Weaknesses Of Current Information Systems

Published Date: 02 Nov 2017

Firstly, it is important to look at information systems and the view of Tykes Ltd in implementing those systems. The use of information systems in companies has recently been on the high side. Given that these systems are vital, it is deemed very necessary to know its work flow. Information is seen as data that has been processed to make meaning to the audience. Anything that can be converted to stream of bits is information (Wilson, 1993). Attention is on the value of information of information to different consumers.

Every organization has routines for collecting and disseminating information. They may consist of simple logs filled out by hand at the end of the day. They may be highly automated data collection systems using the latest technology. Information is what human beings transform knowledge into when they want to communicate it to other people. It is knowledge made visible in written printed words or speech. (Elisabeth).

A) INFORMATION TO MANAGE TYKES LTD EFFECTIVELY

1) Market Research and Forecasting: This is simply about the insights of new competitors. For Tykes Ltd to meet up with the high level of competition they face from larger companied, market research information is needed which provides marketing intelligence to assist the managers in making good marketing forecasts and develop more efficient marketing strategies. This will help Tykes Ltd management to collect analyze and maintain large amount of information on various market variables that are subject to continual change. Such information includes information for customers, consumers, prospects and competitors. Market, economic and demographic change trends are also analyzed. Data can be gathered from many sources including Tykes Ltd database, and data warehouse. Then different statistical software tools can help the managers analyze market research data and forecast sales and other important market trends.

2) Staffing the Organization: the staffing function in Tykes Ltd must be supported by information systems that document and follow up human resources within the company to increase their use. For instance the record- keeping system of an employee follows up the addition, subtraction and other changes to the documents in the employee database. Adjustments in the job change and compensation or recruitments and terminations are examples of information that should be used in Tykes Ltd to amend the employee database. Another example is a personnel skills account system that makes use of the personnel skills data from an employee database to find employee within the company who have the skills needed for particular tasks and projects. Also included, should be forecasting employee needs to ensure that there is enough supply of genuine human resources. This application will make available forecasts of employee needs in every dominant job section for the different departments in Tykes ltd.

3) Training and Development: Training people how to use the existing systems and learning new systems in Tykes Ltd turned out to be a big problem. It is obvious that without training a new human resource manager in the company or in a situation where training is limited, employees and managers find it difficult to use information systems to a higher advantage and the outcome can be low return on investment in systems.

4) Communication and Collaboration: There has to be interaction across Tykes Ltd to get things done properly. There is less communication of ideas, sharing of resources and cooperative work efforts. Tykes Ltd is also lacking proper communication systems like the internet, intranet and extranets to support good communication and collaboration among staff, suppliers, customers and also business partners.

Information systems and the companies whereby they are available interact and impact one another. Making use of new information will have effect on Tyke Ltd’s structure, work design, goals, values, decision making and an everyday behaviour. Also, information systems must be structured to serve demands of dynamic organizational teams and as well be designed by the company’s culture, politics, tasks, goals and management. (Laudon, Laudon, 2006).

Information technology will provide Tykes Ltd new tools for their managers to perform both their old and newer duties, making it easier for them to plan, supervise and forecast faster than before and to adapt quickly to changing business environment. Information systems have supported systems have supported managers very much by helping their duties in disseminating information, making available liaisons between company levels and allocating resources.

For Tykes Ltd to function effectively, the company will have to make do with information available on ways to go about the process involved in the company’s work activities which will make use of the information systems more effectively.

B) WEAKNESSES OF CURRENT INFORMATION SYSTEMS

Operational-Level Systems: These systems help operational managers by keeping track of the transactions of the organization, like sales, receipts, cash deposits, payroll, credit decision, and the flow of materials in a factory. The main aim of these systems is to answer questions and follow up transactions in the company but in Tykes Ltd, information relating to the management of staff and production is not readily available.

Management-Level Systems: They support the supervision, controlling, and decision making and management tasks of middle managers. Management-level systems give periodic reports instead of quick information in operations. Tykes Ltd practices non-routine decision making and tend to pay attention on less-structured decision for which information requirements are not clear.

Strategic-Level Systems: These systems support senior management address strategic problems in the company and also the outside environment. The principal of those systems is to match the changes in the outside environment with the existing company capability. There is no information available in Tykes Ltd about various market variables that are subject to continual change.

INFORMATION SYSTEMS AND TECHNOLOGY SOLUTIONS

HUMAN RESOURCES INFORMATION SYSTEMS (HRIS): The human resource management goal is to use the human resource of an organization effectively and efficiently. Because information technology affects business at every level, more managers are using it to support and control their business activities. (Schultheis, Sumner 1995). Therefore, introducing HRIS in Tykes Ltd will help serve as a storage and retrieval system maintaining large number of data on employee and job specifications. HRIS will support in the development of employees to their full potential, and helping to meet the needs of business. It will provide information such as, name, address, job title, and attendance of every staff in the company and other information needed to build job description and applicant files. With such information, it should be possible to spot the right candidate for job task, maintain records of past and present employees, and support the company to develop skills of employees. The internet has become a major force for change in the human resource management. (O’Brien, 1999). These systems will enable the high senior management to point out the human resources requirement, and also support the employee self-service (ESS) applications to enable employees make suitable plans and update personal information. The HRIS can produce different reports like lists of newly employed, sacked staff and the ones that are on holiday. It provides better and timely information and giving access to specific records online. The systems will also improve cost effectiveness in management.

