management information systems(MIS)

8/3/2019 management information systems(MIS)

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ITEC 1010 Information and Organizations

Chapter 9

Management Information Systems


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Management Information Systems (MIS)

Management information system (MIS)

An MIS provides managers with information and

support for effective decision making, and providesfeedback on daily operations

Output, or reports, are usually generated throughaccumulation of transaction processing data

Each MIS is an integrated collection of subsystems,which are typically organized along functional lines

within an organization


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Sources of Management Information

Schematic


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Corporate

databases

of

internal

data

Databases

of

externaldata

Databasesof

valid

transactions

Operational

databases

Transaction

processing

systems

Management

information

systems

Decision

support

systems

Executive

support

systems

Expert

systems

Business

transactions

Input and

error list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled

reports

Employees

Corporate

intranet

Application

databases


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Outputs of a

Management Information System Scheduled reports

Produced periodically, or on a schedule (daily, weekly,monthly)

Key-indicator report Summarizes the previous days critical activities Typically available at the beginning of each day

Demand report

Gives certain information at a managers request

Exception report Automatically produced when a situation is unusual or

requires management action


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Scheduled Report Example

Daily Sales Detail Report

Prepared: 08/10/xx

Order#

CustomerID

SalesRep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $3,214

P12453 C89321 CAR 08/12/96 288 P3214 $5,660

P12453 C03214 GWA 08/13/96 12 P4902 $1,224

P12455 C52313 SAK 08/12/96 24 P4012 $2,448

P12456 C34123 JMW 08J/13/96 144 P3214 $720


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Key Indicator Report Example

Daily Sales Key Indicator Report

ThisMonth

LastMonth

LastYear

Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608


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Demand Report Example

Daily Sales by Sales Rep Summary Report

Prepared: 08/10/xxSales Rep ID Amount

CAR $42,345

GWA $38,950

SAK $22,100

JWN $12,350


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Exception Report Example

Daily Sales Exception Report ORDERS OVER $10,000

Prepared: 08/10/xx

Order#

CustomerID

SalesRep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $13,214

P12453 C89321 CAR 08/12/96 288 P3214 $15,660

P12453 C03214 GWA 08/13/96 12 P4902 $11,224


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Outputs of a Management

Information System

Earnings by Quarter (Millions)

Actual Forecast Variance

2ND Qtr 1999 $12.6 $11.8 6.8%

1st Qtr 1999 $10.8 $10.7 0.9%

4th Qtr 1998 $14.3 $14.5 -1.4%

3rd

Qtr 1998 $12.8 $13.3 -3.0%

Etc. See Figure 9.2

Drill Down Reports

Provide detailed data

about a situation.


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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


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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


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MIS and Web Technology

Data may be made available from

management information systems on a

companys intranet

Employees can use browsers and their PC

to gain access to the data


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Functional Aspects

MIS is an integrated collection of

functional information systems, each

supporting particular functional areas.

Schematic


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An Organizations

MIS

Financial

MIS

Marketing

MIS

Human

ResourcesMIS

Etc.

Accounting

MIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databases

of

externaldata

Databases

of

valid

transactions

Transaction

processing

systems

Business

transactions

Business

transactions

Extranet

Internet

Figure 9.3

Etc.


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Financial MIS

Provides financial information to all

financial managers within an organization.

Schematic


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Financial statements

Uses and management

of funds

Financial statisticsfor control

Operational

databases

Databases

of valid

transactions

for each

TPS

Transaction

processing

systems

Business

transactions

Businesstransactions

Internet or

Extranet

Figure 9.3

Financial

MIS

Business

transactions

Databases of

external data

Databases of

internal data

Financial

DSS

Financial

ES

Financial

applications

databases

Customers,

Suppliers


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Inputs to the Financial

Information System Strategic plan or corporate policies

Contains major financial objectives and often projectsfinancial needs.

Transaction processing system (TPS)

Important financial information collected from almostevery TPS - payroll, inventory control, orderprocessing, accounts payable, accounts receivable,

general ledger. External sources

Annual reports and financial statements of competitorsand general news items.


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Financial MIS Subsystems and

Outputs Financial subsystems

Profit/loss and cost systems

Auditing

Internal auditing

External auditing

Uses and management of funds


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Manufacturing MIS

Schematic


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Quality control reports

Process control reports

JIT reportsOperational

databases

Databases

of valid

transactions

for each

TPS

Transaction

processing

systems

Business

transactions

Businesstransactions

Internet or

Extranet

Figure 9.6

Manufacturing

MIS

Business

transactions

Databases of

external data

Databases of

internal data

Manufacturing

DSS

Manufacturing

ES

Manufacturing

applications

databases

Customers,

Suppliers

MRP reports

Production schedule

CAD output


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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


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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


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Marketing MIS

Supports managerial activities in product

development, distribution, pricing

decisions, and promotional effectiveness

Schematic


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Sales by customer

Sales by salesperson

Sales by productOperational

databases

Databases

of valid

transactions

for each

TPS

Transaction

processing

systems

Business

transactions

Figure 9.9

Marketing

MIS

Databases of

external data

Databases of

internal data

Manufacturing

DSS

Manufacturing

ES

Marketing

applications

databases

Pricing report

Total service calls

Customer satisfaction


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Inputs to Marketing MIS

Strategic plan and corporate policies

The TPS

External sources:

The competition

The market


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Marketing MIS Subsystems and

Outputs Marketing research

Product development

Promotion and advertising

Product pricing


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Human Resource MIS

Concerned with all of the activities related

to employees and potential employees of

the organization


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Benefit reports

Salary surveys

Scheduling reportsOperational

databases

Databases

of valid

transactions

for each

TPS

Transaction

processing

systems

Business

transactions

Figure 9.12

Human

Resource

MIS

Databases of

external data

Databases of

internal data

Manufacturing

DSS

Manufacturing

ES

Human

resource

applications

databases

Training test scores

Job applicant profiles

Needs and planning

reports


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Inputs to the Human Resource

MIS Strategic plan or corporate policies

The TPS:

Payroll data

Order processing data

Personnel data

External sources


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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


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Other MISs

Accounting MISs

Provides aggregated information on accounts

payable, accounts receivable, payroll, and otherapplications.

Geographic information systems (GISs)

Enables managers to pair pre-drawn maps ormap outlines with tabular data to describe

aspects of a particular geographic region.


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End of Chapter 9

Chapter 10
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management information systems(MIS)