The Management Information System


Management information system is a computers system that stores, distribute, process, and analyze data. It is used to manage an organization successfully. It controls the internal and external factors of the government. Margaret Smith, owner of Java Books, a bookstore, and a coffee shop had many problems as she managed her business traditionally. Some of the problems that she had are erroneous in invoicing and accurate inventory counts among others (Laudon, 2002).

Inventory Management System

The introduction of an inventory management system in her business would promote and increase the efficiency of managing the goods that are in the store. Moreover, inventory management system would keep records of the incoming and the outgoing books, and coffee in her business. A good inventory management and control is essential for ensuring that Margaret maintain her customer satisfaction and profitability (Mu%u0308ller, 2011). Inventory management system can improve her business as the past tallying of the books and other goods are redundant. Moreover, it can reduce the losses her business would be experiencing attributed the employee theft. An inventory system can help her trace the missing products and identify the missing goods. Various sub-invoicing modules are incorporated together to handle the entire invoicing operations.

Inventory management system could control and track the movement of the books and other items in real time. This would be possible without consideration of the items location. Moreover, the recording of the serial number of the inventory items would increase the efficiency of the business, which would yield a massive profit.  A proper inventory system keeps permanent records of both coffee shop and the bookstore items for future acquisition or reference. Furthermore, a good inventory management system would be capable of printing barcodes that are highly desirable. On coffee shop, the system would aid by tracking expiry date of coffee, lot coffee, and multilevel categories among others. Through this system, the billing of the books and other coffee shop items would be made efficient. An inventory system assembles various books and other coffee items based on the customer requirement (Koch, 2012). It would be embarrassing to purchase items, then afterwards to find that some books are missing. Therefore, to avoid this, inventory software should monitor assembled books and other coffee shop items and notify the Margaret of any shortage. Moreover, inventory system can generate automatic purchase orders for the missing boobs and other coffee shop items. This creates an efficient business atmosphere where there is a reduced loss of books wastage.

Margaret use a lot of time to assess the records and order of goods when they run out. Inventory management system reduces the cost and the burden of this step by enhancing automated sales based on the dwindling stocks. Nowadays, competition has forced business owners to handle customer requirements on a personal level. Therefore, management information system has helped retailers to keep records of the customers. Inventory systems not only keep the customer information but also record their transaction. This factor is used to monitor the customer habits. Therefore, Margaret could be capable of identifying potential customers and maintain her customers (McBrewster, 2010). Through this, she will be able to identify future potential buyers. Inventory management systems are advancing day-by-day.  Today, they have advanced accounting capabilities. Therefore, Margaret would consider implementing this system. The functions the system would facilitate are conversion of currency, ledgers, commission calculator, banking information, invoices, and budgeting information. Inventory management system plays a critical role in customer satisfaction and sales. Through the introduction of this system, she will unquestionably remain in the competitive market.

Invoice Management System

Invoice management system is an internal enterprise function that is obliged for managing documents from suppliers or vendors. Invoices represent a source document in accounting, which outlines information relating to financial transaction. Based on Margaret enterprise, vendors provide outside services such as Java books supply, office supplies, and maintenance of the flow of the stocks. Suppliers include firms that provide enterprises with economic resources such as raw materials, and labor. Invoice management system aid in invoice generation, so that both vendor and suppliers of the goods and services can be paid in a timely manner.

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Invoice management process is a three way match technique found in accounts payable functions. Purchase order represents Margaret or her employer internal information that provides her mandate to purchase goods such as books from the supplier or vendors. Normally, two copies of purchase orders exist in an enterprise (Olive, 2012). One is sent to the supplier or vendor, whereas the other remaining is retained in the enterprise accounting department. These documents come in use later on during the invoice management process. Therefore, Margaret is obliged to implement automatic invoicing generation software rather than maintain the paper copy to allow easy retrieve and review of purchase orders. Inventory generation systems ensure that inventory counts are quite accurate. The system will also ensure that invoicing was not erroneous that reflected inaccurate cost and extending pricing to the customer as compared to the past. The other thing the system would eliminate is the reordered obsolete books and completed purchase orders, which have retired stock keeping units. Moreover, the introduction of this system would effect on management. In the past, Margaret could not manage her business financial position because not all the reports would be manually compiled (Olive, 2012). Therefore, she is obliged to introduce invoice generation system that can handle financial problems since it is incorporated with all these sub-systems. This will ensure that the business remain in the competitive market.

Receiving Processes

Management information system is used to improve supply and distribution of goods. In the case of Margaret enterprise, a management information system eliminates all the problems she was facing when conducting her business activities manually. Benefits the system would bring are adequate supply of Java books and Coffee shop goods. Moreover, it improves accountability of all books and coffee shop items in the supply chain. It promotes the reduction in supply imbalance, i.e. overstocks and out stocks at bookstores (Koch, 2012). To ensure cost effective and efficient supply chain of books and other coffee shop items, Margaret should be obliged to introduce management information systems. Management information system is incorporated with the decision maker throughout the supply chain with timely accurate and appropriate logistic information. Therefore, the introduction of this system would promote, fasten, and improve the operations of the Margaret Business. It will also allow her to be competitive in the market.

Requiring Customer Order Fulfillment

It is the role of any enterprise to meet to fulfill its customer requirements to prevent closure in future. A management information system is capable of storing all the required information (McBrewster, 2010). This operation is made available by creating a database management. Database management information system is used to store all the data required in an organization. Margaret is obliged to but an information system to capture the demands of the customers. The management information system could store all the books available in the organization, the books description, supply details, invoicing details among others. The incorporation of these sub-systems ensures that the entire operations of the organization are met. Moreover, a database management system would keep track on the majority of the books the customers are buying frequently (McBrewster, 2010). Margaret should use this information to evaluate her business to prevent wastage of resources. Furthermore, the database is capable of maintaining all the day-to-day transaction for future business endeavors. It is used to make sure that the goods ordered are in place in time. It facilitates the tracking of torn books and goods that are yet to be delivered.  Both customers and the seller acquire knowledge on the products available in the enterprise use these systems (Laudon, 2002). Therefore, Margaret should stand firm and purchase a management information system, which will ensure success in the business market.

Web-Based Self Services

Web-based self-service is where one who can work with digital devices and can acquire answers to their questions easily. Moreover, it facilitates the acquisition of answers without having to contact the support staff. This practice enables the employee to work proactively.  Web-based self-services ensure that the burden of the support staff is eased. Through this software, both customers and sellers are capable of exploring and acquiring enough information that promote the growth and development of the business. One of the key issues here is that the customer demands are met. Once the manager meets the customer requirements, certainly the consistent growth of the business will continue. The other factor is that the cost of supporting the customers will be reduced. Through the introduction of this system, Margaret will be ensured to have a competitive benefit in the marketplace. This is because she will be able of acquiring customer requirements at any time (Mu%u0308ller, 2011). The acquisition of first hand information helps the owner of the firm to make both strategic and tactical decisions that will enhance development and growth of the organization. Furthermore, customers are able to make the best choice in purchasing any commodity.  In this case, the customers will order goods based on their interest and after evaluation of the book.

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Cost Reduction, and Improving Efficiency

Margaret competitors are lowering their cost and improving their profit margin through efficiency. This factor is facilitated with a management information system. For example, database information system is capable of storing all the products details, customer details, supply and purchase details, which is promoting and easing the process of managing goods. On the contrary, she is using traditional mechanism of conducting business, which is wasting many resources (Mu%u0308ller, 2011). Moreover, web-based self-service has reduced the cost of customer support. In conclusion, management information system has significantly increase profit and eased management in many firms.

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