MANAGEMENT INFORMATION SYSTEMS
Management Information Systems
Microsoft Corporation is a company that deals with licensing, supporting, and improving a variety of software services and products. The products of Microsoft Corporation include applications for business solutions, tools for software development, online marketing, tools for management server applications, video games, and operating system for phones, servers, computing devices, and other intelligent devices. Furthermore, the company provides Cloud services that provide the consumers with services, software, and content in the Internet through shared computer resources, which can be located in the centralized data center. The company sells and engineer tablets, personal computer, phones, entertainment and gaming consoles, and other intelligent devices, and other relevant accessories. The company offers solution support services as well as consultation for the products. It also certifies and trains developers and integrators of the computer system. Today, the corporation has been conducting business transactions in more than 100 states. Microsoft Corporation operates in five sectors –Devices and Consumer Hardware, Devices and Consumer licensing, Devices and Consumer Other, Commercial Licensing, and Commercial Other. The Devices and Consumer sectors of Microsoft Corporation center on manufacturing, developing, supporting, and marketing products and services, which are engineered to improve individual productivity, connect and entertain other people, help people to simplify complex work, create more informed decision online, and improve the company’s online presence through advertising and connecting with their clients. The commercial sector centers on the marketing, supporting, and developing of software and services that are created to improve the competence and productivity of a team, organization, and individual, including simplifying the complex work of an individual through operations across the software and hardware of the user (Reuters, n.d).
Current Process that Needs Improvement
Microsoft Corporation current process is the technological advancement that needs improvement. The technological innovation of Microsoft Corporation contributes to the profitability and financial stability of the business, also being one of the leading corporations in the field of providing technologies. The improvement of their products and services will be successful if the innovation is developed. Companies that are leading in the market consider the framework of innovation management method help the company get the most innovative as possible of their partners, consumers, and individuals. The improvement of the innovation of Microsoft Corporation begins with strategy. The strategy for innovation should address the procedure, values, and allowing the individuals to participate in a complete manner. The innovation is intended to help the corporations develop an incorporated, wide-ranging approach to support and implement a strategy for innovation management. Majority of the corporation realize that they cannot basically cut the expenses on their way to financial growth. The companies are starting to realize the benefits of the innovation given that they are already consumed the value they can attain by the effectiveness of the operation. Whereas, the innovation ensures the company top line growth, improve market shares, superior market relevance, and greater margins. However, the corporations should realize that by enhancing the innovation is not going to happen just because the company invests on the research and development (Microsoft 2013).
In addition, strategic innovation commonly downturn the way value is established and suitable. This approach can make new business and markets, and strengthen and destroy the available position of the market products, and the significant part is that this approach is beneficial for some companies. During the late 90s until this day, the leading themes in this contemporary world is globalization, innovation strategy, the effects of the communication as well as information technologies on the value adding accomplishments. The main problems of the strategic innovation are how to compete in a world with increasing globalization and fast changes in technology, and the process of acquiring the advantage in market competition through innovation strategy using the new methods. The innovation strategy is an approach for innovation and changes in the products and services, process of the industry, models of business, positioning in regards to the competitive in order for the company to improve its overall performance (Afuah n.d).The essential aspects of information systems in the company are the computer system and information system. The information system consists of software, hardware, telecommunications, human resources, databases, and procedures (Alcami et al 2012).
The significance of the innovation for companies is because innovation entails paradigm discoveries and increasing improvements in available products and services. Majority argued that maintaining innovation should not even be termed as innovation at all. Given that innovation begins with the ‘Eureka moment’ and having fresh new ideas, rather than the monotonous process of implementing them. Maintaining the innovation is a much more controllable procedure, and numerous large companies like Procter & Gamble and Microsoft are best at it. Whereas in innovation, it is commonly not expected, unable to predict, messy, and may even lead to conflict within an organization but the rewards are much higher compared to maintaining innovations. Therefore, Microsoft Corporation should not focus only on maintaining the innovation because creating fresh new ideas and breakthrough would improve their financial performance and it helps to re-invent them (Balanced Scorecard Institute n.d).
