Management Information Systems in Retail Organizations

This article discusses the importance of Management Information Systems (MIS) in retail organizations. It explains the three major components of MIS - people, processes, and technology - and how they are used in different levels of management. The article also provides examples of how MIS is used in retail organizations, such as customer relationship management, supply chain management, and inventory management.

Awarding Body:
Arden
Programme Name:
Ba Hons Business
Module Name (and Part if applicable):
BUS4002 Part 1
Assessment Title:
Management Information Systems
Student Number: STU 51934
Tutor Name:
John Whonderr-Arthur
Word Count:
1071
Please refer to the Word Count Policy on your Module Page for guidance

Management Information Systems (MIS)
Information System- Technology, Process and People:
Information system is a well-organized system that is used by organization to collect and manage the data and information. It is a framework
for gathering, organizing, storing and communicating the information to different levels of organization. Specifically, it includes various
networks, which companies and people use to gather and distribute the data to other. In today’s modern world, it has been working as
backbone for most of the industries and organizations. Information system has a vital role in every industry like; finance, government,
education, manufacturing health care, large and small businesses.
To successfully execute and operate information system, there is need of three major components i.e. People, Processes and Technology.
Technology: Technology is first important factor in information system that refers to implementation of technical knowledge for business
and other practical purposes. Now, technology has become an important part of people’s lives. There are three components, which come
under this category, i.e. hardware and software. It plays the most important role in developing computerized information system.
Processes: The second component of information system is process. Process is a chain of several steps, which are undertaken to attain
desired goal. These systems have become more integrated with organization’s processes, enhancing productivity and control to these
processes.
People: People are the most significant component of information system. Under an information system, people are engaged in every way
such as; people think about developing information system, they develop the system, they support the system and most significantly people
utilize that system. For example, system analyst, programmer, computer engineer etc.
For example, Management Information System (MIS) is an information framework that is used by organizations to process the information
via computers and other smart devices and assist managerial decisions (Laudon, and Laudon, 2016). In an organization, people increasingly using
technology, collect and process the information among all different levels of organization.
Management Information System in Retail Organization:
As discussed earlier, Management Information systems (MIS) is a systematic
utilization of technology sources and people to maintain the information flow
securely. This system has various applications in retail business and organization.
It includes all the processes and practices, which impact the retail marketing and
operations. In the retail organizations, this system is used at higher level of
operations. Information system can be used in retail organization in different
forms such as; Customer Relationship Management (CRM) and POS (Point of
Sales), supply chain management and logistics, internal communication and
inventory management.
Customer Relationship Management (CRM) and POS (Point of Sales): It is
the most important use of MIS in retail type of organization. Customer
Relationship Management is a marketing system, in which organizations use
point-of-sale ends to establish the customer accounts and gather information about
customers. Front end of this service performs the transactions and its relationship
software gathers and stores the related data. Use of CRM will assist the retail
organizations in developing customer relationships that is the key to success of
retailers.
Supply chain management and logistics: In the retail industry, there are various
larger players, which are using expensive technology to maintain the information
flow. They use updated technology and sources for managing the flow of goods
and services under their distribution process. Under this information system,
organization can connect its computers to major suppliers directly. It will enable
the vendors to generate the shipping information automatically from outlets for
fulfilling the orders. The availability and delivery of products can be traced from
the computer and information system. For example, Wal-Mart is one of the major
organizations that has implemented modern and updated technologies under its
supply chain and logistics. It is using RFID system, Retail link technique and
Third party DC that makes its supply chain one of the best in the world.
Internal communication: In addition to above, information system can work for
offering some other benefits for internal communication. The retail organization
can develop a system on store computers, which will show important message and
notices for all members. This system will allow to communicate through e-mail in
multiple locations. There are various retailers, which are offering training and
development programs using these information system, which enable the
employees to learn about the processes. This information system connects all the
levels of management. When the organizations store the information under this
system, it needs to consider the legal and ethical consideration such as; code of
conduct, information security act, privacy act etc.
Inventory management: It is related to distribution and logistics system of retail
organization. All three components of Management Information Systems enable
the retailers to update their pricing policies and organize audits for inventory.
Wal-Mart is the best example of this that is using effective technologies for
managing and controlling its inventory (Piotrowicz, Wand Cuthbertson, 2014).
Thus, Management information system works very effectively at higher level in
retail business. It incorporates all of its components, i.e. technology, processes
and people.
Book Club Events
Use of Information System at Different Levels: In an
organization, Management Information System plays an
important role in the process of decision making at every
level of organization. Three major components i.e.
processes, people and technology are related with each
other at different levels that is stated below;
Senior Management (Strategic Overview): At this
level, senior management plays an important role in
strategic planning and overview. Under this system, top
managers establish objectives and strategies accordingly.
In addition to this, people at this level supervise the
performance of organization and its overall environment.
Middle Management (Tactical): By the use of effective
technology and sources, middle level managers take
some tactical decisions like; short and long term budgets,
plans, schedules and specific policies. Moreover, they
allocate the resources among different teams and
departments (Schwalbe, 2015).
Shop Floor Staff (Transactional): Shop Floor Staff is
the bottom of organization’s management pyramid that
provides key information, which is needed to assist the
management. This information is generally generated via
automated tracking of fundamental transactions and
lower level activities. For example; order processing
system, payroll system, reservation system etc.
In this way, the components of information system are
interrelated at different levels of management and
organizational pyramid.
References:
Laudon, K.C. and Laudon, J.P., 2016. Management Information
System, Pearson Education.
Schwalbe, K., 2015, Information technology Project Management,
Cengage Learning.
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special
issue information technology in retail: Toward omnichannel
retailing. International Journal of Electronic Commerce, 18(4),