galliers & Stein, 2017). The objective of the solution is to improve the efficiency of the system in addressing the needs of the customers adequately by offering superior service and product quality.
As a large company, the ICICI Bank Ltd has a well-established strategy for the achievement of its goal and objectives (ICICI Bank Ltd., 2017). The major objective of the adoption of the MIS in the bank is for the improvement of financial management and the enhancement of service efficiency, effectiveness, and service excellence. The MIS focuses on supporting the automation and integration of financial processes and operations. The strategy of the bank would be to improve its strength in the market and its safety thus positioning it to pursue opportunities of growth (ICICI, 2017). The MIS will improve its profit efficiency and improve the capacity of corporation in driving investment, improving trade and creating wealth. The information system will guarantee an improvement in the effectiveness and efficiency of the bank’s operations and processes thus improving service quality, customer satisfaction, trade, effectiveness in management, attract and maintain customers (Abramowicz, 2017; Hussain Chandio, Irani, Abbasi, & Nizamani, 2013).
The use of the MIS has numerous benefits including the promotion of effective planning and controlling and enhancement of the capacity of the management/corporations in problem solving. As a type of an information system, the application of the MIS allows the application of financial and managerial information in management to guide the processes of planning and controlling (Laudon & Laudon, 2016; Oz, 2009). By ensuring effective planning, the MIS promotes control, economical operation, pushes the corporation to focus on its objectives, and alleviates uncertainties. The benefits that come with the effective planning and controlling play a fundamental role in facilitating efficient operation and organizational consistency resulting in an even flow of work, cost-effectiveness, good decision-making, and profitability. Additionally, its planning and scheduling functions are equally effective owing to its information system. The implementation of a MIS helps in the minimization of the cost per service unit, the maximization of benefits and values of performance, and the improvement of service excellence through best practices (Xiaojun, 2017; Galliers & Stein, 2017). The results of implementing the MIS, therefore, include service efficiency, service effectiveness, and service excellence.
Porter’s Competitive Forces Model
The increasing competition in the banking industry shows the need for banks to adopt and implement measures that promote competitiveness. The application of the Porter’s Competitive Forces Model helps in the analysis of competition of an organization in a specific industry. According to Becker Professional Education (2017), the application of the five forces makes it possible to analyze and determine the competitiveness and profitability of a business. Porter outlined forces such as the competition existing in an industry, the potential on new entrants, the power of suppliers and consumers, and the threat posed by substitute products. Discussing these forces in connection to the banking industry assists in determining the competitiveness of a bank. Using the five forces will help in analyzing the impact of new technologies in the banking industry. The model will make it possible to outline the benefits of the integration of the current IS, Web 2.0, online collaboration, mobile devices, and social networks into banking.
The integration of an efficient information system into banking is critical to the improvement of efficiency and effectiveness in management and banking processes/operations. The IS allows the storage, access, and retrieval of information and, further, the effective interpretation and management. Effectiveness in the management of information will improve the quality of services delivered to the customers. The process improves the competitiveness of the bank in the industry thus enhancing its capacity to withstand the stiff competition and the threat of new entrants. Additionally, the implementation of an efficient system will bring about cost-effectiveness and effectiveness thus increasing the ability of the bank to compete and survive in the face of increasing substitute services and a greater power of the customers. The implementation of IS gives a bank the potential to deliver services effectively and create/promote quality products and services. The delivery of the services/products with efficiency, effectiveness, and cost-effectiveness make reduces the power of customers and suppliers (Abramowicz, 2017).
Online collaboration and the integration of Web 2.0 into banking has significant impacts that influence attractiveness and competitiveness. The use of Web 2.0 allows the incorporation of better and innovative designs for the improvement of competitiveness. Web 2.0 increases online collaboration by focusing on the capability of people to share and collaborate information (Bussmann, Hyde, & Sandrock, 2011). The use of the technology in banking will improve online collaboration. The success of the technology in enhancing online collaboration and information sharing depends greatly on the ability of the banks to design marketing strategies, efforts, and platforms that involve the customers (Bussmann, Hyde, & Sandrock, 2011). Customer involvement in marketing will facilitate effectiveness in the management and reduce the power of the customers. According to Porter, the greater the power of the customer the higher the ability to influence the product and service prices. Involvement of customers in banking processes helps in reducing their influence ( Becker Professional Education, 2017). However, by increasing customer collaboration, the technologies seemingly give the customer a bargaining power that might be used to influence the operations of the bank thus resulting to lower profitability for the bank.
The increasing use of mobile devices and social networking sites continues to influence business significantly. The impact of the technologies and platforms in the banking industry is undeniable. Mobile devices such as smartphones, tablets, and laptops among others have increased access to the internet and resulted into the development of effective, convenient, and cheaper platforms for online banking and transactions. The integration of the technologies improves the quality of critical banking operations and processes. The platforms make access to banking products and services easier, convenient, faster, and cheaper by improving efficiency and effectiveness. Therefore, the technologies would place the bank at an elevated ground to compete and rival competitors, and reduce the threat of substitutes and new entrants (Chandio, Irani, Zeki, Shah, & Shah, 2017; Hussain Chandio, Irani, Abbasi, & Nizamani, 2013).
The integration of
current IS, online collaboration, Web 2.0, Social Networks and mobile devices into
the operations of the ICICI Bank Ltd. has significant security implications.
The increased online collaboration promised by the application of Web 2.0 comes
with challenges such as risks of hacking through social engineering. Additionally,
the adoption of the technologies pose a threat of identity theft and hacking,
which are a security threat to banking information and people’s savings (Abu-Musa, 2006; Chandio, Irani, Zeki, Shah, &
Shah, 2017).
Identity theft and hacking are some of the major concerns facing the banking
industry in the face of new technologies such as online banking and use of
mobile devices (Tavares, 2013; Hussain Chandio, Irani, Abbasi,
& Nizamani, 2013). Further, the implementation of
information system in banking comes with security concerns. The IS faces a risk
of security breach that may expose banking information to unauthorized access
and use (Abu-Musa, 2006).
References
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