1. Discuss the importance of Information as a resource.
All companies use information to set strategies and accomplish business objectives.
But how many CEOs and CIOs would say they are satisfied that their companies get
maximum value from information? Not many. How many have a systematic plan
for evolving their information capabilities to the next level? Fewer still
Every business, program or system must address well-defined objectives, which will
add value, either directly to the bottom line or toward the achievement of the
organization's goals and objectives. Good management information objectives
usually fall into one of three categories:
Service (effective and efficient),
Profit (or cost-avoidance, and
Social (moral, ethical and legal) responsibility.
A good management information system will only reap the benefits if the companies
gain insight to better align strategies and identify critical relationships and gaps
along four key company dimensions people, process, culture and infrastructure.
A good information system provides a framework for companies to evaluate
themselves relative to these dimensions. By understanding and improving
alignment with these critical dimensions, companies can maximize the value and
impact of information as a strategic corporate asset to gain competitive advantage.
The following are the most important reasons to have a good management
information system:
1. To control the creation and growth of records
Despite decades of using various non-paper storage media, the amount of paper in
our offices continues to escalate. An effective records information system addresses
both creation control (limits the generation of records or copies not required to
operate the business) and records retention (a system for destroying useless
records or retiring inactive records), thus stabilizing the growth of records in all
formats.
2. To reduce operating costs
Recordkeeping requires administrative dollars for filing equipment, space in offices,
and staffing to maintain an organized filing system (or to search for lost records
when there is no organized system).
It costs considerably less per linear foot of records to store inactive records in a
Data Records Center versus in the office. [Multiply that by 30% to 50% of the
records in an office that doesn't have a records management program in place], and
there is an opportunity to effect some cost savings in space and equipment, and an
opportunity to utilize staff more productively - just by implementing a records
management program.
3. To improve efficiency and productivity
Time spent searching for missing or misfiled records is non-productive. A good
records management program (e.g. a document system) can help any organization
upgrade its recordkeeping systems so that information retrieval is enhanced, with
corresponding improvements in office efficiency and productivity. A well designed
and operated filing system with an effective index can facilitate retrieval and deliver
information to users as quickly as they need it.
Moreover, a well managed information system acting as a corporate asset enables
organizations to objectively evaluate their use of information and accurately lay out
a roadmap for improvements that optimize business returns.
4. To assimilate new records management technologies
A good records management program provides an organization with the capability
to assimilate new technologies and take advantage of their many benefits.
Investments in new computer systems whether this is financial, business or
otherwise, don't solve filing problems unless current manual recordkeeping or
bookkeeping systems are analyzed (and occasionally, overhauled) before
automation is applied.
5. To ensure regulatory compliance
In terms of recordkeeping requirements, China is a heavily regulated country. These
laws can create major compliance problems for businesses and government
agencies since they can be difficult to locate, interpret and apply. The only way an
organization can be reasonably sure that it is in full compliance with laws and
regulations is by operating a good management information system which takes
responsibility for regulatory compliance, while working closely with the local
authorities. Failure to comply with laws and regulations could result in severe fines,
penalties or other legal consequences.
6. To minimize litigation risks
Business organizations implement management information systems and programs
in order to reduce the risks associated with litigation and potential penalties. This
can be equally true in Government agencies. For example, a consistently applied
records management program can reduce the liabilities associated with document
disposal by providing for their systematic, routine disposal in the normal course of
business.
7. To safeguard vital information
Every organization, public or private, needs a comprehensive program for protecting
its vital records and information from catastrophe or disaster, because every
organization is vulnerable to loss. Operated as part of a good management
information system, vital records programs preserve the integrity and confidentiality
of the most important records and safeguard the vital information assets according
to a "Plan" to protect the records. This is especially the case for financial
information whereby ERP (Enterprise Resource Planning) systems are being
deployed in large companies.
8. To support better management decision making
In today's business environment, the manager that has the relevant data first often
wins, either by making the decision ahead of the competition, or by making a
better, more informed decision. A good management information system can help
ensure that managers and executives have the information they need when they
need it.
By implementing an enterprise-wide file organization, including indexing and
retrieval capability, managers can obtain and assemble pertinent information
quickly for current decisions and future business planning purposes. Likewise,
implementing a good ERP system to take account of all the business processes
both financial and operational will give an organization more advantages than one
who was operating a manual based system.
9. To preserve the corporate memory
An organization's files, records and financial data contain its institutional memory,
an irreplaceable asset that is often overlooked. Every business day, you create the
records, which could become background data for future management decisions
and planning.
10. To foster professionalism in running the business
A business office with files, documents and financial data askew, stacked on top of
file cabinets and in boxes everywhere, creates a poor working environment. The
perceptions of customers and the public, and "image" and "morale" of the staff,
though hard to quantify in cost-benefit terms, may be among the best reasons to
establish a good management information system.
