As the long term success of a company depends on the role of leadership in company management, nowadays, the Management Information System (MIS) has an important role in maintaining the companys existence over a long period. This is obvious as information technologies develop so fast that many kinds of software and hardware are being constantly produced, each having particular characteristics and benefits, therefore, managing the use of information technologies and systems is significantly important.
The Management Information System acts as the linkage allowing valuable information to flow between every department of the company and the management, thus, the management will be able to make reasonable decisions based on the received information. A similar concept, which refers to the Accounting Information System (AIS) also displays the similar function of providing accurate financial information to help the management produce more viable decisions.
Both systems mentioned above are parts of the companys tools called Information Systems. If the management is the head of a company, then the information systems can be considered as the veins connecting the brain to every other part of the body. Information is, therefore, as valuable as the blood ensuring the brain to have sufficient resources to make important decisions and send out orders to the body. As the role of information systems in the business sphere has been a major force reshaping, how a certain company operates information technologies have also become a driving force in our society.
Concerning the application of information systems in managing logistics I will discuss a problem-solving approach to the case analysis of Batesville Casket Company. In this discussion, I will play a role as a consultant that has three key assignments
Make use of the knowledge of IS management
Provide an objective opinion on one or more problems
Provide realistic options for action for this organization
Information System (IS) management
The case of Batesville Casket highlights that, as corporations grow to be larger and more complex, operational activities could no longer rely on traditional organizational methods to produce high-quality services. The number of customers orders from 66 Customer Service Center operations is growing rapidly, whereby every center facing many kinds of customized request.
Under such circumstances, Batesville Casket needs a more integrated way of customer requests, casket delivery to customers and inventory in order to improve methods, increase the communication between the managements and employees, and delegate plans and decisions in order to save time and increase productivity of the casket business operations.
The need for a sound information technology is increasingly significant in the manufacturing industry nowadays. In addition, the importance of developing the information system (IS) in the manufacturing industry is considered very important. The failure to realize the benefit of this development and being the last to take advantage of the technology are obvious steps behind its competitors in terms of managerial efficiency and effectiveness.
In the case of Batesville Casket Company, the management of information systems requires massive consideration as the company IS directorate is composed of several different activities. The core component that influences the development of information system at the company is logistic, since the core service to customer is the right delivery of customized casket products to customers in diverse locations throughout the U.S.
Figure1. Organization chart of MIS Directorate
By the definition, logistics means the management of corporate operations ranging from acquisition, storage, moving, and delivery of goods within the supply chain. Any barrier in the supply chain will result in the late delivery of goods or deferred services. The situation suggests that the logistics management is a critical part in Batesville Casket that determines the companys success.
The situation is very challenging for a company that enables customers to design their own goods. This mass customization scheme will influence the way a company designs its logistics management in order to ensure that customers receive products as they design. From the manufacturers or producers point of view, this mass customization scheme must stay reducing inventories.
However, the customization of casket also provides a challenge for MIS directorate as they need to link the customers request to the manufacturing team, computer-aided manufacturing, and also marketing department for pricing the customized casket.
Analysis of IS Problem at Batesville Casket Company
The logistics management is the process of integrating the supply chain throughout the entire organization, thus, supporting corporate operations by ensuring that all the required products and equipment are always available in the right amount, the right place and the right moment. Efforts toward the achievement of these philosophical standards have been performed by all organizations hoping to provide the best value to customers.
The supply chain management is an often mentioned subject in business discussions. Nevertheless, many still fail to grasp the core meaning of the term. In many respects, logistics or the supply chain management is nothing without cooperation to gain mutual benefits from joint operations. The value generated from the logistics management comes from mutual trust and visibility. In a beneficial logistic management arrangement, the competitive and mutually hostile attitude must give way to the creation of trust and confidence generated from shared information. Information sharing, along with combined skills, taking advantage of joint experience and knowledge are the vary foundations for the growth of supply chains.
After understanding this core principle of customers needs and the nature of the product delivery, the next important step in the logistics management is calculating costs of operation. Of crucial importance are such activities as identifying the core capabilities of each department and how they can contribute to the cost saving and quality enhancements. This is also an important foundation of successful logistics management activities.
