Wednesday 17 April 2013

Introduction of Management Information System


Source : Journal of The influence of Enterprise Systems on Business & Information Technology
Written by : Revenaugh, D lance and Muretta, Myle.M


My Comments 

From this journal we can analyze the activities of almost every business function, we can notice that 90% of all activities in the majority of business functions come down to collecting, processing and analyzing certain data. The role of information technology in a company makes a business system able to react quickly and adequately on the influences from the surroundings. A company with a well structured information technology can react efficiently and change its relation towards the surroundings promptly, when a reason to do so appears. The process of performance measurement enables the company to identify economic resources that it has at its disposal, to realize what the key factors that influence its performances are, and to find the best flow of action. 
Information of business and other organizational system can be introduced by developing one's own information system or by purchasing a suitable software program. For example: payroll system, attendance system, purchasing or procurement system, account system and many more. 

Why we need Enterprise Resource Planning (ERP) ?
It is because of :

- Integrates organizations department & functions.
- Value - added for the organizations
- Planning the available resources.
- Automates key business process

The Advantages of ERP 

- Efficient production management & material flow
- The opportunity for the integration of several manufacturing locations from the aspect of data application.
- Efficient management of consumer-supplier relations.
- Support from all aspects of a firm accounting systems.
- Elimination of redundant operations and data.
- Localized software versions, not only in view of the sense of legal solutions.
Efficient system reporting on all level of management so forth.