Category: Learning Logs

Things I learned during my MBA days

The Role of MIS in a Manager’s Life

After learning about the great advances in technology and how businesses no longer have the option but to embrace the swarm, the manager’s next question will be: how does it benefit me and my organization?

Managers are trained to always look out for the next big thing and to find out how it would best benefit (and even adversely affect) the existing status quo. Managers are paid not just to manage an organization but more importantly to do so in the most cost efficient way possible. Hence, the importance of integrating technology with the day-to-day decision-making and data analysis that managers do.

In my role in the organization, I am tasked to analyze a vast amount of data in the form of units sold, customer demographics, customer buying trends, etc. and make decisions and strategies based on these data that would be profitable to the company. In one way or another, management information systems are at place to help me with this seemingly daunting task.

Yet, I must admit that it is not a system fully automated yet or even vastly effective. There are systems in place but a major part of the process is still done manually. What could be the reason behind this?

The Automation Chart || In our company, 60% of instructions are carried out manually (Processes) while 40% are automated with the help of softwares.

I am led to believe cost is a major consideration. Most companies, including ours I’m afraid, are unable to actually afford having a full-time MIS specialist to handle their MIS needs. Another reason I can see is ignorance. Yes, most companies know that they need to automate because it will eventually cost them less yet they are at a lost how to do it efficiently. Hence, they end up purchasing various off the shelf information systems which ends up costing them more since they fail to implement a customized and well-thought management information system (MIS). Sadly, my company is part of the group described above.

But such is the very reason why I am now on this journey – to initiate change base on sound theories and actual trends. And in the coming weeks, I hope to fill in that ignorance and eventually move towards a more efficient and effective organization.

On Profits and Shared Systems

The world has come a long way from the time of the cavemen and the time of steam engines. Now we have automated elections and fast food online deliveries. Everything is faster and easier because of various information systems that are in place. The boom of the digital economy in the last 20 years has made life easier for many. And it has seen the rise and fall of many businesses.

Admittedly, technology is a huge part of any business. Any business who fails to recognize the role of technology in their daily operations is bound to fail. The swarm is here and there is no choice but to join in. Digital economy has taken us by storm and it’s something that businesses are forced to embrace. Fail to recognize the value of it and competitors are bound to overtake you. It is for this reason that those who’ve already benefitted are less likely to share with anyone their own developed systems. In this technological age, those who have the information and the most advanced technology to process those information have the clear upper hand. They profit the most and they overtake their competition by leaps and bounds. So who are they to share what they have with their competition? It is an ideal world if we would get businesses collaborating with each other by sharing their technology but more often than not, they don’t. Business after all is mostly about making profit and businessmen are always concerned about their net incomes.

Perhaps that is the reason why for most industries likes ours, information systems are outsourced. I have yet to know of a business in my industry that keeps its own IT section fully dedicated to establishing systems for them. Most of the time, it is easier to outsource these things to the experts and simply avail of the readily available software systems out there. After all, the needed systems are not as complex. Although we would benefit from an information system fully designed and customized for us, the cost of developing such would be too much. Why spend for something that we can already buy off the shelves and serve us the same purpose?

This notion of mine is evident with the huge number of independent I.T. companies out there. Why do they exist independent of business organizations? Because in our country, most businesses are hard pressed to maintain fully functional I.T. sections due to the huge operational costs this will entail them. So for their information system needs, they outsource it. As such, the “collaboration” and “sharing” of business information systems happen. It’s not really the businesses choice to collaborate. Rather they have availed of information systems that are similar with the information systems availed by their competitor. Hence the perception of “shared systems”.

The effects of the digital economy is evident in our society. Who doesn’t have a Facebook account these days? It’s a mere social networking tool for some but for businesses, it’s something worth capitalizing on. After all, people share almost all their information via the social networking site. What a great way to gain insight to your consumers or target market!

Information systems are great ways to advance anyone’s business. The digital economy is something that all businesses have the chance to capitalize on. But this is not for every business nor is it the solution to dispelling the extremely competitive nature in the business arena. It’s not for every business because not everyone has the resources for it. It won’t dispel competition but rather it will spur even more competition among businesses. The trick here then is for all developers to band together, providing similar solutions to businesses but at the same time taking into consideration their individual and unique needs. And if developers can forego the businessman’s obsession with profit then it will be an ideal world indeed.

Information Systems Architecture
A Sample Information Systems Architecture (Photo credit: Wikipedia)
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