Management Information Systems Management Information Systems MIS q

Management Information Systems

Management Information Systems (MIS) q 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 Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

Sources of Management Information Schematic

Employees Corporate databases of internal data Business transactions Transaction processing systems Operational databases 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 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

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

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

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

Functional Aspects q MIS is an integrated collection of functional information systems, each supporting particular functional areas. Schematic

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

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

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 Financial MIS Financial statements Operational databases Uses and management of funds Financial applications databases Financial ES Financial statistics for control Customers, Suppliers 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 § § 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.

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

Manufacturing MIS Schematic

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 Customers, Suppliers 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

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

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

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

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

Marketing MIS Subsystems and Outputs q Marketing research q Product development q Promotion and advertising q Product pricing

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

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

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

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

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.