Chapter 9 Management Information Systems ITEC 1010 Information

Chapter 9 Management Information Systems ITEC 1010 Information and Organizations

Management Information Systems (MIS) q Management information system (MIS) • An MIS provides managers with information and • • ITEC 1010 support for effective decision making, and provides feedback on daily operations Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization Information and Organizations

Sources of Management Information Schematic ITEC 1010 Information and Organizations

Employees Corporate databases of internal data Business transactions Transaction processing systems Operational databases ITEC 1010 Databases of valid transactions Databases of external data Management information systems Corporate intranet Decision support systems Application databases Drill-down reports Exception reports Demand reports Key-indicator reports Input and error list Scheduled reports Information and Organizations Executive support systems Expert systems

Outputs of a Management Information System q Scheduled reports • Produced periodically, or on a schedule (daily, weekly, monthly) q Key-indicator report • Summarizes the previous day’s critical activities • Typically available at the beginning of each day q Demand report • Gives certain information at a manager’s request q Exception report • Automatically produced when a situation is unusual or requires management action ITEC 1010 Information and Organizations

Scheduled Report Example Daily Sales Detail Report Prepared: 08/10/xx Order # Customer ID Sales Rep ID Ship Date Quantity Item # Amount P 12453 C 89321 CAR 08/12/96 144 P 1234 $3, 214 P 12453 C 89321 CAR 08/12/96 288 P 3214 $5, 660 P 12453 C 03214 GWA 08/13/96 12 P 4902 $1, 224 P 12455 C 52313 SAK 08/12/96 24 P 4012 $2, 448 P 12456 C 34123 JMW 08 J/13/96 144 P 3214 $720 ITEC 1010 Information and Organizations

Key Indicator Report Example Daily Sales Key Indicator Report This Month Last Year Total Orders Month to Date $1, 808 $1, 694 $1, 014 Forecasted Sales for the Month $2, 406 $2, 224 $2, 608 ITEC 1010 Information and Organizations

Demand Report Example Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx ITEC 1010 Sales Rep ID Amount CAR $42, 345 GWA $38, 950 SAK $22, 100 JWN $12, 350 Information and Organizations

Exception Report Example Daily Sales Exception Report – ORDERS OVER $10, 000 Prepared: 08/10/xx Order # Customer ID Sales Rep ID Ship Date Quantity Item # Amount P 12453 C 89321 CAR 08/12/96 144 P 1234 $13, 214 P 12453 C 89321 CAR 08/12/96 288 P 3214 $15, 660 P 12453 C 03214 GWA 08/13/96 12 P 4902 $11, 224 … … … … ITEC 1010 Information and Organizations

Outputs of a Management Information System Earnings by Quarter (Millions) Actual Drill Down Reports Provide detailed data about a situation. Forecast Variance 2 ND Qtr 1999 $12. 6 $11. 8 6. 8% 1 st Qtr 1999 $10. 8 $10. 7 0. 9% 4 th Qtr 1998 $14. 3 $14. 5 -1. 4% 3 rd Qtr 1998 $12. 8 $13. 3 -3. 0% Etc. See Figure 9. 2 ITEC 1010 Information and Organizations

Characteristics of a Management Information System q Provides reports with fixed and standard formats § Hard-copy and soft-copy reports q Uses internal data stored in the computer system q End users can develop custom reports q Requires formal requests from users ITEC 1010 Information and Organizations

Management Information Systems for Competitive Advantage q Provides support to managers as they work to achieve corporate goals q Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement ITEC 1010 Information and Organizations

MIS and Web Technology q Data may be made available from management information systems on a company’s intranet q Employees can use browsers and their PC to gain access to the data ITEC 1010 Information and Organizations

Functional Aspects q MIS is an integrated collection of functional information systems, each supporting particular functional areas. Schematic ITEC 1010 Information and Organizations

