Planning Information Systems

.. ndustry and view how information system improved their process. The MIS geared toward physical distribution at the operational level, where update orders and invoices sent to the distribution centers and the system updates the account receivable and associate system files. The system prints invoices at the origin and destination location, resulting in reduced cost and faster payments equal more cash flow. The food company produced numerous reports that enabled the managers to conduct on-line credit checks from their account receivable status report, and identify delinquent accounts, before shipping the merchandise to the distribution centers.

The customer services personnel have immediate access to open account allowing for immediate visibility and response to customer inquiries about deliveries and shipments, similarly cash payments received automatically applied to customers on-line account. Let us not forget to look at the marketing advantages with MIS as well. Sales analysis reports reflect the customers history product information file; this data generates report by product line in each territory each month for middle-level managers to forecast demands for any specific product item. Normally, this begs the question about production and if the company can continue to support the demands of the customers. At this junction, the IS gives managers additional insight about demand and the need to forecast for future buys.

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The company established a bill-of-material file, which computerized the ingredients for each product line and created batch size for all products. This process minimized the work process and improved the manufacturing ordering process for each customer batch orders. The product specification file served as the database of reference information enabling the manager the ability to print text on all purchase orders. The text file produced a finished goods inventory, which is transferred to the branch warehouse stockroom in various locations; this information is based on sales analysis report (demand). In the finance and administration department, the updated account receivables correlates with customers’ billing and cash receipts.

A monthly exception report generated from the aged balances spits out a collection letter automatically to the respective recipients at specified intervals. The MIS enabled the food marketing company to process orders more timely, manage inventories more efficiently and organize their production section. Bottom line cost savings of MIS results in more revenue and a better customer relationship and senior-level managers focusing their attention on emerging trends in the market. A social service department utilizes MIS in the public sector by providing financial assistance to the residences, i.e. medical assistance, food stamps, facilitate foster home and adoption, day care, school service, family planning, housing and legal services. The MIS processes new applications and payments.

The applicant applies and become eligible then the system creates an on-line record for them. The system automatically prints an identification card for the payroll master file that entitles the recipient to service for which the bill goes to the social service department. An on-line inquiry and update of the applicant record are also possible. The payroll master file sorts, generates the welfare check, and lists them on the payroll register, which generates historical report for managers. In all three case studies, the information systems support transactional processing.

The user involvement in each of the project selection ensures the effectiveness of the information system and its acceptability. How do you measure utilization and performance in MIS? The term utilization is the extent that the intended users use the information system (IS) for its intended purpose. The term performance measures the improvement of the business process that supports the IS implementation. These measurements observed through business records, visual or electronic inspections and take the personal opinions and attitudes out of the decision-making loop. The multiple variables sometimes are difficult to identify, but the IS department must be impartial if the true value is realized of a successful IS project.

A successful IS project can be measure best with psychometric tests of attitude, interests, and opinions such as user information satisfaction in the broadest sense. The performance measures of the business determine the effectiveness of the MIS. You can see that information technology give companies a competitive edge, once an information based service enters other company either catch up or eliminate the original innovator competitive advantage thus raising the stake for those participating in the marketplace. Today, company can link its customer to its order entry system, thus improving efficiency and improve business performance. Sure, an effective information system, if efficient reduces needless paperwork and allows the customer access to available stock information before committing to the purchase of goods and services.

Let not forget about effective too, the information system provide better service to its customers, for instance, i.e. the creation of electronic travel supermarket through on-line reservation system, i.e. www.priceline.com or www. Travelocity.com, which is transforming the basis of competition within this marketplace. To compete efficiently in this world, companies must establish information partnership as an integral part of successful business processes Bibliography Bibliography Fulk, J., J. Schmitz, and C.W. Steinfield.

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