What is a successful audit? A good measure is whether both audit management and the auditee feel good about the end results. Benjamin Franklin famously said:
Influence of IT on organizational goals Definition of data and information and characteristics of good information Data refers to raw basic facts i. Information should be processed data that conveys meaning to the recipient. Good information should be timely and available when it is needed. The following are the characteristics of good information.
Accurate — information must be free from errors and mistakes. This is achieved by following strict set standards for processing data into information. Complete — all the information needed to make a good decision must be available. Nothing should be missing. If TAX is an application to the computation of the total amount that the customer should pay then, it should be included as well.
Cost Effective — the cost of obtaining information must not exceed the benefit of the information in monetary terms. User-focused — the information must be presented in such a way that it should address the information requirements of the target user.
For example, operational managers required very detailed information, and this should be considered when presenting information to operational managers. The same information would not be appropriate for senior managers because they would have to process it again.
To them, it would be data and not information. Relevant — the information must be relevant to the recipient. The information must be directly related to the problem that the intended recipient is facing. Authoritative — the information must come from a reliable source. Using the exchange rate from a bureau de change would not be considered authoritative compared to getting the exchange rate directly from your bank.
Timely — information should be available when it is needed. Information that evaluates the other company that you want to merge with must be provided before the merger, and you must have sufficient time to verify the information.
Competitive advantage of information and MIS Competitive advantage is a position that makes a business more profitable than its competitors. For example, producing products at a lower cost than your competitors makes you more profitable. Information systems have the capacity to help an organization into such a position.
They do so in the following ways Operational excellence — operational excellence seeks to improve the operations of the business. A retail store can use information systems to automatically place an order with a supplier once the inventory level reaches the re-order limit.
This ensures that the retail store never runs out of inventory and customers can always count on it to find what they need. The retail store can develop a web based order system or smartphone application that clients can use to buy items from the comfort of their homes or wherever they are.
The order system can be linked to a delivery business and have support for online payments. This is a new business model compared to customers walking in to make purchases vs doing it from web based or smartphone apps.
Improved supplier and customer relations — historical data is used to understand the needs of the customers and suppliers. This data is then used to create services and products that address the needs. This leads to long-term relationships with customers and business which puts an organization in a more profitable position.
Improved decision making — information is critical when making decisions. Information systems if designed and operated efficiently, output information that has all the characteristic of good information described in the above section.
This enables an organization to make decisions that will profit the organizations. Components of MIS and their relationship A management information system is made up of five major components namely people, business processes, data, hardware, and software.
All of these components must work together to achieve business objects. People — these are the users who use the information system to record the day to day business transactions.
The users are usually qualified professionals such as accountants, human resource managers, etc. The ICT department usually has the support staff who ensure that the system is running properly.The four key elements in effective systems management.
When multiple components are shared, you run a greater risk of dysfunction or reduced performance due to competition for scarce resources. Components of an effective MIS include: a database, qualified staff, support of top management, routine maintenance and control of system, and evaluation of the system.
Input and output devices constitute the hardware components of MIS. Software The programs and applications that convert data into machine-readable language are known as software.
Essential Components of Effective Mis Essay A marketing information system (MIS) is intended to. Components of MIS and their relationship. A management information system is made up of five major components namely people, business processes, data, hardware, and software.
Cost Effective – the cost of obtaining information must not exceed the benefit of the information in monetary terms. Competitive advantage of information and MIS. . MIS is not a substitute for effective management. It means that it cannot replace managerial judgement in making decisions in different functional areas.
It is merely an important tool in the hands of executives for decision making and problem solving.