Internet An Organization’s MIS Financial MIS Business transactions Transaction processing systems Business transactions Extranet Databases of valid transactions Databases of external data Accounting MIS Drill down reports Exception reports Demand reports Marketing MIS Human Resources MIS Key-indicator reports Scheduled reports Etc. Figure 9. 3 ITEC 1010 Information and Organizations

Financial MIS q Provides financial information to all financial managers within an organization. Schematic ITEC 1010 Information and Organizations

Databases of internal data Databases of external data Financial DSS Business transactions Transaction processing systems Databases of valid transactions for each TPS Business transactions Internet or Extranet Business transactions ITEC 1010 Financial MIS Financial statements Operational databases Uses and management of funds Financial applications databases Financial ES Financial statistics for control Customers, Suppliers Information and Organizations Figure 9. 3

Inputs to the Financial Information System q Strategic plan or corporate policies § Contains major financial objectives and often projects financial needs. q Transaction processing system (TPS) § Important financial information collected from almost § § ITEC 1010 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. Information and Organizations

Financial MIS Subsystems and Outputs q Financial subsystems § Profit/loss and cost systems § Auditing § Internal auditing § External auditing § Uses and management of funds ITEC 1010 Information and Organizations

Manufacturing MIS Schematic ITEC 1010 Information and Organizations

Databases of internal data Databases of external data Manufacturing DSS Business transactions Transaction processing systems Databases of valid transactions for each TPS Business transactions Manufacturing MIS Quality control reports Process control reports Internet or Extranet Manufacturing applications databases Operational databases JIT reports Manufacturing ES MRP reports Production schedule CAD output Business transactions ITEC 1010 Customers, Suppliers Information and Organizations Figure 9. 6

Inputs to the Manufacturing MIS q Strategic plan or corporate policies. q The TPS: § Order processing § Inventory data § Receiving and inspecting data § Personnel data § Production process q External sources ITEC 1010 Information and Organizations

Manufacturing MIS Subsystems and Outputs q q q q Design and engineering Master production scheduling Inventory control Manufacturing resource planning Just-in-time inventory and manufacturing Process control Computer-integrated manufacturing (CIM) Quality control and testing ITEC 1010 Information and Organizations

Marketing MIS q Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness Schematic ITEC 1010 Information and Organizations

Databases of internal data Business transactions Transaction processing systems Databases of external data Databases of valid transactions for each TPS Marketing MIS Manufacturing DSS Marketing applications databases Sales by customer Sales by salesperson Operational databases Sales by product Manufacturing ES Pricing report Total service calls Customer satisfaction Figure 9. 9 ITEC 1010 Information and Organizations

Inputs to Marketing MIS q Strategic plan and corporate policies q The TPS q External sources: § The competition § The market ITEC 1010 Information and Organizations

Marketing MIS Subsystems and Outputs q Marketing research q Product development q Promotion and advertising q Product pricing ITEC 1010 Information and Organizations

Human Resource MIS q Concerned with all of the activities related to employees and potential employees of the organization ITEC 1010 Information and Organizations

Databases of internal data Business transactions Transaction processing systems Databases of valid transactions for each TPS Databases of external data Human Resource MIS Manufacturing DSS Human resource applications databases Benefit reports Salary surveys Operational databases Scheduling reports Manufacturing ES Training test scores Job applicant profiles Needs and planning reports Figure 9. 12 ITEC 1010 Information and Organizations

Inputs to the Human Resource MIS q Strategic plan or corporate policies q The TPS: § Payroll data § Order processing data § Personnel data q External sources ITEC 1010 Information and Organizations

Human Resource MIS Subsystems and Outputs q Human resource planning q Personnel selection and recruiting q Training and skills inventory q Scheduling and job placement q Wage and salary administration ITEC 1010 Information and Organizations

Other MISs q Accounting MISs § Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. q Geographic information systems (GISs) § Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographic region. ITEC 1010 Information and Organizations

End of Chapter 9 Chapter 10 ITEC 1010 Information and Organizations