Management information system enables organizations to access all the necessary information required for effective management. It helps managers of different departments in an organization to evaluate the performance of the company. It is therefore important for different organizations and companies regardless of their line of operation to effectively use MIS. In this paper, use of MIS in Amazon.com and American National Bank of Texas will be analyzed in depth through compare and contrast manner. In relation to this, there will be more emphasis on how information technology has been used in managing operations and making decisions which have helped the companies to acquire competitive advantage in their respective industries. As a result of continuous use of information system in organizations, there have been several consequences associated with this move and therefore the paper will discuss potential computer crimes.
Keywords: management information systems, web services, data and portal
In today’s world, nearly all businesses and organizations heavily rely on Management Information System (MIS) to be able to monitor, supervise, evaluate, allocate resources and carry out performance appraisal (Sousa & Oz, 2014). MIS in simple terms enables an organization to access information for smooth running and effective management. This is achieved by using a computer-generated system for data analysis to simplify operational and strategic performances. It is possible to have companies or organizations from different industries having similar systems but using these systems for entirely different reasons. However, this does not overlook the fact that different businesses in different sectors can use similar systems to carry out related tasks. All business regardless of their line of operations will at one point need to have quality MIS in place if all it needs to be successful in the market. This means that even those businesses dealing with tangible goods or items that essentially do not require technology will to some extent come up with a backup system for the purpose of supporting and managing the business effectively. It is important to understand that systems are susceptible to security cracks and computer delinquencies and therefore it is the responsibility of the organization to ensure that information is accessed only by the authorized people. Amazon and American National Bank of Texas are organizations considered to have effectively used MIS in their operations.
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Varia & Mathew (2014) note that successful organizations use MIS adequately. Amazon.com and American National Bank of Texas as some of the organizations. American National Bank of Texas and Amazon use MIS to accomplish the compelling and more complicated tasks appropriately. Both companies use MIS to organize and help managers to understand what is going on in their own departments thus enabling them to use their resources in the best way possible. The two companies effectively use Management Information System in order to formulate reports related to things such as production, revenue, and sales. These reports are then issued to different managers at all levels in planned intervals thus helping them to evaluate the performance of the company. These companies heavily rely on management information system to analyze and manage their data. Despite these two companies having some similarities in the manner in which they use their management information system, there are still some few differences especially when it comes to the rules and regulations governing the use of MIS in these companies. The way in which they collect and use the information in helping their personnel, as well as the entire business, is completely different.
According to Sousa & Oz (2014), American National Bank of Texas and Amazon just like other organizations rely on different information systems to help them in managing their internal operations as well as making decisions in order to improve their marketing techniques and the efficiency of their distribution channels. This is made possible by ensuring that they remain relevant and up-to-date with the new technology in the industry. It is the responsibility of the managers of these two companies to ensure that they effectively use MIS in the gathering and analysis of relevant information about various aspects affecting different departments. It is also evident that the two companies have heavily used MIS to enhance and facilitate smooth communication with their employees and customers too. In Amazon, each customer is offered a personalized shopping experience. This is made possible through enabling customers to use 1-click shopping accompanied by several community services such as List mania thus making it possible for them to discover new products and make sound buying decisions. Amazon Web Services is used by Amazon Company to advertise its products and also it has enhanced a range of sites which are used to advertise products from other companies. American National Bank of Texas has well built and maintained e-commerce portals for their customers thus enabling them to carry out various banking activities at their convenient places.
All organizations which extensively use management information system to some extent have a competitive advantage that makes it possible for them to strive and survive competition from other related companies (Noe, Hollenbeck, Gerhart, & Wright, 2003). The two companies have been using information technology to competitive advantage in the essence that through this technology, they are able to provide products and services which strongly enhance their customer’s value more compared to their competitors. It is important to note that it is not the information technology which gives the company a competitive advantage but the way the technology is used makes the difference. Therefore, this suggests that it is the responsibility of the company to make sure that information is used innovatively. This can be achieved through reduced prices and provision of quality services and other related benefits aimed at helping their customers. The only way to achieve competitive advantage through the use of information technology is by creating and implementing strong policies and strategies which cannot be easily imitated by competitors in the industry. For instance, the competitive advantage for Amazon is large, the loyal customer base is not easy to be manipulated by competitors, offering a variety of products (if not thousands in millions) and partnership with other companies whereby Amazon sells products from other companies in their website. On the other hand, American National Bank has a well-developed E-commerce store which enables there customers to carry out self-banking services at their convenient time, and again the company has fast search engines thus making it easy and faster for their customers to access online information.
The main concern of Information technology is to manage and process information. Continuous use of information technology in an organization has its own threats and therefore it is important to understand the impacts related to technology use on both the individual and the general organization’s productivity. Improper use of technology has a potential of creating problems for all stakeholders in the organization. For instance, criminals gaining access to credit card information can be a big blow to the company’s financial resources including the owners or even the financial institutions which give loans to the company (Alavi & Leidner, 1999). It is therefore very important for the organization to make sure that access to sensitive information remains to be strictly for the authorized personnel so that in case of such scenarios, the relevant people can be held responsible. Implementation of reliable information system requires huge amounts of money and therefore it is the responsibility of the management team and the employees to maintain high levels of secrecy and privacy so as to minimize issues of unauthorized access. Several cases related to posting inappropriate content on the company’s social media sites such as the Twitter and Facebook have been reported. This is a threat to all businesses of different specialization because such actions can lead to lawsuits and worst of all, loss of business. Such actions negatively affect the image of the company and thus it is possible to lose existing as well as potential customers.
In conclusion, information systems have made it possible for many businesses to achieve success. This is because it has been easier to make decisions and implement strategies aimed at ensuring business growth and success compared to the existing competitors in the market. Through the use of reliable information systems, Amazon.com and American National Bank of Texas have been successful in the market despite the high competition levels experienced. Despite all these achievements brought about by information systems, it is important to note that improper use of information technology may bring problems to the organization as well as its employees.
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- Alavi, M., & Leidner, D. E. (1999). Knowledge management systems: issues, challenges, and benefits. Communications of the AIS, 1(2), 1.
- Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2003). Gaining a competitive advantage. Irwin: McGraw-Hill.
- Sousa, K., & Oz, E. (2014). Management information systems. Nelson Education.
- Varia, J., & Mathew, S. (2014). Overview of amazon web services. Amazon Web Services