MANAGEMENT INFORMATION SYSTEM
Information systems contain information about significant people, place and things within the organization or in the environment surrounding it. By information we mean data that have been shaped into a form that is meaningful and useful to human beings (Kenneth Laudon, and Jane Laudon, 2004).
We can define and information system is a group of correlated activities working together to collect, process and analyze information for decision making, controlling and visualizing the overview of the organizations.
From my study I know that management information system is the study of information which is essential for each and every level of managerial operations, tactical and strategic decisions.
In this assignment I have to depict a picture of an organization for example: how its work, what is the limitation of the organization how information system can effectively utilized to overcome the situation etc. My discussion will illustrate current organization activities. How information process, store and implement for establishing long run goal. After analysing current system I have to propose a new system. Then I have to design information architecture of the organization.
My chosen organization is Royal Money transfer, which is east London based money Transfer Company. Basically they provide money transfer facilities toward Bangladesh, India and Pakistan.
Royal Money Transfer established 1995 in Shadwell near commercial road. The primary target was to serve the south Asian community. At the beginning company activities ware limited with selling airline tickets and helping people to provide passport services. Gradually the organization activities had expanded. In the year of 2002 they started money transfer as well as small tour packages. In the year of 2002 the company profit increased 25%. But last few years company business was not increased as expected. This is because of other companies and there modern services.
The company has agency in different three different cities such as Bradford, Birmingham, and Manchester.
The company communicating with agencies via fax and phone calls. This is not reliable service always.
ROYAL MONEY TRANSFER ltd is providing following services
Customer can send remittance to other countries
Its provide different range of holiday packages
Hajj packages for Muslim community
Reference: system analysis and design by Alan Dennis, Barbara Haley Wixom,2000
There are few computers in operations. Company is dependent on Microsoft packages for example word, excel spread sheet etc. Though it has internet connection but it has not extensive Local area network, which is important for file sharing, file transferring facilities.
According to the analysis of the new reports, the sales are declining number of customers is also decreasing day by day which is also affecting their sales targets. Also the analysis has shown that the customer support service hasn't been able to attract the customers and provide solutions to their grievance, hence failed to achieve their targets too. The ROYAL MONEY TRANSFER ltd wants to stabilize their sales level. So the airline has decided to outsource the analysis task and to also get proposed solutions, in the form of proper documentation and estimation, in order to identify their flaws and the solutions to increase their sales and customer levels.
Limitations of the ROYAL MONEY TRANSFER ltd
When a customer buy a ticket online, after that if any circumstances arise, for that he need to change or cancel any booking, it cannot be done by online. Customer need to contact the office. Payment methods are not flexible. Very few credit/debit cards are accepted. Customer feedback service is not available.
The agency office has to fax the transaction which has been made at the end of the day. Because there is interactive website where head office can monitor the transaction online.
The main reason that triggered this project is that the number of customers and the sales is declining day by day. Also the customers are complaining about the customer support service. The customers usually have to wait, for a long time, for getting their tickets and also they are unable to book their journeys after office hours. The customers are required to call at a premium number whereas other competitors are providing toll free numbers.
The competitors are practicing efficient solutions to enable the customers to book their journey and purchase the ticket anytime. Competitors are also providing 24/7 customer support service through a toll free number. These practices have improved their sales and customer service support as well.
Information System Design
From this analysis we can see that there are some drawbacks of the current system. In order to overcome such drawbacks we need to design our new system effectively, which will run the business efficiently and will increase the sale up to expected level.
For this reason we need to follow some steps
Information system department is responsible for maintaining hardware, software, data storage, and network that comprise the Royal Money Transfer.
The information systems department consists of specialists such as programmers, systems analysts, project leaders, and information systems managers. Programmers are highly trained technical specialists who write the software instructions for the computer.
We will appoint a system analyst for our IS department who will constitute the principal liaison between the information system group and the rest of organization.
It is the systems analyst's job to translate business problems and requirements into information requirements and systems.
Information systems managers are leaders of teams of programmers and analysts, project managers, physical facility managers, telecommunications managers, and heads of office system groups. we can step forward as a web development company as our extended business in Royal Money Transfer, where we can provide IT solutions towards our target customers.
System Development life cycle (SDLC):
System development life cycle for ROYAL MONEY TRANSFER ltd is a conceptual method where we can focus on the step by step approach of our new system. It will allocate from feasibility report to actual project implementation. This is the waterfall model. Various methodologies have been developed to run the information system and design strategies. ROYAL MONEY TRANSFER ltd system development life cycles are follows
Reference: system analysis and design by Alan Dennis, Barbara Haley Wixom, 2000.
