Use of Information Systems for Tactical and Strategic Decision Making at Ochre Health Organization - Assignment Example

Business Report Investigating the Use of Information Systems for Tactical and Strategic Decision Making at Ochre Health Organization Name: Professor: Institution: Course: Date: Executive Summary Decision makers in organizations are supposed to come up with better solution to already existing or foreseen issues within the management, administration, and operation procedures for a positive impact on the organizational processes. It is highly expected that capable and better defined information systems do support the activities of the decision makers, and looking at the current competitive market, it is clearly brought out that most of the databases and other web-based resources, which are normally accessed through effectual communications processes, enhances the storage of information for reference. Decision makers normally applies intuition or various tools for prediction for the purpose of projecting the future of an enterprise, and such applied tools are initialized with variety of information that is attained from an implemented information system within the same organization (Curtis, & Cobham, 2008). To understand the impact of information systems on tactical and strategic decision making in organizations, Ochre Health Organization has been selected for this study. This is an organization that normally provides medical service management to local communities around Sydney, Australia. The organization is currently situated in 12 local and geographically secluded regions of Australia, and it is committed to delivering high quality and sustainable healthcare services by adopting an effective and consistent partnership with the existing local authorities and other medical practitioners. The decision makers in this organization believe that an effective information system integrates in the process of forecasting the future, and probably offer support to the comparative evaluation of the impact that can be caused by the alternate decisions to be made. Therefore, through the assessment of the organization’s information systems, the complexity of a given information system managing the past indicates a better streamlined future which is supposed to be modularized with effective and working interfaces. 1.0 Introduction The management of Ochre Health Organization depends on the functions of the identified information systems for decision making. The marketing department of the organization has been found to consist a handful data of which cannot be processed accurately by manual means. Therefore, the integrated information systems within the department have been found to be of significance as the processing of data is supposed to be accurate and be achieved within the short period of time possible because of the heavy competition in the considered modern world. This paper reports on the possible applications of information systems for tactical and strategic decision making at the marketing department of Ochre Health Organization. The main focus of the paper is to identify various kinds of business decisions that are made within the marketing department of the organization and the relevant information system requirements for each process. The paper will also highlight on major areas within the organization that requires improvements in terms of information system application, with a clear projection of the future changes to be implemented in the organizational processes. All of these aspects will be dealt with in relation to the effectiveness of the decision making process within the highlighted organizational department. 2.0 Findings From a research that was carried out on Ochre Health Organization, it was shown that information systems found to be supporting department heads when it came to decision making process they cannot simply be developed unless the individuals in charge comprehensively get acquainted with the system standards and its operations. The information systems within the marketing have elaborated on the overall approach of the classical model, which has clearly identified the existing functions of what the management team in the organization normally involves themselves. These functions are (Kumar, nd): a. Planning b. Organizing c. Coordinating d. Deciding (forming decisions) e. Controlling Considering the approach of the model, it clearly emphasizes what is actually done by various managers, but one thing that model fails to deliver is knowing how such functions are done or achieved by the people in charge. When keeping a keen look at the operational measures of the organization, it is clearly shown that a lot of stress has been positioned upon the behavioral phases of decision making process within the management team of the organization. When comparing behavioral model and the classical model, it is clearly shown that behavioral model is basically brought up on the foundation of the empirical evidence which shows that managers are less reflective, less systematic, less well organized, and considered to be more reactive than the managers of the classical model. In this case, behavioral model illustrates six tactical characteristics which are as follows: a. High volume, high speed work b. Variety, fragmentation, brevity c. Issue preference current, ad hoc, specific d. Complex web of interactions, contacts e. Strong preference for verbal media. f. Control of personal affairs 3.0 Analysis of the Findings 3.1 Analysis of the Behavioural Model Through this behavioral model, a clear point comes out that during decision making process, most of the managers and other decision makers normally work at an unremitting pace and also at a level of high intensity. This is considered to be true since the organization is situated in a developed country, where the nature of all operating pressures has been found to be of intense. Another aspect that has explained the use of information systems is on the emphasis of the behavioral model towards different managerial activities, which are characterized by diversity, fragmentation and also brevity (Chong, 2007). Since the manager does not have enough time to deeply get involved in all matters arising, there is a huge need for information system application within the department. From the finding of the research, it is clearly indicated that the integration of various information systems within the department has been as an indication of managers preferring current and up-to-date information and events. They would like working on ad hoc, current, and specific issues, and it is through information systems that they are able to make clear and precise decisions concerning the arising issues. Taking part or being concerned with the complex and varied web of contacts, of which together they operate the same way an information system, is an obligation that a decision maker cannot avoid. Through such networks, decision makers are able to actively communicate competitors, customers, workmates, secretaries, and other government officials (Cleland, & Ireland, 2006). This brings out a big idea as to why there is a large network of contacts all through the organization and the immediate environment of operation. Through the findings, it is indicated that the organization’s managers or decision makers prefer verbal forms of communication in most of the sections of operations. Verbal media has alleged to be behind the greater flexibility in communication, requirement of less effort when sharing a message, and also ensuring that the required response is received within a shorter period of time. Therefore, with the application proper channels of communication through integrated information systems, everything has been made easier and even become more effective (Noor, & Malcolm, 2007). Despite being flooded with a lot of work to do, within short period of time, successful managers as decision makers have been found to be sober when it comes to control their personal affairs. Through the application of information systems when developing their own long-term commitments, coming up with effective information channels, and also determining efficient networks within their operations, major decision makers are considered to be effective at controlling their personal schedules (Stirling, Petty, & Leigh, 2002). 