EXECUTIVE SUPPORT SYSTEMS (ESS): This is recommended for Tykes Ltd because it will enable them forecast properly in their business strategies. Senior managers in Tykes Ltd should make use of the Executive Support Systems (ESS) to support them in making decisions. These systems are structured to include data concerning external events like competitors. They screen, compact and follow up critical data, showing the data of ultimate importance to the senior managers. The ESS integrates data from a variety of information sources externally, like, market and competition information which could be provided from web sources. They also provide information to enable supervision of business performance. For example, the CEO of Leiner Health products, the largest manufacturer of private-label vitamins and supplements in United States, has an ESS that provides on his desktop a minute-to-minute view of the firm’s financial performance as measured by working capital, accounts receivable, accounts payable, cash flow and inventory.(Laudon, Laudon, 2006). These systems have been structured due to the demands of managers that make less use of computers and they are easy to learn. (Boci, Greasley, Hickey, 2008).

MANAGEMENT INFORMATION SYSTEMS (MIS): These systems will serve the management level of Tykes Ltd, and will provide the managers with reports and also an online access to the company’s current performance and past records. These systems are designed to serve internally and not external events. MIS will help the line manager in planning, controlling, and decision making and can help develop the execution of the business. They will also help the company to supervise and control staff holidays and decrease operational cost. MIS reports might list the total pounds of flour used in a period by Tykes Ltd or, (Laudon, Laudon, 2006), compare total annual sales figures for specific products to planned targets.

DECISION SUPPORT SYSTEMS (DSS): Decision support systems (DSS) are computer-based information systems designed to help decision makers solve problems in ill-structured decision making areas. Successful DSS applications have addressed problems and decisions in a broad range of managerial and policy environment. (Wei, sun, 2009). These systems support managers in making decisions that are unique, rapidly changing and are not specified in advance. They address problems in which the method for getting the solution may not be fully predefined in advance. They capable of aiding the decision making at all levels. At the operational level, DSS is the production scheduling function in a manufacturing point. Based on such factors, sales forecasts, set up costs, inventory levels, factory load, workload and other elements, a balance factory work schedule is produced. At the strategic level, DSS usually involves an interactive dialogue between user and computer. An example was described by the director of management information systems of Northwest industries. He stated that DSS as providing a "comprehensive business analysis and planning system, not only in the financial area, but for strategic planning and econometric modelling of our own formal four-year plan".

TRANSACTION PROCESSING SYSTEMS (TPS): These systems are to basically serve the operational level of the organization. They are computerized systems that help perform and record daily routine transactions necessary in a business. They manage frequent external and internal transactions like order of goods and services which serve the operational level of the company. Managers need the TPS to support them in supervising the internal operations and the also the company’s external status. TPS serve the operational level and give summary to information which is directed towards MIS and then to DSS, then towards ESS for decision making.

COMPUTER BASED INFORMATION SYSTEMS (CBIS): The CBIS are made up of both hardware and software where the physical computer system can be found. The major purpose for the use of a computer in an organization has been to perform necessary data processing and to provide useful information in a cost-justified manner. (Necco, Gordon, Tsai, 1987). Employees can also use their web browsers to view their payroll and benefits information online from their desktop, mobile computers available at worksite. Computers can be so much cheaper for storing and distributing information than old paperwork systems with their inconvenient mailing and filing. Computers might take over more areas of organizational life because they can make any information already collected for one purpose instantly available to be used for many other secondary purposes. This is opening up totally new ways of using information. (Wilson, 1993).

C) ISSUES TO BE CONSIDERED BEFORE IMPLEMENTATION

The information systems investments issue; obtaining business value from information systems: One of the greatest issues facing managers is making sure that their organizations obtain meaningful returns on the money they spend on information systems. Senior management in Tykes Ltd should be expected to ask these questions: How can we evaluate our information systems investments as we do other investments? Are competitors getting more? It is one thing to use information technology to design, produce, deliver and maintain new products. It is another thing to make money doing it.

The strategic business challenge: providing appropriate complementary assets to use information technology effectively: Many companies realizing important business value from their systems in as much as they have invested heavily on information technology. This is because they lack or fail to appreciate the complementary assets needed for their technology assets to work. In order for Tykes Ltd to implement the information technology, benefit from them, realize quality productivity, and become competitive and effective, they have to redesign. Tykes Ltd has to make basic changes in employee and management behaviour, develop new business models and remove the inefficiencies in organizational structures.