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MBA 7104 Management Information Systems
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MBA 7104 Management Information Systems
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Course Code: MBA7104
University: Kampala International University
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Country: Uganda
Question:
Scenario
You work for a business, Go Global Limited that wishes to improve its management information systems and use new technologies to move into global e-business. The managing director has asked you to do some research and write two reports covering a variety of different issues relating to management information systems. In completing your reports, you should research the use of information technology in global businesses and different industries. Use examples from your research to illustrate your reports
Task 1
Your first report looks at information systems and their impact on the business. There are two main sections.
Introduction to the role of information systems and technology
This section of your report should:
describe what is meant by management information systems
explain how businesses use information systems in a global context
examine the role of information systems in developing business strategy
assess how information systems contribute to achieving competitive advantage
explain the unique features of e-commerce
Impact on a business of information technology
The second part of your report should look at the impact that information systems and technologies can have on a global business. You should:
evaluate the role of information systems and technologies in transforming businesses
evaluate the role of information systems in global e-business
evaluate the impact of internet technology, e-commerce, and social media on traditional business models
Remember to use examples from your research to illustrate your work
Task 2
Your second report concentrates more on the implementation of technology and information systems and how they can be used to improve business performance.
Information systems and technology and business performance
The first section of your report should look at the relationship between business information and technologies and business performance and decision making.
You should:
assess the need for and key components of an effective information technology infrastructure
critically examine the reasons for building effective information systems
evaluate the impact of key emerging information technologies on business performance
evaluate how key information systems can improve business performance
analyse the relationship between information systems and decision making
Building and managing effective information systems
In this section, you are required to explain how the introduction of effective, secure information systems can be managed and implemented.
This section should:
explain how to manage information systems projects
assess the challenges to developing global information systems
explain how a business can develop structures for global information support systems
Social, ethical and security issues
In this section of the report you are required to consider ethical and social issues that may arise and assess security risks.
You should:
analyse the implications of ethical and social issues for managing information systems
assess the security risks faced by information systems
evaluate tools and technologies for the protection of information systems security
Answer:
Introduction
Most of the organizations in different sectors including commerce, non-profit and government are now dependent on their information system. Digital services have been published by various government and public organizations. Digitization has been helping in developing various services and network in organizations.
This report is based on the impact of the information system on Go Global Limited. This report has been focused on identifying role of IS in developing global strategy and business strategy at e-commerce. The role of IS on global e-business has been discussed in the report. The importance of information system in enhancing performance of business of Go Global Limited has been discussed in the report. Various social, ethical and security issues related to business have been analyzed in the report.
Task 1
Role of Information system and technology
Management Information System has been has been referred to as Information Management Systems that is a planned system for helping managers to take decision by acknowledging related information. Management Information System can be supported by corporate databases that might include data generated by transacting processes (Hammer 2015). Every organization need to take decision related to several challenges and issues on a weekly or monthly basis for gathering information. The relationship between MIS and management of company has been an important aspect for development of company in the market. In this context, Go Global Limited has been suffering with improper relationship between management of company and MIS. The below figure describes about relationship between MIS and management of company in the market.
Figure 1: The MIS-company management relationship
(Source: Van De Walle, Turoff and Hiltz 2014)
The environment has been represented at top of the figure, the company management has been represented in central section and MIS has been represented at bottom section (Nicholas and Steyn 2017). Management used to send information to MIS that are processed by information processors. The database is present for collection all information from accounts information system and incorporate data from environment.
Use of Information System in global context
Information system has been focusing on the enhancing operations and management system of organizations at global context. Until 1990, before the adoption of personal computers and internet, data processing and management had been done manually. The focus has been fixed on saving files and documents in databases. Communications have been dine using both internal and external media all over the world. The arrival of internet era in 21st century has created a great boom in the management of data and information in organizations (Ismail and King 2014). In recent world, companies used to maintain their data and information over internet databases. This has been helping in fast access to data and information. The global information system market has seen constant demand for several businesses for global relations, information systems and controlling operations. Several companies including Go Global Limited has been looking for implementation of management information system in their operations. This might help in connecting with global companies and increase their businesses all over the world.
