NAME

CLEMENCE M MUNAKI

FACULTY

COMMERCE

DEPARTMENT

HUMAN RESOURCES (PARALLEL)

STUDENT NUMBER

P0111 980T

COURSE

ACCOUNTING 2A

DUE DATE

ASSIGNMENT 2

4 November 2014

KCB ID: 11305

Management information systems are defined as an intergrated user system for

providing information to management for analysis ,decision making functions in an
organization (www.pesonal.psu)it can be referred to as a system that converts data from
internal and external sources into information and to communicate in an appropriate
form to all levels in all functions to enable them to make timely and effective decisions
for planning ,directing and controlling activities for which they are responsible .Thus
the information system should be able to satisfy the information needs of the firm and
provide information which meets certain conditions for it to be ultimately useful to the
organization
Managing information is the process of the strategic management of all the information from
the various parts of the organization. An organization needs the information from its various
parts and need to clarify them in supporting the decision making for that company.
Laudon, K. and Laudon, J. (2007) in their book of, Management information system, has
elaborated the definition of MIS as, Management information system works at the levels of
management of any strategic organization and serve it with the functions of planning,
controlling as well as decision making with the providing of the routine summary and also
the exception reports
Managing information is therefore, the management system of the existing information from
the various parts of the company and their strategic management for the purpose of strategic
decision making for it in aiming of the future strategy and
Core components of information system are,
1.

Data Raw and basic unit of the organizational information

2.

Information when the raw data expresses a meaningful information

a. Input entry of the raw information in the system
b. Processing Strategic meaning that are processed by the set
c. Output To get the handy of information that are presented in printed graph,
chart etc.

An organizational management level may be classified in the following three tiers and the
involved information system is,

Page | 2

KCB ID: 11305

1. Operation level: keep track the core operations of the company and deals with various
departments like, customer service, cashier, production, order processing etc.
Information system:
TSS Transaction processing system
It automates the routine and the repetitive tasks, critical in the operation of
organization, e.g. point of sales, payroll preparation, customer billing, warehouse
operation etc.
2. Managerial level: Companys various levels of information are managed in this level,
e.g., sales management, sales analysis, inventory control, relocation of cost control,
budgeting for the company etc.
Information system:
DSS Decision support system
This information supports in the complex types of information and provides analytical
tools to the employee.
MIS Managing information system

3. Executive level: the top level management resides here and they are to take the
strategic decision, long term plan, sales trend forecasting, personnel planning etc.
Information system:
ESS Executive support system.

Figure 1: Interrelations among Information technologies.

(OBrien, J (1999). Management Information Systems Managing Information
Technology)
Page | 3

KCB ID: 11305

Figure 2: Functional areas of MIS

(Laudon, K. & Laudon, J. (2007) Management information system)

Page | 4

KCB ID: 11305

DECISION MAKING AND ITS VALUE

A functional organization have to consider the decision making process for its strategic
needs. The decision making have some strategic values in companys background and for its
success. According to the structure of decision taken in the organization, they may be of two
types.
a. Structured decision:
It follows the strategic structure and in repetitive, follows the routine and also
involves in the structured definite handling processes. The operational level in the
company or organization are the core department where it is seen to be considered.

a. Unstructured decision:
This sort of decision process doesnt follow any strategic structure and they are not in
a routing and beyond the judgement evaluation are categorized as the unstructured
decision process.

Basic components of the Information System

i.

Hardware: This is the set of devices that runs the software in the chain of
information technology. They are composed of processor, monitor, keyboard and
printer etc.

ii.

Software: This is the set of programs that run in the hardware environment and
process the data in a strategic way.

iii.

Network: This is a connecting system and permits the resource sharing in

different computers

iv.

Procedures: set of strategic information that elaborates the way of processing

information.

v.

People: Are individuals who work in the system and take decisions how to use the
information technology and system.

