Management Information Systems Report: Business Performance Analysis

This report provides a comprehensive analysis of Management Information Systems (MIS) and their application in organizations. It begins with an introduction to information systems, followed by an exploration of data usage within organizations, including how data collection enhances productivity, facilitates decision-making, and supports marketing efforts. The report then details the features of MIS, such as flexibility, ease of use, versatility, and collaborative capabilities. It further examines how businesses can comply with legal and organizational requirements through effective MIS implementation and leverage these systems for competitive advantage. The report also evaluates the effectiveness of MIS in improving business performance and provides recommendations for system enhancements, concluding with a system development plan. The report uses examples of McDonald's and Malaka Spice to illustrate key concepts. The report also covers the importance of communication and collaboration within organizations. The report provides a detailed analysis of MIS to provide insights on the business performance.

MANAGEMENT
INFORMATION SYSTEMS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUCTION...........................................................................................................................1
ACTIVITY 1...................................................................................................................................1
Use of Data in Organization........................................................................................................1
Features of Management Information System.............................................................................3
Ways FTF can comply with legal and organisational requirements when using MIS................5
Ways FTF can utilize Management Information System for competitive advantage.................7
ACTIVITY 2...................................................................................................................................9
Ways business uses its management information system to improve performance....................9
Evaluation of effectiveness of this system.................................................................................10
Recommendations to improve the current system.....................................................................11
System Development plan.........................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Information system is an information and communication technology that is used by
different organization to make interaction between people to support the business process of the
company. The information system is an integrated combination of different components for
collecting storing and processing of data and information that is collected by various sources that
are present in market (Smith and Wong, 2016). This collected, stored and processed data
supports the organization to make important decisions in future for the business. Most of the
organization in modern time are using information system to boost up the performance of the
business capabilities in the global market. McDonald's is a multinational restaurant chain that is
providing fast food and beverages and related services to the consumer.
This organization was established in 1940 in San Bernardino, the founder of company was
Richard and Maurice McDonald. Currently the head quarter of the company is in Chicago,
Illinois, Unites States. The other company that is using the information system for the business is
Malaka Spice Pune. It is also a restaurant. Malaka Spice was established in year 1997 at
Koregaon Park by Praful and Cheeru Chandwarkar.
This report is providing the importance of data collection in the different organization
that are in the same business. Various Information System for the organization are studied to
manage the information within the organization. Foe the fast truck food is evaluated for legal and
organizational requirement with information system. The use of managing information system is
explained for competitive advantage of fast truck food restaurant. The effectiveness of
Information System is analysed for the business. Recommendations are provided to make
improvement in the performance of company. On the base of the information collected from the
different information system an Information system development plan designed.
ACTIVITY 1
Use of Data in Organization
There are different information system are used in the organization to manage the
information which is important for the business and growth of organization. The data manager in
the organization is an important task. In the traditional method data collecting, storing and
processing was done by manual manner and in modern businesses the intelligent information
systems are used for these handling of data. An organization uses the information and data for
different purposes that are -
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Increase Productivity of Organization
As a large size organization it is difficult to manage all the operation of organization in
effective manner. For the better productivity of organization management need to track the
various action and function of organization to make effective change (Walsham, 2015). This
changes are required to implement in the organization to manage and improve the productiveness
of employees and different procedures.
Smooth Operation
Data collection is performed by the organization to manage the working and performance
of the employees and performance of the different machines. This is important for the continuous
production at production line. The data related to the machine performance is used by the
organization to check the efficiency of machines in their current operations. This will help the
management to make relevant changes in the machines and processes. The information about the
employees will make company aware of their capability to further make the plan for
improvement in organization.
Decision Making
For an organization it is important to make relevant decision in organization to make the
operation of organization more effective and successful in the production and performance.
Different type of data related to the company is collected by different people and different
system to make suitable decision for the organization. The data collected from different sources
is processed by the company to perform analysis to make right decision for the organization.
This decisions improves the performance of organization in the competitive market. For example
in the operation and menu of McDonald’s in any country dependent on the culture and social life
of citizens. In this case company perform different research for their operation in the particular
country to get better and profitable output. This is how McDonald’s perform research to decide
menu for particular country (Pearlson, Saunders and Galletta 2016). This also help the
organization to find the consumer in the local area. By collecting information of the target
market of company can make effective decision to attract more customer to increase the revenue
of organization. The data collection also help the company to full fill the needs of customer by
making respective changes in the product and services of company. By making this changes the
services of company provide greater opportunities to make business successful
Promoting Company Product and Service
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Data collection from the customer and marketing team provide opportunity to the
organization to performing the marketing of product to gain greater market share to get
competitive advantage. This will help the company to know the interest of customer to redesign
the product and service to provide higher satisfaction to customer. The data collected from the
social media and digital platform provide information to company which gain from the customer
feedbacks and this will lead to effective and productive change in organization’s business.
