PERT & its Techniques

echniques of Evaluation:

(PERT, SWOT and MIS )

1.         PERT:

PERT stands for “Programme Evaluation & Review Technique”. PERT is techniques of project management useful in the basic managerial functions of planning, scheduling and control. The program (or project) evaluation and review technique (PERT) is a statistical tool used in project management, which was designed to analyze and represent the tasks involved in completing a given project.

Definition:

PERT was first developed as a Management Aid for completing Polaris Ballistic Missile Project in USA in October 1958. It worked well in expediting the completion of the project from 7 years to 5 years. Since then, PERT has become very popular technique used for project planning and control. In nutshell, it schedules the sequence of activities to be completed in order to accomplish the project within a short period of time. It helps reduce both the time and cost of the project.

The techniques of  PERT helps greatly in completing the various jobs on schedule. It minimise production delays, interruptions and conflicts. The technique is very helpful in coordinating various jobs of the total project and thereby expedite and achieve completion of project on time.

PERT is a sophisticated tool used in planning, scheduling and controlling large projects consisting of a number of activities independent of one another and with uncertain completion times. It is commonly used in research and development projects.

Steps involved in PERT:

The following steps are involved in PERT technique:

1. The activities involved in the project are drawn up in a sequential relationship to show what activity follows what.

2. The time required for completing each activity of the project is estimated and noted on network.

3. The critical activities of the project are determined.

4. The variability of the project duration and probability of the project completion in a given time period are calculated.

Advantages of PERT:

The following advantages are derived from the pert:

1. It compels managers to plan their projects critically and analyse all factors affecting the progress of the plan. The process of the network analysis requires that the project planning be conducted on considerable detail from the start to the finish.

2. It provides the management a tool for forecasting the impact of schedule changes and be prepared to correct such situations. The likely trouble spots are located early enough so as to apply some preventive measures or corrective actions.

3. a lot of data can be presented in a highly ordered fashion. The task relationships are graphically represented for easier evaluation and individuals in different locations can easily determine their role in the total task requirements.

4. The PERT time (Te) is based upon 3-way estimate and hence is the most objective time in the light of uncertainties and results in greater degree of accuracy in time forecasting.

5. It results in improved communication; the network provides a common ground for various parties such as designers, contractors, project managers etc. and they must all understand each other’s role and contributions.

The network will highlight areas that require attention of higher priority so that concentration can be applied to the key jobs without ignoring the lower priority tasks. This gives the management an opportunity to shift attention to any critical task so that the entire project is completed in time.

Limitations of PERT:

Some of the limitations and problems that arise are:

1. Uncertainly about the estimate of time and resources. These must be assumed and the results can only be as good as the assumptions.

2. The costs may be higher than the conventional methods of planning and control. Because of the nature of net working and net work analysis, it needs a high degree of planning skill and greater amount of details which would increase the cost in time and manpower resources,

3. It is not suitable for relatively simple and repetitive processes such as assembly line work which are fixed-sequence jobs.

Hence PERT is not very effective in manufacturing operations, since it deals in the time domain only and does not deal with the quality information which is necessary in manufacturing processes

2.   SWOT

(Strengths, Weaknesses , Opportunities & Threats)

The origins of the SWOT analysis technique is credited by Albert Humphrey, who led a research project at Stanford University in the 1960s. The goal was to identify why corporate planning failed. The resulting research identified a number of key areas and the tool used to explore each of the critical areas was called SOFT analysis. Humphrey and the original research team used the categories “What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat.” Later this concept was further practiced and evolved as SWOT analysis.

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning. It is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of a city or organization. It is intended to specify the objectives of the business venture or project and identify the internal and external factors that are favorable and unfavorable to achieving those objectives.

SWOT, when broken down simply means analyzing the:

• Strengths – The advantages you have over the competition concerning this project.
• Weaknesses – The disadvantages you have internally compared with your competitors.
• Opportunities – Current external trends which are waiting to be taken advantage of.
• Threats – External movements which may cause a problem and have a negative impact on your business.

