Running head: MANAGEMENT INFORMATION SYSTEM 1
Management Information System
Management Information systems are tools that support processes, operations, intelligence, and IT in an organization. They are usually used to manage information and transfer data; hence, they are the backbone of the information management field and often considered as the first systems of the information era (Joshi, 2013). Modern businesses cannot survive for long without using MIS to manage huge amounts of data. Hence, in today’s world many businesses and organizations are using Management Information Systems. Examples of businesses that use the MIS are Amazon and Walmart Inc. In the ensuing discussion, the focus is mainly comparing and contrasting MIS in the two organizations, the way the system has enhanced decision-making, used in competitive advantage and the consequences that come with its use.
Amazon’s Management Information System model formerly offered customers access to massive selection without the need to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling, which comprised of an order fulfillment system and an Amazon used Website system. Amazon then realized that in order to ensure customers get enjoyable experience and acquire an inventory at fair prices; they needed to be in control of the whole transaction process from the beginning to the end by operating the business using their own warehouse (Joshi, 2013). The organization resolved to utilize a sophisticated technology Management Information System of the Amazon Web Service, Simple Storage Service and an Excelon business-to-business integration system. The high technology used by Amazon assists it to capture customer’s records from all over the world. The management Information System used by Amazon comprises of analysis software, logistics system, and the latest Oracle DBMS that runs on Digital Alpha servers with an improved security. Through this system, Amazon is able to maintain its large number of products and customers.
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On the other hand, Walmart, which has grown to a large retail business in America, initially used an Information technology that was established in 1975. The organization used an IBM computer system to monitor inventory in warehouses and distribution centers. However, Walmart has incorporated a Management Information System, which is different from that of Amazon. It uses radio frequency identification (RFID), where tags are placed on products. These tags emit radio signals, which are captured by the RFID servers. This assists in tracking products from the manufacturing all the way to sale of the products. Computers are interconnected to the RFID server where it communicates to the computers when the product has been shipped out. These tags are removed from the product once it has been sold. Thus, the use of this technology has made it easier for making inventories by clerks working for Walmart. The Management Information System for Walmart is the Jane data center, which has a capacity of approximately 460 terabytes of data. This system deals with includes distribution centers of General and Food distribution. It also has system used for Model calculations that includes the Gauss program and Gauss data sets. This assists in calculating sales, profits, and distribution miles.
Both businesses depend on their Information systems for making decisions and managing operations for the organization. Amazon and Walmart Information Systems have become worldwide platforms for buyers and retailers in selling their products. Each minute, thousands of customers are usually searching and ordering products. The Information System usually takes the customer information through their searches, data mine, and wish list (Joshi, 2013). These systems are smart enough to analyze the information and thus, both businesses use this to offer services accordingly. In addition, using systems such as Smart Analysis Search the organizations are able to track fraudsters. The Information system of both organizations has helped the businesses in improving their marketing techniques and the efficiency of their distribution channels in time with the fast development of technology in the retail industry. In addition, managers use Information Systems to collect and analyze information about the various aspects of the businesses increasing effectiveness and exploiting the capability of present technology (Joshi, 2013). By utilizing data obtained from the database, the organizations are in a position to offer customized shopping experience for each customer. Finally, both organizations use Information systems in analyzing business trends and examining strategies to determine the improvement needed for the organizations.
Amazon and Walmart Inc. use Information technology for competitive advantages. Amazon has been a major winner in the retail sector and has managed to increase its profitability and improve its operations. By the use of major technology advances in Information technology, it has managed to attract customers from rival organizations. First, Amazon primary competitive advantage is that it does not have to manage physical stores. The business has various mobile shopping apps that make it easier for customer to access its products and services from by using their mobile phones (Joshi, 2013). Further, Amazon has started manufacturing hardware such as Kindle tablets and it plans in manufacture of Smartphone. These hardware products are purposed to support the sale of the range of products offered by Amazon. This is considered the main reason why sales of hardware are kept low when compared to other products offered by Amazon. Amazon Smartphone and Kindle tablets could assist to drive the sales of digital content high, as well as improving customer loyalty and shopping experience. On the other hand, Walmart Inc. has also utilized the latest Information Technology for its competitive advantage. The culture of Walmart is based on locating the most contemporary information about desires and requirements of customers. Walmart uses the latest Information technology in supply chain management, performance follow-up, satellite system, and real time market exploration to improve customer service. The greatest strength of the organization is the information technology it uses to support its international logistics system (Joshi, 2013). This makes the business’ logistic system exceptional. It has the ability to monitor the performance of products easily from store to store all over the country. Further, Walmart has created an online mall on a page acquired from Amazon that will assist in offering products from less known retailers.
Despite the advantages shown above of using Information technology for competitive advantages, there are potential security breaches and computer crimes related to Amazon’s and Walmart’s Information systems. Amazon admitted exposed customer email addresses due to a technical fallacy on its website. In addition, a recent hack points out a security weakness in Amazon’s customer management system. This shows a problem in the authentication protocols for Amazon’s website. The hack reveals a manipulation of customer’s bank deposit information on various accounts (Joshi, 2013). In addition, the hack was aimed at accounts that have not been recently used to post fictional merchandise to make sales at high discounts thus steal money from Amazon. Many clients reported to lose approximately half of their sales. Similarly, Walmart Inc. has also faced potential security breaches and related computer crimes. For instance, Walmart’s website was a victim of a cyber-data breach where malware was installed on its data center servers. This malware collected customer personal information such as names and e-mail addresses and credit card data. The attack exposed thousands of customer information leading to a financial loss for the organization. The cyber-attack was attributed to the use of inadequate encryption of data, employing contractors and personnel with inadequate skills and lack of using external, secure payment services. Thus, both organizations have put in place measures to prevent similar occurrences in the future through enhancing a secure Management Information System (Joshi, 2013).
In conclusion, it is evident that Management Information systems are core for an organization’s operation and performance. From the two organizations, the study can conclude that Management Information Systems have more advantages than losses for businesses.
References
Joshi, G. (2013). Management Information Systems. New Delhi: Oxford University Press.
