The Use and Application of Management Information System by BHP Billiton - Assignment Example

The use and application of Management information system by BHP Billiton and its role in enhancing its competitive edge and dynamism and its role in strategic planning and implementation Two computer based information system, which supports decision making in organizations I have considered BHP Billiton to study the way they use management information systems to make sound decisions. I have chosen BHP Billiton because it is a well recognized company in the energy industry and its global scale of operations and can illustrate the role and significance the management information system and telecommunication plays in strategic planning, setting objectives. improving its operational processes, cost control, risk management and improve the efficiency and productivity of the organization as a whole. In any organizations whether it is private or public an organization must use relevant, accurate, timely and with appropriate detail and summary so that an organization can base it s decisions and establish objectives and monitor performance and reviews on a continuous basis so that it meets its overall goals and grow in the future. The degree of complexity and its efficiency and effectiveness depends on the skill of the Information technology professionals of the organization or the outside providers the understanding the nature of organizational structure, the nature and complexity and the scale of operation, information flow, its external business environment in terms of its market and the economic, political and social and environmental factors and the human behavior and potential to adopt technology. In addition, the change management processes of an organization must be considers the design and implementation of appropriate management information system of an organization. If these factors are not taken in to designing the management information system it may not produce the expected benefits in terms of improving its operational efficiency and competitiveness of an organization. so that it can survive in a dynamic and discontinuous market environment. It is based on system theory of management, Management of change theories and organizational change processes and enterprise resource management practices. The one computer based information system is the computer system, which provides Information to top management to forecast the future and strategic planning by collecting and processing external information outside the organization in a net work environment which is relevant and in a summary form to make strategic decisions and review of plans as well as risk management to set realizable but ambitious targets. As well set objectives in financial terms for core operations of the organization. That is the management information system is a decision support system of top management and plays a crucial role in strategic planning. This is based on management by objective theory and the role it plays in setting management objectives and strategic management practices The other important part of the management information system is the data base management information system and e-commerce systems, which is used by the middle management to enable tactical panning and monitor performances regularly in a frequent basis. It must be able to review tactical planning and identify causes of not meeting goals and enable managers to develop strategies which are cost effective and within budgets to continually improve operational efficiency and process improvement and quality control of its products to meet organizational goals as a whole. It must not meet sectional goals in the expense of the overall organizational goals. The date base system can be partially or fully integrated system. The data base must consider the size and capacity for integration of the functional areas of the organization. These systems can be centralized or decentralized systems and it depends on the scale of operations, telecommunication technology and the nature and complexity of operations, internet speed and technical and training of end users and the internal organizational ability to design different data base. This is based on the principles and system theory of management. Strategic role of in formation system in BHP Billiton BHP Billiton is a well known global energy and mining company. The scale of operation is truly global. It operates in many markets with varying degrees of financial and operational risks. In a very competitive and unpredictable industrial sector and with environmental issues, which is very vital in comparison to other industries BHP Billiton if it wants to be competitive in terms of price and quality and its security in the supply of mineral resources it is vital it manages its risks effectively by collecting vital information which is strategically important to manage financial and operational risks. As BHP Billiton as mentioned in the Annual Report 2007 it is evident it uses global technology particularly computer technology and global telecommunication technology to co-ordinate activities and monitor risk factors where it operates and set strategic objectives and plans based on the strategic information using its management information system related to strategic decision making. In essence, it uses the management support systems relating to strategic planning and set objectives its core business operational sectors in a manner which evaluate risk factors and allocate resources and strategically structure its operations and conduct mining operations using its organizational structure and team work processes to produce innovative technological and operational process solutions to be competitive in dynamic market environment. In addition, it is certain it uses e-commerce technology to improve and enhance customer service enhancement and also with suppliers to efficiently satisfy customer needs by more than adequately delivering its services and address customer concerns within a short span of time compared to its competitors. Role of software in computer based information system In a computer based information system the software is vital because it is the computer process which transform the data in to useful information or report to assist managers to make informed decision on accurate, timely and relevant information. If the software does not have adequate controls within the software and do not have documentation of how it is developed and the instructions within the software then its usability will decrease and it becomes difficult to revise the software if the information requirements change due to changes in the organizational structure or in its operations. That is, the quality of software and its ability and capacity to process information and integrate with other sub systems to produce reports or interactively can support managers to make sound business decisions my managers of lower levels or to make strategic decisions