Role of information system in developing business strategy
Information system have been playing an important role in developing business strategy. Information system has helped in appropriate use of data and information, assisting with various compliance and reducing workload over employees. Information system has been helping in creating sophisticated databases that can help in containing all data and information of the company (Stair and Reynolds 2017). Traditionally, companies used to manually save their data and files in hard copy formats. Therefore, access to specific data and information had been complex. Therefore, use of information system in the business organization has been helping in simplifying data search and access. Therefore, Go Global Limited can develop their business strategy using information. These systems can also integrate information from different sources inside and outside of the company by updating several performance competencies.
Information system also assists in decision making system of the company. The long-term success of the company directly depends on strategic plans prepared by the company (Abbasi, Sarker and Chiang 2016). Go Global Limited might be benefited by use of the information system in developing their business strategy and develop their business in the market. These systems helps in decision making by using different information in market analysis and analyze strategic decision.
Information system has been providing huge number of ethics added-systems in company. For example, Go Global Limited can integrate IS with manufacturing cycle for enduring output produced compiles with requirements in several management standards. Therefore, adoption of information system provides controls to processes of employee and eliminate unauthorized users form the system. Therefore, it also helps in enhancing security of data and information in the system.
Information systems contributing to achieve competitive advantage
Achieving competitive strategies have been a critical task for an organization. Competitive advantages have been focused on product and services of company that offers higher value that their competitors in the market. Open innovation strategy has been adopted by many most innovative companies in the world. For example, 3M has been very successful in developing smart products via its open innovation approach-10,000 R &D people in 73 locations from 63 full-scale operating businesses across dozens of industries work together as well as working with large number of external partners via 300 joint programs and customers via 30 customer technology centers around the world. Other examples are the most innovative firms identified in the 2010 & 2011 Global Innovation 1000 study (reported in Jaruzelski & Dehoff 2011 and Jaruzelski, Loehr & Holman 2012 respectively) (such as in 2010 Apple (invested US$ 1,782 million/ 2.7% sales revenue into R & D activities), Google (3,762 million/12.8%), 3M (1,434 million/5.4%), and GE (3,939 million/2.6%); and in 2011 Apple (US$ 2.4 billion/2.2%), Google (5.2 billion/13.6%), 3M (1.6 billion/5.3%), Samsung (9.0 billion/6.0%) are serious about investing Information Systems for Competitive Advantages. There have been five competitive strategies and role of information system in achieving those competitive strategies have been discussed below:
Cost Leadership Strategy: Organization including Go Global Limited might use information system for basically shift cost of doing business and reduce cost of business processes by using online business to customer and business to business models.
Differentiation: Go Global Limited might use information system for developing differentiated features for reducing competitors’ differentiation advantages using online live chatting stem with customers for serving with their products and services.
Innovation: Go Global Limited might use information system for creating new innovative products and services for developing niche market by radially automation in businesses (Braglia and Frosolini 2014). This might help in reducing cost and time in the market.
Growth: Go Global System has been using information system for their growth in the market using their domestic and international marketing strategies for various products and services.
Strategic Alliance: The Company might use information system for creating and enhancing relations with clients and customers using different platforms and application including virtual companies’ information systems.
Unique features of e-commerce
There are various unique features of e-commerce:
Ubiquity: Ubiquity means it can be everywhere. Traditional business market has a particular physical place in the market. However, e-commerce can be everywhere in the market. It helps in reducing cognitive energy required for completing any tasks.
Global Reach: E-commerce businesses help in allowing business transactions all over the world. Therefore, this has been more convenient than that of traditional offline physical businesses (Cassidy 2016). The potential of e-commerce has been much more than that of traditional business market.
Universal standards: E-commerce technologies has technical standard of the internet that can be legal at any part of the world. These standards generally affect market entry cost and travailing cost of goods in market. Therefore, this can be reduced by using e-commerce platform.
Richness: E-commerce has been able to deliver audio, video, animation and billboards for advertising and branding of products. Therefore, this has been an important feature of e-commerce.
Information Density: The density of data and information over internet has been increased gradually (Chang 2016). Therefore, there is a huge amount of data and information available over the internet. The e-commerce technology has been able to reach out a huge number of customers over the internet.
