Goals of the business
The only real disadvantage is that some people are not computer literate and not all consumers have access to the internet. There was a concern over Security with the Internet when the system was first set up however the banks have proved that their security is strict and carrying out transactions over the internet is safe. Customers can now bank online and over the telephone without losing the expertise and assistance of specialist bankers, and so the Internet has changed the way in which banking is carried out and Banks are now enjoying the cost saving gains from the venture. The importance of the role of information systems in conducting business and achieveing the goals of the business
Information is vital in conducting a business. Managers know what information that they need to oversee the running of their business, it is almost impossible for a business to continue successfully without the manager receievng any internal or external information. This can be important information such as profits related to employees etc or it could be more simple information such as information relating to stocks. No matter what system is in place every bit of information relating to the outputs and performance of the business
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The primary purpose of any organisatin is to satisfy the needs of its clients or market. This applies whether it is profit orientated or not. Objectives express the direction and level of achievement expected from the organisation as a whole and at lower levels, from the individual parts, sections and departments which make up the organisation. Some organisations especially large ones, are complex and operate in uncertain and changing environments, have a number of objectives to cope with their various responsibilities. Reaching objectives and goals of the organisation, heavily relys on the information systems and the information that it produces. If it is a system that is not suited to the business and has flaws in the design then it is likely that the wrong information will be produced which will not indicate correctly if the objectives are being reached.
Barclays Bank sets its objectives and reviews them regularly. They strongly believe that the key to achieveing their objectives is ensuring that all employees are fully aware of the objectives and how they plan to reach them. The employees are also all briefed on the information that is used to plan and control objectives. They have small team talks every morning that runs through the days objectives and targets this will include sales, customer served, amount of credit card applications etc. this means that Barclays never go off track and are always concentrating on both long and short term objectives. Often a business can ignore the short term objectives and only set long term ones, however this means that a certain amount of control is lost in the running of the organiusation as there is no-oneoverseeing the day to day running. Braclays also have weekly meetings every Wednesday for an hour these are more detailed meetings where the long term objectives are discussed and any news for employees is given.
The banking industry is constantly involved in adapting their MIS’s to suit their needs and changing environment. This way they are able to conduct their business with the correct information available to them. A new system in the Banking Industry is one called CASHMASTER. This systems is already being used by a number of banks to help them conduct their business and reach objectives. It is a product of Global Management Technologies and is a leading edeg liqididty management software systems specifically designed to improves a bank’s profitability by more tightly managing and reducing cash levels in the branches, ATM’s, and vaults. It provides banks with the ablility to accurately forecast demand. The system is customised to the bank and provides a user with timely and expensicve reporting. There are constantly systems such as these being designed and so businesses that are in a fast moving industry such as banking can keep their systems up to date. This will ensure that they remain competitive.
There are many different levels of employess in an organisation from the shop floor workers to the top level of management. Each of these groups will also have different needs and objectives. An MIS in an organisation will need to cover all the needs of all of these groups and provide them with the information each needs. A manager in an organisation in terms of MIS, can effectively be any one who manages information that is produced. Reports and information provide a manager with a great deal of power. They can produce information that more exactly matches the managers particular needs at the time. Managers of different levels will each need information regarding their departments etc. For example a project manager may request the finances of a project.
Within Barclays the MIS is successfully providing all levels of management with the correct information. Forexample the top management is less concerned with the daily targets and so the they focus on the reports that are produced concerned with profits and new accounts and loans etc monthly. Barclays strongly believes that the key to success is regular meetings so that every employee in the organisation is aware of the MIS in place and is aware of what information each level needs.
The cashiers could be argued to be the main managers of information in Barclays Bank, each morning they have team briefs to continually review objectives and settargets for the day based on the information provided from reports on the previous days/weeks performance. They continually look for improvements and believe that if they keep their staff motivated by making them feel valued then the objectives are more likey to be met.
The lower level management are not as concerned with the daily targets and are looking more towards the monthly targets and ensureing that those objectives are met. The lower level management hold reviews every three weeks to look over each branches performance and sales. To keep up the motivation, prizes are awarded for the highest performing branch (see appendix). The MIS provides the managers with the vital performance related information they need based on monthly sales, profits etc. They need to be able to evaluate the firms posisiton at the end of the month and be able to spot problems before they become major ans threatening to the survival of the business.
Higher/top level management. At Barclays there is a three monthly review wihich involves all the top level managers. These managers are concerned with the long term success of the business and so the MIS is successful in providing them with both internal iformation on the profit accounts quarterly and also external information which is vital for planning. In this meeting the managers wil focus more on the end of year sale and profit figures rather than weekly or daily targets they need to ensure the smooth running of the business and Barclays MIS provides them with the correct information so that they can make informed decisions.
As discovered, MIS play a huge role in every organisation and is is reasonabl to say that without systems that provide infomratioin, busineses would not be able to function successfully. MIS form the foundations of every organisation and are found in every country. Although there are different types of MIS, they all sstrive to do the same thing provide managers with the information they need to conduct their business.