increases the software utility. In other wards the software development process must understand the business organizational structure, business operations and information flow and human behavior so that the software developers understand the informational needs and frequency and the level of detail and what types of decision are taken by the organization as well as the complexity the scale of operations and the dynamics of the market place to make the software to meet the overall objectives of the management information system section to improve efficiency and effectiveness of the organization and to improve its innovative capacity and adoption of the new system. As well it must also recognize the training of end users and the importance of adequate internal controls so that the information is not abused to meet other goals or personal goals in expense to the organizational goals. A collaborative process and consensus is important so that the system works as intended and it is effective as well as efficient whether it is developed in-house or by outside software developers. The reasons BHP Billiton uses telecommunication and network technology In a dynamic market place the success is dependent on the speed of meeting its customer needs compared to its competitors. There fore it depends on the business organizations ability to adept to market conditions and identify profitable markets and satisfy customers in terms of price, quality and delivery of products meeting deadlines and delivery schedules. If the organization is a global company like BHP Billiton the telecommunication technology and the internet technology is vital in terms of speed of processing customer needs and improve customer service and interact with customers suppliers and internal stakeholders in real-time and co-ordinate operations cost effectively and respond to market conditions in a timely manner by making the organization more flexible so that it becomes more adaptable to meet emerging customer needs quickly as possible compared to its competitors. The computer management Information systems ability to process data in all types and forms in a faster speed than ever before and also can integrate processes in an effective way and give relevant information in real time and accurate information to managers enables them to meet customer needs cost effectively and adopt innovative technologies, like e-commerce and the internet technologies so that the organization improves its processes and products to meet customer needs in a faster manner compared to its competitors. The BHP Billiton as indicated in its Annual report 2007 and by other documents relating to management information system shows that the company value global technologies and the role it plays in making effective and sound decisions and process information faster and produce relevant and timely information to make strategic decisions and tactical decisions by integrating by network and telecommunication technologies on a world wide basis to meet corporate objectives which are financial and operational.. This based on contingency theory of management and strategic planning and strategic management of business to improve competitiveness and innovative capacity of business to survive and grow in the future. Social and other Impact of information technology Any technological applications have positive and negative consequences in a social sense and some groups within society may suffer more and the benefits may not be distributed and equitably and it may pose radical change in the way we work and may also case some structural unemployment problems if the introduction and change management process is not implemented by considering the social impact of technology. The computer in general in the workplace and in society has speeded up the way we work and also has impact on human interaction than ever before. As well, the computer information system also can cause inappropriate use of technology for other purposes and may case cyber attacks if the system is not protected by software adequately particularly in the context of the current terrorism threat in the 21st century. This is because of the internet technology and the accessibility of technology and its ability to penetrate any computer system by computer hackers and other terrorist groups. In addition, it has the effect of deskilling the work and the importance of adequate training important than ever before and this factor may affect the effectiveness of the computer information system. computer in general also poses the problem of surveillance issues to monitor employees in the work place in terms of human rights issues if the organization adopts surveillance technology without the consultation with all levels of management and staff. It also causes health and safety issues because of repetition of processes and also boredom to some extent and the computer hardware design of work stations must take this factor in to consideration in hardware configurations and other ergonomics issues. Perusing the Annual report 2007 and other documents BHP Billiton has at least by its corporate governance and audit processes as well as it considers social responsibility seriously to some extent it can be argued that BHP would have considered social impact of technology in developing its information system and implementation. Conclusion As discussed above BHP Billiton has an effective management information system because it enables the top management to make strategic decisions to enable the company to enhance it value in the long term considering its operations, complexity, its human resource capacity, change management process, effects of management information system on organizational structure and on employee issues. As it, uses a systems model and using a contingency theory of management and considering its social responsibility to considerable level and its social responsibility in heath and safety it can be argued that BHP management has taken crucial factors which determined the effectiveness and efficiency to evaluate its management information system and therefore contribute to meet its long term survival and growth in a competitive and dynamic market environment in strategic, tactical planning and control process and also day to day management of its operations. However, as it has entrusted its management information system to an outside organization it has to have the processes and policies that the outside organization considers these factors and also have an ethical and social impact of information technology to meet these broader. objectives and has a corporate governance structure to enable to implement these processes in all levels of management. In summary, BHP Billiton has an effective information technology to enhance its competitiveness and enable to make effective strategic, tactical and day to day management and there fore its information system is effective as well as efficient. 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