The Role Of Management Information Systems In Organizational Change: A Case Study On Myers Australia.

The assessment in this subject allows students opportunities to explore the role of managing information systems, the impact of technological change on the management of information.

Instructions:

Students will investigate and report on IS and IT systems in an organisation of their choice, identifying risks and proposing mitigation strategies. Students should: define information systems and discuss its role in the organisation; use various models presented in the subject to critique the use of information systems according to business problems and characterise. Students are expected to use and cite external literature extensively. Students should consider what risk means to the contemporary organisation and how information systems both pose and mitigate risk.

Investigating IS and IT Systems in an Organization

The application of information systems has become an imperative concern owing to the development of novel alternatives for organizational change. Organizations are subject to strategic changes under influence of external factors or due to internal drivers that have been discussed in research studies which describe the different entities associated with information and communication technology alongside framing distinct approaches to ensure fast and sequential adaptation. A major requirement in the retail industry is to capitalize on the prospects for continuous development in the product categories as well as innovation in product design leads to requirement of strategic concerns. Therefore, an evaluation of the distinct elements associated with the implementation of management information systems in context of the strategic issues as well as concerns for adaptation have to be reviewed in case of Myers, which is a leading retail organization in Australia (Anderson IV, Broadcom Corporation, 2013).

The case study would reflect on the potential concerns that could arise in context of the application of management information systems in the organization. The report presents cognizable interpretation of the processes which are implemented for analysis of strategic issues in management of information, global standpoints on the application of information systems, ethical and social consideration for strategic issues and remedies. The report is further strengthened by the inclusion of a prolific assessment of the strengths and limitations observed in Myers Australia that could impinge on the strategic performance of management information systems.

The development and monitoring of the information technology resources could be assistive for the human resources of a company to realize the distinct activities pertaining to information processing. As per Baltzan & Phillips, the application of MIS and internal control systems is prolifically associated with the collation of business data to obtain credible insights into the process of decision making that can be considered as a notable facet of information processing (Baltzan & Phillips, 2016).

The complexity of implementing MIS has been apprehended as a necessary risk which business organizations have to accept in order to frame information and communication frameworks. Some potential risks that could be observed in the management information systems refer to hardware insufficiencies, inefficient monitoring outcome and strategic incompetence for identifying specific information requirements for distinct departments. However some of key strategic issues which could be addressed by the application of MIS through particular analytical approaches have been illustrated as follows alongside an estimation of the changes which information systems induce in organizations as well as managerial roles within a business. Information systems are capable of collecting, processing and storing data pertaining to departmental as well as organizational transactions that can be utilized for decision making. It can be imperatively stated that observation of risks and potential strategic issues could facilitated credible insights for rounding up on appropriate decisions. The management of Myers Australia could acquire an impression of specific strategic issues such as proliferation of social issues in local communities due to the store’s operations based on information from customer feedback over a period of one month. These insights can be utilized for decision making directed towards the resolution of immediate issue alongside fulfilling the organization’s side of the bargain.   

Risk Assessment and Mitigation Strategies

The implementation of a management information system could be addressed through the distinct stages such as systems integration, systems analysis, systems design, systems implementation and systems maintenance. The initial phase of implementing management information systems is to ensure systems integration that is primarily related to informatics planning and management, development of management plan and acquisition of approval from the management in order to implement the MIS (Blokdijk, 2014).

The implementation of management information systems is largely associated with the applications in software engineering, information systems and systems engineering. The review of varying interpretation of methodologies, models and approaches used for creation, development and alteration of information systems could provide substantial competitive advantage to Myers Australia. A comprehensive review of the individual stages of information system implementation in case of Myers Australia would facilitate reasonable implications for improving system investigation outcomes. The first step implemented in Myers Australia MIS implementation process is system investigation that is associated with the estimation of feasibility of the system on the basis of specific criteria and the necessity for a new system. The primary tasks involved in the system investigation for Myers include preparation of an outline for the opportunities, pitfalls and directive, negotiation of a preliminary scope, assessment of the project’s value, project planning and project proposal. The system investigation is promisingly required in case of accounting information systems wherein the modifications in either hardware or software could be identified by the management. System analysis is the second phase involved in the implementation of MIS that reflects on comparison between the requirements of the old system and new system as well as acquiring definitions of system from the perspective of users. The distinct forms of analysis that can be adopted by Myers refer to organizational analysis, functional requirement analysis and analysis of existing systems. Myers proceeds to next stage of implementation i.e. system design which can be based on specific paradigms and implies the formation of novel or alternative systems. Some of the major activities involved in system design must be emphasized by the management of Myers such as design of user interface, process design, and data design and system specification. System development is possible in case of Myers through considering design specifications, software development and system acquisition methods which could improve the performance of the final product outcome in the form of the management information systems.

