Management Information System Essay Example | Topics and Well Written Essays - 3000 words

Management Information System - Essay Example Advantages presented by IOS systems Advantages of IOS include: it allows the flow of information in an automated manner between organizations so as to attain the desired supply-chain management system, thus enabling the development of a more competitive organization. Secondly, it forecasts the needs of the client and the delivery of services and products. Thirdly, IOS is helpful in better management of buyer-supplier relationships by incorporating the full depths of the tasks that are linked with the business processes company-wide. By engaging in these activities the organization is able to increase the production rate automatically; thereby, optimizing communication within all levels of a firm as well as between the supplier and the organization. As cited by Haag, Cummings and McCubbrey (26-27) to the other advantages of using IOS include: it reduces the risk in the organization; encourages global communication; overcoming the barriers that are associated with investment; benefits from the exchange of technology; it raises the levels of competitiveness; pursues economies of scale; it reduces the communication cots while at the same time extending the possibilities of coordination; and lastly, benefit from the exchange of technologies. ... The use of the internet in downstream manufacturer and customer brings a number of benefits, for instance, increased productivity, improved profits, and allows the organization to customize their customer services which will improve the overall value and competitive position. The use of the internet upstream of the supply chain leads to increased coordination, movement of goods from the supplier, and communication. Internet use allows the clients to order personalized products. It also makes it possible for the information to be readily available along the distribution chain. The challenges unique to inter-organizational systems On the other hand, the challenges associated with IOS include: data insecurity by intruders hacking into the organizations’ databases and having access to confidential information in relation to their operations. This would jeopardize the operations of the effected parties. The partners are usually concerned with if their competitors would have access to the information about the business dealings in the organization. Secondly, mismatch of skills for the people that are working in IOS enabled organization. The other challenge is inadequate technology infrastructure. Fourthly, the other challenge is that internal control systems and audit measures for IOS are usually not well developed. This is because it involves a lot of contractual procedures and legal aspect which need to be considered so as to evaluate the risk of information exposure and fraud. The other challenge according to Turban, Volino and Wood (87) found out that in spite of the clear benefits of the supply chain integration, its adoption is not widespread, and has even decreased in some organizations. IOS adoption usually take place as a response