ABC Ltd., is renowned company in Supply Chain Management (SCM) sector in India. Company has many clients across India and Globe. The company provides wide range of SCM solutions which integrate functions such as manufact

CS Professional · Information Technology and Systems Audit · PYQS · June 2021
ABC Ltd., is renowned company in Supply Chain Management (SCM) sector in India. Company has many clients across India and Globe. The company provides wide range of SCM solutions which integrate functions such as manufacturing and distribution by managing the information, material flow, financials etc. In order to serve its customers, the company has various offices across major cities in India and also abroad. Due to some Global Pandemic, the authorities in India decide for complete lockdown across the country for a brief period to contain the spread of pandemic. Accordingly, ABC Ltd., decides that all the employees of the company should work from home. The company has well established Intranet and Extranet, providing access to its employees and controlled access to outside customers and collaborators. In order to manage the information and material flow among its SCM partners, the company is using computerised Management Information System (MIS). The company is using Microsoft Dynamics ERP software to take care of company operations and employee establishment issues. This ERP system was adopted by the company for its business specific requirement, after proper analysis of essential qualities required for its business. Accordingly, the company with its robust IT infrastructure has been able to properly safeguard its operations in such situations and emerged as a leader in SCM sector. Based on the above, attempt the following: Even though MIS system helps a lot in managing business information, still it has certain limitations. Mention any five (05) such limitations.

Answer & Explanation:

The important limitations of Management Information System (MIS) are as under: The quality of the output of MIS is basically governed by the quality of inputs and processes. MIS is not a substitute for effective management. It means that it cannot replace managerial judgement in making decisions in different functional areas. It is merely an important tool in the hands of executives for decision-making and problem solving. MIS may not have requisite flexibility to quickly update itself with the changing needs of time, especially in the fast changing and complex environment. MIS cannot provide tailor made information packages suitable for the purpose of every type of decisions made by executives. MIS takes into account mainly quantitative factors; thus it ignores non-quantitative factors like morale, attitudes of members of the organization, which have an important bearing on decision-making process of executives. MIS is less useful for making non-programmed decision-making. Such type of decisions are not of routine type and thus they require information, which may not be available from existing MIS to executives. The effectiveness of MIS is reduced in the organization, where the culture is to hold information and not share with others. MIS effectiveness decreases due to frequent changes in top management organizational structure and operational team.

Topics: Management Information System (MIS)

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