Page | 5

KCB ID: 11305

A Case Study: DHL

(An express logistics company)

DHL express is a subdivision of the Deutsche Post that provides the international services. It
was founded in the early 1969 in the aim of delivering documents from San Francisco to
Honolulu. The company later has expanded its services throughout the world in later 1970s.
The prior interest of the company was in offshore and the inter continental package
deliveries. But the success of the FedEx has prompted them in its expansion in the US that
had started in the 1983. In the current times, DHL aggressively expanding to the different
countries where it could not be served by the other delivery or courier services. This region
includes the Eastern bloc, PRC (People republic of china) and Vietnam. In the year of 1998,
Deutsche post had begun the acquiring the shares of DHL and finally in the year of 2001 it
had reached its ownership status of DHL. In the 2002 it has committed the full purchase of
the company. After that, Deutsche post was effectively absorbed DHL in its express division
but expanding through the using of DHL brand in other Deutsche post division, subsidiaries,
businesses etc. At present, DHL express is sharing the well known DHL brand in conjunction
with DHL global forwarding and freight and the DHL supply chain.

IIS (Integrated Information System) at DHL

DHL is highly known as it uses the technology innovatively and for its fast and reliable
services. As DHL is mainly a service based company for the shipments and transport of
various goods worldwide, it needs information from the entire sector of the company,
specially form its operational sector. These information helps the company mainly in track
and trace types. So the ultimate goal is better strategic customer services and support in
logistics support.

Page | 6

KCB ID: 11305

IT Solutions at DHL
To adopt and implement better services, DHL has enabled the Cisco solutions to improve
better communications and for better operations e.g., telephone system management,
maintenance etc. Through the creation of single network and the communication
infrastructure, DHL has been helped by Cisco to improve communications over various sites
and manage them in a very strategic way. For example the employee of the DHL are able to
call any locations worldwide and the other staffs simply use the extension and outbound
calls. Through this Cisco solution, corporate directory are easily accessible ever from the
handset.
Structure of the solutions:
For Routing and the switching
i)

Cisco 2800 series server routers

ii)

Cisco catalyst 4500 series switch

iii)

Cisco catalyst 3560 series switch

Voice and IP Communication

i)

Cisco unified call manager

ii)

Cisco unified IP Phone

Security
i)

Cisco network access control (NAC)

ii)

IDS

DHL currently planning in leveraging the Cisco SONA framework through the using of
the network in deploying the additional business applications. Additionally DHL is also
setting up RFID (Radio frequency Identification) over the existing Cisco network for
further and improving its operations.

Page | 7

KCB ID: 11305

MIS (Managing Information System) at DHL

At present information technology are crucial for any company background to fulfil the
business role effectively. In respect to the DHL they are highly information intensive
company where in every aspects they have to practice information most effectively.
Organization information backbone can be categorized in three tiers of management
according to the information provided for the strategic decisions to be made.
a. Operational information management
b. Managerial information management
c. Strategic information management

(Laudon, K. and Laudon, J., Management information system)

We will now find out the relevance information provided and managed by DHL in
every segment for its DSS (Decision support system) strategy.

1. Operational information management.

DHLs operational information mainly in relation with the freight and logistics. They
need the current and updated information about the goods, customer, location,
condition etc. To achieve this target it has developed and implemented a number of
solutions in its operational level of management.

i.

Kofax (Scanning software): One of the main duty of the staff at DHL is to
scan the tag of goods to track the information and process them through
IBM DB2 content manger. But this system has proven to be unstable and
was found to be hit by number of viruses.
Later through the establishment of Kofax, they have got remedy from this
unstable and bizarre situation. Now they are able in managing the information
and getting approval of more than 5,000 invoices every week.
Architecture:
Kofax ascent capture (ACIS)
IBM DB2 content manager
IBM Series hardware.
Page | 8

KCB ID: 11305

ii.

Siebel solution: A software solution developed by Oracle for DHL to unify

the customer information and in creating a single, global and also a
multichannel view of every customer relationship. Siebel system also assists
DHL in the execution of compelling, multichannel marketing programs that
are aimed at the maximization of the demand for the domestic and in
international express services.

This CRM application plays the vital in collecting the information about the
customer about their choice. Through providing a clear and transparent view,
DHL had achieved approximately 1% increase in its revenue in the year 2005.
This Oracle solution has reduced the sale time, administrative time etc. too.

iii.

Forwarding and Freight: This department of the operational level are

responsible in carrying goods through railway, road transport, air and sea. The
two main business units are,

a. DHL Global forwarding: It handles the global ocean and air freight.
b. DHL Freight: It runs the ground based and freight network that covers the
whole Europe, Russia and in the middle-east.
c. DHL Supply chain: Provides service in warehousing and the warehouse
transport and the value added solutions and also for the customers in wide
variety of sectors.