Collected data also provide enough information to predict the future change in the market place
and consumer demand. This is how data collection is important for the marketing and promotion
of company product in market.
Problem Solving
For the organization various problems comes in the way of business and this are major
trouble to organization. This troubles only can be resolved by analysing the data collected from
inside and outside the organization. The information collected from research data provide better
opportunity to organization to solve typical problems in the business procedures (Mabogunje,
2015). Good management of information make the processes of McDonald’s easy and free from
errors.
This is how information and data related to the business is used by the organization to
maintain the productivity and performance of McDonald’s.
Features of Management Information System
The management information system comes with different features that improves the
business and information handling of organization. Use of Information system provides different
ads to the organization and this ads are flexibility, ease of use, versatile and collaborative
features.
Flexibility
The main feature of the information system and its management is it provide high
flexibility to the organization. In the normal and manual form of data collection, storing and
processing take bit longer time and it is not that much efficient for the organization. The
information system like DSS, TPS, AI and OLAP provide help to the organization to conduct
different type of research and also provide support base to make respective change in the system
and process of organization (Vaishnavi and Kuechler, 2015). Company can fetch different kind
of information and data from various sources to perform different operation and function in
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organization. In traditional system it is difficult to collect the information from different sources.
Either this sources could be online or offline sources. In the technical system the chances of error
is minimum and human errors and misinterpretation of data can be prevented by information
system. These systems also help the employees and management by reducing their hard work
and minimise their troubles in data processing
Ease of Use
The use of information system is too easy for employees and management. This
information technology does not need extra efforts any special kind of training to work on this
technology. Information systems are too easy to manage and operate. All the organization have
to do is to operate the functions of information systems to perform data collection. This function
will lead to automatic data storage and process occur. The result of data research is provided
directly to the operator and extra efforts does not required. For example the DSS and AI are the
best suitable type of information system for organization. AI is the latest technology that comes
with highly efficient decision making technology. AI technology is a self-learning process and it
is capable of making decisions on its own. This technology makes the organization capable to
collect best efficient information that is good for the performance of the organization. The other
information system that is use by the different organization is DSS that is also known as decision
support system. DSS perform the research on the data which is collected from the different
sources and system process this data to find different patterns and sequences to help the
organization to make various decision in the organization.
Versatile
The function of different information system are not limited and not common. This
function of the information system are highly productive for organization and business goals.
Information systems used in the business organization are highly compatible for different kind of
other systems and this thing make IS high effective in goal and target achievement. On the
minimum level of efforts high level output can be generated. These systems also supports the
various skills and knowledge of employees and organization to provide high productivity to the
organization (Flowerday and Tuyikeze, 2016). There are multiple information system used by
the organization to gain maximum efficiency in the processing and concluding the researched
data. And all this information systems are capable of work as a unit and all the systems can be
used on a single interface for combine operation. In an organization there are different
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information systems are used by different departments and this all systems of different
departments can be combined to get a integrated output on the end. This is how the versatility of
information system improves the performance of the organization.
Collaborative
Apart from the data handling and information processing information technology can
help the McDonald’s in different manner. This systems also can be used to perform
communication between the people of organization. Communication is most important in the
organization and efficiency and performance of the company is depended on the communication.
For better coordinative operation and higher performance company need to perform effective
communication. This effective communication help the management and employees to
communicate goals and targets of company. This hell the employees to make good collaboration
with other employees and management. This systems are used to communicate data and different
kind of work related information with other people who might need this information to perform
their work. This is how the information system in an organization improve the performance of
the organization by making communication effective between employees and management.
Ways FTF can comply with legal and organisational requirements when using MIS
Use of MIS system within a business can help a business to comply with both
organizational and legal requirements. As MIS systems are used within whole organizations and
different MIS systems are used by various management teams of an organization (Harrison and
Lock, 2017). It helps in fulfilling organizational and legal requirements in many ways such as: It
supports the organization in their business process i.e. It helps in treating all the request
generated by the customers and provide them with better service. MIS system can easily support
customer related services. MIS system also supports various other kinds of business operations
by providing them with actual, accurate information in a timely manner which further helps in
enhancing flexibility and accuracy within organizational operations. It also supports decision
making within business for all the employees and management team in their daily operations. It
also helps in decision making for the company in meeting organizational goals and objectives
which further help in developing or evolving strategies to meet organizational needs and gain
competitive advantage. Management information systems also helps in identifying overall
revenue generated from all the business operations and compare their business performance
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(Meyr, Wagner and Rohde, 2015). Few MIS systems also helps the organizations to conduct
Auditing and maintain licensing of all the software used by the organizations.