The analysis part is primarily associated with the determination of specific needs of the organizations in terms of information as well as developing the functional requirements which are imperatively needed for an information management system. The design aspect of a MIS reflects on the formulation of a technical prototype that would comprise of distinct specifications for data, hardware, people, network and software and fabricating the artefact according to the planned specifications.

The Applications of Information Systems

According to Bodenhamer, Implementation is accounted as the penultimate stage in the implementation of MIS and is largely associated with the delivery and testing of the designed system as well as training of employees to utilize the system (Bodenhamer, 2013). Thereafter the implementation of MIS could be associated with the applications such as conversion to a new business management framework. System maintenance is the concluding phase of the implementation of MIS and is associated with the process of formulating mandatory reforms in the operation and performance of the information system.

Strategic planning of the design and specifications needed in the MIS formulated for an organization leads to concerns for long term growth and plans. As per Boehm & Thomas, the implementation of information and communication technology apparatus for MIS is accountable for the prerequisites such as recognition of organization opportunities pertaining to IT applications, development of strategic approaches and action plans as well as determination of resource needs for fulfilment of varying implications related to information opportunities (Boehm & Thomas, 2013).

It can be imperatively observed that the performance of the MIS frameworks could not be realized effectively without the promising implications towards market analysis, business strategy analysis, technology analysis, IT infrastructure analysis, business market analysis, IT risk-taking analysis and organizational culture analysis. The essential changes in managerial roles and the impact on the organization could be further illustrated by references to the different essential components of an information system (Bonham-Carter, 2014).

The optimization of a MIS framework implemented in case of Myers corporation in Australia would involve the three mandatory elements i.e. men, material and procedures (Myer, 2017). The different implications that could be derived in the terms of the requirement of these elements are capable of presenting substantial references to the strategic implementation of IT, mobilization of resources that impinge change on the organizational systems. The concern for material is observed in the physical resources needed for fabricating the information system such as computers and software (Bose, et al., 2013).

This requirement is indicative of profound change in the IT management apparatus of an organization and therefore inclusion of new data fields and classifications could be related to the drastic modifications that are derived from implementation of MIS. The procedural requirements are also reflective of potential changes in the organization’s operational framework. Furthermore, the necessity of focusing on procedures is observed in the division, sharing and performance of information processing alongside the promising requirement of reference to precision in the set of regulations, business culture and management practices (Braglia & Frosolini, 2014).

Implementing MIS in Myers Australia

Application of procedures in the MIS to obtain viable insights for analysis and research that could improvise the outcomes of MIS in context of managerial objectives. However, the major impact on the organization rendered by the implementation of MIS systems could also be considered as potential organizational changes.

The impacts of management information systems’ application on managerial roles in an organization could be derived from some of the prominent issues that are noticed in case of MIS implementation including leadership issues, management process issues, technical systems issues and personnel issues. The managerial framework has to be reformed by inclusion of profound changes in the human resource requirement, technical and physical resource needs as identified in the components of information systems.

As per Cats & Loutos, Changes in managerial roles with respect to leadership issues could be implemented for resolving issues such as individual and organizational support, inter-departmental coordination and the concerns for time management and scheduling (Cats & Loutos, 2016). Another profound change could be reflected in context of personnel issues since the distinct requirements of individual and organization specific expertise could be reformed in case of implementation of MIS. Other prominent changes in the managerial roles pertaining to the implementation of MIS involve staffing concerns, training, internal leadership and profound concerns for response to change management in an organization.

According to Cecez-Kecmanovic, Kautz & Abrahall, Organizational expertise can be identified in the various markets served by it, diversity of customers, suppliers and vendors as well as marketing and HRM capabilities (Cecez-Kecmanovic, Kautz & Abrahall, 2014). These traits could be reformed specifically to the particular needs drawn from the implementation of MIS such as establishing new supply chain interactions, catering diverse customers on the basis of informational competences acquired by the organization. The internal leadership of an organization could be subject to changes with the inclusion of technical managerial personnel who are anointed with the responsibility of monitoring the MIS frameworks and the associated human resources.