Sometimes SWOT is referred to as SLOT, where weaknesses are names as liabilities. By working through each of these points it is possible to identify any internal disadvantages or advantages which could benefit or hinder the outcome of a planned project. In addition to evaluating the state internally, this method is also able to identify the external factors which could also make a difference to the success or failure of a project.

SWOT is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats to a project. It involves specifying the objective of the project and identifying the internal and external factors that are favourable and unfavourable to achieving that project objective. The strengths and weaknesses usually arise from within an organisation, and the opportunities and threats from external sources as described below.

Factors internal to the system are strengths (S) or weaknesses (W) and those external are opportunities (O) or threats (T) and such an analysis of the strategic environment is referred to as a SWOT analysis (Bradford et al., 1999).

 Strengths: Strengths are the attributes of the organisation that help achieve the project objective. Example: Track record of the organization in completing similar projects (similar successes), Resource availability, Skill levels, Processes and systems, Reputation etc.

 Weaknesses: Weaknesses are the attributes of the organisation that stop achievement of the project objective. Example: Gaps in knowledge and expertise, Timescale and deadlines, Budget and funding Competing projects, Processes and systems etc.

Opportunities: Opportunities are the external conditions that help achieve the project objective. Example: Technology and infrastructure development, Changing consumer behaviour, Emerging and developing markets, New innovations (R&D), Market demand etc.

Threats: Threats are the external conditions that could damage the project. Example: Political influences, Environmental factors, Competitor activity, Economy, Seasonal effects etc.

SWOT analysis for project management is a simple, yet effective process. It allows the project manager to identify areas that needs improvement. By implementing the correct methodologies for the analysis, it is possible to ensure that a project will be completed on time and within budget. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. 

The use of SWOT analysis lets the project manager to improve the whole project or individual tasks where better efficiency can be gained. It also mitigates risks associated with the tasks and optimizes the whole process. The team members get to do more with less. Because of the nature of the analysis, it is important to conduct the SWOT analysis during the startup phase. It can provide a solid backbone to the project plan.

Conducting the SWOT Analysis

 SWOT analysis can be conducted either at the initial or middle phase of the project. However, it is important to have a clear objective during SWOT analysis sessions. If the analysis is done during the initial startup phase, key members must come together and identify all required tasks and the potential risks to each step of the project. If it is done at the middle of the project, the main focus is usually to reassess the schedule, the budget, or to conduct a cost/benefit analysis of certain processes.

Advantages of SWOT

1.  SWOT Helps in identifying basic information for project planning and management.

2.    Assemble project’s strengths and weaknesses, maximize opportunities and overcome threats.

3.  Helps in identifying core competencies of project team and setting of project objectives.

4.  Provide information that helps in synchronizing the project’s resources and capabilities with the competitive environment in which the project operates.

Disadvantages of SWOT

-          Categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective.

-          It stress upon the significance of SWOT aspects, but it does not tell how an organization can identify these aspects for itself.  

-        Government legislation and economic environment related problems.

-        May persuade organisations to compile lists rather than think about what is essential to achieving objectives.  

-        Presents lists uncritically and without clear prioritisation so, for example, weak opportunities may appear to balance strong threats.  

-        Usually, a simple list and not critically presented.

Steps for Writing an Effective SWOT Analysis

In the business world, a SWOT analysis is a common tool that helps to identify strengths, weaknesses, opportunities, and threats in order to evaluate potential courses of action. While a SWOT analysis can be a helpful tool to help achieve a quality decision, writing a SWOT analysis isn’t as easy as simply filling in a chart labeled SWOT. Fortunately, however, there are a few key steps that can help make the process easier. We’ve collected ten steps that will help you produce high-quality analysis paper in no time flat. All you need to do is follow along as you work on your own SWOT analysis.