The next important step is positioning the supply chain. Each department in the supply chain should be positioned according to the corporate plans and in support of the goals and objectives of the company. Geographic positioning and allocation of production responsibilities are important to generate the most out of logistic collaborations (Supply Chain, 2007). For example in the delivery of particular model of caskets to customers in the area A, the centralized database of customers requests would then search the availability of demanded products in the 66 customer service centers once the demanded products are located then the information system analyze the least costs delivery from which the center would deliver the product.
Realistic options for action for Batesville Casket Company
In order to remain effective in every phase of the information systems development in Batesville Casket, a certain amount of attention must be given to the advancement of information systems in this age of information. According to James Senn (1998, p. 7), there are six characteristics of the information age
Most of the societys activities are based on information
Business rely on information technology to get the job done
Work process are being transformed to increase productivity
Information technology poses as means to reengineer conventional business process
Success or failure of a company is largely determined by the effectiveness of information technology it uses Information technology is attached to many products and services
The existence of internet and, thus, e-commerce in early 1990s gave the huge benefits for computer vendor, like Dell, to expand their market virtually to other countries. This occurs since computer standardization is similar in any country in the world so the sales of the products are possible across countries.
However, there is a particular difference between selling at high street stores and at virtual stores in terms of logistics and supply chain management. For example, Figure 2 and Figure 3 highlight the difference in which figure 1 shows particular traditional supply chain of Dell offline (at high street stores).
Figure 2. Traditional Supply Chain of Batesville Casket Company
In traditional supply chain (figure 2), we witness that Batesville Casket makes huge inventory lines and, thus, the high cost from the one common element (in the blue box). However, this model immediately changes due to technology advancement in information system and the internet technology that effectively eliminates the need of inventory lines.
Figure 3. Web-based Supply Chain of Batesville Casket Company
Concerning the issue, coupled with wide coverage of high-speed Internet access, Batesville Casket Company should change their supply chain to adopt the advancement in information technologies. In the web-based supply chain model, Batesville Casket Company massively utilizes the strategy that significantly fires up the number of sales generated from selling computers online over the Internet.
Therefore, the appropriate information system strategy Batesville Casket Company is to encourage the deployment of computer-based Management Information System (MIS) that has the capability to provide the management with
Easier ways to records, stores and process data and corporate information
Strategic decision making support system, which allows managements to ask the system the what if questions, and then receiving the most accurate response. The system has now become an integral part of decision making activities.
Performance monitoring system, which will immediately alert managements if actual conditions differ materially from, expected ones (Management Information System, 2005)
Considering the potential benefits that corporations might have when implementing information system, it is found that such corporations spend millions of dollars to build the best information systems that employ the latest information technology equipment. Various service providers of installing the specialist software and hardware appliances for establishing the information systems infrastructure had made millions in benefits because of the increasing importance of the technology.
Almost every company is now using or requiring using this type of corporate resource. The need does not vary greatly by differences of corporate size, corporate stage of development, and the nature of the industry in which the firms are operating. Two companies operating in different industries, being in different stages of development and having a significantly different annual income might have similar needs of providing managements with a helpful and trustworthy information system.
Table 1 Problems and Solutions of IS System in Batesville Casket
No.ProblemsAspects of IT SolutionBusiness Strategy1High transportation costs Integrated customers request and delivery from the nearest customer service centerIncreased customers satisfaction since there are no delay delivery2Multi platforms of Reporting Systems for ManagementsSingle platform of reporting modelsEasier performance monitoring system for further managements actions3Casket inventory databaseCentralized database of casket inventory Increased the speed of casket delivery to customers
Business, Information System (IS), and Information Technology (IT)
According to the three mentioned problems of Batesville Casket Company, the management of the company can take benefits from the relationship between business strategy, information systems, and information technologies as follows
Cost Reduction. Since the company employs integrated and centralized information systems, managements can reduce time needed to extract information, each has different formatplatform.
Quality. In this particular measurement, Batesville Casket Company traditional Information System is as valid as electronic information system. The documents transferred via online system could be designed to have more detailed information than existing information system.
Reliability. This measurement posed one of the greatest differences between traditional and electronic information system. Batesville Casket Company information system could be concluded as improved system since there are no changed performances if front desk officers in customer service center move.
Responsiveness. Due to the improved information system at front desk, the officers can provide customers with quick process when guests request for specific design of casket. In addition, customers will be satisfied since there are no overbooking cases anymore.
