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MANAGEMENT INFORMATION SYSTEMS 1

Management Information Systems and Careers

Course: Management Information Systems

Group Members’

Kimani Duncan 20111978

Stephen Solomon 2011223

Delisa Thomas

Date: September 20, 2013




Contents

Information System and Finance ................................................................................................. 3 Types of Financial Information System ................................................................................... 3 Advantages of Financial Management Information Systems .................................................. 5 Disadvantages of Financial Management Information Systems .............................................. 6

Information system and Marketing.............................................................................................. 6 Relationship between Information Systems and Marketing .................................................... 7 Advantages of Marketing Information Systems....................................................................... 9 Disadvantages of Marketing Information Systems ................................................................ 10

What is Accounting Information Systems (AIS)? ..................................................................... 11 Types of accounting information Systems includes ............................................................... 11 Advantages of Using Accounting Information Systems ........................................................ 11 Disadvantages of AIS ............................................................................................................. 12 Reasons for Accountants (AIS) .............................................................................................. 13 Advise to a person pursuing a career in accounting ............................................................... 14

Reference ................................................................................................................................... 15




Information System and Finance

Financial Management Information Systems are the lifeblood of any mid-market business that

needs to record and processes financial information and turn it into relevant and accurate

information to support better business decisions. Any Financial Management Information

System implemented by Enabling includes a full range of management reports so a business can

be driven successfully and cost-effectively. At Enabling, we understand - if it's measured, it can

be managed (www.enabling.net)

Types of Financial Information System

Executive Supportive System

An Executive Support System (ESS) is designed to help senior management make strategic

decisions. It gathers analyses and summarizes the key internal and external information used in

the business. A good way to think about an ESS is to imagine the senior management team in an

aircraft cockpit - with the instrument panel showing them the status of all the key business

activities. ESS typically involves lots of data analysis and modeling tools such as "what-if"

analysis to help strategic decision-making (www.businessdictionary.com)

Management Information Systems

A management information system (MIS) is mainly concerned with internal sources of

information. MIS usually take data from the transaction processing systems and summaries it

into a series of management reports. MIS reports tend to be used by middle management and

operational supervisors (www.businessdictionary.com)

http://www.enabling.net/

http://www.businessdictionary.com/








Decision Support System

Decision-support systems (DSS) are specifically designed to help management make decisions in

situations where there is uncertainty about the possible outcomes of those decisions. DSS

comprise tools and techniques to help gather relevant information and analyze the options and

alternatives. DSS often involves use of complex spreadsheet and databases to create models

(www.businessdictionary.com)

Knowledge Management System

Knowledge Management Systems (KMS) exist to help businesses create and share information.

These are typically used in a business where employees create new knowledge and expertise -

which can then be shared by other people in the organization to create further commercial

opportunities. Good examples include firms of lawyers, accountants and management

consultants.

KMS are built around systems which allow efficient categorization and distribution of

knowledge. For example, the knowledge itself might be contained in word processing

documents, spreadsheets, PowerPoint presentations. Internet pages or whatever to share the

knowledge, a KMS would use group collaboration systems such as an intranet


Transaction Processing System

As the name implies, Transaction Processing Systems (TPS) are designed to process routine

transactions efficiently and accurately. A business will have several (sometimes many) TPS; for

example:








- Billing systems to send invoices to customers

- Systems to calculate the weekly and monthly payroll and tax payments

- Production and purchasing systems to calculate raw material requirements

- Stock control systems to process all movements into, within and out of the business


Office Automation System

Office Automation Systems are systems that try to improve the productivity of employees who

need to process data and information. Perhaps the best example is the wide range of software

systems that exist to improve the productivity of employees working in an office (e.g. Microsoft

Office XP) or systems that allow employees to work from home or whilst on the move


Advantages of Financial Management Information Systems

A good information system allows the user to access, understand and respond to information

quickly and effectively. Whenever necessary, users can get the most accurate information needed

to do an activity

A good information system also offers users a variety of ways to change and present information,

as well as performs different tasks. For businesses, this capability helps in changing data into

useful information and problem solving (www.ehow.com)

It helps to integrated financial information

Flexibility of reporting and additional control over expenditure








Less administration required within the business (www.enabling.net)

Disadvantages of Financial Management Information Systems

Information systems may not always function properly. This happens for a number of reasons.