Other than this MIS system also helps in managing all kinds of financial and legal
informal of an organization. All such informations can be handled by a single management
information system. This helps in ensuring overall transparency within the business operations
and financial flow within the overall business. The main legal requirement of an organization is
to protect their data and information related to their business processes, clients, customers and
financial information of their organizations. MIS system not only help in maintaining the
accuracy of the organizational data or information but it also helps in protecting the information
or data used by the company. It helps in storing critical information of an organizations' security.
Fast Truck Food (FTF) can use Management information system as well to fulfil their
legal and operational requirements as well. MIS system can help FTF to protect and manage
their customer information, their food recipes, financial information as well. MIS system can
help Fast Truck Food to manage all of their business operations like selling of their prepared
foods, managing their financial information, help them in important decision making related to
their business operations, processes and many more. With the help of MIS system it will become
much more easier for Fast Truck Food to analyse their overall revenue generated and profit made
by the business. In simple words use of Management information system by the Fast Truck Food
can help them to comply with their legal and organizational requirements (Azaria and et.al.,
2016). This system can help them to safeguard their information and manage all the financial
information with complete accuracy. MIS system will not only help FTF business to safeguard
their legal or final information but it will also make them easy to access required information
safely without any errors securely. Access to customers, clients and suppliers information will
help them to make strategies in order to fulfil their organizational requirements like identify their
customers, their needs and based on it bring improvement within their products and the service
that they provide. Fulfilment of legal and organizational requirement of Fast Truck Food will
also help them to bring improvement within their business, business processes.
For example McDonald’s uses MIS system to manage and protect their financial data or
information as their business is expanded globally, so they need MIS system to understand their
revenue generation per outlet, their star product, profit generation and many more. Access to
such information, analysis of this data becomes much more easier for McDonalds. One of the
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main organization requirement of McDonalds is that they need to manage and maintain their
products and their details, product prices, discount coupons applicable on items and many more
and all these requirements are easily fulfilled by Management Information system.
Ways FTF can utilize Management Information System for competitive advantage
Fast Truck Food can Utilize management information system in many ways which will
help them to gain competitive advantage (Dwivedi and et.al., 2015). Proper and accurate use of
management information system help the business to gain potential business advantages which
eventually help in gaining competitive advantage for the success of the business. MIS system
helps the managers of a business to use information to expand their business or business
operations such that the organization can gain competitive advance that they can use against their
rivals or competitors. Similarly, correct utilization of this MIS system by FTF can also help them
in gaining competitive advantage. It can help them to generate a correct database which further
helps in improving marketing of their products and services. MIS system will help FTF to
generate a database as per their requirements so that they can improve their sales and marketing
strategies. This will also help them to use their correct and existing information according to
their business requirements as a resource. For example: Fast Truck Food can use their database
information to identify the type of customers they deal with, different segments of customers and
the segments they will focus on, the type of market they will operate in. Correct use of this
customer and market related information will help to gain competitive advantage as they will get
to know their customers and the market they are operating in a better manner (Noe and et.al.,
2017). MIS system can also help Fast Truck Food to understand the needs and requirements of
their customers. This will help them to fulfil their customers requirements as well as provide
them with various benefits like discounts, coupons and many more. This can also help FTF to
fulfil their customers requirements in such a manner that they can provide food products to the
customers at slightly better price then their competitors or can provide discount on those
products in order to gain competitive advantage and counter their competitors prices and services
that they provide to their customers.
Correct utilization of MIS system by FTF business can also help them in understanding
their suppliers in a better manner such that they can fulfil their requirements easily, lower their
transaction and processing cost, increase efficiency of their delivery as well as increase their
management support. This will help them to improve their value chain by bringing some specific
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and required changes within the business as per the competitive strategy developed by them to
gain competitive advantage and have positive and greater strategic impact on their Fast Truck
Food. Other than this MIS system can help FTF to track down individual sales of their product
and each item including their total number of orders, basic expenses, payments and revenue
generated by each item (Maxwell and et.al., 2015). This will further help them to identify
revenue generated by each item Such that they can rank their items in a specific order based on
their selling and revenue generated. This way they can bring improvement within their current
products and build strategy to increase their sales, revenue in order to gain competitive
advantage. Another advantage that FTF can get by correct utilization of Management
information system is fast and accurate generation of financial statements so that manual errors
can be reduced (Zhang and et.al., 2018). They can even synchronize their sales with customers
data i.e. What kind of customers prefer what kind of items and which products maximum items
are sold. All such information will help FTF in easily integrate their financial report as well as
protect all the financial information of the business. Other than this MIS system can also help
FTF to analyse their financial information, customers needs, preferences, sales and many more
things. Based on the charts and graphs they can take required decisions and develop strategies
which will eventually help them to gain competitive advantage. Fast truck food can gain all such
advantages only after correct utilization of Management information system so that they can
compete with their competitors in the current market, provide better service to their customers,
fulfil their legal as well as operational requirements, bring improvement within their current
products and services, manage and maintain their financial information in order to gain
competitive advantage (Kasemsap, 2018).