Conformance to Customer Standards. Batesville Casket Company management as the user of the information system has stated their disappointment to the traditional information system. Beside the time consuming and late delivery of specific design of casket due to the unmanaged inventory information, the use of information system would speed up the searching process of demanded products throughout the 66 customer service centers.
The Management Information System acts as the linkage allowing valuable information to flow between every department of the company and the management, thus, the management will be able to make reasonable decisions based on the received information. A similar concept, which refers to the Accounting Information System (AIS) also displays the similar function of providing accurate financial information to help the management produce more viable decisions.
Both systems mentioned above are parts of the companys tools called Information Systems. If the management is the head of a company, then the information systems can be considered as the veins connecting the brain to every other part of the body. Information is, therefore, as valuable as the blood ensuring the brain to have sufficient resources to make important decisions and send out orders to the body. As the role of information systems in the business sphere has been a major force reshaping, how a certain company operates information technologies have also become a driving force in our society.
Concerning the application of information systems in managing logistics I will discuss a problem-solving approach to the case analysis of Batesville Casket Company. In this discussion, I will play a role as a consultant that has three key assignments
Make use of the knowledge of IS management
Provide an objective opinion on one or more problems
Provide realistic options for action for this organization
Information System (IS) management
The case of Batesville Casket highlights that, as corporations grow to be larger and more complex, operational activities could no longer rely on traditional organizational methods to produce high-quality services. The number of customers orders from 66 Customer Service Center operations is growing rapidly, whereby every center facing many kinds of customized request.
Under such circumstances, Batesville Casket needs a more integrated way of customer requests, casket delivery to customers and inventory in order to improve methods, increase the communication between the managements and employees, and delegate plans and decisions in order to save time and increase productivity of the casket business operations.
The need for a sound information technology is increasingly significant in the manufacturing industry nowadays. In addition, the importance of developing the information system (IS) in the manufacturing industry is considered very important. The failure to realize the benefit of this development and being the last to take advantage of the technology are obvious steps behind its competitors in terms of managerial efficiency and effectiveness.
In the case of Batesville Casket Company, the management of information systems requires massive consideration as the company IS directorate is composed of several different activities. The core component that influences the development of information system at the company is logistic, since the core service to customer is the right delivery of customized casket products to customers in diverse locations throughout the U.S.
Figure1. Organization chart of MIS Directorate
By the definition, logistics means the management of corporate operations ranging from acquisition, storage, moving, and delivery of goods within the supply chain. Any barrier in the supply chain will result in the late delivery of goods or deferred services. The situation suggests that the logistics management is a critical part in Batesville Casket that determines the companys success.
The situation is very challenging for a company that enables customers to design their own goods. This mass customization scheme will influence the way a company designs its logistics management in order to ensure that customers receive products as they design. From the manufacturers or producers point of view, this mass customization scheme must stay reducing inventories.
However, the customization of casket also provides a challenge for MIS directorate as they need to link the customers request to the manufacturing team, computer-aided manufacturing, and also marketing department for pricing the customized casket.
Analysis of IS Problem at Batesville Casket Company
The logistics management is the process of integrating the supply chain throughout the entire organization, thus, supporting corporate operations by ensuring that all the required products and equipment are always available in the right amount, the right place and the right moment. Efforts toward the achievement of these philosophical standards have been performed by all organizations hoping to provide the best value to customers.
The supply chain management is an often mentioned subject in business discussions. Nevertheless, many still fail to grasp the core meaning of the term. In many respects, logistics or the supply chain management is nothing without cooperation to gain mutual benefits from joint operations. The value generated from the logistics management comes from mutual trust and visibility. In a beneficial logistic management arrangement, the competitive and mutually hostile attitude must give way to the creation of trust and confidence generated from shared information. Information sharing, along with combined skills, taking advantage of joint experience and knowledge are the vary foundations for the growth of supply chains.
After understanding this core principle of customers needs and the nature of the product delivery, the next important step in the logistics management is calculating costs of operation. Of crucial importance are such activities as identifying the core capabilities of each department and how they can contribute to the cost saving and quality enhancements. This is also an important foundation of successful logistics management activities.
The next important step is positioning the supply chain. Each department in the supply chain should be positioned according to the corporate plans and in support of the goals and objectives of the company. Geographic positioning and allocation of production responsibilities are important to generate the most out of logistic collaborations (Supply Chain, 2007). For example in the delivery of particular model of caskets to customers in the area A, the centralized database of customers requests would then search the availability of demanded products in the 66 customer service centers once the demanded products are located then the information system analyze the least costs delivery from which the center would deliver the product.
