MULTIMEDIA UNIVERSITY OF KENYA

SCHOOL: BUSINESS AND LAW

DEPARTMENT: BUSINESS AND LAW

COURSE CODE:

COURSE TITTLE: MANAGEMENT INFORMATION SYSTEM

TASK: ASSIGNMENT

GROUP MEMBERS

1. MUHIA DUNSON NGUGI BUS-241-180/2014

2. MACHARIA NICKSON BUS-241-160/2014

3. THIONG’O NYAMBURA BUS-241-135/ 2014

4. KELVIN KINYUA BUS-241-165/2014

Project Phase 1

We choose GOLDHUT PROPERTY AGENCY as our organization that lacked an information

system. In our opinion the business needed to do the following:

 Collection of rent from tenants.

 Maintenance of the buildings.
 Finding new tenants for vacant houses.
 Pay off government taxes and levies imposed on the houses or building.

To collection of rent from tenants and achieve a competitive advantage for the agency, we
considered information systems since this systems formulate corporate, tactical and operational
strategies. The business therefore must adopt an information system, which may require the
implementation of a variety of hardware, software and human resource needs that process
business transactions and enable the management to make more informed and fast decisions.

In consideration to implementing an information system, the housing agency will have to

completely change how they handle data about all their entities including the tenants and house
owners. They will have to reconsider the following expense:

1) Electricity is one of the expenses they will have to incur to run the electronic devices
and also if they were to consider the ideas then if there was a shortage of electricity
then the processing will be delayed.
2) The buying and maintenance of these electronic devices is a bit straining to a young
business like the one stated above this is because the extra expense will bring the
business’s profits down/lower than expected and this is a risk they are not ready to
take.
3) The electronic system will also require a skilled employee to run the system hence the
business will result to employing another person who will require a salary which will
drain the business’s profits.

The different types of information that would be used in this business are;

• Transaction processing system (TPS): most widely used ISs

– Records data collected at point where organization transacts business with other
parties

This will highly influence how they carry out business because it will help achieve:

 Financial planning and business transactions, this will be done through organizing
budgets, managing cash flow, analyzing investments, and making decisions.
 Help record transactions and produce periodic statements.
 Create supplemental reports for managers by producing information for other systems.

It also functions in processing, listing, sorting products and updating calculations. Examples of
these processing systems include;

 Payroll systems
 Payment processing systems
 Reservation systems

The roles of transaction processing system among others are,

Other information systems are:

 Process control system

 Enterprise collaboration system
 Management information system
 Decision support system
 Executive information system.

We chose on the transaction processing system to be implemented on the retail shop. The
objective of this information system is as follows:

1. This information system shall provide relevant information to the manager regularly on
the progress of the business.
2. To anticipate the needs and requirements of the manager and the business at large.
3. To beflexible enough to incorporate constant evolving needs of the consumer market.
4. It will be able to capture, store and organize all the relevant data on a regular and
continuous basis.
5. The retail information system will be aligned with the strategic and business plans of the
organization. Therefore, it shall be able to provide information which supports and drives
this objective.

In this organization the information system shall connect all the agencies in the company and
allow instant information exchange between stores and management to handle various aspects of
product management and to also handle customer analysis thus allowing the manager flexible
pricing over a certain financial period.

On implementation of the system in this company it will be used by various employees in the
company in various sectors. They include:

Agency’s marketers

They look at the houses and buildings available, price them and determine the best ways to
display each house or building to the public through magazine print outs, online website for
maximum sales. They are challenged to centralize, consolidate and maximize the value of the
information available to them. The information system once implemented enables in reducing
the bulk since all information and can be stored in computers and thus easy to compress work in
one place.

Agent’s sales personnel

Helps the consumer to choose a perfect house or building especially when he/she is interacting
with a new area and new house or building for the first time. The information system enables the
sales personnel to become more familiar with the top customers to offer targeted marketing
promotions and to improve the total customer experience.

Agency cashier

Rings up the purchase and takes money from consumers. The transactional processing system
allows the agency cashier to more efficiently update pricing and conduct audits.

Agency manager

Oversees the work of other workers and is available for anyone who has additional questions. By
allowing instant exchange of information through information systems, agency managers can
stay in contact to more effectively control profits for the whole company.

Loss prevention

These employees review after a certain period how the houses and buildings are rented out and
bought. They’ll look at the sales figures and compare them to competitors or similar products
before making recommendations on whether to introduce more houses and buildings. They will
also look at ways to minimize depreciation of the houses and buildings by holding to account the
tenants who are responsible as well as control paper work mistakes that could cause the company
to lose money. Information systems have electronic scanners synced directly to the agency’s
computers that allow them to simply change prices on a particular houses and building rather
than correct each individual house or building. Not only does it speed things up, but it also
makes easier to compare actual number of houses and building to computer data to account for
missing items.

The importance of this information system in the organization is as follows;

1. To increase the business ability to the evolving market place through enhanced speed and
flexibility. Example is in the transaction of cash using the newly developed machines.

2. To collect and analyze customer data while enhancing differentiation. The information will
enable the agency to monitor the purchasing behavior of customers. This will help them to know
what their customers need most.

3. It ensures effectiveness in work since the agency needs one system working across the agency
to make sure the most effective use of the employees and improve on business processes.

4. The transactional information system allows the business to access data easily and this allows t
to identify business opportunities to improve waste reduction, recycling materials and choosing
environmentally friendly packaging.
5. It allows a manager to manage customers, employees, houses and buildings. The system
allows the manager to track purchase and update inventory records of houses and buildings
dynamically. Tracking inventory of houses and buildings effectively helps in responding to
customers’ requests and responding expediently improves service, expand customer base and
increase profit.

6. The information system safeguards and ensures adherence to legal restrictions on pricing,
promotion and other policies.

7. This information system allows integration between payments, inventory and transactions and
this improves operations and reduces costs and prevents duplicate entries.