For example: McDonalds is a Multinational company that operates globally. They need
to operate in this competitive market and compete with various competitors. McDonalds uses
MIS system to gain competitive advantage in various ways. MIS system helps them to
understand their customers requirements and based on their requirements they bring changes
within their database in order to gain competitive advantage. They analyse their customers
preferences and requirements and based on this they make their marketing strategies, provide
discount coupons to their customers and bring changes within their pricing strategy as per their
competitors.
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ACTIVITY 2
Business chosen
The business chosen for this Management information system research is hospitality
sector. Within this hospitality sector fast food business will be chosen like McDonalds.
McDonalds uses various kinds of Management Information Systems for different purposes such
as: Transaction processing system, decision support system, Management information system,
POS (Point of scale system) and Hyperactive Bob System. But in all these systems the MIS
system that was actually used was TPS i.e. Transactions processing system.
Ways business uses its management information system to improve performance
McDonalds uses TPS system to improve their financial and transactions. Transaction is
mainly done when there is an exchange and collection of financial data, it is called transactional
processing. TPS system stores, collects, retrieve and modify transactions of an organization
(Hunter and et.al., 2016). Not only this it also helps a business to manage their employees
records, manage their payments and protect all the transaction related data or information and
exchange of money. TPS system plays a vital role in improving McDonalds overall performance
and transactions because McDonalds sells huge amount of hamburgers, need huge amount of raw
materials from their suppliers and for this they need to place order every time with their
suppliers, save their customers data who buy their products, they need to process all the
transaction related information such as suppliers information, customers information, items
purchased, final invoice amount and many more. Initially without TPS system it was quite
difficult for McDonalds to manually process all such information without any errors (Santaguida
and et.al., 2017). Implementation of TPS system within their business has helped them to
manage, save, process and update these informations easily. It has also helped them to automate
their complete billing system as all the transaction details will be automatically updated within
their system. This system has helped McDonalds to improve their performance, consistency and
reliability of transactions (Pieri, Cocco and Salvetti, 2018). This system has not only improved
their overall performance but has also brought reliability, efficiency and accuracy within their
organization.
Transactions processing system has helped in improving the overall performance of the
organization but other than this, this system has also helped in increasing privacy and
authenticity within the system by controlling the access to transactional information i.e. Only
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authorized persons will be allowed to access transactional information for limited time period in
limited amount. This limited access to information is mostly to increase privacy and security of
transactional information and only authorized persons will be able to access and update those
information’s. This is to ensure that all the changes done within the system in transactional
information will be done by authorized persons and if there are any changes within the data then
also only those authorized persons will be responsible for those changes or for any kind or errors.
Other than this if any kind of information is required to be extracted in real time then it can be
done within a short duration of time. It increases the rapid response time of the employees and
also helps in increasing their performance (Keshtegar and Vakili, 2018). It helps in increasing
continuous availability of the transactions. McDonalds heavily relays on this TPS system and if
this system fails then it might create dispute or breakdown in the operations. This TPS system
also helps in maintaining the integrity of the data without corrupting it. This system makes it
much more easier for the employees like data entry, processing or information, updating
database, make any correction within any data or information easily. If there is requirement of
shutting down or making any changes within the system then it can be done easily without
hampering the data. Not only this if there is requirement of replacing any hardware component or
system then it can also be done easily and these changes will not make any impact on the
information that is being or is saved within the system of the organization. McDonalds has been
benefited from this transaction processing system as their overall performance in terms of billing,
ordering raw materials from suppliers, easily access the system and many more has been
improved both in terms of performance, efficiency and effectiveness (Wang and et.al., 2017).
This TPS system is reliable because all the information stored in this is secure and if due to any
reason the data or information within it gets lost or corrupted then it can be recovered easily.
This way Transaction processing system is used by McDonald's which helps them to increase as
well as improve their performance.