The staffing concerns would have to be revised by Myers in order to acquire a competitive advantage in context of the outcomes derived from MIS. Staffing is associated with recruitment and selection of competent personnel who could fulfil all tasks and objectives alongside obtaining the services of prolific human resources. The staffing activities require additional concerns for human resource management frameworks which could facilitate the design of promising apparatus that could acquire candidates with industry and organization specific competences as well as individual skills (Chan, Online News Link Llc, 2013).

Analysis and Design of Information Systems in Organizations

Another considerable factor that creates pitfalls in context of the managerial roles after applying MIS refers to the resistance of employees towards change. The aspects of change management could be aptly realized by the favourable responses of employees towards understanding the revised requirements from Myers Australia to prepare a management information system.

The distinct references to training could also be implemented for the transitions of managerial roles from conventional frameworks to the new ones. As per Creeden, et al, training accounts for improvement of technical competences of employees and therefore its implementation could lead to employees acquiring specific competences required for MIS frameworks. Other profound changes which could be noticed in the managerial roles of individuals in the workplace could be derived in the form of external consultants and budgeting professionals for addressing the additional requirements which are invited in context of the implementation of MIS (Creeden, et al., 2013).

As per Davies, Dean & Ball, Management information system or simply known as MIS refers to a computerized database of entire the financial information organized and programmed in such a manner that it generates systematic reports on business operations for different levels of management in an organisation (Davies, Dean & Ball, 2013).

The main objective of MIS is to provide managers the feedback about their performance and efficiency. It helps them to measure the data relating to actual performance against the planned productivity. Today it is common for almost all big firms to use MIS in order to keep track of their performance and productivity.

In this section of the report the Management information system of Australia’s largest departmental store – Myers has been studied and analysed using various analytical approaches (Myer, 2017). The readers also get an insight on the effect of MIS on their business process engineering (dos Santos Danado, et al., 2013).

In case of departmental stores form of retail, there is high significance of MIS since a large inventory is involved in such outlets. Since Myers store chain operates in all the Australian states and involves broad range of products like apparels for men, women, children, footwear, cosmetics, electrical and furniture items the use of MIS increases to understand the productivity of the chain across the continent (Feng, Wang & Li, 2014).

There are various applications of MIS involving sales data collection, inventory control and internal communication, which have significant impact on the business operations and marketing activities.

The Implementation of MIS:The Final Stages

Since Myers provides specific services in addition to the product offerings like Myer store card and branded credit cards, "MYER one" rewards program initiative and it operates in various locations including Australian Capital Territory, its Management information system plays a vital role in its day to day operations (Fichman, Dos Santos & Zhiqiang (Eric) Zheng, 2014).

Since MIS adopts the approach of breaking down the business operations into various segments, it helps to have a strong control on all the sub activities of retail business of the business. Myers has made many changes based on its MIS approach.

Customer Relationship Management –It refers to a significant marketing system in which business undertakings use “point of sale” terminals in order to set up customer accounts and collect relevant data on the customer history relating to the specific business. Use of CRM helps firms to leverage core customer relationships.

In case of Myers, the CRM model has many applications since the regular and loyal buyers are offered Myer store cards. It also introduced a reward programme for its loyal set of buyers (Freeman, 2014).

Inventory Control –In retail sector it is very vital to have a strong control on the inventory segment. At the departmental store level of Myers, the approach to control inventory of the MIS technology allows these associates to efficiently update their pricing model and perform the inventory audits. It removes the manual process of employee putting sticker prices on each and every store item (Myer, 2017).

Myers, like many other retailers have electronic scanners synched to their computer systems which allows them to modify the store level price on any specific item of stock without manual intervention (Myer, 2017). This technique helps employees to compare actual stock with inventory data on the system in order to check in case of any missing inventory (Geiger & Schader, 2014).

As per Gregory, Beck & Keil, the use of MIS technology in retail has various benefits for the internal communication network of an undertaking. One such example of internal communication is to program the departmental store computer systems to display important messages and daily memos for all staff members and employees to read (Gregory, Beck & Keil, 2013). At Myers, the internal communication among employees at various locations is enhanced since they are able to communicate via emails.

Some firms might conduct online training programmes that will help new staff members to get training as per their convenience. Other popular forms of internal communication are message boards.

