Managing information systems provide the much-needed information in the market that is helpful in making critical decisions (Beynon-Davis, 2009). It correlates a lot of information in the daily operations and sums it has all up to come with various conclusions that help the company in making a decision. It enables the collection of large amounts of data that are critical to making decisions that can change how the company operates and thus increase its competitiveness in the market. The businesses that use the MIS can effectively act on the information produced to improve on their business ventures. Many companies throughout the world use management information systems (MIS) to meet various objects like keeping track of their clients and the trends in the market.
Toyota Management Information System
Toyota, for example, uses management information systems to analyze data in the shipment of their vehicles, which are of many types. Toyota has many customer who is in different locations throughout the world. In such cases, Toyota cannot use the land to transfer its products because most of the clients are found on various continents, and the amount of Toyota products has increased proportionately to the demand in the market (Coyle et al,. 2009).
Toyota has made use of the management information system to gather and collect data on the various shipments it conducts and information from other companies. The collected data is analyzed to come up with conclusions that have improved the shipment of its products and its profitability in the market. The use of information systems, as a result, has put enabled Toyota to gain success in its shipment systems. The use of management systems reduces the burden on employees in collecting data manually and trying to analyze it. The management information system comes with various tools where you key in data and analyze it on the computer. It thus enables Toyota to make a quick decision that would have taken a long time if they were not using management systems. Management information systems come in different packages and vary according to the needs of the company.
Vodafone management information system
The telecommunications sector has used the management information systems to keep track of their information. The information on the market about customers helps the company to get essential information about their customers tastes and preferences (Stair & Reynolds, 2012). Vodafone is one of the market leaders in telecommunications that has stood the tides of time and still stood up as the most successful company in the telecom sector. Vodafone is based in the United Kingdom and has many branches throughout the world in both developed and developing countries like Japan, China, Netherlands, and India among many others. Vodafone has more than a hundred million customers, which are spread throughout the world and its total employee’s number in the tens of thousands. Vodafone has various partners in the telecommunication sector throughout the world like Essar among many others. Vodafone provides various services that include the internet, calls, and messages from other services on a larger scale throughout the world. The use of much data, therefore, needs thorough management to ensure that there is customer relationship management in maintaining the loyalty of clients.
Vodafone uses management information systems to for billing thus lifting the burden that were there before due to manual billing that was cumbersome and took a lot of time. Therefore, by employing management systems like business support systems and operation support systems the company can save on time. Billing is a tedious process that involves the addition of numerous calls and other telecommunication services and eventually invoicing them. The use of a management system has helped Vodafone reduce its costs on hardware and alternative software by more than 70% cutting down its operational expenses and enabling the company to reduce the various billings on tis customers.
Vodafone deals with a lot of data from calls, internet services among many other services. It has employed statistical analysis software (SAS) in generating financial reports faster than before. SAS provides an option of forecasting due to the faster production of the reports, which makes the company, make important decisions. SAS activity enables the company knows which area is generating revenue and which increasing expenses are. The software does the budgeting and comes up with various reports that help the company to focus more on areas of interest in allocating finances. The technology gives the companies different options for increasing their profit margins in the telecommunication markets. The SAS software helps the company in making financial management decisions by analyzing the company accounts and making predictions that the enterprise can use to change its business activities to their advantage. The management information system has that been of great benefit to Vodafone since it has enabled the company to reduce costs by employing various parts of the management software. The work that would have been done manually is now done by the information systems, which saves time, which is a valuable resource for any business activity thus the company gets additional time to focus on other urgent issues. The predictions of the management information systems provide more options for the company to make right decisions for the company.
Toyota and Vodafone have used management information systems to improve their business ventures and operations. Management systems have helped the two companies to be successful in different sectors. Both companies have used the information systems to manage different data, and this has improved their businesses undertakings. Though the data is different, the management system aims to analyze all the data and come up with forecasting that helps the companies work on areas that need improvement.
The MIS has enabled Toyota to improve significantly in the shipment sector that helps in the distribution of its products globally. Toyota ships automobile products, which are bulky and need a lot of information concerning the movement of the car from the host country to the destination country (Monden, 2012). The management systems help in boosting the shipments in that it can predict through the software what products are selling more than others are. Vodafone in turn uses the management information system to reduce time in the various operations that deal with voluminous amounts of data. Both companies use the MIS for predictions that help in significant decision-making.
Both companies have gained competitive in that Toyota is able to come up with quick reports about the different supplies it makes and can know which cars are selling quickly which makes it change the products on the market and focus on those on demand and, therefore, ship them as a result. Vodafone, on the other hand, uses the reports and information from the MIS to detect any loophole in the alert and fill them appropriate. Such as system keep the company ahead in showing it the various customer needs and the services which are being used more which makes the company concentrate on providing those services and improving the infrastructure for the services.
The management information systems are expensive, and since Vodafone and Toyota are big business, they require a system that deals with the large amount of data involved. The two companies have a wider customer base, which needs constant monitoring. The monitoring and evaluation of the various happening that affect the two giant businesses need people who have the required expertise to operate the software. Thus, companies need to employ professional people who will be trained periodically due to the occasional changes that occur in the particular software. Maintenance of the software is thus important in ensuring that the software is up to date due to changes in technology that may affect the systems.
As a result, additional costs are needed to foot the various maintenance and reprogramming of the management information systems in use.
The information systems may become ineffective and thus affect the company negatively. The effectiveness of the systems depends on their programming. The programming determines how the system will collect the vital information that will help the business in making important decisions. An ineffective system will waste the time of the company since the management will not have the crucial data to make the necessary decisions. The security of the information in the management systems is sometimes not guaranteed. The people who operate the system may get access to the confidential data, or the data may be leaked outside the company. As a result, any loopholes in the management information system can provide an opportunity for hackers or other people to access the information and use it maliciously. The management information has a problem in keeping confidential information private. Thus, privacy becomes an issue. In such as case, people may access information without authorization, which may create problems for a company especially competitors.
Viruses are another threat to MIS. The viruses may bring down such systems and render them inaccessible hence leading to severe and adverse effects on the operations of the company. A company should, therefore, have a backup to deal with any instances that may result in data inaccessibility. Management information systems on one hand are effective in increasing profitability on the other hand they are prone to intrusions that can lead to lead to a loss of sensitive information associated with the company.
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