·         Identify the purpose of your SWOT analysis. 

    A SWOT analysis can be helpful for a number of potential situations, but in order to get the most out of one, it’s important to identify what you hope the SWOT will help you with so you can tailor it to your specific needs. For example, are you planning to analyze the business as a whole, the management team, specific employees, or potential projects? There are many ways to do a SWOT, so pick the target you need to analyze.

·         Prepare your SWOT analysis chart. Create a table with boxes for all four quadrants of the SWOT analysis so you can begin to list strengths, weaknesses, opportunities, and threats as you brainstorm them. Categorizing them as you think about them will help you to achieve the best results in your analysis, saving you time and effort during the analysis phase.

·         Strengths. Identify your strengths. These will be tied to the person, company, or project under evaluation. Consider what assets they bring to the table and the resources they can muster, as well as areas where they perform above average.

·         Opportunities. Identify your opportunities. These are potential situations where growth and development may lay the groundwork for success. Consider factors that might ease the way for you to reach your goals or places where you and the company might achieve improved results as a result of changes to the marketplace, the regulatory environment, etc.

·         Weaknesses. Identify your weaknesses. As with strengths, these will be tied to the specific person, company, or project under evaluation. Consider areas where there are gaps in training, where financial issues might undercut success, or where interpersonal or psychological factors could impact the decision-making process.

·         Threats. Identify any competitors, stakeholders, outside interests, or forces that are working against your goals. Threats can come from a wide variety of sources, so it’s important not to limit yourself only to people you perceive to be enemies. Instead, also consider environmental factors, the regulatory environment, and other intangible threats that might emerge. Something as simple as a zoning board ruling can have a massive impact on your business plans.

·         Analyze internal factors. Your strengths and weaknesses are internal factors that are under your control. Analyze what you are doing well and what you are doing less well. Use this information to create an action plan to minimize weaknesses and maximize strengths.

·         Analyze external factors. Opportunities and threats are external factors that come at you or your business from the outside. Analyze where your greatest threats are coming from and where your greatest opportunities lie. Develop an action plan to pursue your greatest opportunities and to minimize your greatest threats.

·         Develop an overall plan. Once you have plans to deal with internal and external factors, you can develop an overall plan that will allow you to make a decision and implement it. Your analysis of internal and external factors should lead you to specific decisions about the next steps that you and the company need to take. Put these together and explore how to unify them into a concrete series of steps you will take going forward.

·         Check your work by going backward. Double check your analysis by starting with threats and working backward to strengths. This should help you see how your strengths and weaknesses match up with your opportunities and threats, and it should suggest strengths and weaknesses you might have missed in your first pass through.

Once you’ve completed the ten-step process, you can make final revisions to your overall plan, and then you have a strong SWOT analysis that can lead you to an effective decision for any challenge facing you or your business. As a solution, you can pay experienced writers for quality custom writing services designed to help people with writing SWOT analysis reports.

3. MIS

MIS: Management Information System, commonly referred to as MIS is a phrase consisting of three words: management, information and systems. 

TYPES OF INFORMATION SYSTEMS

Management Information Systems is one out of several information systems that are used in business.

Transaction Processing Systems. These systems have been designed to collect, process and store transactions that occur in the day to day operations of a company. The system can also be used to cancel or modify transactions done in the past if the need arises. One property of this system that enables them to work effectively is the ability to accurately record multiple transactions even if the different transactions take place simultaneously. They are built to be able to handle large volumes of transactions. Examples include stock control systems, payroll systems, order processing systems etc.

·         Decision Support Systems. These systems help decision makers to make the best decisions by generating statistical projections from analyzed data. Although it does not eliminate the need for the manager’s judgment, it significantly improves the quality of the decision by offering forecasts that help determine the best course of action. These systems compile information from several sources for purposes of aiding in decision making. Examples of these systems include computer supported cooperative work, group decision support systems, logistics systems and financial planning systems.