3.2 Types of Decisions Decision making process is regularly viewed as the main focus of what managers are paced to be working on, of which takes most time that is stipulated to the organization managers or decision makers. This is a region within the management and operational set up of an organization that information systems have played a major role when it comes to facilitating the overall processes involved. Therefore, throughout the analysis of the information systems incorporated within Ochre Health Organization and with the integration of the managerial functions, the following are the main categories of decisions that are made from the organization. 3.2.1 Strategic decisions Strategic decisions involve a process that is mainly focused on the level of deciding on effective and realistic objectives, policies and resources of a given organization. It is a critical process that involves a limited number of decision makers, who in this case are a group of high-level managers who are supposed to deal with very multifaceted and non-routine issues within the organization (Agnilar, 1967). This level of decision making faces a major setback when it comes to forecasting the future of the organization and its settings, and it also has a problem when it comes to harmonizing the distinctiveness of an organization to the existing environment. The application of information systems in the process of strategic decision making has helped in solving these problems by making worker easier, especially when it comes to forecasting, where the required data about an aspect considered in the forecast is collected and analyzed to provide accurate results. Information systems have played a significant role in setting marketing strategies for Ochre Health Organization, and this has been achieved positively with the identification of the available resources and policies of the organization. The implications of such strategic decisions being made is that the achieved decision normally extends over many years, which can turn out to be as much as ten to around fifteen years of operation. 3.2.2 Management control decisions Management control decisions involve a process that is mainly focused on how effectively and efficiently the available resources within the organization are utilized, and also how effective are operational units within the stated function of the organization. Close interaction with individuals assigned the tasks of Ochre Health Organization, normally applies Management control measures. This is expected to takes place within the framework of extensive policies and objectives that had been set out by strategic decision makers. Since management control decisions are normally considered to be more tactical than strategic, integration of information systems makes it easier and realistic (Parker & Castleman, 2007). 3.2.3 Operational control decisions Operational control decisions are all about responding to the directed tasks assigned by the organization’s management and strategic planners. The main focus in operational control decisions is directed on knowing how the management is supposed to respond to frequent changes that take place within the business setting. Therefore, this type of decision making process focuses on overall adjustment of the marketing mix. The following aspects are parts of some of the decisions that are made, which are all about the operational control of various processes within the organization (Kotler, 1988). a. Determining the type of units or individuals within the organization that are required to effectively carry out the designed task. b. Establishing an effective and realistic criterion of resource utilization and task completion. c. Critically evaluating effective outputs within all operational processes. 4.0 Recommendations The following are some of the identified recommendation for the marketing department of Ochre Health Organization in relation to the overall application of information systems in the operational measures of the company. a. It is recommended that an SQL-like interface language should be applied for the purpose of accessing the already existing tools to weigh up the future, and this can be as spreadsheets and other related simulations. b. Ensuring that simulations results are available and accessible as will greatly augment their value and offer a practical support to decision-making processes. 5.0 Conclusion In conclusion, information systems are mainly developed with an intension of offering support to the process of developing and management decision making processes within an organization. The highlighted support of the information system is interlinked with the five different functions of management, which are: a. Planning, b. Organizing, c. Coordinating, d. Decisions e. Controlling. For information systems to be effective with the assigned tasks, they are supposed to be custom designed for the tasks that the manager is trying to work on them. It is clearly indicated that the integration of various information systems within the department has been as an indication of managers preferring current and up-to-date information and events. Also the organization’s managers or decision makers prefer verbal forms of communication in most of the sections of operations. Verbal media has alleged to be behind the greater flexibility in communication, requirement of less effort when sharing a message, and also ensuring that the required response is received within a shorter period of time. 6.0 References Chong, S. (2007). Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry: Journal of Information Systems and Small Business, Vol. 2 No. 12, 133-167. Cleland, D. & Ireland, L. (2006). Managing information and systems: the business perspective: Business Process Management Journal, Vol. 4 No. 12, 32-89. Curtis, G., and Cobham, D. (2008). Business information systems: analysis, design and practice (6th ed.). Harlow: Pearson Education Limited. Kotler, P., (1988) Marketing Management: Analysis Planning and Control, Prentice-Hall p. 102. Noor, A. I. and Malcolm, K. (2007). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms: Journal of Information Systems and Small Business, Vol. 1 No. 10, 65-132. Agnilar, F.. (1967) Scanning The Business Environment, Macmillan, New York, p.47. Parker, C. M. and Castleman, T. (2007). New directions for research on SME-eBusiness: insights from an analysis of journal articles from 2003 to 2006: Journal of Information Systems and Small Business, Vol. 6 No. 2, 25-47. Stirling, M., Petty, D., and Leigh, T. (2002). A methodology for developing integrated information systems based on ERP packages: Business Process Management Journal, Vol. 8 No. 5, 430-446. Chapter 9: Marketing Information Systems. Retrieved on 22nd May 2011 from: http://www.fao.org/docrep/W3241E/w3241e0a.htm Kumar, P. K. (nd). Information System – Decision Making. Retrieved on 22nd May 2011 from: http://www.indianmba.com/Faculty_Column/FC307/fc307.html 7.0 Appendices Appendix 1: Methods of Decision Making (http://bit.ly/ckd2Qn) Type of Decision Methods of decision making OLD NEW Programmed Repetitive and Routine Habit Standard operating procedure Organization structure, policy etc Management Information System Non-Programmed Judgement, Intution, Insight  experience Training and Learning Systematic Approach to problem solving & Decision making Appendix 2: The marketing information systems and its subsystems (http://bit.ly/9isx7) Appendix 3: Stages in the decision making process (http://bit.ly/9isx7). Stage of Decision Making Information Requirement 1 Intelligence Exception reporting 2 Design Simulation prototype 3 Choice "What-if simulation 4 Implementation Graphics, charts Read More