CHALLENGES WHEN APPLYING MANAGEMENT INFORMATION SYSTEMS IN BUSINESS
Even
with the numerous benefits, there are a number of challenges that companies are
likely to face when applying Management Information Systems in their
businesses.
1. The
cost of equipment. For
a big company to successfully incorporate a Management Information system,
there is a need to purchase devices that the employees and management
executives will be using to interact with the system. These devices include
servers, tablets, laptops and desktop computers. In addition, the company needs
to invest in a good network that will connect these devices in order for the
system to work effectively.
2. Training
of the work force can
also become a problem when applying Management Information Systems in a
company. Without a proper understanding of how the system works, it can be hard
to reap the full benefits of using it. This therefore makes it necessary for
the company to ensure that employees and their managers are well trained on how
to use the system. This can be an expensive and time-consuming exercise.
3. The
systems are expensive to purchase.
Owing to the unique needs of each organization, Management Information Systems
have to be customized for each company. This means that there has to be brain storming sessions where the
vendors sit with management officials seeking to understand the needs before
they can develop the system. As a result, the cost of the system goes up, thus
taking it out of reach for small and medium companies.
4. Many
companies end up purchasing systems that lack of features they need most. As mentioned earlier, each company has
its own unique needs when it comes to Management Information Systems. When you purchase
a system that is not meant for your company, you will have better access to
data that doesn’t help improve your operations. As a result, you will not be
able to get the best return on investment.
5. There
is also a need for trained personnel to keep the system in good working order
at all times. Like any
other system, management information systems need proper maintenance in order
for them to produce the best results. This means that you will need to add
specialized personnel for system maintenance in your company. Without these
people, using the system will be a challenge since errors will go unresolved
and this will result in inefficiencies in the operations.
6. Management
Information Systems are heavily affected by large changes in the company. This means that before you make any
change in the way you run the company, there will be a need to consider the
impact of the changes on the information system. Sometimes, it becomes
impossible to make some changes without changing the Management Information Systems
hence having the system in place ends up being a limitation. However, most
small changes should easily be incorporated in a good MIS.
7. Management
Information Systems will result in the loss of employment for a number of
employees in a company. People
like office messengers and traditional registry clerks will need to be reduced
or eliminated after the system has been incorporated since some of these tasks
will be automatically done on the system. These employees will not be happy
about the changes and this can easily result in lawsuits or other problems with
trade unions when large numbers of employees are retrenched.
TIPS FOR EFFECTIVELY APPLYING MANAGEMENT
INFORMATION SYSTEMS IN A BUSINESS
Even
with the challenges, it goes without saying that installing a Management
Information System is the way to go for businesses to perform better.
This
means that companies should find a way of working around the challenges. Here
are a number of tips that will help ensure a successful and smooth transition.
1. Know
your needs from the outset
This
is the first step towards getting an effective system. Before you even start
looking for a vendor, it’s important to first ensure that you know exactly what
type of system you want for your company. Make a portfolio score card that is
in line with the goals that you have as a company.
This
score card should define the objectives and the key performance indicators that
you will be using to evaluate your success as a company. This is what you will
go with to the vendors.
2. Evaluate
a number of vendors
Once
you have established what you need, it’s time to talk to a number of vendors in
the market.
Find
out about their costs for the system and any additional benefits that you will
get when you purchase the system from them. Some of the things to look out for
include support, installation, updates and training of employees on how to use
the system.
The
vendor to choose is the one who offers the system that you need and at the same
time, one who will give you the best after sales service to ensure that you
have an easy time using the system.
3. Train
your employees well
Don’t
assume that your employees will figure out how to use the system once it is in
place. Remember, the quality of the decisions made by management from using the
MIS will be determined to a large extent by the data that has been captured by
employees.
This
means that you need to put all the necessary measures in place to ensure that
these employees do a good job.
4. Invest
in reliable devices across your company
Investing
in enough devices improves the accessibility of the system. This ensures that
more data is tracked and as a result, more of it is accessible to management.
Better
accessibility also reduces the time taken for data to be entered in the system
and as a result making it available faster.
5. Get
a system that only has the features that you
Instead
of investing in a complicated system that is expensive to run and tracks large volumes of data that
you don’t need, you should go for something that addresses the immediate needs
of your company’s management.
This
way, you will not have to pay too much for the system and at the same time, you
will not take your workforce through a complicated and unnecessary training
process. You will also reduce the chances of errors arising in the use of the
system since the features and functions will be easy to understand.
6. Make
sure that you choose a system that is adaptable to changes
The
system that you choose should be able to adapt to changes in the company. With
time, you might need to change the personnel handling different tasks in the
system or the reports that you will need the system to generate.
It
is important to ensure that the system is able to handle these small but
frequent changes easily without having to contact the developer. If there will
be a need to contact the developer, like in the event of large changes, you
should discuss this early before you make the decision to purchase the system.
However,
most small changes should be affected in-house.
7. Be
prepared for the changes
Incorporating
a Management Information System in your business is a big step that will result
in many changes in your operations. Be prepared for these changes and prepare
your workforce for them.
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