Realistic options for action for Batesville Casket Company
In order to remain effective in every phase of the information systems development in Batesville Casket, a certain amount of attention must be given to the advancement of information systems in this age of information. According to James Senn (1998, p. 7), there are six characteristics of the information age
Most of the societys activities are based on information
Business rely on information technology to get the job done
Work process are being transformed to increase productivity
Information technology poses as means to reengineer conventional business process
Success or failure of a company is largely determined by the effectiveness of information technology it uses Information technology is attached to many products and services
The existence of internet and, thus, e-commerce in early 1990s gave the huge benefits for computer vendor, like Dell, to expand their market virtually to other countries. This occurs since computer standardization is similar in any country in the world so the sales of the products are possible across countries.
However, there is a particular difference between selling at high street stores and at virtual stores in terms of logistics and supply chain management. For example, Figure 2 and Figure 3 highlight the difference in which figure 1 shows particular traditional supply chain of Dell offline (at high street stores).
Figure 2. Traditional Supply Chain of Batesville Casket Company
In traditional supply chain (figure 2), we witness that Batesville Casket makes huge inventory lines and, thus, the high cost from the one common element (in the blue box). However, this model immediately changes due to technology advancement in information system and the internet technology that effectively eliminates the need of inventory lines.
Figure 3. Web-based Supply Chain of Batesville Casket Company
Concerning the issue, coupled with wide coverage of high-speed Internet access, Batesville Casket Company should change their supply chain to adopt the advancement in information technologies. In the web-based supply chain model, Batesville Casket Company massively utilizes the strategy that significantly fires up the number of sales generated from selling computers online over the Internet.
Therefore, the appropriate information system strategy Batesville Casket Company is to encourage the deployment of computer-based Management Information System (MIS) that has the capability to provide the management with
Easier ways to records, stores and process data and corporate information
Strategic decision making support system, which allows managements to ask the system the what if questions, and then receiving the most accurate response. The system has now become an integral part of decision making activities.
Performance monitoring system, which will immediately alert managements if actual conditions differ materially from, expected ones (Management Information System, 2005)
Considering the potential benefits that corporations might have when implementing information system, it is found that such corporations spend millions of dollars to build the best information systems that employ the latest information technology equipment. Various service providers of installing the specialist software and hardware appliances for establishing the information systems infrastructure had made millions in benefits because of the increasing importance of the technology.
Almost every company is now using or requiring using this type of corporate resource. The need does not vary greatly by differences of corporate size, corporate stage of development, and the nature of the industry in which the firms are operating. Two companies operating in different industries, being in different stages of development and having a significantly different annual income might have similar needs of providing managements with a helpful and trustworthy information system.
Table 1 Problems and Solutions of IS System in Batesville Casket
No.ProblemsAspects of IT SolutionBusiness Strategy1High transportation costs Integrated customers request and delivery from the nearest customer service centerIncreased customers satisfaction since there are no delay delivery2Multi platforms of Reporting Systems for ManagementsSingle platform of reporting modelsEasier performance monitoring system for further managements actions3Casket inventory databaseCentralized database of casket inventory Increased the speed of casket delivery to customers
Business, Information System (IS), and Information Technology (IT)
According to the three mentioned problems of Batesville Casket Company, the management of the company can take benefits from the relationship between business strategy, information systems, and information technologies as follows
Cost Reduction. Since the company employs integrated and centralized information systems, managements can reduce time needed to extract information, each has different formatplatform.
Quality. In this particular measurement, Batesville Casket Company traditional Information System is as valid as electronic information system. The documents transferred via online system could be designed to have more detailed information than existing information system.
Reliability. This measurement posed one of the greatest differences between traditional and electronic information system. Batesville Casket Company information system could be concluded as improved system since there are no changed performances if front desk officers in customer service center move.
Responsiveness. Due to the improved information system at front desk, the officers can provide customers with quick process when guests request for specific design of casket. In addition, customers will be satisfied since there are no overbooking cases anymore.
Conformance to Customer Standards. Batesville Casket Company management as the user of the information system has stated their disappointment to the traditional information system. Beside the time consuming and late delivery of specific design of casket due to the unmanaged inventory information, the use of information system would speed up the searching process of demanded products throughout the 66 customer service centers.
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