To analyze the current sales system and identify solutions that can increase sales up to 5%.
To analyze the current customer support system and identify solutions that can increase the number of customers by 10%.
To produce a Problem / Solution Report, that addresses the flaws and limitations in the current system and the solutions to those problems.
To analyze the current operational system for sales.
To analyze the current customer support system.
To analyze the performance of employee.
To analyze the customer satisfaction about online booking.
To analyze any inappropriate practices and limitation in the sales and customer support system.
To review customer complaints and feedbacks about the current customer support service.
To produce an analysis report that addresses the problems in the current sales system and customer support service and provide solutions to achieve 5% improvement in sales, 10% improvement in the number of customers.
Core business activities
Our proposed system design has some core business activities such as dynamic website development, software development (Recommended), improving customer services.
After analyzing current system of the organization it is suggested that company need to introduce a dynamic and efficient website, where customer can transfer there money online as well as company can see the transaction of other agent. Company need to develop a dynamic website to fulfill the customer requirement. There is lots of inconvenience about online booking system. Most of the time there is inconvenience with payment methods. We will introduce new secured online payment method.
It is important to design and develop a new web system as requirement of designing information system.
To develop a dynamic website the organization need to follow some steps.
Now days it is more crucial for any organization that it should have up to date web facilities. The organization needs to update there web content frequently. If there any new ideas, or promotion, the organization should highlight on their website.
Sometime customer wants to search some services or information from the website. It is important to develop a search engine for the website which will be connected to the web database.
New system can provide registration facility toward customer, so that registered customer can get special services. For example- registered customer can get product discount, package discount or hotel booking discount.
When ever a customer sign up for new system it will automatically save customer details into its database. Organization can reach new product and services to customer via email, news letter etc. company can share new ideas with customer.
Customer Feed back:
Potential customer can help to improve organization services by providing feed back. It is very dynamic method to keep in touch with customer.
Personal login system:
We know that Royal Money Transfer provides money transfer facility for customer. By using personal login system potential customer can see the current exchange rate of different currency. They can access some extra features.
Information Architecture of Royal Money Transfer ltd.
Customer Relationship Management (CRM) for ROYAL MONEY TRANSFER
Customer relationship management is an essential tool of modern digital firm.
Customer relationship management is a business and technology discipline co-ordinate all of the business process for dealing with customers. Customer relationship management focuses on managing all of the ways that a firm deals with its existing and potential new customer.
Some information of specific customer might be store and organized in terms of that persons account with the company.
ROYAL MONEY TRANSFER ltd new CRM system will consolidate customer information from different sources for example; using new CRM system ROYAL MONEY TRANSFER ltd agents will provide information about old and new potential customers. New CRM tools try to integrate the firms customer-related processes and consolidating customer information from multiple communication channels- the telephone, email, wireless devices, agents or the web so that the firm can put one coherent face to the customer.
Good CRM system consolidate customer data from multiple sources and provide analytical tools for answering questions such as: what is the value of a particular customer to the firm over his lifetime? Who are our most loyal customer? Firms can then use the answer to acquire new customers, provide better service and support, customize their offering more precisely to customer preferences, and provide ongoing value to retain profitable customer. CRM concern the relationship between business and customer. Successful organization always focuses on customer relationship. Good organizations mutually satisfy its customer to achieve the goals. They always keeps customers record and maintain customer report. Customer always wants quality service, quality product within expected range. CRM has major impact on outside of the organization. Suppose Royal Money Transfers ltd established its CRM process, then it should focus on the customer requirement. What are they wanted? How thy wants?
Royal Money Transfer should adopt the CRM processes to increase its profitability. It is only possible when organization provide better service to its customer then its competitors. Effective CRM policy of Royal Money Transfer will reduce the cost, complaints of the business.
Expectation of different customer for the same product will up and down because of social factors, behavioral factors, economic structure, educational standard, experience etc.
To achieve good CRM benefits organization need to adopt new perspective. Organization relationship with customer should be ongoing, cooperative, built for the long run.
Advantages of CRM:
CRM has the wide range of advantages for example customer satisfaction, growth of customer, maximization of opportunity, long term profitability and sustainability, and so on.
Decision Support System (DSS).
Information systems explicitly design to enhance managerial decision making. Decision support system (DSS) assists management decision making by combining data, sophisticated analytical model and tools, and user friendly software into a single powerful system that can support semi structured and or unstructured decision making. A DSS provides users with a flexible set of tools and capabilities for analyzing important blocks of data.
