lesson 2

MANAGEMENT INFORMATION SYSTEMS Lesson 2

Management information system (MIS) An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations Output or reports, are usually generated through accumulation of transaction processing data Used for generating reports including inventory status reports, financial statements, performance reports etc. Reports are essential for analyzing different aspects of business. Help to answer 'what-if' questions like what would be the effect on cash flows of a company if the credit term is changed for its customers etc. Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

CHARACTERISTICS OF MIS Integrated user machine system Supports operations, management, analysis & decision making functions Utilizes computer hardware, software, manual procedures, models for analyzing, planning, control & decision making and a database Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

SOURCES OF MANAGEMENT INFORMATION Schematic

Corporate databases of internal data Databases of external data Databases of valid transactions Operational databases Transaction processing systems Management information systems Decision support systems Executive support systems Expert systems Business transactions Input and error list Drill-down reports Exception reports Demand reports Key-indicator reports Scheduled reports Employees Corporate intranet Application databases

OUTPUTS OF A MANAGEMENT INFORMATION SYSTEM Scheduled reports Produced periodically, or on a schedule (daily, weekly, monthly) Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day Demand report Gives certain information at a manager’s request Exception report Automatically produced when a situation is unusual or requires management action

SCHEDULED REPORT EXAMPLE Daily Sales Detail Report Prepared: 08/10/xx Order # Customer ID Sales Rep ID Ship Date Quantity Item # Amount P12453 C89321 CAR 08/12/96 144 P1234 $3,214 P12453 C89321 CAR 08/12/96 288 P3214 $5,660 P12453 C03214 GWA 08/13/96 12 P4902 $1,224 P12455 C52313 SAK 08/12/96 24 P4012 $2,448 P12456 C34123 JMW 08J/13/96 144 P3214 $720

MANAGEMENT INFORMATION SYSTEMS FOR COMPETITIVE ADVANTAGE Provides support to managers as they work to achieve corporate goals Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement

FUNCTIONAL ASPECTS MIS is an integrated collection of functional information systems, each supporting particular functional areas. Schematic

An Organization’s MIS Financial MIS Marketing MIS Human Resources MIS Accounting MIS Drill down reports Exception reports Demand reports Key-indicator reports Scheduled reports Databases of external data Databases of valid transactions Transaction processing systems Business transactions Business transactions Extranet Internet Production & operation MIS

The system shares all accounting reports at different levels of management

FINANCIAL MIS Provides financial information to all financial managers within an organization. Schematic

Uses and management of funds Financial statistics for control Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Business transactions Internet or Extranet Financial MIS Business transactions Databases of external data Databases of internal data Financial DSS Financial ES Financial applications databases Customers, Suppliers

INPUTS TO THE FINANCIAL INFORMATION SYSTEM Strategic plan or corporate policies Contains major financial objectives and often projects financial needs. Transaction processing system (TPS) Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. External sources Annual reports and financial statements of competitors and general news items.

INPUTS TO THE MANUFACTURING MIS Strategic plan or corporate policies. The TPS: Order processing Inventory data Receiving and inspecting data Personnel data Production process External sources

MANUFACTURING MIS SUBSYSTEMS AND OUTPUTS Design and engineering Master production scheduling & Inventory control Manufacturing resource planning Just-in-time inventory and manufacturing Process control Computer-assisted manufacturing (CAM) Computer-integrated manufacturing (CIM) Flexible manufacturing system Quality control and testing

HUMAN RESOURCE MIS Concerned with all of the activities related to employees and potential employees of the organization

Benefit reports Salary surveys Scheduling reports Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Human Resource MIS Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Human resource applications databases Training test scores Job applicant profiles Needs and planning reports

INPUTS TO THE HUMAN RESOURCE MIS Strategic plan or corporate policies The TPS: Payroll data Order processing data Personnel data External sources

HUMAN RESOURCE MIS SUBSYSTEMS AND OUTPUTS Human resource planning Personnel selection and recruiting Training and skills inventory Scheduling and job placement Wage and salary administration

MARKETING INFORMATION SYSTEM Continuing and interacting structure of people, equipment and procedures Used to gather, sort, analyse, evaluate, and distribute timely and accurate information For marketing decision makers to improve their marketing planning, implementation, and control

INPUTS TO MARKETING MIS Strategic plan and corporate policies The TPS External sources: The competition The market

MARKETING MIS SUBSYSTEMS AND OUTPUTS Marketing research Web based market research Product development Promotion and advertising Product pricing

USES OF MIS – FEW EXAMPLES Government Consumers Employees Culture Businesses Privacy Education Company Operations Tactics Strategy

Advantages Decreased overhead. Flexibility in part-time workers. Disadvantages Harder to evaluate workers. Harder to manage workers. The Firm Advantages Reduced commuting costs. Flexible schedule. Disadvantages Loss of personal contacts. Distractions. Employees Suburban work centers Telecommuting

How Cynical Can You Be? Which of these websites do you believe? How do you decide? Does it help if you know the website? BBC News ArthritisCure.net

E-GOVERNMENT Government Representatives and Agencies Providing Internet access to government data. Democracy and participation Getting data and information Providing feedback and participating Voting—will we ever see electronic or online voting? Information warfare Will the Internet consolidate the world?

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