Impact on a business of information technology
Role of information systems and technologies in transforming businesses
Innovation has been a key to success in the digital age. The path of innovation include doing something different and smarter than others. In recent years, digital marketing, social networking and cloud computing are examples of change that came from technology. Information system has been a great boom for the business organization in the digital age. Technological aspect of information handling has been maintained under management information system. This system has been helping in providing tools for solving complex problems and scalability plan in the business.
Go Global Limited has been able to maintain their database and other files for promoting their services and products in the market. Information system has been helping in creating sophisticated databases that can help in containing all data and information of the company (Stair and Reynolds 2017). Traditionally, companies used to manually save their data and files in hard copy formats. Therefore, access to specific data and information had been complex. Information system has been helping business in making fully digitalized. Go Global Limited has been concentrating on making their operations over digital platform that might reduce complexities in their business (Dwivedi et al. 2015). Management of operations in the Go Global Limited has been achieving operational excellence by the use of information system. For example, Walmart Inc. Retail Link system has been helping suppliers to store for superior replacement system. Walmart has been able to integrate their business operation into information systems. Information technology has been helping in enabling new tools, products and services of various organization. For example, Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS and Netflix. These products and services have been helping customers in various purposes. Information systems have been helping in serving customers by returning policy and raising revenues and profits for business organizations. For example, High-end hotels have been tracking customer preferences by using computers and monitoring their customized environment. Information systems have been creating intimacy with suppliers by allowing them to provide vital inputs at lower cost (Hair et al. 2014). For example, J.C. Penney’s information system used to link sales records to contract manufacturer.
Role of information system in global e-business
Information technology and system have been accepted by various companies worldwide. It has been responsible for business growth at global context. The growth of internet has been creating several opportunities for several business organization in the market. Internet has helps in reducing several costs to companies in the market. It has readily reduced marketing and advertising costs of companies in the market. The use of various platforms have been helping in marketing and advertising products and services of companies in the market (Galliers and Leidner 2014). The use if the information system has been helping in maintaining keen approach to the development of the company in the market. In this case, Go Global Limited has been facing difficulties in maintaining their values and brand image in the market. Therefore, there is keen requirement of integration of manager to information system in the company. The Company has been looking for integrating information system in the operations.
World Regions
Population (2012)
% of population
% of continents
Africa
1.073.380
15.6
7.0
Asia
3.922.067
27.5
44.8
Europe
820.918
63.2
21.5
Near East
223.608
40.2
3.7
North America
348.280
78.6
11.4
Latin America
593.689
42.9
10.6
Oceania/ Australia
35.904
67.6
1.0
Total world
7.017.847
34.3
100.0
Table 1: Use of Internet in the world and population statistics June, 2012
(Source: Goes 2014)
Figure 2: Internet users in the World
(Source: Goes 2014)
The above figure reflects about the use of internet all over the word. There has been increase in the internet users with time. According to the above data, there had been more than 3 billion internet users all over the world in 2014. Therefore, it constitute a percentage of 42.3% of total world population. Therefore, use of the internet has been covering almost half of the world. Information system has given rise to e-business concept. E-business refers to doing business over the internet. There are various companies that have been successful over doing e-business. For example, Amazon Inc., Walmart and Coles (Hammer 2015). These big companies have been settled over the internet and expanding their business over the internet.
In this case, Go Global Limited needs to expand their business over the internet using information systems. These internet businesses include selling products and services over the internet and reaching to customers within a short interval of time. E-businesses have been comprising a large functions including customer satisfaction by providing quality products and services to them. The use of the information system has been helping in reaching about the huge number of customers all over the world. Information technology has been one of the relevant factors that have been helping business to reach out globally with their innovative products and services (Ismail and King 2014).
Impact of internet technology, e-commerce, and social media on traditional business models
Internet technology and e-commerce has been associated with the web based communities. In the era of digital economy, setting up an offline shop and waiting for customers to come to the shop is an outdated concept. Companies have been looking for e-commerce business all over the world. The use of the internet has been helping in setting up different online shops all over the world. The internet has been helping in connecting customers with companies over the internet. The traditional business models have been outdated in this digital era (Jeston 2014). The use of internet has been increasing in a daily basis. Therefore, most of the business have been going online for extending their businesses in the market. Internet technology has been developing various opportunities for business organizations. The use of internet technology has been maintaining a positive approach to the development of business organization in the market.
