Introduction- Information Systems

Information is the backbone of any organization. No matter how big or small is the organization,
information is essential not only for the purpose of evaluation of past performances but also for
the purpose of projection of future prospects, opportunities and drafting of strategical operations
required for the organization in the long term. Thus, Information System in the modern world
stand important and valuable for the context of development and Upliftment of the business
opportunities. Information system is the process of collection of raw data, process them with the
available data from the past and as well as other collected data, store them for the purpose of
future requirement and deliver required information to the organization for the purpose of
decision making, strategy formulation and planning activities. In fact, it is a combination of
computer hardware, software and other networks to not only collect data but also process the
same effectively and provide the most important information to the user. It helps in enhancing
the productivity and performance of the manager to be more tactical and improve operational and
strategic aspect of the organization (Nechkoska, Poels and Manceski, 2015). Organization or
managers are disposed so many information that it becomes difficult to remember and process all
those which is why MIS is useful to value that only information which helps the management to
make better decisions (Stern, 1970).

Components of Information system (Bourgeois, Smith, Wang and Mortati, 2019)

1. Technology
 Hardware
 Software
 Data
2. Networking Communication
 People
 Process

Information system is mainly a combination of two components- technology and networking

distribution. Technology consists of hardware, software and data whereas networking
communication consist of people and process. Therefore, in overall context, information system
of the use of data, person, technology and a certain process which helps deliver the required
output in the form of information. Information system are widely used in various organizations
for the purpose of interacting with the customers, suppliers and as well as perform functional
operations and manage organization (What is an Information System? - Definition from
Techopedia, 2020).

MIS co-ordinates and helps organization to answer below questions which are essential for its
long term operation. It not only provides idea or talks about knowing the internal environment or
about the internal stakeholders but also about the external stakeholders and external environment
like competitors, consumers etc. Likewise, it also is a platform to learn the issues faced by the
organization and how can those issues be addressed effectively and efficiently. It helps to reduce
redundancies and as well as verify existing controls, identify the organizational system’s strength
and weakness and increase effectivity of the firm (Lattimer, 1984).

 What is going on inside the company?

 What is going on outside the company?
 How are the competitors, market and customers performing?
 How are the company formulating strategies to run against the competitors?
 How can company focus on cost cutting and increasing effectivity?
 Which functions of the company require improvement?

Theories of Management Information System

Management Information System is guided by certain theories based on which its functioning
and capabilities are determined (Hall, 2017).

1. Cognitive Theory
Cognitive theory states that information plays the vital role in the performance of the
organization. It focuses on the change to eliminate any kind of prevailing inconsistencies
between attitudes and behaviors (Festinger, 1957).

2. Task-Technology
 IT and users are the two essential stakeholders designated to perform task with the aim of
achieving desired results. Thus, task technology in MIS focuses on the fact that IT would
be able to make a positive impact in individual performance considering the fact that
even user must perform to match with the capabilities of IT (Goodhue, 1995).

3. Competitive Strategy
Competitive strategies focus on the market, competitors and the customers. It looks upon
or checks those factors which are essential to make a market look more attractive. Thus,
this theory helps to provide insightful information about the prevailing market scenario
(Porter, 1979).

4. Socio-Technical Theory
Socio technical theory explains about the social aspect which includes people and society
and as well as the technical aspect of the organization and how the blend of these two
factors determine in providing effective and efficient information. It speaks about both
the technology and social values which may be distinct but are of utmost importance for
the organization (Barnes, 1957).

5. Theory of Reasoned Action

This theory talks about the behavior of an individual and as well as the behavioral
intentions. Such behavior could be positive or as well as negative. Thus, the theory
focuses on the surrounding or reasons for the outcome of certain behavior and how can it
be addressed accordingly (Fishben, 1967) .

Issues and challenges in the management of Information Systems

Information system is definitely not an easy task to institutionalize as it is the result of

combination of human and machine working together in a parallel mechanism. In such scenario,
it is essential that humans have good knowledge about the technology and as well the systems
are placed efficiently for the purpose of effective operation.
1. Lack of strategy
Strategies form the short term and long term goals which are utmost for the success of the
organization. Absence of solid strategies may lead to inability of the organization to
move into correct path or correct direction. Thus, in context to Management of
Information Systems, the inability of the organization to track or form proper strategy
would lead failure in proper implementation and execution of the proposed system.

2. Finding right employee

MIS is not only technical but also critical for the overall functioning of the systems of the
organization. In fact, while top management use this system for the purpose of decision
making, lower management may use it for the execution or receiving feedbacks for the
proper implementation. Therefore, any data which are collected or processed and any
information provided as output should deduce logical and as well as correct reasoning
and answers which is why MIS should be led with correct person disposed at the
doorsteps of the organization.

3. Dynamic environment
Environment of the organization mean both the internal environment where the
organization function and operates its daily activities and external environment where the
organization functions and have links to people or other stakeholders which are not a
directly a part of the organization. Thus, for the purpose proper implication and
functioning of the MIS, both the internal and external environment is required to be
dynamic.