·         Executive Information Systems. Also known as Executive Support System, this is a tool used for reporting enterprise-wide data to top executives. These systems provide quick and easy to use reports that are presented in graphical displays that are easy to compare. They can be taken as specialized decision support systems because they provide information necessary to help improve the quality of decisions. Owing to the high expectations from such a system, these systems need to be highly individualized hence they are usually custom made for specific clients. They are also customizable to fit the specific needs of the clients.

·         Management Information Systems. These systems make use of information technology to help managers ensure a smooth and efficient running of the organization. Information collected by these systems is structured so that the managers can easily evaluate the company’s current performance vis-à-vis previous outputs. Some of the common types of Management Information Systems include process control systems, human resource management systems, sales and marketing systems, inventory control systems, office automation systems, enterprise resource planning systems, accounting and finance systems and management reporting systems.

COMPONENTS OF MANAGEMENT INFORMATION SYSTEMS

To effectively deliver the information needed to decision makers, Management Information Systems need to have the necessary components to collect, process, store and retrieve the information whenever it is needed. To achieve this, these systems use the following four components:

1.  Information System. This is a combination of software, hardware, personnel and infrastructure. This component helps in the collection of data that is stored in the MIS. The hardware includes computers, scanners, printers and network devices. The software elements include the company’s enterprise software and any other software that is used in the running of the company’s network. This component makes it possible for employees to interact with the system and thus information can be collected

2.  Database Management System. This component is primarily made up of computer programs that help in the storage and retrieval of data. Of course, it also includes the actual physical databases where the information is stored after it has been captured. There are several different database management systems that can be used in Management Information Systems. The suitability of the systems will depend on the amount of data that will need to be processed and stored in the system. There are small database management systems that can comfortably work on personal computers and there are huge ones that will need larger and more complex machines like mainframe computers. Learn more about database technologies.

3.  Intelligence System. This component is concerned with processing of the data collected and presenting it in a manner that is easy to comprehend. Everything from the processing of the data to the displaying of the data is designed to give top executives an easy time as they try to make decisions concerning the business. It is sometimes referred to as business intelligence which stores human knowledge and uses the logic to formulate quick solutions for future problems where patterns match.

4.  Research System. This component is concerned with identifying the main management problems in the organization and coming up with alternative decisions that could have sufficed in a particular situation. This helps ensure that all the possible options are analyzed and the best decision made. The best decision is not always the most obvious one. This component of Management Information systems ensures that the best decision is reached even in those instances.

Different types of management information system

1) Process Control: This system monitors the physical or industrial processes of business like an automobile assembly, petroleum processes, or metal fabrication. The process control system gathers data continuously and then makes a report on the performance of the system. It is one of the most important type of Management information system in any manufacturing company. The report assists the manager to evaluate the performance of the process and tell about the occurrence of a certain event over the course of time. Other than that it also tells about the number of times the production system differed from a cyclic production process.

This type of information is helpful in evaluating the efficiency of the production system and also helps to keep the safety of workers and machinery in-check.

2) Management Reporting System: This system is designed to produce reports about the operations and finances of all level of management in a company. Management report system helps the manager of the company to compare the performance of the company with the past year’s performance and with the expected performance.

3) Inventory control: Inventory of a company includes spoilage, sales, theft, and inventory on hand. Inventory control system tracks all these things and updates management about them. Inventory system keeps the track of movement of inventory in the warehouse, from warehouse to department store, items sold, and returns on them. It is one of the most important type of Management information system in any company that deals with stocking and storage of goods. Goods and Products stored are literally cash and that is why they need MIS.

4) Sales and Marketing: This system helps the management to execute and track the efficiency of a company’s marketing functions and sales. Followings are the marketing functions that the sales and marketing system take cares of.