The managers of corporations prepare plans, organize, make decisions, and manage the activities of the company using the information that they can acquire either from informal network such as telephone calls, conversation with someone, and social contacts or from formal network. In spite of the problems in acquiring information, the corporate managers require information that is related on which they could base their making of decisions, plan, control, and purpose. The manufacturer selection is the System Analysis & Design. Given that the company wants to improve their innovation, it is much better if Microsoft Corporation will choose the system analysis & Design. The system analysis and design is a procedure of assessing the situation of business with a purpose of improving the situation through better process and approach. This method is relevant to the shaping of an organization, attaining the aims of the company for the growth and profitability and improving the financial performance. The system of analysis & design has two primary parts – the system design and system analysis. The system analysis refers to a procedure that collects the data and interprets the information into rich meanings. On the other hand, the system design refers to a procedure of planning a new system for business or replace, or adds the available business system (Jawarhar n.d). Thus, the Microsoft Corporation implemented a restructure plan that will reorganize the system of the company, and the overall cost of the restructuring is 3 billion usd. The MIS that Microsoft Corporation uses at the moment is the manufacturing MIS because it monitors the product and materials flow within the corporation. It is generally used in every stage from using the raw material to the finished product. The Microsoft focuses too much on manufacturing their products and improving their programs, software, and operating system of the pc and overlooked the consumer preferences (Study n.d). However, in the system design and analysis the Microsoft will able to notice that the problem is not their products, but rather they need to restructure their segments and meet the consumer’s preferences.
The financial highlights of Microsoft Corporation (the value are in millions, except per share data)
The financial performance of Microsoft Word in 2014, the company has obtained considerable all of the Devices and Services business of Nokia. The Nokia’s devices and services have been incorporated in Microsoft Corporation combined outcomes of the operations beginning from the acquisition of date of the Nokia’s devices and services. It includes the charge in regards to the fine implemented by the European Commission in 2013 where in it reduce the net income and the income for operation of the company by 733 million USD and weakened Microsoft Corporation’s earning per share by $0.09. The financial performance includes the charge of the goodwill impairment in regards to Microsoft Corporation’s earlier division for online services which reduced the net income as well as the income from the operations by 6.2 billion USD and weakened the earnings per share by 0.72 USD. In the first quarter of 2014, Microsoft Corporation changed the structure of their organizations as a part of their changing of the devices and services and the commercial services (Microsoft 2014).
Microsoft Corporation is committed in attaining the strategy for long-term position of highlighting the brand, the design of the software, quality of revolution and services compare to the strategy for low cost where in it highlights the decreased input cost and scale economies. Corporation such as Microsoft Corporation, is usually has highly skilled employees, accessibility to research, teams for strong sales and having an excellent reputation in the field. The company has been the leader in the market in terms of the industry for enterprise software. However, the market revenue for personal computer is deteriorating as a result of saturation of the market. The reason is that Microsoft Corporation is being left behind by the companies that produces smart phone wherein they could access information through a small device called mobile phone. The advantage of smart phones is that you could bring it anywhere and connect it with Wi-Fi. The company used to operate its business under 5 sectors, Microsoft business division, online services decision, windows division, and entertainment and devices division. The rearrangement of the objectives of the company in improving the revenues as a result of the deteriorating of the sale of the personal computer and decrease of the duplication of struggles across several divisions. Today, the company is now centering their business on gaming, phone, cloud services, and tablets (Chauhan 2014).
Microsoft Corporation used to focus on their operating system, programs, and software that are exclusively for personal computers. Recently, companies started inventing smart phones that will be convenient for the consumers, thus the sales for personal computers declined. People begin purchasing smart phones because of the newly introduced features that the previous phones are missing out. The smart phones are very convenient because it has the same features on which the previous phones have such as the calls, text message, camera, and games. However, smart phones surpassed the earlier phone since you can now access the internet through connecting your phone to the wireless connection. In addition, the company focuses too much on the innovation of their services rather than understanding the preference of the consumers today. Microsoft Corporation decided to change their structure from focusing on one segment to a diverse one. The company offers cloud services, games, tablets, and phones.
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