4. Integration of new technologies

Technologies are the fastest developing and are in the hands of every single people in the
world. Technologies which may have been introduced decades back could have already
been replaced by other new technologies. Thus, it is essential on the part of the
organization to ensure that they are disposed with better technologies and latest
 technologies which would be helpful for the propose of functioning of MIS and as well as
make the most out of the system.

5. Meeting organizational needs

MIS is undoubtedly a tool used for the purpose of attaining organizational goals such as
sales maximization, profit maximization, betterment in economies of scale, cost reduction
and various other aspects and functions of the organization. Thus, MIS with the help of
correct and logical information helps the organization for the purpose of decision making
and formulating effective strategies for the short term and as well as the long term.

Digital Capability

Digital capability is the ability of the organization and the employees to be well equipped with
digital platforms and technology which would help the organization perform more smoothly. It
bridges the gap which is created within the organization rapid growth of digital innovation and
digital transformation (Khin and Ho, 2019). Studies have shown that for the purpose of
implementation of Digital Capability, effective training programs and workshops are equally
important (Mishra and Pandey, 2019). It encompasses and includes all area of life which includes
learning and working and further enhances the opportunity for personal development through
digital problem solving, digital communication and digital learning (Varga-Atkins, 2020).

Analysis and evaluation of Digital Capability within the Case Study Organization

In context to the present study, Digital Capability of “Big Mart” a retail chain in Kathmandu,
Nepal shall be studied. The chain has wider presence in the capital and have been expanding its
customer reach with the help of expansion and as well as delivery of standardized service and
products. However, Bhatbhateni, the leader in supermarket in Nepal is the toughest competition
for the organization and as well as the availability of local supermarkets at different places is
posing challenges to Big Mart considering the market it has had to compromise to its customers.
While the price and quality of the products in all the supermarkets are similar, it is ultimately the
availability of the product and an effective service delivery which is essential to remain ahead in
the competition.
Post COVID-19, Big Mart has aggressively been marketing through online channels though it
does not have its own online platform. By partnering with Daraz, the leading online platform in
the country, Big Mart is expanding its market to maximum extent possible. By doing so, it is
gaining advantage by using its brand name and get orders through online channels which
ultimately contributes towards sales maximization. Similarly, the payment system in the
supermarket is via cash, debit card, credit card or phone pay system which has eased the process
of payment. Buyers are free from carrying cash to purchase items. Similarly, the supermarket has
a system of recording sales info of individual customers who become its customers. It helps in
knowing the loyal and repeating customers and as well as keep info about the products which are
bought by them and as well as the amount they have been spending during specific periods. It
ultimately helps the top level management of the company to make decisions regarding which
products are prioritized by the customers and which products should not be kept at stock
resulting in rise in stock cost and decrease in space area. Meanwhile, Big Mart also has the
electronic ways of pricing the items and as well as recording the existing stock which is essential
as it provides the info about products which are in shortage and as well as the rotation cycle of
such products. In its latest approach towards digital capabilities, the company have started
marketing through social medias and as well as though SMS which are cheapest and at the same
time able to reach out to maximum customers possible.

While reviewing the scope of digital capabilities in context to Big Mart, it can be observed that
he company has been trying to adopt to technologies as much as possible realizing the fact that
competition is getting fierce and fierce and as well as it is impossible to record the information
manually for which a technical option is undoubtedly the most.

Recommendations

Though Big Mart is getting accustomed to various digital capabilities, there still are few grey
areas in which there lies plenty of scope of improvement.

1. Digital Platform
Big Mart does not have its own digital platform in the form of website or a mobile
application using which a user can interact with the organization. Thus, to provide users
with opportunity to see the available products online and convey messages to each other
 and as well as for the purpose of effective marketing, the organization should be thinking
about creating such digital platforms.

2. Online Service Delivery

Big Mart is lacking behind against Bhatbhateni when it comes to online delivery. Thus, to
have its products circulating around the city and have more reach to the customers, the
company should focus on establishing an online delivery system which would be very a
significant role for future developments.

3. In-Store Digital Capability

Customers have to take round of the supermarket to find the items if not placed at a
proper place. Thus, it is important that the supermarket has an In-store digital system
using which users are easily able to locate things along with the price and other info
about the product. It would be a new kind in the context of the country and as well as new
experience to the users which will emerge as time savings.

4. Employees with Digital Capability Skills

It is not the organization which is required to have digital capabilities rather also the
employees who should be well equipped with technology and information system. This
will create an atmosphere in the organization by which messages could relay more
effective with in the internal and as well as the external stakeholders. Similarly,
employees would be able to convey things in more presentable and acceptable way which
may be useful for the top management for the purpose of decision making.

Conclusion

Management Information System and Digital Capability need to have a strong place within the
organization for the purpose decision making, public relations, strategy formulation and planning
and evaluation. In today’s modern times it would be an extremely passive decision on the part of
the organization if failed to implement these technological systems. Therefore, intelligence
system should be used not only by the top management but also the low management for smooth
operations. MIS is a blend which can be useful in overall activities of the organization to respond
to the range of specific requirements or the general requirements and as well as provide access to
real time information (Surcel and Amancei, 2011).

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