1.   Projected sales

2.  Improving the quality of products

3.   Handling distributions networks

4.   Assembling and tracking the advertising stores and schedules

5.  Applying effective advertising, P.R and sales promotions

6.   Pricing, discounts, and advertising

5) Human resource (Enterprise collaboration/Office automation): This information management system allows management to control the flow of information all around the organization. Electronic devices used by managers to communicate with managers of other departments, their employees, or even by employees to communicate with each other, are part of the office automation information system. A human resource management system keeps the track of employees and their recruitment. It also does the daily management of employees.

This system tracks financial elements like payroll, benefits, and retirement which are also the part of accounting and financial system. human resource system tracks of many other things also. It makes communication possible between employees, HR, and management by offering legal compliance notices, mandatory training events, and HR policies.

6) Accounting and finance: Accounting and finance system track the investments and assets of a company. The data collected from these reports are assembled for financial reporting demanded by law to deal with functions like federal, payroll, local taxes, state, and pension funds. This system generates reports required for regular financial audits and also generate annual reports for upper management.

The accounting and finance system also assist the daily posting of regular transactions like sales income, bank deposits, transfers, and returns. All the monthly and annual statements like profit and loss statements, balance sheet, are produced from this system. These statements are crucial to know about the performance of the company for the middle and upper manager and to track and compare the current financial status with the past financial status of the company and pre-decided goals for future growth.

7) Decision Support System: This support system is designed in such a way that it helps the manager to make a decision when a situation arises. It gathers data from both external as well as internal sources. Population trends interest rates, and cost of new house construction are the few examples of external sources, whereas manufactory, sales, inventory or financial data are examples of internal source of information. For instance, a manager takes the help of a decision support system to consider external and internal factors while setting annual sales quotas.

8) Expert system: The expert system is designed in such a way that it takes and store the knowledge of a human expert on a particular subject and use that knowledge to assist people with lower expertise to make decisions. Artificial intelligence is an important part of an expert system. Expert system senses your actions on the basis of the actions you have taken in past in similar situations and take decision on the basis of those logical assumptions.

9) Executive information system : The executive information system is designed in such a way that it assists an executive manager to manage executives. This system provides information in the form of tables and charts which makes it easy for a manager to make analysis and make important decisions.

10) Transaction process system: The work of a transaction process system is to collect and process data produced during an organization’s routine activities. The activities are like orders, payments, deposits or reservation.

11) School information management system: School information system (SIMS) enables a school to run day-to-day activities of a school in an efficient way. Many schools are adopting this technology to shape the minds of youngsters as well as tackling the all behind the scene activities of a school. The school information system has reduced the work of updating and managing student’s attendance registers. Now, School information system perform this activity in a smooth manner and saves the time of teachers for other productive activities.

12) Local databases: Local databases are also an example of management information system. local databases provide in-depth information about the communities living across a country. These databases take information from open business listing, public data, integrated local service offering, and social survey’s input.

ROLE OF MANAGEMENT INFORMATION SYSTEMS IN BUSINESS

The main role of Management Information Systems is to report on business operations with the purpose of supporting decision making. This is to ensure that the organization is managed in a better and more efficient way so that it can be able to achieve full potential thus gain competitive advantage.

·         To provide information readily to company decision 

makers.  Management Information Systems enhance this  strategically storing vast amounts of information about the company in a central location that can be easily accessed by managers over a network. This means that managers from different departments have access to the same information hence they will be able to make decisions that collectively help solve the company’s problems in the quickest way.

·         Management Information Systems also help in data collection. Data from everyday operations in the company is collected and brought together with data from sources outside the organization. This enables a healthy and functional relationship between distributors, retail outlets and any other members of the supply chain. It also helps keep good track of performance since production and sales numbers will be recorded and stored in a central database that can be accessed by all members of the MIS. Access to this information also helps ensure that problems are detected early and decisions are made quickly using the latest information.

