Management Information Systems INFO 213 3 August 1998 “Computer Based Systems providing managers with the information and support needed for effective

Management Information Management Information SystemsSystems

INFO 213

3 August 1998

“Computer Based Systems providing managers with the information and

support needed for effective decision making.”

INFO 213 Victoria University of Wellington 2

Learning ObjectivesLearning Objectives

• Become familiar with Management Information System architecture and purpose

• Understand a Marketing Information System as a specific MIS example


Management FunctionsManagement Functions• Plan

– Define organisational goals and strategies

• Organise – Determine resource allocation

• Lead– Motivating staff to achieve goals

• Control– Monitor progress toward goal achievement

• Management Information Systems support these functions


Management Support SystemsManagement Support SystemsType of Control

Type ofDecision

OperationalControl

ManagerialControl

Strategic Planning TechnologySupportNeeded

Structured AccountsReceivable

Make/BuyDecision, BudgetAnalysis

FinancialManagement,Merger

MISTPS

Semistructured Productionscheduling,inventory control

ProjectScheduling, PlantLayout, ShiftSchedule

New ProductPlanning, QualityAssurance Planning

DSS

Unstructured Selecting a annualreport cover,approving loans

Recruiting,Reordering rawmaterial

R & D Planning DSS.ExpertSystems

TechnologySupport Needed

MIS DSS, EIS, ES EIS, ES


Map of Organisational Map of Organisational Information SystemsInformation Systems

ExecutiveInformation

Systems

MKIS

IRIS

HRISFMISManufact

IS


““MIS is a Mirage”MIS is a Mirage”• Dearden in 1972 HBR article criticised MIS as only

system in organisation - centralised– Place competent information specialised in functional areas

for system implementation (mid-1980’s)– Create functional systems in integrated manner (early 1990’s)– Develop IS for logistics (cost savings) (evolutionary from

mid-1980’s)– Centralised management group (mid 1990’s)– Senior administrator to oversee all projects (late 1990’s)

Moving to Chief Knowledge Officer (into 21st century)


Generic MIS ModelGeneric MIS Model

ManagementInformation

Systems

DecisionSupportSystems

ExecutiveInformation

Systems

ExpertSystems

CorporateDatabase

ExternalInformation

Databaseof Valid

CompletedTransactions

TransactionProcessing

Systems

BusinessTransaction

Drill down reportsException reportsDemand reports

Key Indicator reports

Scheduled reports


Generic Report TypesGeneric Report Types• Scheduled Reports

– Periodic summary reports• Key Indicator Reports

– Summary of performance of key indicators– May be scheduled

• Demand Reports– Reports produced on demand

• Exception Reports– Automatically generated reports from criteria filter (i.e. trigger

points)• Drill Down Reports

– Multi-level reports with detailed information


Report GuidelinesReport Guidelines

• Prepare Reports only when exception occurs

• Use the Report sequence to highlight exception

• Group exceptions together

• Show variances from the norm

!!Reports may be hard or soft copy


Report Informs of ExceptionReport Informs of Exception

Review Overtime based on seasonal and other issues

Overtime EarningsDept No Dept Name Current Year-to-Date

1 Shelving 750.00 5000.00

2 Sales 0 2000.00

4 Administration 1000.00 0


Use Report Sequence to Use Report Sequence to Highlight ExceptionsHighlight Exceptions