Evaluation of effectiveness of this system
This transaction processing system is one of the most effective system that is being used
by McDonalds because it helps in fulfilling both legal and organisational requirement of the
business (Laudon and Laudon, 2016). One of the main requirement of McDonald is to maintain
and secure all the data related to transaction done by the company and the customers. Security of
the data is their main concern. TPS system helps in increasing efficiency of the transactional
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process and information of the business as fewer number of employees have complete access to
the transactional data. The main effectiveness of this system is that it helps in securing and
limiting the access of transactional data and if any changers is required to be done within the
system and the data then all the persons associated with the system or those who have complete
access to the system and its data are informed or notified. This helps in protecting the
unauthorized access or changes within the system and its data. This helps in increasing the
effectiveness of the system as the data stored within it is accurate. This data can be accessed by
the authorised person in real time without any time delay (Cantarero and et.al., 2019). This
makes this transaction processing system much more effective to be used within a global
organization like McDonalds. It makes order processing, payroll, transaction management within
organizations much more effective and accurate which helps the organizations like McDonalds
bring continuous improvement within their current system or process.
Recommendations to improve the current system
There are various kinds of improvement that can improve the overall efficiency of the
system. Here are few recommendations that can improve the current transaction processing
system used by business, such as: Most of the time TPS system used within the organizations is
offline TPS system due to which companies face difficulty in doing updates online or updates
done from another system. By making Transaction Processing System online such updates from
another place or system can be done easily and database can be maintained in an easy manner.
By making this system easily available on online, access to the transactional data becomes easy.
Another recommendation for improving the current TPS system of McDonalds is to bring some
changes within the system and making it available on cloud or in other words updating simple
TPS system into Cloud based TPS system where all the data will be stored in the cloud based
servers and all the employees will be able to access or update the data on cloud servers. This
current TPS system can be integrated with the crypto currency like Block chain. This will
increase the efficiency of transactions that are done and saved within this system. With the help
of these recommendations' improvement can be brought within the current system.
System Development plan
There are different steps need to be followed by the organization to develop information system
in the organization. These steps make the development plan more effective for company (Rowley
and Hartley, 2017). To develop information system in McDonald’s seven steps are followed that
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are – planning, system analysis, system design, development, integration and testing,
implementation and operation & maintenance.
Planning
In this stage different things of the system development are discussed to make the process
of information system development efficient and cost effective for organization. The resources,
scope and cost of plan is calculated in this stage.
System Analysis and Requirements
In this stage different information that is collected for the system development are
evaluated by the management and technical team to get maximum output and performance of
development team.
System Design
As per the necessary details, needs and measurements the system design is prepared
which is consisting of specific information and plan for development, the system designing
process is performed to meet the requirement of information system.
Development
According to the system planning design the system is physically prepared for the
organization.in this stage technical team work on the information system development to develop
a ready to implement system.
Integration and Testing
After the system development process the information system is implemented in the
organization and its integration is performed to add this information system with other systems
of organization to get better output. Also the system is tested to check its functionality to meet
the requirement of the organization.
Implementation
As the new information system passed the test it further implemented in the organization
operation (Cheng and Li, 2017). Then organization start using this IS for data collecting, storing
and processing.
Operation and maintenance
Company use the system for longer period got benefited with it and for continuous
performance of the information system regular maintenance is performed by the technical team
of McDonald’s.
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CONCLUSION
From the above report it has been summarized that data or information is used in various
ways within organizations. It can be used for transactions, it can be used to provide better service
to their customers and in many more ways. There are various kinds of management information
system that uses, collects, manages and updates the information used by the organization. These
MIS systems use different kinds of organizational information in order to fulfil all kinds of legal
and organizational requirements of a business. Proper and accurate use of these MIS system can
help the organizations in gaining competitive advantage and increases the efficiency of the
business. These systems can help the business to analyse and understand customers information,
needs and their requirements in a better manner so that on the basis of this they can bring
required changes or improvement within their pricing strategy, marketing and many more, so
that they can gain competitive advantage and can compete with their competitors within the
market they operate in. It has been analysed that the there are many different kinds of MIS
systems used by McDonald and each system is used for different purposes, one of them is TPS
system. Proper usage of this TPS system helps McDonalds to improve their efficiency and their
performance. This system helps them to save, manage, collect, update and maintain all the
transaction related information in real time. It has also been analysed that few employees of
McDonald's have access to this system who can make changes or maintain transactional
information within the system as if there is any kind of problem such as corruption or loss of data
then only those people are responsible for that data which makes the information stored in it
reliable.
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