Management information system (MIS), primarily provide information on the firm's performance to help managers in monitoring and controlling the business. They typically produce fixed, regularly schedule reports based on data extracted and summarized from the organizations underlying transaction processing system (TPS).
On the other hand DSS provide new sets of capability for non routine decisions and user control. An MIS provides managers with reports based on routine flows of data and assists in the general control of the organization, whereas a DSS emphasizes change, flexibility, and rapid response. With a DSS there is less of an effort to link users to structured information flows and a correspondingly greater emphasis on models, assumptions, ad hoc queries and display graphics.
There are two basic types of decision support systems.
Model driven DSS primarily stand alone system isolated from major organizational information system that used some type of model to perform ‘what if ' and other kinds of analyses. Such system were often developed by end user divisions or group not under central IS control.
These systems analyze large pools of data found in major organizational system. They support decision making by allowing users to extract useful information that previously was buried in large quantity of data from transaction processing system (TPS) are collected in data warehouses for this purpose On-line analytical processing (OLAP) and data mining can be use to analyze the data.
A Group Decision Support System(GDSS) is an interactive computer based system to facilitate the solution to unstructured problem by a set of decision-maker working together as a group.
In this report I would like to discuss about a DSS application. My choose DSS application is Frontier Analyst®
Frontier Analyst® is a performance measurement tool from Banxia software ltd. For determining the efficiency of a number of business units, Frontier Analyst® takes a number of the inputs and outputs, and performs an analysis to determine the relative efficiency of the units ‘processing' the inputs and outputs. The technique used is called data envelopment analysis (DEA).
Frontier Analyst® is typically used at the beginning of an improvement process. Even when it is used regularly in provide updates on performance. A typical project will see between 10% and 50% of the potential improvement actually achieved and in any organization that will mean real bottom line impact.
Benefits of Frontier Analyst®
Easy to use
The graphical display provides all the information we may require. Providing a visual representation of complex information. High level summary displays show statistical information with detailed displays when you want to thrill down into your data.
Variety of reporting options
All of the display can be copied to the clipboard for inclusion in custom reports. The built in report generator allows for distribution via intranet and extranet.
Peer based analysis
Frontier Analyst® provides improvement targets that are based on what a units peer are actually achieving, so they are much more realistic and easier to ‘sell' to managers.
Data envelopment analysis, the technique used in Frontier Analyst®, has over twenty year of research behind it and a proven history, which Frontier Analyst® makes accessible to all organizations.
Real bottom-line impact
Frontier Analyst® is used by organizations and consultants in over 35 countries world wide because it has real bottom line impact.
The single user version that can analyze up to 75 business-units cost just £395+vat. As well as saving money from efficiency improvements, we also save ourselves the time it would take to sit down with our favourite spreadsheet and develop a similar system.
Conclusion and Recommendation:
Frontier analyst is ready made, so we don't have to spent time designing complex linear programming solutions and debugging our spreadsheet.
The proposed system is cost effective. Once we install the new system we will be benefited in many ways. Whenever we introduce any new system there should have some expenses for example planning charge, implementation cost, maintenance cost. But in long run company will get benefit in various ways.
Percentage of sales will increase at least 5-10% in new proposed system. We will get competitive advantage from the business market. However customer will get more flexibility, for example: if customer registered online he or she can easily send remittance to foreign countries by few clicks using any debit or credit card.
Frontier analysis software can provide us analytical result and performance of the company and employees.
List of reference.
Harold, F and Tipton M. (2003) Information security management handbook, 4th edition, London: CRC press.
Kenneth, L, and Jane, L (2002) MIS:Managing the digital firm, 7th edition, New York: Prentice Hall.
Arthur, T (2005) Web portals: the new gateways to Internet information and services, London: Idea group Inc.
Henry. Ramond, L.Tharam, D and Elizabeth (2005): E-commerce Fundamentals and applications, England: John Wiley and son's ltd.
S. Zappala. and Colin Gray (2007) Impact of e-Commerce on Consumers and Small Firms, International Small Business Journal, vol. 25, pp. 445 – 449.
Banxia Software: retrieved from http://www.banxia.com/demos/fademo2.html (visited on Jan 5, 2010)
Institute for the Management of Information Systems: retrieve http://www.imis.org.uk/ (visited on Jan 7, 2010)
Customer Relationship Management: retrieved from http://www.businessballs.com/crmcustomerrelationshipmanagement.htm (visited on 10 Jan, 2010)
Decision Support System: retrieved from http://www.informationbuilders.com/decision-support-systems-dss.html (visited on 10 Jan, 2010)