Systems break down, interrupting smooth operations and causing customer dissatisfaction. For

instance, customers may be charged for the wrong services or for merchandise that they did not

order.

Defective information systems can deliver the wrong information to other systems, which could

create further problems for the company and its customers. Furthermore, systems are vulnerable

to hackers and fraud (www.enabling.net)

Information system and Marketing

According to Jobber (2007) marketing information system is defined as a "system in which

marketing data is formally gathered, stored, analyzed and distributed to managers in accordance

with their informational needs on a regular basis."

Philip Kotler. (2006) also define marketing information systems more broadly as "people,

equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and

accurate information to marketing decision makers.








Relationship between Information Systems and Marketing

Brand Promotion

In an article posted Susan Gunelius it is believed that the post amazing promotion in the world

can be created but can be unsuccessful if not directed to the right audience and therefore brand

research should be done in order for brand promotion to be successful. Information systems can

be used to enhance brand promotion through advertising, email and social media

(aytm.com/blog)

Because brand promotion is so important, it’s included in what marketers refer to as the 4Ps.

These are the four core elements that make up any business’ marketing mix:

• Product: Your product is what you’re offering to consumers for a specific price.

• Price: Your price is the dollar amount that consumers must pay to get your product.

• Place: The place of your marketing mix refers to the distribution process from

manufacturing to transportation, retail, resellers, and shelf space.

• Promotion: The promotion part of your marketing mix refers to the marketing tactics that

you execute in order to increase awareness, recognition, sales, and loyalty.

In order to have successful brand promotion there a few marketing tactics that marketers have to

use such as advertising, emails, social media, packaging, publicity etc. (aytm.com/blog)




Production Promotion

When looking at product promotion the business dictionary defines it as an action taken by a

company's marketing staff with the intention of encouraging the sale of a good or service to their

target market. For example, product promotion performed by Digicel might take the form of

advertising the product in question via print or Internet ads, e-mail, trade shows, telephone and

personal sales calls, television and radio ads, billboards, posters and flyers

(davidkirkpatrick.hubpages.com)

Product marketing

This is where goods and services are produced by a business and sold to different households.

These can range anywhere from cleaning products to hair and body products. The amount of

money spent on these products will depend on class gender etc (davidkirkpatrick.hubpages.com)

Report on product development

According to David Kirkpatrick product development is the process that takes that idea through

a series of stages until the concept emerges at the end of the process as a completed product

ready for the market. These products can be tangible or intangible and can range from old to

new. Developing new products and improving existing ones are important steps that need to be

taken in a business. Information system can be use to aid in product development by conducting

surveys through internet, emails and other technologies (davidkirkpatrick.hubpages.com)




Product management

Keeping marketing materials updated with product information is difficult and labor-intensive.

Marketing departments often have to rewrite and manually bundle information for catalogs and

brochures. And the need for multilingual descriptions, country-relevant images and repurposed

copy for web or mobile channels makes the challenge ever greater. But with information systems

marketing manager are now able to get work done faster using electronics and have a wider

distribution base. Copies of important on products are beings stored more safely so companies

are now able to keep track of old and present goods and services


Consumer relationship Management

Information systems is used to help in marketing track and measure campaigns over multiple

channels, such as email, search, social media, telephone and direct mail. Using information

systems marketer are able to keep track of what consumer think or know about their product and

are able to maintain a closer relationship with them (davidkirkpatrick.hubpages.com)

Advantages of Marketing Information Systems

Helps to recognize trends

Information system help marketer to determine trends that are going around now as well as for

the future. They can use information systems to determine who they should target when selling

their product by use examples such as age, education level, income etc





• Market planning control

• Quick supply of information

Disadvantages of Marketing Information Systems

Lack of socialization

Because an information system allows us to connect with consumer through electronics, there

may not be any socialization with consumer especially if business is based online. Marketers are

therefore not able to personally judge a consumer reaction to a product (www.ilo.org)

Wrong or negative information

With online businesses marketer have to be careful when advertised products over the internet.

