Management Management TheoryTheory

InstructorAbdel Fatah Afifi

MA&T, MBA, ACPA, PCT

Chapter 8Chapter 8

Management Information Systems (MIS)

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Management Information Management Information SystemsSystems

Transaction Processing Systems (TPS)1. Support

operation2. Management

and control3. Routine,

normal operations

Management Information Systems (MIS)1. Provide

decision-making support for routine, structured decisions

2. Closely linked to and fed by TPS

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Management Information Management Information SystemsSystems

Terminology Confusion◦MIS = the study of information technology in business settings◦But, MIS is also term to refer to class of systems used to support operational and tactical decision-making

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A Model for Problem A Model for Problem SolvingSolving

Decision Making Phase◦Intelligence gathering◦Design◦Choice

ImplementationMonitoring

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Decision MakingDecision MakingA step in problem solvingIntelligence gathering◦Definition of problem◦Data gathered on scope◦Constraints identified

Design phase◦Alternatives identified and assessed

Choice◦Selection of an alternative

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Structured vs. Structured vs. Unstructured ProblemsUnstructured Problems

Structured problems lend themselves to programmed decisions◦The implication is that a repeatable process can be employed and these can be automated

Unstructured problems require un-programmed decisions

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Unstructured Unstructured ProblemsProblems

Can be addressed (or partially addressed) with Decision Support Systems

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Structured Structured ProblemsProblems

Can be addressed by an MISThree decision models or

techniques◦Optimization

Find the best solution

◦Satisfying Find a solution which meets certain criteria

◦Heuristics Rule-based solution generation

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Goals of an MISGoals of an MISProvide managers with information

Regular, routine operations

Control, organize and plan better

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Typical Inputs and Typical Inputs and OutputsOutputs

Inputs: Information from the TPS

Outputs: hard and softcopy reports◦Scheduled reports◦On-demand reports◦Key-indicator (business fundamentals)◦Exception reports

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Functional Perspectives Functional Perspectives of MISof MISFinancial MIS◦Will integrate information from multiple sources◦Functions Costing P&L reporting Auditing Funds management

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Functional Perspectives Functional Perspectives of MISof MISManufacturing◦Design and Engineering◦Master Production Scheduling◦Inventory Control◦Materials Planning◦Manufacturing and Process Control◦Quality Control

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Functional Perspectives Functional Perspectives of MISof MIS

Marketing◦Market research Web-based market research

◦Pricing

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Functional Perspectives Functional Perspectives of MISof MIS

Transportation and Logistics◦Route and schedule optimization

Human ResourcesAccounting

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Decision Support Decision Support SystemsSystems

Used for unstructured problemsCharacteristics◦Data from multiple sources internal and external to organization

◦Presentation flexibility◦Simulation and what-if capability◦Support for multiple decision approaches

◦Statistical analysis

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Components of a Components of a DSSDSSModel management software◦Provides a variety of solution models Financial, statistical, graphical, project management

Dialogue Manager◦Allows user interaction with DSS

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Group Decision Making Group Decision Making SystemsSystemsVery interesting fieldHow can information technology improve how decisions are made by groups?

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Group Decision Making Group Decision Making SystemsSystems

Applications◦Where time is critical◦Where participants are geographically dispersed

◦Where authority obstructs communication

◦Military◦Business◦Government

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Group Decision Making Group Decision Making SystemsSystemsCommon characteristics◦Meeting moderation/facilitation◦Signed and anonymous comments

◦Structured deliberations Presentation period Comment period Automated collation of comments “Voting”

Face-to-face and remote

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Executive Information Executive Information SystemsSystemsWhat information does a chief executive of board member require?

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Executive Information Executive Information SystemsSystemsHigh level with drill downKey business and industry data

Structured and unstructured information◦Structured: MTD orders◦Unstructured: Industry newsfeed

GraphicalAfifi, UP, Management Theory, MIS 22