·         To promote collaboration in the workplace. In any large company, there are many situations that call for input from several individuals or departments before decisions can be made. Without an efficient communication channel, these decisions can take a very long time. Even with good communication channels, if the different stakeholders don’t have access to all the available data, the process would hit a number of snags before it’s complete. Management Information Systems ensure that all the members of the decision-making group have access to all the data that’s required to make the decision even if they are working from different physical locations.

·         To run possible scenarios in different business environments. Before making a decision that will affect the overall standing of the business, a lot of precaution must be taken. There is a need to check and verify that the company will not suffer after making a decision. Management Information Systems enable executives to run what-if scenarios so that they can see how some of the important metrics in the business will be affected by a given decision. The data is presented in easy to understand reports and graphs that make interpretation easy.

·         Management Information systems give accurate projections of the company’s standing in the short and long term. Most of the decisions made by top executives in companies have an effect on the company strategies. As a result, some of them may need some modifications done on the company goals or strategies. Most Management Information Systems come with trend analysis features that will enable you to project the performance of a business with the current configuration and how they will be affected once you have implemented any changes that you are considering. The Management Information Systems that don’t have the trend analysis feature will still provide you with enough information to accurately carry out the analysis using external tools.

·         Management Information Systems help track the implementation of particular decisions in a company. Before making a decision, executives use these systems to make projections of the expectations from the particular decision. If they decide to go ahead with the changes, there will be a need to keep monitoring the performance to see if you are on track to achieving the desired results. Management Information Systems give detailed reports and recommendations so that the evaluation of the goals moves smoothly and effectively. You get data that shows if your decisions have had the desired effect. If not, you will be able to take the necessary corrective measures early so that you can get back on track.

·         To improve on the company’s reporting. One of the reasons why Management Information Systems are favored by large companies is the effectiveness of the reporting features. The decisions can be made quickly because the information is presented in an easy to understand format. The fact that the system is accessible by people from different parts of the organization makes it an effective reporting and communication tool. Findings can be shared among colleagues with all the necessary supplementary data. It is also possible to create brief executive summaries that sum up the whole situation for review by senior company executives in situations that need their approval.

ADVANTAGES OF MANAGEMENT INFORMATION SYSTEMS

There are many benefits that come with applying Management Information Systems. Some of these benefits help make work easier for management while the rest of them help the organization as a whole.

·         All stakeholders in the company have access to one single database that holds all the data that will be needed in day to day operations. If the MIS is used for project management, the contractor, client and consultant will be able to achieve a high level of transparency hence it will be easy to develop trust. Operations will also be smoother because information will always be readily available and data collection methods like forms or questionnaires will be standardized.

·         Employees and other stakeholders in the organization will be able to spend more time doing productive tasks. This is because a big chunk of their time is saved thanks to the more efficient information system. This time would have otherwise been spent setting up or retrieving traditional information recording systems such as forms and files. As a result, the company is able to save on manpower costs, while at the same time producing more output in a fixed time span will now be spent productively.

·         Another benefit of Management Information Systems is that they bring the power of data processing tools that help significantly improve the quality of decisions made in the company. A majority of Management Information Systems have built-in data processing tools that are able to draw conclusions based on the inputs received from the different sources. This helps make better plans for material management, manpower allocation and even the overall execution of the project.

·         Owing to the flexibility that is brought by the use of mobile devices such as tablet computers and smart phones, Management Information Systems ensure that employees have easier and closer interaction with information about the progress of any process within the organization. This also ensures a higher degree of accuracy in data collection since it will be possible to record the progress in smaller milestones throughout the day on mobile devices as opposed to recording once at the end of the day. As a result, management is able to get a better idea of the progress due to the availability of the latest information.

·         Inputs and modifications in these systems are logged and the authors noted. The time when the change has been made is also recorded for future reference. This means that the company is able to achieve a higher degree of accountability since all the actions can always be tracked back to the particular individuals who initiated them. This also means that the best performing employees can also be easily identified since information such as production numbers per shift and sales reports are always available and well presented in the system.