DHL Worldwide Express is the global market leader of the

international air express industry. DHL is the pioneering in the
industry since 1969. But today DHL continues to be at the forefront of
technology, offering fast, responsive, and cost-effective, express
deliveries in addition to e-commerce fulfillment and intelligent
logistics solutions. The DHL network links over 120,000 destinations
in more than 220 countries and territories, and employs 71,000 people.
DHL is majority owned by Deutsche Post World Net. DHL ascent to
global market leadership has always been distinguished by
technological innovation; nonetheless, it has remained a challenge to

Page | 9

KCB ID: 11305

provide every DHL location across its enormous network with up-todate trade information – that is, until now.
DHL installs Network Management System to track network failures
DHL has installed the Network Management System (NMS) to
strengthen the internal network for data transfer and e-mail
movement around the world. The installation of the system is expected
to reduce the down time and delays in the transfer of shipment details
to its various offices in the world, on account of the network failure.
The NMS has been designed to enable the IT support staff of the
company to continuously monitor the failures in the network and
attend to it immediately. The NMS alerts the support staff by instantly
flagging the network failures on the screen, at the company’s
control room. It also has a facility to dispatch e-mail or page a
message to the concerned staff, informing him or her of the location of
a failure in the network.
IT For Extended Supply Chain
Order Management System
The Order Management System (OMS) tracks a shipper's or
consignee's order number through the entire supply chain.
Transport Management System
The Transport Management System (TMS) starts with planning the
optimal transport modes and schedules, manages the execution and
tracks shipments throughout the supply chain.
Exception Reporting
Exception Management identifies where and when deviations to
schedule take place in the Supply Chain, reporting alerts to our
customers.
Track and trace
Track and trace checks and records each major event in the route of
an order or shipment through the Supply Chain.
Warehouse Management System
The Warehouse Management System (WMS) records all events and
actions in the receipt, handling and storage of products and orders in
a warehouse environment. The WMS also records the location of
Page | 10

KCB ID: 11305

inventory whilst stored in the warehouse.DHL's Prologs WMS

manages all critical processes in the warehouse, and is also an
important support for varied transport and distribution concepts
(planning,

time

controlling,

booking

of

transport

capacity,

communication with customs and other authorities).It creates

synergies by large-scale operation to drive operational efficiency and
effectiveness. Resources for storing, handling and distribution can be
co-ordinated in different ways and for different types of flows, e.g. by
a large variety of "multi-client/multi-order picking" and
consolidation of shipments.
Connectivity - information backbone
The Information backbone joins all the above systems to provide
rapid exchange of information between the operating systems, without
a need for data re-entry. The backbone also provides the interface to
upload logistics data to the customers' hosted systems.
Data Worldwide Express
The Data Warehouse is an electronic repository for historical data
relating to products, orders and shipments. The Data Warehouse
feeds all reporting and management tools.
DHL Web Shipping
DHL WEB SHIPPING is the on-line express shipping tool that helps
you prepare documents, book pick-ups, store contact details and track
your deliveries. Ideal for busy office managers, business travellers or
receptionists, DHL WEB SHIPPING needs no special software or
training.
DHL WEB SHIPPING's new, simplified navigation guides you,
quickly and easily, through the entire process. So you can respond to
any shipping request within minutes.With a click of a mouse you can:

