Issues in Management Information Systems

Management information systems (MIS) are a concept that has been building in popularity for the last 20 years. This progress has coincided with technological innovations that enable information to be used and stored more effectively than previously. Management needs to understand the issues impacting information systems if they are to be effective in helping the company realize its goals.

  1. Definition

    • A MIS manages the information a business needs to run effectively. While these systems have existed for hundreds of years, the MIS that is referred to in recent times is more indicative of a consistent approach to developing an information framework replete with guidelines, polices, procedures and standards supportive of the company's long-term goals. MIS, as it is defined in the vernacular, typically refers to a strategic information system that, if used effectively, manifests itself as a tool that builds productivity in a way that maximizes profit margins.

    New Technology

    • While new technology in and of itself is not a solution, it can provide methods by which to overcome existing performance gaps and to capitalize on new opportunities. Although technology-based, the term "technology" may not necessarily connote a complicated endeavor in a MIS. But it should be noted that, in practice, newer technology is what enables newer versions of these strategic Information Systems (IS).

      To quote the Organisation of Economic Cooperation and Development (OECD), "the Internet and related advances in information and communication technology (ICT) are transforming economic activity, much as the steam engine, railways and electricity did in the past."

      ICT is developing at an exponential rate, and while its impact can be seen on the economy at large, the impact of ICT is even more clearly demonstrated in the ways by which the new technology has enabled more sophisticated IS. For instance, think about the impact the typewriter had, the word processor and finally the computer. Huge, right? Today, ICT is growing so exponentially that it has to be considered spherically.

      New storage devices, such as Apple's Time Capsule or Seagate's FreeAgent External Drive have presented new information storage options for businesses, enabling individuals or smaller businesses to have a secure method of information storage. There are also newer applications for business, such as Google Apps, which change the way information can be gathered, shared and accessed. These newer ICT innovations create both new concerns and new opportunities. First, any technology can fail, at any time, for no reason. This is an issue that has to be accounted for. Also, information can be pirated from electronic devices, so security measures must be in place.

      While issues such as storage failure and security needed to be considered when everything was handwritten, the way those concerns manifest themselves with the advent of ICT is much different and must be handled in new and improved ways.

    Development Problems in MIS

    • In dealing with MIS, several common development issues arise. According to Kalle Lyytinen (reference 1), the first, and most common, is in regard to the goals of the MIS. Frequently, the goals are "ambiguous, too narrow" or "conflicting."

      These development issues, while common in any goal-setting environment, are of special importance in MIS. Basically, a person must understand the goal presented in order to work toward it. Also, the goal must be broad enough. For example, a goal to improve the efficiency of the production of half-inch purple cogs is probably too narrow, while a goal to improve efficiency of cog production would present a better breadth. Lastly, no one does well when goals are conflicting. An example of this would be "increase profits for this quarter" versus "increase profits for the year". The profits of this quarter may decline because of factors like reinvestment and new opportunities. Trying to meet both goals is difficult, if not impossible.

      Other issues identified by Lyytinen relevant to the development of MIS include technology, economy, process features, view of organization and self-image.

      Technology here refers to the impact technology has on information systems, both as a limitation (the system does not have the capability to use an automated information-gathering system) and to its opportunities (the system has the capability of intra-networking, file sharing and collaboration). Economy, in terms of the company, refers to whether the correct goal was identified; whereas process features refer to whether the process by which to achieve that goal will be successful. The view of the organization and self-image have to do with whether the queries "can it be done?", and "can we do really do this?", are answered affirmatively at the company level and at the individual level.

    Usage Problems in MIS

    • Lyytinen goes on to identify issues regarding the process of the MIS. She observes that the process is frequently seen as too difficult, slow and/or unreliable. Essentially, the process must be easy to use and understand; otherwise it may prove too difficult for the average person to complete successfully. A good example here would be a set of instructions 50 pages long for a process that should take 15 minutes. Secondly, processes that are slow simply take up too much time. After a while, people will stop using them, if for no other reason than the aggravation that accompanies them. All of these factors can contribute to an unreliable system. Since the information gathered is the purpose of the system, if it provides incorrect information it is useless.

      Other process-oriented problems regarding MIS have to do with data, with concepts, with people and with the complexity of the system. Is the data reliable, and is the right data being reviewed? Did the people who set up the IS process fully understand the nature of the product? Is the process chosen for the management of the information system appropriate? The people the company employs need to understand how the MIS is attempting to improve company function, and have to believe that that goal can be achieved through the process instituted. And is the process too complex, and the data it collects not clear enough for accurate measurement?

    Effective MIS

    • One of the biggest issues facing MIS, either in its development or its usage, lies in the fact that the systems do not have a concrete definition or a quantitative measure. Without ways to make its use measurable and understandable, how can its success (or lack of success) be gauged? And much of the research into MIS has neglected to look at the myriad of different types and focus on how each would apply.

      MIS research tends to look at issues in such a narrow way that practical applications to a given business are few if any. Few totally understand the technology being used. Who judges whether the MIS process being implemented is the correct one?

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