Management Information Systems Role in Decision-Making


Every business encounters the issue of competition. Competition can sometimes be healthy because it helps a business reposition itself in its industry. This is the reason why our company plans to use a new information system. The proposed information system will help the company formulate a competitive strategy after gathering the targeted data. However, there are some issues to consider before employing the use of the proposed information system.

Advantages and Disadvantages of the System

To begin with, the proposed information system will help the company attract more customers. The organization will use the gathered data to identify the qualities and characteristics of the competitors’ customers. The system will help the company make informed decisions about the best marketing strategies and advertising practices. The company can use the information to create new customer “profiles”. The company will use the profiles to implement new competitive advantages. According to Al-Zhrani (2010), information systems are essential because they help in organizational decision-making processes. This explains why the system will make the company successful.

The information system will also present certain disadvantages. For example, the system is purely unethical because it gets illegal data from our competitors. This might have legal implications. The system will be costly because the company will be required to purchase new software and hardware (Reynolds, 2011). It will be necessary for the company to employ information technology experts and professionals. The system might be ineffective since most of the current competitors have “secure” databases. This can make it impossible for the company to access most of the targeted data.

Ethical Issues and Problems from the System

As mentioned earlier, the new information system will create certain ethical problems. For instance, it is illegal to access a person’s private information or data. The system targets to “hack” into other companies’ websites and access illegal information. This will be a “criminal” offense. The company will also be creating ethical problems because it should be on the forefront to safeguard its customers’ data and information (Al-Zhrani, 2010). Any attempt to use the system will eventually affect the company’s reputation.

Two Examples of Problems

The idea to access another business’ confidential information and data is a major offense. When this happens, the targeted company might find out about the malpractice and eventually sue the organization (Reynolds, 2011). Such a scenario will definitely affect the organization’s business and reputation. The second problem might occur when the company decides to use the gathered information to target the same customers. When this happens, the affected customers might file a case against the company. This will affect the company’s image.

Does it matter whether the customers are individuals or businesses?

The proposed information system can play a major role in the success of the organization. This is the case because the company will use the gained information to come up with the best competitive strategies. What comes out clearly is that the practice is unethical. This is the case because the information system will “steal” confidential information. That being the case, it does not matter whether the customers are businesses or individuals. A business or an individual can equally sue the company for negligence or “theft” of confidential data (Reynolds, 2011). However, companies are usually powerful and can do greater harm to our company. In conclusion, the company should make critical decisions before acquiring the proposed information system.

Reference List

Al-Zhrani, S. (2010). Management information systems role in decision-making during crises: case study. Journal of Computer Science, 6(11), 1247-1251.

Reynolds, G. (2011). Ethics in Information Technology. Cengage: Cengage Learning.