Get the latest service bulletins and customs informations

Book collections and track shipments on-line

Save up to 300 customer addresses

Access shipment records for 99 days

Alert recipients and other interested parties

Page | 11

KCB ID: 11305

DHL WEB SHIPPING is also perfect for telecommuters. You can

order a pick-up, checkservice availability or track your shipments
from any location, in real time, direct fromyour wireless laptop.
References:
http://www.ipan.com/press/
http://www.dhl.com.my/
http://www.dhl.com.my/publish/my
DHL Supply Chain has launched a live order tracking system (Lots)
to deliver real-time information to its customers.
The web-based Lots tool was developed internally and will enable
customers to view order information over the internet. The project
took 12 months to develop and DHL ran a trial in 2010 with some of
its multinational customers
The system has reduced DHL's support costs, as customers can track
order delivery without having to contact the company directly, says
Allan Butterworth, vice-president of IT at DHL Supply Chain's
consumer sector division. Using advances in technology is crucial to
staying ahead of the game in the logistics industry, he says.
"Lots is now running with three of our largest customers and we look
forward to working with them to develop the system's capabilities
even further," he said.
The system incorporates GPS vehicle mapping to view exact locations.
When the vehicle leaves the depot it uses Geofence GPS tracking to
automatically send a message back to DHL's main database, which
then sends a message to the Lots system so the customer can see the
delivery is en route. This process is repeated when the vehicle arrives
at its destination.
The system has also significantly improved operational efficiencies, as
any discrepancies are flagged from the time the delivery is made and
dealt with immediately, says DHL.

Page | 12

KCB ID: 11305

2. Tactical / Managerial information management

In this managerial level of information management, DHL gathers information from
its lower, operational level system to facilitate its decision support system (DSS). In
the past the company were managing the logistics through off-the-shelf warehouse
applications that were run on the legacy microcomputer platform.

i.

Progress Open hedge: In 1998 it has realized and the management level has
decided to use the Progress Open hedge legacy software platform to build
the custom applications in house. It has facilitated DHL in managing economy
and provide the ability to build both the applications and in selecting best-ofbreed applications.

ii.

WMS (Warehouse management system): DHLs Management have selected

the WMS system provided by WICS, a partner of Progress. This warehouse
management system are featured with the vast flexibilities. It offers DHL,
fully featured support in bar coding and the RF technologies. It also support
DHL in the centralized tracking of its inventory from the receipt through the
distribution and the delivery. The WMS program runs on Open Hedge
business environment.

Now a day, when any goods are received in purpose of storage, the WMS are
able to generate labels and this is used in uniquely identifying pallets and then
the system allocate the available storage.

(http://www.progress.com/worldwide)

iii.

Citrix: Improved architectural frameworks that are used and set up by the
managerial level in improving the stability and the scalability as well as
increasing IT support efficiency.
(www.citrix.com)

iv.

Telecommunication network: DHL has managed two of the independent

Metropolitan area networks (MANs) to provide itself with higher available

Page | 13

KCB ID: 11305

and the resilient IP. Its telecommunication network has connected its IT
service centre to the domestic and international telecommunication partners.
Network features:
In consists of 56km of the 48strand optical fibre, 1000km of the copper
cabling and it supports 60 million transactions.

v.

Inventory management
Almost 80% of the inventories at the are in supplies. Most of them are not in a
directly tied in finished product of the overnight shipping but helping to
maintain the smooth system. More than hundreds of the supplies are kept on
hand if there is any unforeseen problem happens. Another more important type
of the inventory would be in spare of the aircraft in the fleet. In this event
there are the mechanical issue or the required maintenance with the outgoing
or the inbound aircraft that can be easily swap them at DHLs hub as here the
hub or the quick turn that is needed destination in recovery the material.
(www.DHL.co.uk/press)

3. Strategic information management

The strategic level of the DHL require strategic information in setting up the
companys aim and target, long term planning strategy, marketing solution etc.
Efficient management of information and goods
Enterprise resource planning ERP is a description of systems that employ innovative
information technology to manage all sorts of areas in companies. Major corporations, in
particular, could hardly function without tailor-made ERP software. One component of ERP
can be a warehouse management system (WMS). With its assistance, precise warehouse
management can be conducted even in the most complex storage and distribution systems. As
a result, inventory monitoring can be improved and the entire supply chain can be designed
more efficiently.

Page | 14

KCB ID: 11305

Physical goods movement and information flow in the ERP system

This

article

contains

additional

information

and

interactive

features.

Open the Flash version of this article here.

The characteristics and application areas of ERP systems
One elementary factor in optimizing a companys important core business processes is the
fast and precise retrieval, integration and collection of information. Enterprise resource
planning ERP is a system that uses modern information technology to manage the functions
of various company divisions and to create transparency in the process. Through the use of
ERP - and, as a result, a single data model for all company-relevant information - significant
amounts of internal integration can be achieved. This is an important benefit especially for
international companies. But small and mid-sized companies can profit from tailor-made ERP
solutions

as

well.

