The article Management Information Systems and Business Decision Making: Review, Analysis, and Recommendations by Nowduri focuses on the Management Information Systems (MIS) in the context of its influence on the decision-making process (Nowduri 1). Furthermore, the author pays vehement attention to the impact of the decision on the management with the assistance of the automated decision-making software. Moreover, the benefits of the usage of MIS are discussed and evaluated in detail. Additionally, the author also considers the primary limitations and drawbacks of the usage of MIS, as some challenges might appear during the implementation process. In the end, the author provides the potential recommendations, which the company has to be used to avoid possible misinterpretations of data and irrelevant decisions. Following these recommendations is aimed at the improvement of the decision-making process in the organization.
Firstly, it is substantial to discuss the existence of various kinds of Information Systems (IS) such as Transactional Processing Systems (TPS), Management Information Systems (MIS), and Expert Systems (Nowduri 1). Nonetheless, in the instance of this article, a particular attention is paid to the Decision Support System (DSS), as it is an essentiality for the decision-making process in business. DSS is able to supply the user with projections of revenues, which are based on the expectations of the sales of a new product line or a single product (Nowduri 2). Comparative diagrams is another beneficial feature, as it allows comparing the results of sales from various month figures (Nowduri 2). Lastly, the outcomes of the different decision alternatives are presented and contribute to the choice of the right decision (Nowduri 2). Moreover, it is evident that DSS is used by various levels of enterprise employee. It could be said that in this instance, it is can be considered as one of the essentialities for sufficient decision-making in the company. Nonetheless, some of the experts emphasize that it has an adverse impact on the performance of the company and should be avoided (Nowduri 2).
It is evident that Management Information System combines characteristics of three independently functioning phenomena. The author focuses separately on each feature. In this case, Information can be defined as the performed analysis of data (Nowduri 2). In turn, Management can be defined as the ability to plan, conduct, organize, and maintain a sufficient functioning of the company and the information flow within the organization (Nowduri 2). Lastly, System is the interdependence of the operation of various elements, which are united by the common goal. In this instance, it is evident that the providing an organized flow of information is complex, as the elements have dissimilar functions and intentions. Consequently, it could not be beneficial for the organization. Nonetheless, in this case, the relevant managerial approach is an essentiality. Subsequently, an efficient management of MIS leads to the favorable decision-making of the company.
Nowadays the quality of available data defines the effectiveness of decision-making. In this instance, the personnel has to be carefully selected to avoid negative consequences and wrong usage of the software. In this case, the arguments for the usage of MIS are summarized. Firstly, MIS a suitable platform for decision-making, which provides constant updates about the current flow of the company’s tasks and a current state of the progress (Nowduri 4). Secondly, automatization and systematization of the routine processes contributes to scheduling the regular checks, which allow monitoring the changes, which occur within the organization. It is apparent that this advantage helps devote time to the activities of the higher significance, as no manual scheduling and planning is required. Furthermore, MIS allows conducting multiple tasks and involving several users at the same time (Nowduri 4).
Moreover, organizing and keeping the information systematized is another beneficial feature since it maintains the processes and decisions highly organized. Furthermore, the MIS software can be accessed when it is necessary, as it is available for the employees 24/7 (Nowduri 4). Additionally, it is apparent that automated systems are gaining popularity since they allow automating the processes and having the services available 24/7 without a physical presence of employees (Nowduri 6). In this case, it clear that MIS makes the decisions supported practically with relevant information. It is apparent that the decisions, which are supported with appropriate facts and arguments, have a higher quality since it could be said that they are more relevant and applicable in the right context.
Nonetheless, in the conclusion and discussion section the author mentions that the management of the enterprise should not rely on the Management Information Systems for several reasons. Firstly, the decisions and systems have a tendency to change regularly, and sometimes it is hard to maintain them sufficiently (Nowduri 6). It is evident that the context of the situation affects the final decision dramatically, and the managers have to take this drawback into account while actively utilizing MIS. Secondly, MIS is complex. It is evident that monitoring and providing the sufficient functioning of MIS requires a high level of competence (Nowduri 6). Thirdly, the maintenance requires a significant financial investment and can be considered as expensive. Fourthly, it is hard sometimes to find a suitable system since different businesses have dissimilar nature. In this context, MIS is applicable for the science-oriented organizations but art-oriented businesses might experience troubles while implementing it. Lastly, some of the businesses lack a well-structured decision-making system. Consequently, application and choice of a right MIS might be questionable.
Finally, the author provides recommendations based on the described advantages and disadvantages. The management has to pay vehement attention to the monitoring and maintenance of MIS (Nowduri 6). Additionally, in this instance, another managerial task is to provide a sufficient approach to the tailoring of data to applicable in various contexts and situations while making a decision. Moreover, the continuous teaching has to be provided to avoid misconceptions about the existence and improvement of MIS. Moreover, management should focus on the establishment of the “centralized place” for the sufficient flow of decisions to provide a relevant functioning of MIS (Nowduri 7). Lastly, employing the competent personnel help avoid the misinterpretations and malfunction of MIS and irrelevant decision-making process.
In conclusion, the author suggests that the further research is an essentiality as the paper does not cover all the necessary points. Moreover, as the closing remarks the author mentions that the companies should be able to adapt to the continuously changing structure of MIS since a lack of know-how might lead to the absence of the positive improvement in the decision-making process (Nowduri 7). Lastly, the management of the company has to remember that the decisions are the fundamental determinants of the customer satisfaction (Nowduri 7). It is apparent that the advancement of the decision-making process is meant for the improvement and enhancing the relationship with the customers.
Nowduri, Srinivas. “Management Information Systems and Business Decision Making: Review, Analysis, and Recommendations.” Journal of Management and Marketing Research 7 (2011), 1-8. Print.