Internet technology has been helping in providing several services to the business organizations for their development in the market. For example, Amazon has been the largest e-commerce company all over the world. Tis Company has used all the benefit of internet. The company has been able to provide quality products and services to the customers in the market. Amazon has been expanding its business all over the world and still continuing its process. Therefore, internet technology and e-commerce has been helping businesses in expanding their operations in all over the world (Kroenke and Boyle 2015). The use of the internet technology in the business organization has been recommended by several literatures. Traditional business models have been depended on traditional approaches of marketing and advertising products and services. These include television, newspapers, billboards and other advertising sources. However, it has been a slow process and cannot be reached to a large number of customers. However, internet technology has helps in changing tis traditional concept of marketing and advertising of products and services. Now a days, businesses used to do marketing and advertising of their products and services over the internet. Social media has been a great and effective platform for the marketing and advertising products and services over the internet. Most of the customers are online over various social media platforms including Facebook, Twitter, LinkedIn and Instagram. Therefore, advertising marketing products and services over these platforms have helped in enhancing strategy. Businesses organizations have been choosing social media for advertising their products and services as it helps in reaching out to a large number of customers in a short interval of time (Lasi et al 2014). For example, Facebook is the largest social media website in the world. There are 2.27 billion active users of Facebook all over the world.
Figure 3: Number of monthly active Facebook users worldwide in 2018 (in millions)
(Source: Laudon and Laudon 2016)
There has been explosive growth of the social media platforms in the market. Therefore, companies have been advertising over the internet. Most of the users are online over the social media. Online shopping and purchasing has been spreading all over the world among customers. Customers are preferring online shopping rather than offline shopping and going out to shops for purchasing goods and products in recent years (Laudon and Laudon 2015). Therefore, companies have been getting huge benefits from the use of information technology and social media advertising.
Task 2
Key components of an effective information technology infrastructure
There are seven major components of IT infrastructure:
Computer hardware platforms: It has been including different machine server and client server that has been developed by IBM. Blade servers have been ultrathin servers that are used for a dedicated application mounted in space saving racks.
Operating system platforms: These platforms involve PC demonstrated by Windows operating system and servers. UNIX and Linux are two other operating systems that can be adopted by the business organizations.
Enterprise and other software applications: These include SAP, Oracle and PeopleSoft that are acting as middleware in the enterprise architecture (Legner et al. 2017).
Data Management and storage: It is DBMS software that might constitute of traditional storage devices including disk arrays and tapes. Storage area networks (SAN) help in connected multiple storage devices with a high speed transfer.
Networking and Telecommunication platforms: This include Windows server operating systems, Linux, UNIX and Novell. LAN, MAN, WAN are also included in the networking architecture.
Internet platforms: These platforms need to be related with the platforms used in the company’s architecture. These include software, hardware and services for maintaining corporate websites (Nicholas and Steyn 2017).
Figure 4: The IT infrastructure ecosystem
(Source: Park and Lee 2014)
Reasons for building effective information systems
Effective information system has been an important aspects for business organizations. Information systems are used for making important and critical decisions in the organizations. The use of information system shells in maintaining systematic approach to growth of company in market. The use of information system has been providing proper approach to growth of operations in company. It help in managing integrated systems used in the companies for development of company. The operational management of the company has been benefitted by use of IS. The use of IS helps in enhancing the business operation in the company (Pearlson, Saunders and Galletta 2016). In this case, Go Global Limited might use information system that might help in enhancing business performance in the market. Operational excellence can be achieved by use of IS.
It also help in improvising their efficiency for achieving high profitability. Information system have been able to create new products and services for customer in the market. New innovative business modes can be made by use of IS. This business model can provide better sales and profit to the company. Therefore, Go Global limited need to integrate with information system for increasing their sales and profit in the market. The loyalty of customers can be checked by the help of information system. Customer use to come to a particular company of their products and services satisfy their needs and requirements in the market (Peltier 2016). Therefore, Go Global Limited need to hold on their customers in the market for gaining customer loyalty. Information systems have been helpful in gaining competitive advantages in the market. For example, Dell and HP are the two computer manufacturer companies that have been able to gain competitive advantages over their competitors with the use of information system in their business operations.