ISBN BOOK_TITLE TQUANT

0 671 50993 4 The Thousand Receipe Chinese Cookbook 16

0 688 07822 2 You Just Don't Understand 15

0 394 50391 0 Maida Heatter's Book Of Great ChocolateDesserts

12

0 87584 416 1 Competing for the Future 11

1 86359 338 1 The Rise and Rise of Kerry Packer 6

1 56799 020 7 Pasta 6

0 87584 218 1 Competitive Advantage through People 5

1 85788 056 0 Reengineering the Corporation 3

0 87984 235 1 Community Capitalism 3

0 87584 216 1 Strategic Negotiations 3

High to

LowVolume

Sales


Group ExceptionsGroup Exceptions

*Designed to quickly identify exception

AGED ACCOUNTS RECEIVABLE REPORTAS OF MAY 31

CUSTOMERNUMBER

CUSTOMERNAME

CURRENTAMOUNT

30-60DAYS

60-90DAYS

OVER90 DAYS

TOTALAMOUNT

51212 Kelly &Marley Inc

1,003.10 20.26 1023.36

51221 Kepner Dana 153.26 114.14 11.12 278.5252472 Kerite Co 376.94 101.74 469.6853204 Kunkle 217.82 217.8254233 Keyman

Associates432.71 432.71


Variance from NormVariance from Norm

Compare Variance with level of experience and past history

Actual versus Planned ActivityCurrent Month Year-to-Date

SalesNo

SalesName Quota Actual Variance Quota Actual Variance

212 Smith 1200 1083 -117 3600 3505 -95215 Jones 1000 1162 +162 3000 3320 +320381 Sams 800 1090 +290 2400 2510 +110433 Reed 1500 1305 -195 4500 4110 -390233 Rhode 2000 2333 +333 6000 6712 +712


Functional Information SystemsFunctional Information Systems

MarketingFunction

HumanResourcesFunction

InformationServicesFunction

FinanceFunction

ManufacturingFunction

MarketingInformation

System

HumanResources

InformationSystem

InformationResources

InformationSystem

FinanceManagementInformation

System

ManufacturingInformation

System

Physical System of the Firm

Functional Information System

Linked Functional Information Systems become Inter-OrganisationalInformation System


Marketing MixMarketing Mix• Product

– Customer buys product (service) to satisfy a need• Promotion

– Communicating product information to the customer• Place (Distribution)

– Physically distributing the product (service) to customer

• Price– What customer pays or is willing to pay


Marketing Information System Marketing Information System ModelModel

Users

AccountingInformation

System

MarketingResearch

Subsystem

MarketingIntelligenceSubsystem

ProductSubsystem

PlaceSubsystem

PromotionSubsystem

PriceSubsystem

Integrated-MixSubsystem

Database

EnvironmentalSources

Internal Sources

DataInformation


MKIS InputsMKIS Inputs

• Accounting Information System (AIS)– Sales/Inventory Analysis from TPS

• Marketing Research Subsystem– Primary Data (own customers)– Secondary Data (third party information)

• Marketing Intelligence Subsystem– Environmental Scan for Competitor Information


MKIS Output SubsystemsMKIS Output Subsystems• Product

– Used with DSS to determine product position in life cycle • Place

– Distribution Channel relies on 2-way information flow – Electronic Data Interchange improves flow

• Promotion– Computer-Based used only indirectly to track

discounts/targeted advertising• Price

– Cost-Based > Accurate Cost Data– Demand-Based > DSS forecasts demand


Integrated-Mix Subsystem Integrated-Mix Subsystem Example BRANDAID*Example BRANDAID*

Manufacturer

Retailer

*Presented by John D.C. Little, Operations Research, July/August 1975

Competitor

Consumer

Environment

PriceTrade PromotionsPackage Assortment

PriceTrade PromotionsPackage Assortment

EnvironmentalInformation

Product: Sales

Price/Promotion

Product/PricePromotion

DistributionChannel

DistributionChannel


How Managers Use MKISHow Managers Use MKIS

Reasons for Using MKIS

0

20

40

60

80

100

RetrievingData

Responding toInquiries

ProducingReports

Storing Data Using Models CodingProgrammes

ProcessingData

TransmittingReports

DisplayingGraphics

Per

cen

tag

e o

f Res

po

nse

s 19801990


MKIS Support Management MKIS Support Management FunctionsFunctions

1980 1990

Strategic Planning25%

Strategic Planning28%

Management Control57%

Management Control40%

Operational Control17%

Operational Control31%


Who Uses MKISWho Uses MKISSubsystems

User Product Place Promotion Price IntegratedMix

VP, Marketing X X X X XOther SeniorExecutives

X X X X X

Brand Managers X X X X XSales Managers X XAdvertisingManagers

X X

Manager,Marketing Research

X X X X X

Manager, ProductPlanning

X

Manager,Distribution

X

Other managers X X X X X


Trust Bank Case StudyTrust Bank Case Study

• Describe the Trust Bank credit card business using the BRANDAID Model

• Describe the role of the TPS in this Model

• Describe how the 4 Ps subsystems are used in this Model

Documents

Management Information Systems INFO 213 3 August 1998 “Computer Based Systems providing managers with the information and support needed for effective