·         Management Information Systems help reduce the amount of paperwork that departments have to deal with thanks to the central database that’s accessible from the company network. This means that in addition to making processes simpler and faster, the company is able to go paperless while at the same time reducing its carbon footprint. The bills also go down since the need for items like plain papers, ink and toner cartridges will be reduced significantly. Transportation costs are also reduced since there will be no need for shipping documents back and forth for approval and signatures. Shelf space will be saved and used for other tasks. Company wastes will also be reduced when the company goes paperless.

·         Reports make it easy for companies to easily identify their strengths and weaknesses in carrying out various tasks. Management Information Systems provide revenue reports, performance reports for employees, expenses tracking reports and many others. When companies use these reports, they are able to improve their operations.

·         From a top executive perspective, Management Information Systems help give an overall impression of where the company stands financially. These systems can also give overall status reports for specific projects within the organization. This enables top executives and managers to easily tell if the company is on track towards achieving its goals.

·         Most Management Information Systems provide a channel for customers to collect and store vital data and feedback from customers. With this data, companies can easily adjust their products and marketing campaigns to better suit the needs of the customers hence improving on sales.

·         With management information systems, a company gains competitive advantage. This is because operations are faster and smoother and thus results are achieved faster and more efficiently. Customers will be happy with the service delivery because they will be getting the answers that they seek faster and employees will be motivated because most of the tasks will become easier with better access to data.

·         MIS helps eliminate redundant roles. When information is stored efficiently, it’s possible to identify parts of a system that are unnecessary. This means that any efforts that were duplicated are eliminated hence the company is able to better use the available resources.

CHALLENGES WHEN APPLYING MANAGEMENT INFORMATION SYSTEMS IN BUSINESS

Even with the numerous benefits, there are a number of challenges that companies are likely to face when applying Management Information Systems in their businesses.

·         The first challenge is in the cost of equipment. For a big company to successfully incorporate a Management Information system, there is a need to purchase devices that the employees and management executives will be using to interact with the system. These devices include servers, tablets, laptops and desktop computers. In addition, the company needs to invest in a good network that will connect these devices in order for the system to work effectively.

·         Training of the workforce can also become a problem when applying Management Information Systems in a company. Without a proper understanding of how the system works, it can be hard to reap the full benefits of using it. This therefore makes it necessary for the company to ensure that employees and their managers are well trained on how to use the system. This can be an expensive and time consuming exercise.

·         The systems are expensive to purchase. Owing to the unique needs of each organization, Management Information Systems have to be customized for each company. This means that there has to be brainstorming sessions where the vendors sit with management officials seeking to understand the needs before they can develop the system. As a result, the cost of the system goes up, thus taking it out of reach for small and medium companies.

·         Many companies end up purchasing systems that lack the features they need most. As mentioned earlier, each company has its own unique needs when it comes to Management Information Systems. When you purchase a system that is not meant for your company, you will have better access to data that doesn’t help improve your operations. As a result, you will not be able to get the best return on investment.

·         There is also a need for trained personnel to keep the system in good working order at all times. Like any other system, management information systems need proper maintenance in order for them to produce the best results. This means that you will need to add specialized personnel for system maintenance in your company. Without these people, using the system will be a challenge since errors will go unresolved and this will result in inefficiencies in the operations.

·         Management Information Systems are heavily affected by large changes in the company. This means that before you make any change in the way you run the company, there will be a need to consider the impact of the changes on the information system. Sometimes, it becomes impossible to make some changes without changing the Management Information Systems hence having the system in place ends up being a limitation. However, most small changes should easily be incorporated in a good MIS.

·         Management Information Systems will result in the loss of employment for a number of employees in a company. People like office messengers and traditional registry clerks will need to be reduced or eliminated after the system has been incorporated since some of these tasks will be automatically done on the system. These employees will not be happy about the changes and this can easily result in lawsuits or other problems with trade unions when large numbers of employees are retrenched.

              

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