M/s ABC Ltd. is a consumer electronics item manufacturing company. The management of the company wants to use advanced IT system solution to enhance its presence in the market. Therefore the company hired a consultancy f

CS Professional · Information Technology and Systems Audit · PYQS · June 2019
M/s ABC Ltd. is a consumer electronics item manufacturing company. The management of the company wants to use advanced IT system solution to enhance its presence in the market. Therefore the company hired a consultancy firm for taking services in the field of using advanced internet technologies and Database solutions. Further, the company wants to upgrade its existing Management Information System (MIS) for better usage of market information and competitive advantage. The top management of the company also want to expand business of the company by entering into e-commerce and m-commerce businesses. Therefore, company needs to take the service of consultant for upgrading the software system of the company using advanced application software. The top and middle management of the company held various meetings with the consultants to arrive at complete restructuring of the IT systems of the company. Assuming that you are a representative of consultancy firm hired by M/s ABC Ltd., answer the following, in brief: List the major purpose that will be fulfilled by providing information to all levels of management through a well defined MIS ?

Answer & Explanation:

A well-defined MIS provides information to all levels of management for the following purpose. The integrated approach towards data management will result in avoiding duplication of data, data redundancy and will help to simplify operations. To report the organization performance to tax authorities, shareholders, regulatory authorities and other stakeholders such as suppliers and customers etc. To prepare future plans for short and long term basis. To exercise day-to-day control on various operations in the different functional areas in the organization. To allocate different type of resources to different functional areas. To allow management by exception. To develop database of business partners and to devise procedures to deal with them. To develop the training tools for the new recruits in the organization at all levels. MIS opens up new vistas for management to make efficient timely decisions on vital operations of the enterprise and major strategic and tactical problem. MIS helps organizations to gain substantial economies by reduction of clerical and computational time.

Topics: Management Information System (MIS)

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