Strategic Planning and Long-Term Growth

Business Process Engineering refers to a business management strategy which basically analyses and sketches the business processes and operations in an organisation. Its main object is to improve consumer service, reduce day to day costs of a form and give stiff competition and move ahead of its competitors. It aims at changing the business processes while taking into account the business objectives and the different processes related to them.

Since Management Information System focuses on reducing manual intervention and generating different kind of reports on the system, the crucial impact it has on Business Process Engineering is to reduce manual processes and increase the use of machines and automate the processes concerning a business undertaking (Haux, et al., 2013).

At Myers departmental store, after the implementation of MIS approach, the handling of the daily operations have become simplified. Since there is better control on inventory, the risk of missing inventory has reduced.

There is positive change in the business process engineering model at Myers after the introduction of Management Information System. Below is the detailed impact of MIS on Business Process engineering at Myers.

Due to the use of shared databases across all the locations where Myers has its stores, the necessary information is available at all the locations. Reports can be generated from the system just at the click of a button (Johnson, 2016).

Since MIS uses latest information technology models, it allows specialists to perform special tasks. Thus the business processes become more comprehensible and simplified. Many unnecessary manual and old processes have been replaced by automated processes at Myers.

According to Kennedy, the use of information systems has made the decision making process simpler. Important decisions can be given priority and necessary actions can be taken based on the availability of important information (Kennedy, 2013). This has overall simplified the business process engineering at Myers.

Other impacts of MIS on business process engineering include better level of interaction with potential consumers, organisations are allowed to be centralised and decentralised at a particular time depending on their operation requirements, automatic tracking and identification of various business related items.

The shift towards Management Information System has got implications on various aspects of a business undertaking and its activities. Since the introduction of MIS involves a drastic change in the business processes of an undertaking, it is important to understand its ethical and social impacts before adopting the information system (Worrell, Wasko & Johnston, 2013).

The Three Essential Elements

The use of MIS brings about massive social and ethical changes threatening the distribution of finance, money, rights, etc. It also increases the chances of cyber-crimes.

There are a number of organisations which focus on promoting ethical issues like Computer Professionals for Social Responsibility (CPSR), The Association of Computing Machinery (ACM), etc. The main aim of these bodies is to provide highest quality and dignity in the business processes and work place (Kerzner, 2013).

 Important ethical considerations include maintaining a professional and competent working environment, respecting prevailing laws pertaining to professionalism, thorough evaluation of computer systems and safeguarding the privacy and personal information of various stakeholders involved in the business process, providing access to computers and communication resources to authorised personnel. There needs to be harmony among the work staff in all organisations (Schwalbe, 2015).

Since the MIS database of an organisation contains huge data relating to the specific undertaking’s buyers there is a risk of disclosing it to the general public. Thus there are certain social considerations that organisations need to consider while introducing MIS in their business process (Larsen, Patterson & El-Geneidy, 2013).

The IT background needs to be strong which cannot be hacked. Since today cyber field has got its own threats like viruses, unauthorised access, data loss, hacking, etc. the businesses need to take a number of steps to introduce an effective Management information system which is not just beneficial for the undertaking but which is beneficial for its stakeholders as well (Rainer, et al., 2013).

SWOT Analysis

 
Businesses can have tie up with various law enforcement bodies to safeguard their MIS database. They need update themselves with latest information technology related innovations which will help them in their business operations.

At Myers there are a set of loyal consumers, whose database is saved in the management information system of the company. So it is important for them to safeguard the personal details of these consumers. Since Myers has various loyalties based programmes like reward systems and loyalty cards, it is essential that the departmental store chain keeps financial related data confidentially without the risk of disclosing it publicly (Lee, et al., 2015).

As per Pappalardo, et al, businesses can try to strengthen their MIS so that it doesn’t have negative impact on ethical and social aspects of community by using latest hardware equipment to ensure safety of information, using licensed software, proper use of information technology and information systems throughout the chain and impart training to all the users of the management information system (Pappalardo, et al., 2015).

Thus in current scenario management information system is an indispensible for the operations of any business organisation. Firms need to be competent in IT in order to use the system to their advantage and increase the productivity of their business operations. Since today there is fast innovation in technology field, there is scope to make the models of MIS more productive so that the reports getting generated are more precise and accurate.

In Myers departmental chain, the use of MIS has significantly improved the business processes at the store chain (Olson, 2014). The operations at different locations are performed in a synchronised manner thanks to the adoption of management information system.