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Management Information Systems: Providing Effective Decision Support

This chapter explores the concept of Management Information Systems (MIS), their characteristics, and outputs. It also discusses how MIS can be used to gain competitive advantage, leverage web technology, and support functional areas within an organization.

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Management Information Systems: Providing Effective Decision Support

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  1. Chapter 9 Management Information Systems

  2. Management Information Systems (MIS) • 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

  3. Sources of Management Information Schematic

  4. Employees Corporate databases ofinternaldata Databasesofexternaldata Corporateintranet Decisionsupportsystems Databasesofvalidtransactions Application databases Businesstransactions Transactionprocessingsystems Managementinformationsystems Executivesupportsystems Operationaldatabases Expertsystems Drill-down reports Exception reports Demand reports Key-indicator reports Input anderror list Scheduledreports

  5. 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

  6. Scheduled Report Example

  7. Key Indicator Report Example

  8. Demand Report Example

  9. Exception Report Example

  10. Outputs of a Management Information System Drill Down Reports Provide detailed data about a situation. Etc. See Figure 9.2

  11. Characteristics of a Management Information System • 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

  12. 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

  13. MIS and Web Technology • Data may be made available from management information systems on a company’s intranet • Employees can use browsers and their PC to gain access to the data

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

  15. Internet An Organization’sMIS FinancialMIS Businesstransactions Databasesofvalidtransactions Drill down reports AccountingMIS Transactionprocessingsystems Exception reports Demand reports Key-indicator reports MarketingMIS Scheduled reports Businesstransactions Databasesofexternaldata HumanResourcesMIS Etc. Extranet Etc. Figure 9.3

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

  17. Databases ofinternal data Databases ofexternal data FinancialDSS Businesstransactions Databasesof validtransactionsfor eachTPS Financialapplicationsdatabases Transactionprocessingsystems FinancialMIS Businesstransactions Operationaldatabases Financial statements FinancialES Uses and managementof funds Internet orExtranet Financial statisticsfor control Businesstransactions Customers,Suppliers Figure 9.3

  18. 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.

  19. Financial MIS Subsystems and Outputs • Financial subsystems • Profit/loss and cost systems • Auditing • Internal auditing • External auditing • Uses and management of funds

  20. Manufacturing MIS Schematic

  21. Databases ofinternal data Databases ofexternal data ManufacturingDSS Businesstransactions Databasesof validtransactionsfor eachTPS Manufacturingapplicationsdatabases Transactionprocessingsystems ManufacturingMIS Businesstransactions Operational databases Quality control reports ManufacturingES Process control reports Internet orExtranet JIT reports MRP reports Production schedule CAD output Businesstransactions Customers,Suppliers Figure 9.6

  22. 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

  23. 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-integrated manufacturing (CIM) • Quality control and testing

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

  25. Databases ofinternal data Databases ofexternal data ManufacturingDSS Databasesof validtransactionsfor eachTPS Marketingapplicationsdatabases Transactionprocessingsystems MarketingMIS Businesstransactions Sales by customer Operational databases ManufacturingES Sales by salesperson Sales by product Pricing report Total service calls Customer satisfaction Figure 9.9

  26. Inputs to Marketing MIS • Strategic plan and corporate policies • The TPS • External sources: • The competition • The market

  27. Marketing MIS Subsystems and Outputs • Marketing research • Product development • Promotion and advertising • Product pricing

  28. Human Resource MIS • Concerned with all of the activities related to employees and potential employees of the organization

  29. Databases ofinternal data Databases ofexternal data ManufacturingDSS Databasesof validtransactionsfor eachTPS Humanresourceapplicationsdatabases Transactionprocessingsystems HumanResourceMIS Businesstransactions Benefit reports Operational databases ManufacturingES Salary surveys Scheduling reports Training test scores Job applicant profiles Needs and planningreports Figure 9.12

  30. Inputs to the Human Resource MIS • Strategic plan or corporate policies • The TPS: • Payroll data • Order processing data • Personnel data • External sources

  31. 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

  32. Other MISs • Accounting MISs • Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. • 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.

  33. Thank You

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