For the entire supply chain Supply chain , an ERP system with a shared data model is a
desirable solution - but the implementation of it is extremely complex. The trend toward
outsourcing Outsourcing is also raising the systems cost because the number of companies in
the

supply

chain

continues

to

expand.

Advanced planning systems Advanced planning system (APS) represent an extension of the
ERP in terms of relationships with other companies. These systems represent complex
logistics structures and processes in a supply chain Supply chain , and facilitate fast responses
and optimal inventories and capacities. For this purpose, APS uses data managed by ERP
systems. In the automotive industry, for instance, the supply chain can be mapped all the way
to the pre-suppliers of a system supplier. As a result, critical paths can be recognized and
supply squeezes prevented at an early point in time.
The functional areas of an ERP system

Page | 15

KCB ID: 11305

The essential business processes in a company can be almost completely covered by new
ERP systems, and the execution of these processes can be supported in real time Real time .
Different business sectors can sometimes place widely different demands on an ERP system.
In response to these needs, major providers like SAP, Oracle and Microsoft offer solutions
specially tailored to individual sectors. Such special solutions already are in place for
aerospace & defense, the automotive industry, banks, the chemical industry, logistics service
providers, telecommunication, insurance firms and universities, among other areas. This
graphic shows the functions of an ERP solution provided by SAP.
Efficient storage administration through warehouse management systems
Warehouse management systems (WMS) represent a further evolutionary step from the
inventory management systems (IMS) used in the 1980s and early 1990s. The traditional IMS
only enabled stored items and storage positions to be administered and conveying systems to
be managed. But todays WMS can do much more. Among other things, they permit
numerous important indicators to be monitored and develop multifaceted strategies for
optimizing the systems in use from these indicators. As a result, complex storage and
distribution

systems

can

be

easily

managed,

monitored

and

optimized.

A traditional IMS was generally used as a black-box system that was separated from the
central company software. In contrast, the WMS began to be increasingly networked and
integrated into the ERP Enterprise resource planning at the end of the 1990s. As modular
software, the WMS offers a scalable functional range within the framework of the ERP:

The core functions of a WMS support the basic processes in every companys
warehouse area: e.g., receiving, storage, warehouse management, picking Picking ,
retrieval, shipping, inventory and forms management.

The expanded functions of a WMS include batch/serial number management,

management of empty bottles and returns. Additional modules offer connections to
self-contained software packages like RFID Radio frequency identification software
or pick-by-voice Pick-by-voice /pick-by-light Pick-by-light systems.

One other important function is support that is provided to the management of linked
storage facilities. As a result, the inventories of several warehouses can be balanced
with one another or particularly high-quality items can be distributed only upon
notification from centrally located warehouses
Page | 16

KCB ID: 11305

Merger & Acquisition: In 2005 Deutsche post that have acquired DHL before, acquired
Excel in December. Following the merger the company were became the worlds largest
logistic company. But however, the business was divided in between them, e.g., DHL for air
and ocean and Excel for freight management. They then combined to form DHL logistics.

In 2006 DHL gloabal mail UK was merged with Mercury international.

(http://www.deutschepost.de/dpag?lang=de_EN)

i.

Human resource: DHL have a very strategic and efficient and highly skilled
manpower. In the year of 2005 it has employed more that 600 skilled IT
professionals. Major employee was taken from the Czech nationals. In this
year, they have set up more than 500 servers and configured in enabling the
migration of processing of the business transactions from its data centre in
UK, Basel, Switzerland etc.

ii.

EDS: Over the times, as the current businesses of DHL has expanded and in
therefore, the planning, air execution, road transportation etc. became
increasingly complex. Different functions of DHL e.g. dispatch, movement
control, planning for load were supported by the aged technologies and the
information exchange, data visibility were affected. In this situation, DHL has
set up the Business area review (BAR) programme in aiming reducing cost
etc. And in this condition DHL were in need support from the EDS who
provided overall program management, have worked jointly with DHL in
setting up the highly, scalable and strategic technical atmosphere.

Page | 17

KCB ID: 11305

(EDS: an HP company, http://h10134.www1.hp.com/news/features/5855/)

iii.