This is so because the product that a consumer receives may not always be the same as the

description says and this may cause consumer to feel cheated and therefore spread negative

information about the company’s product. This may cause a company to lose its reputation and

may even be forced to shut down (www.ilo.org)

Lack of skills

Use information systems can cause lack of skills especially when dealing with consumer. For

example an online business may decide open a business but may find out that he or she is not

able to interact with people face to face thus leading to failure (www.ilo.org)




What is Accounting Information Systems (AIS)?

Accounting Information System (AIS) combines a general business background with a

focus on management information systems and accounting to prepare students for specialized

careers in accounting, auditing, consulting, business analysis and management (www.ehow.com)

Types of accounting information Systems includes

Peachtree

Oracle

Quick Books

SAP

Advantages of Using Accounting Information Systems

• Summarize transactions.

• Create financial records.

• Prepare and analyze budgets.

• Organize accounting data.

• Perform financial analysis.

• Make present and future decisions for a company.

• Prepare tax returns.




Disadvantages of AIS

Learning the System

Learning an accounting information system can often be difficult and time-consuming.

Individuals must be trained on a system, and this can cause a disadvantage to companies in terms

of time and manpower. An accounting information system is made up of many different

components, and almost all systems are computerized. Because of their complexity, some people

may find them hard to use. It can take weeks or months for a person to understand an accounting

system, and usually the individual still does not understand completely what the system is

capable of. If the employee quits working at the organization, it can take weeks or months, once

again, to train another employee (www.ehow.com)

Loss of Information

Accounting information systems are usually computerized. Because of this, there is always a risk

of losing information through power outages or system crashes. When this happens, there is a

chance that all the information in the system could be lost. Companies take precautions for this

problem by backing up their files regularly and performing standard maintenance on all

computer systems. They also install anti-virus software as another precaution. Still, none of these

steps eliminates the potential problem that may occur. Accounting information systems store a

company's financial information for years. If a system crash occurs, it causes a major

disadvantage to the company. All, or some, information is lost, and there's a chance it may never

be recovered (www.ehow.com)

http://www.ehow.com/

http://www.ehow.com/




Re-evaluation

Companies often change their way of doing business to keep up with the latest trends. To keep

up in a demanding business world, these changes may impact an accounting system. An

accounting information system is difficult to set up because every company is unique in its own

way. In order to keep up with changes, accounting information systems must be re-evaluated

often. Changes often need to be made in a system in order to process information efficiently. This

can be a disadvantage to companies because it takes time for the re-evaluation, and it costs

money (www.ehow.com)

Reasons for Accountants (AIS)

Accountants may be called upon to assist a company in developing its AIS. Their

knowledge of accounting and auditing methods and procedures is important in helping a

company choose or design the best software and overall system.

Using management information system accountants need s to keep updates with current and

future changes in information systems including (www.ehow.com)

Hardware and software

Security

Telecommunication




Advise to a person pursuing a career in accounting

In choosing a career in accounting in this technological era it is indeed important to have

a vast amount of knowledge in Management Information System or Accounting Information

System to carry out your specific duties efficiently and effectively (www.ehow.com)




Reference

Web finance Inc. (2013) retrieved from

http://www.businessdictionary.com/definition/information-system.html

Demand Media Inc. (1999 – 2013) retrieved from

http://www.ehow.com/info_8280392_advantages-disadvantages-information-systems.html

Enabling Oty Ltd. (2013) retrieved from http://www.enabling.net/solution/financial-

management-software

AYTM Blogs (2013) retrieved from http://www.aytm.com/blog/research-junction/brand-

research-fundamentals-brand-promotion/

Hub Pages Inc. (2013) retrieved from http://www.davidkirkpatrick.hubpages.com/hub/New-

Product-Development-From-Idea-to-Market

International Labor Organization (1996 – 2013) retrieved from

http://www.ilo.org/empelm/areas/employment-trends/lang--en/index.htm

Demand Media Inc. (1999 – 2013) retrieved from

http://www.ehow.com/list_6767205_disadvantages-accounting-information-systems.htm

Demand Media Inc. (1999 – 2013) retrieved from http://www.ehow.com/list_6588708_benefits-

accounting-information-systems.html



http://www.enabling.net/solution/financial-management-software


http://www.aytm.com/blog/research-junction/brand-research-fundamentals-brand-promotion/


http://www.davidkirkpatrick.hubpages.com/hub/New-Product-Development-From-Idea-to-Market












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