Impact of key emerging information technologies on business performance
Data framework have been assuming a vital job in creating business system. Data framework has helped in suitable utilization of information and data, helping with different consistence and lessening remaining burden over workers. Data framework has been helping in making modern databases that can help in containing all information and data of the organization. Customarily, organizations used to physically spare their information and records in printed copy groups. Hence, access to particular information and data had been mind boggling. In this way, utilization of data framework in the business association has been helping in streamlining information inquiry and access. Hence, Go Global Limited can build up their business procedure utilizing data. These frameworks can incorporate data from various sources inside and outside of the organization by refreshing a few execution skills.
Building and managing effective information system
Managing information system
Data framework additionally aids basic leadership arrangement of the organization. The long haul accomplishment of the organization specifically relies upon vital plans arranged by the organization. Go Global Limited may be profited by utilization of the data framework in building up their business procedure and build up their business in the market (Feld 2014). These frameworks helps in basic leadership by utilizing diverse data in market examination and break down vital choice. Data framework have been assuming a vital job in creating business system. Data framework has helped in suitable utilization of information and data, helping with different consistence and lessening remaining burden over workers. Data framework has been helping in making modern databases that can help in containing all information and data of the organization. Customarily, organizations used to physically spare their information and records in printed copy groups. Hence, access to particular information and data had been mind boggling. In this way, utilization of data framework in the business association has been helping in streamlining information inquiry and access. Hence, Go Global Limited can build up their business procedure utilizing data. These frameworks can likewise incorporate data from various sources inside and outside of the organization by refreshing a few execution skills.
Data framework additionally aids basic leadership arrangement of the organization. The long haul accomplishment of the organization specifically relies upon vital plans arranged by the organization. Go Global Limited may be profited by utilization of the data framework in building up their business procedure and build up their business in the market. These frameworks helps in basic leadership by utilizing diverse data in market examination and break down vital choice.
Challenges in developing global information system
Web innovation has been helping in giving a few administrations to the business associations for their advancement in the market. For instance, Amazon has been the biggest web based business organization everywhere throughout the world. This Company has utilized all the advantage of web (Rosemann and vom Brocke 2015). The organization has possessed the capacity to give quality items and administrations to the clients in the market. Amazon has been growing its business everywhere throughout the world and as yet proceeding with its procedure. In this manner, web innovation and web based business has been helping organizations in growing their activities in everywhere throughout the world. The utilization of the web innovation in the business association has been suggested by a few written works. Conventional plans of action have been relied upon customary methodologies of showcasing and publicizing items and administrations. These incorporate TV, daily papers, announcements and other publicizing sources. Nonetheless, it has been a moderate procedure and cannot be come to an extensive number of clients. In any case, web innovation has helps in changing this customary idea of promoting and publicizing of items and administrations. Presently a days, organizations used to do promoting and publicizing of their items and administrations over the web (Smith and Wong 2016). Online life has been an incredible and viable stage for the showcasing and publicizing items and administrations over the web. The greater part of the clients are online over different web-based social networking stages including Facebook, Twitter, LinkedIn and Instagram. In this manner, promoting showcasing items and administrations over these stages have helped in improving technique. Organizations associations have been picking online networking for promoting their items and administrations as it encourages in contacting countless in a short interim of time.
A business can develop structures for global information support systems
Web innovation and online business has been related with the electronic networks. In the period of computerized economy, setting up a disconnected shop and trusting that clients will go to the shop is an obsolete idea. Organizations have been searching for web based business everywhere throughout the world. The utilization of the web has been helping in setting up various online shops everywhere throughout the world (Soomro, Shah and Ahmed 2016). The web has been helping in associating clients with organizations over the web. The customary plans of action have been obsolete in this advanced time. The utilization of the web has been expanding in a regular schedule. Along these lines, the majority of the business have been going on the web for broadening their organizations in the market. Web innovation has been creating different open doors for business associations. The utilization of the web innovation has been keeping up a sharp way to deal with the advancement of the biasness association in the market. E-business alludes to working together over the web. There are different organizations that have been effective over doing e-business. For instance, Amazon Inc., Walmart and Coles. These huge organizations have been settled over the web and growing their business over the web.