Human resource

At the DHL teamwork is considered as the key success for the company.
though the employee work individually but their works are toward a goal for
success for the company. At the DHL hub, the work strategy are designed
such a way to help maintaining the efficient work environment that supports
the business strategy. DHL are always fond to keep its employer happy in
accordance with the human resource management.

iv.

Planning and Scheduling

At the DHL, operations in its managerial level are planned through the chase
and demand approach. Key resource should be planned in staffing properly.
In the peak time of year, staffing is the main concern for the management
level. If the system is understaffed, there may be the chance for the system to
run in late that acts as the delay in delivery of the shipments to its customer.
The other key factor which should be scheduled in every night and day is the
operation of aircrafts in inbound and outbound. Having such a large fleet,
they are scheduled for the maintenance at the routine basis. These aircrafts are
then need to be replaced with the backup aircraft to continue the process as
normal. Other element should have to plan that is the requirement of glycol a
substance are used in on the aircraft in time of winter operations that prevents
the ice forming in its wings and body.

v.

Quality management
In the back 1997, DHL became and ISO9002 certified signalling to their
customers that are pledged to deliver the packages in accordance o the
worldwide standard of generic handling and the methods of delivery. In the
past years a newer management were placed in controlling the hub and the
total quality management were introduced from then. In that time trackin of
the shipment was not a easy task in comparing to the present and it is scanned

Page | 18

KCB ID: 11305

in the DHLs information system at time of pickup and it was not again
scanned before it is delivered to the customer.

Conclusion
DHL and the information technology are highly integrated in its core business framework.
All critical and complex information are efficiently and effectively are managing through the
adoption and implementation of modern information technology. In review of the company
DHL we have found that greatest success rate are achieved through the information
technology and its strategic management. The company are found in implementing the
purposes of strategic decision making in the aim of budgeting, forecasting, financial review
etc. and all the other information management are exercising in the managerial and in its
operational level for better strategic development and success.
Thus the implementation of MIS and proper exercise of it will lead to more success of DHL
as well as for other companies.

Recommendations
In DHL I have found that it is properly exercising the practice of Managing information
system through the implementation of modern technologies and getting more success rate
worldwide. But however, it seems to me that the company have some lacking in information
sector that need to be rectify and develop the new strategy to be in more success in
comparing to other companies.
In its operational level to deliver a parcel, it is found to use a connecting hub and all the
regional goods or parcels have to arrive there before further sorting. This process though have
no bad effect in timings but it sometimes very misguiding and sometimes it cost more time
Page | 19

KCB ID: 11305

too. DHL therefore, should have to setup regional sorting centre where the parcels will stay
shortly in their nearest hubs. Thus the package needs not to run a pace and arrive the
destination in short time.
Siebel solution was implemented in aiming of Customer relation management (CRM) and
strategic development. Though the system is a very useful in this sector and an advanced
technology but however its not suitable for all the professions. Operating the software are
harder than any other database management system and the Oracle DB are integrated with
this which are need to be operated by the skilled professionals
WMC or the warehouse management system adopted by DHL though have brought a number
of good values to the company, its now worthy of this company in all aspect. The legacy
software has a number of bugs, recently explored in managing the legacy solutions.
Motivation as well as the commitment of the employees acts as the key to success of DHL
Company and also in customer satisfaction. Strategic level management ensures the people in
DHL and they need be properly managed in light of the strategic human resource
management theories. In this regard the strategic management at the human resource
management should take proper steps in satisfy them while following all the rules of human
resource management.

References

Elliott, G. (2004). Global business information technology: an integrated systems approach.

Harlow: Addison Wesley
Fattahi. R and Ebrahim Afshar (2006), Added value of information and information
systems: a conceptual approach, Library review Vol. 55 No. 2, 2006 pp. 132-147
Laudon, K. & Laudon, J. (2007) Management information system, 10th Edition, Prentice
Hall.
Page | 20

KCB ID: 11305

OBrien, J (1999). Management Information Systems Managing Information Technology

in the Internetworked Enterprise. Boston: Irwin McGraw-Hill. ISBN 0071123733.

Online links,
(http://www.progress.com/worldwide)
(www.citrix.com)
(http://www.deutschepost.de/dpag?lang=de_EN)
(EDS: an HP company, http://h10134.www1.hp.com/news/features/5855/)

Page | 21