PITFALLS IN MANAGEMENT INFORMATION SYSTEM A Management Information System (MIS) converts data from internal and external sources

into information. This information is communicated in an appropriate form to managers at different levels in a business to enable them to make effective decisions for:

planning, directing, forecasting, coordinating, controlling

activities for which they are responsible. A MIS uses a database system relying on data from one or more databases. The data is usually held in the computer as a result of normal data processing activities. The information provided by the MIS should be: reliable, consistent, appropriate to the level of management, accurate, timely, precise - provided at a suitable level of detail, clearly understandable, regular. Management Information System is an important at all levels and in all organizations. A management information system is an approach a company uses when making various business decisions. Business owners and managers are responsible for operational, technical and strategic decisions. Using an information system helps these individuals gather pertinent documents that will help them make the best decision possible. While these systems were manual in previous decades, business technology allows companies to implement electronic systems. Some pitfalls can exist when using a management information system in a company.

Unemployment - While information technology may have streamlined the business process it has also crated job redundancies, downsizing and outsourcing. This means that a lot of lower and middle level jobs have been done away with causing more people to become unemployed. Privacy - Though information technology may have made communication quicker, easier and more convenient, it has also bought along privacy issues. From cell phone signal interceptions

to email hacking, people are now worried about their once private information becoming public knowledge. Lack of job security - Industry experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure. Dominant culture - While information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else. Expensive - Installing a management information system can be expensive for a company. Information technology---while cheaper today than previous years---can represent a significant expense, especially for larger organizations. These systems may also require ongoing support or upgrade fees, which can represent future fixed cash outflows. Companies must create a budget to pay for these items to ensure the information system stays current with business technology. Attempting to integrate these systems with technology currently in use can also increase expenses. Maintenance - Companies may need to hire maintenance individuals to help keep an electronic information system running smoothly. These individuals often need experience in computer science functions and other business topics. Not only does this increase labor costs, but it also requires additional training and ongoing education for these individuals. Business technology can change frequently, creating an environment where companies must have trained individuals who can properly maintain computers, websites, servers and other equipment in use by the management information system.
Ineffective - Management information systems have the potential to become ineffective in a

company's operations. As with all computer systems, the management information system is only as good as the programmer. Gathering unimportant or non-essential information can delay business decisions because managers must request additional input. Spending too much time reprogramming or correcting issues can also increase the time spent in the decision-making process. Business owners and managers may also need extensive training on new systems, creating a learning curve that will hopefully diminish over time.

Why an MIS Might Fail MIS systems are complex and expensive pieces of software, and many people are involved with the design both within the organisation and from outside. Often they are built by software houses to the precise requirements of the organisation. So the client organisation needs to be very clear as to what it wants, and the software house analysts need also to be very clear about the requirements. MIS failures can be expensive and bring bad publicity to all parties. They can arise due to:

Inadequate analysis - problems, needs and constraints arent understood in the early stages. Lack of management involved in the design wrong expectations of a new system / no-one understands the system. Emphasis on the computer system Need procedures for handling input and output / select the right hardware and software Concentration on low-level data processing Information must be easily accessible and understood Lack of management knowledge of ICT (Information and communication technologies) systems and capabilities managers know what they want from the system but dont understand the technology

Lack of teamwork An ICT manager must co-ordinate the accounts, marketing, sales etc. departments and help everyone understand the benefits of the system Lack of professional standards All systems need clear documentation that all users can understand (not just the ICT literate)

Organisations can judge how successful the implementation of an MIS system has been by applying the following evaluations:

High level of use - Is it actually used? Some systems dont become operational for reasons such as it taking too long to enter data. High level of user satisfaction - Do users like the systems? Accomplishment of original objectives - Have the objectives specified in the analysis stage been achieved? Appropriate nature of use - Is the software being correctly used?

Has proper training been given?

Institutionalisation of the system - Has it been taken on board enthusiastically?

Disadvantages

Highly sensitive requires constant monitoring. Budgeting of MIS extremely difficult. Quality of outputs governed by quality of inputs. Lack of flexibility to update itself. Effectiveness decreases due to frequent changes in top management. Takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc... lack of terminals for staff to use. insufficient storage for the volume of data. lack of operational support. training issues. maintenance issues. bottlenecks in interfacing between the data and the user. staff ignorance of the capabilities of the MIS. inadequate security. inadequate expansion capability.

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An MIS provides the following advantages. 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision - making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . 5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost . 6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information. reference: http://www.management-hub.com/information-management-advantages.html

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The Disadvantages of a Management Information System By Osmond Vitez, eHow Contributor

updated: August 23, 2010 1.

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MANAGEMENT INFORMATION SYSTEMS ADVANTAGES OF MANAGEMENT INFORMATION SYSTEMS Use of MIS leads to; 1. improvements in price/performance ratios, 2. a more relevant service for customers, 3. a better quality service for customers, 4. bigger profits for MIS users, 5. more accurate sales data, 6. better marketing information, 7. better trend-information on profits.