For this situation, Go Global Limited needs to grow their business over the web utilizing data frameworks. These web organizations incorporate offering items and administrations over the web and coming to clients inside a short interim of time. E-organizations have been involving a vast capacities including consumer loyalty by giving quality items and administrations to them. The utilization of the data framework has been helping in coming to about the enormous number of clients everywhere throughout the world (Stair and Reynolds 2017). Data innovation has been one of the pertinent elements that have been helping business to connect internationally with their creative items and administrations. Electronic business through electronic mail, voice message with videoconferencing, information gathering, remotely coordinating and electronic trade of information empower the web which gave another blast in pointedly evolving business sector, economy, society and governmental issues by evolving items, administrations, shopper conduct, and so on.
Social, Ethical and Security issues
Ethical and social issues have been prevailing in the information system along with its benefits in the business organizations. Ethical issues have been related to the information technology. There have been mainly four ethical issues in the information system.
Doubling of computer power in every 18 months: Most of the organizations have been depended on the computing resources for their business. Therefore, all the operations have been depended on the computing resources. This might create vulnerable situation for system error and loss of data. Social rules and laws have not be able to fix this problem.
Rapidly declining data storage costs: There have been increase in the data storage techniques and declining in the storage costs (Valacich and Schneider 2015). This have been causing multiplying databases on individuals. These advances in data storage has been violating individual privacy at cheap and effective manner. Massive data storage system have been available at low costs for regional and local retailing firms in the market.
Networking advances and the Internet: Various advances in the networking technology has been creating issues in the transfer of data and information in the network. The use of the internet in the data transfer has been creating risks in the market. There has been huge number of data loss from the internet. The ethical concerns related to the networking has been mentioned in various business organizations therefore, Go Global Limited has been facing these ethical and social concerns in their business operations. The data loss in the company has been reported in the annual reports of the company.
Security risks involved in information system
Security risks have been prevailing in the information systems in several business organizations all over the world. The use of the information system have been helping in providing several benefits to business organizations (Van De Walle, Turoff and Hiltz 2014). However, there are several security risks involved in implementation of information system.
Unauthorized User
There are several unauthorized user of the information system trying to breach into the system. These unauthorized users might be hackers trying to hack the information systems of the company. For example, Yahoo.com has faced an unauthorized hacking in their database, losing millions of data relate to Yahoo users in 2009.
Computer Viruses
Computer virus is a software that can be used to enter into a computer without having any knowledge and permission. Various viruses have been crashing and damaging computer data and of information in the business organizations (Vom Brocke et al. 2015). Trojan and worm are two different computer viruses.
Vandalism
Intentionally damage to hardware and software data has been a serious threat to information system security. The threat from vandalism include inside the organization has been temporarily denied access for someone to resources.
Evaluate tools and technologies for the protection of information systems security
There are efficient tool and technologies that can help in protecting information system security threats. Some of these are mentioned below:
Firewall: It helps in preventing the accesses of private networks and systems over the internet. The use of firewall helps in restricting harmful malwares and viruses from entering into the information systems and databases. However, the cost of firewall has been high. It might restrict some authentic software from installing in the system.
Antiviruses: These are software that helps in detecting viruses and malwares in the computer systems (Wager, Lee and Glaser 2017). These software help in removing viruses and malwares form the information systems. However, antivirus slows down the system and makes it not responding state.
Digital Certificates: Digital certificates helps in managing user’s identity over electronic transactions including authenticated certificates. The limitation is that it does not allow to install some important software and applications when required.
Conclusion
This report depends on the effect of the data framework on Go Global Limited. This report has been centered around recognizing the job of data framework in creating worldwide methodology and business system at web based business. The job of the data framework on worldwide e-business has been talked about in the report. The significance of data framework in upgrading execution of business of Go Global Limited has been talked about in the report. Different social, moral and security issues identified with business have been examined in the report.
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