a) Your friend who is the Chief Executive Officer of a food processing company recently discussed with you the need for his organisation to adapt to technological changes by investing in Management Information Systems (MIS). His problem however is that the benefits that will accrue to the business may not justify the costs involved in such huge investments.
Required:
Convince your friend by stating FOUR benefits that will accrue to the company for investing in such a project. (4 marks)
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- It will lead to better administration and coordination in the firm.
- It will enhance the public image of the organization.
- MIS will improve decision making in the firm.
- It will lead to closer relationship among employees.
- It will facilitate proper knowledge management of the firm.
- It will lead to improved inventory control.
- It will increase productivity of the firm. (Any 4)
b) Businesses use Management Information Systems (MIS) in their operations. Illustrate with ONE example each of how businesses use MIS in the following functional areas.
i) Finance and Accounting
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Finance and accounting information systems assist in maintaining records relating to the flow of funds in the firm by producing financial statements. Examples of financial statements include cash flow forecasts, income statement. (4 marks)
ii) Manufacturing and Production
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Manufacturing and production information systems will assist in the collection and supply of data to operate, monitor and control the production systems including the purchase of raw and other materials, an example being material handling, material planning and inventory control systems. (4 marks)
iii) Sales and Marketing
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Sales and marketing information systems support the sales and marketing function by enabling the effective and efficient movement of goods and services from producers to end users. An example is that sales support systems keep customer records.
(4 marks)
iv) Human Resource Management
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Human resource information systems assist with recruitment, placement, compensation and career development of employees of the organization as in the case of personnel records keeping, applicant tracking, training and pension updates. (4 marks)