Importance, Uses and Challenges of MIS

Running head: IMPORTANCE, USES AND CHALLENGES OF MIS
Summary: Identify and evaluate the importance, uses and challenges of MIS: Woolworths Limited
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1THE IMPORTANCE, USES AND CHALLENGES OF MIS
1. Importance of MIS
The MIS acts as the backbone for any business organization similarly for Woolworths Limited
also the MIS plays the similar role. The importance of the Management Information System (MIS) are
elaborated in the below section:
Help to manage data: The MIS used by Woolworths Limited helps the company to manage all
their confidential data. In order to make complex decision making this approach is much beneficial. Apart
from this, using MIS the critical information stored in the server can be accessed by authorized users
while required.
Analysis trends: The management requires preparing strategic plan and forecasting to
determine the company future goals. Therefore, for creating such strategy the company requires to
possess essential report to overcome the market trends. Various tools are also used by MIS to analyze
the current and future marketing trends.
Help to make strategic plan: In order to prepare a strategic plan to compete other competitors
the MIS is important as it provides accurate and reliable information to the developers.
Identification of problems and goal setting: Goal setting is referred to as a very crucial matter
for any business success. A lot of Research and Development (R&D) is conducted to consider suitable
materials for determining the goal. If MIS report is avoided then the company authority will fail identifying
market trends and possible problems as well.
Increase the business efficiency: The overall business efficiency will be increased if relevant
MIS is formulated by Woolworths Limited. As a whole the overall performance of the company will
improve.
Help to make comparison: MIS is important as it helps to understand the market trends and
performance of the organization. Therefore, Woolworths Limited would be able to successfully measure
the competitive factors through which high level competition can be given.
2. Use of Management Information System
Management Information system is an important tool that is widely used by the business
organizations mainly for managing all needful information (both financial and personnel). This is an
computerized database which collates, summarizes and also successfully analyzes all type of company
information. MIS is used for managing data related to disparate areas in terms of human resource, social
media marketing, sales and inventory management. The management team of the company is required to

2THE IMPORTANCE, USES AND CHALLENGES OF MIS
use control and monitoring techniques to identify the possible challenge and their respective resolving
methodologies. The MIS is used in different operational domain of the business organizations and those
domains are as follows:
 Accounting and finance department
 Human resource management domain
 Sales and marketing domain
 Supply chain management function
Through holding different conference and information services the Woolworths Limited is required
to design and direct the Management information system. Again the MIS is required to be used as it
reduced the operational time and cost.
3. Challenges of MIS in Woolworths Limited
If all current organizational barriers are successfully divided into the humanistic, environmental
and organizational factors then, the challenges that the organizations may face during the use MIS are as
follows:
Humanistic factors: If lacks of information are shared regarding the managers and other users
then the associates may fail to identify what actually they want. Professional skills and knowledge is the
other important thing if they found to have lack of skills and knowledge then the operational and functional
objectives of Woolworths Limited would never meet. Inappropriate collaboration method is another
challenge for the users and managers. If the associates fail to communicate with the others then that will
create massive internal conflict. Another challenge will occur if managers and system designer will show
lack of participation.
Environmental factors: The Company will also face massive challenge if the environmental
factors are not professionally identified. If the project manager fails to identify the suitable consultations
for designing software accurately are the other environmental challenges. Lack of arrangement in
professional training and development program is the other environmental factor that may also be a
challenge for the organization. Some other environmental challenge that the company may face may
occur due to lack of serious consideration and suitable rules ratification etc.
Organizational factors: Inadequate consistency and complexities of current manual system
major challenges associated to the organizational factors. Other major organizational challenge will occur
if the uses fail to possess adequate education, and skills related to information system. Before preparing
any project if the needful resources are not identified and used then major challenge will occur. If the
system is not implemented suitably then that will also negatively impact the success line and expected
outcome of the business organization.