Management Information Systems

1. Management Information Systems The IslamiaUniversity of Bahawalpur Delivered by: TasawarJaved DMS

2. Management Information Systems • MIS • IS at the management level of an organization that serve the functions of planning, controlling, and decision making by providing routine summary and exception reports. • Serve the management level of the organizations • Providing managers with reports • With online access to the organization performance and records • It serve the functions of planning, controlling, and decision making at the management level. • Generally, they are dependent on underlying TPS for their data

3. T P S M I S Order file Order processing system Sales data • ports Unit production cost Production master file MRPS MIS Reports Product change data Accounting file Expense data Managers General ledger system

4. Management Information Systems Environment Organizational Problem Solvers E N V I R O N M E N T E N V I R O N M E N T Report Writing software Mathematical models Database Environment

5. Management Information Systems • Benefits of MIS • Core competencies • By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. • Supply chain Management • With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. • Quick reflexes • Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service.

6. Management Information Systems • Characteristics of MIS: • Timeliness • The system should be able to quickly collect and edit data, summarize results, and be able to adjust and correct errors promptly. • Accuracy • A sound system of automated and manual internal controls must exist throughout all information systems processing activities • Consistency • These procedures should be well defined and documented, clearly communicated to appropriate employees, and should include an effective monitoring system. • Completeness • MIS must be appropriate to support the management level using it. The relevance and level of detail provided through MIS systems directly correlate to what is needed by the board of directors, executive management, departmental or area mid-level managers, etc.

7. Competitive Advantage • Firm strive to obtain competitive advantage over others • By • Providing low prices • High quality • Meet special needs Firm can also achieve competitive advantage through the use of its virtual resources Managers use virtual as well as physical resources in meeting the strategic objectives of the firm

8. Porter’s Value Chain • Micheal porter identified with the topic of CA • He provides guidelines and strategies for firms attempting to gain an advantage over the competitors • It includes: • Primary activities • Secondary activities

9. Porter’s Value Chain • Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing and sales • Services • Secondary Activities • Firm infrastructure • HRM • Technology development • Procurement

10. Porter’s Value Chain

11. IS/IT and Porter’s Five Forces To analyse the SWOT factors relating to IS/IT, it can be useful to consider how IS/IT can be used to counter Porter’s Five Forces so as to help an organization have a more comfortable existence than some of its components • Rivalry: use IT to reduce the effects of tough competition for example, by building strong relationship with customers and lowering costs. Cost leadership can be exploited by IT; IT used to support JIT system • Threat of New Entrant: sophisticated IT applications are expensive, slow to develop and technically challenging. All of these are barriers to entry. • Defensively and offensively

12. IS/IT and Porter’s Five Forces • Supplier Pressure: Use IT to find new suppliers. Use IT to automatically rotate orders between suppliers. Compare prices on the internet. • The degree to which switching costs apply and substitutes are available • The pressure of one or two dominant suppliers controlling prices • The products offered having a uniqueness of brand, technical performance or design not available elsewhere. • Customer pressure: use IT to improve customer service, for example, by allowing on line ordering • Threat of Substitute: use computer aided design and manufacturing to develop new products first.

13. IT in Generic Strategies • IT/IS and Porter’s Generic Strategies if it is known which strategy an organization is currently using to promote their products and or services, it should be possible to define a role for IS to enhance that strategy • Overall cost leadership • Driving down inventory levels, with the assistance of IT for supply chain planning and scheduling, can reduce costs • Differentiation • Where the differentiation is by customization, CAD can reduce costs effectively. Online info providing, online ordering process • Focus • IS/IT include providing access to customer information, trends and competitors so as to maximize competitive thrust and exclude competitors

14. IT in Generic Strategies • Consider how an estate agent could use IS/IT to improve its competitive position?

15. Thank you!!! • Q&A