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MANAGEMENT INFORMATION
SYSTEMS (MIS)
Management information system (MIS)
An MIS provides managers with information and support foreffective 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
Information systems are human artifacts needed by
organizations. The needs and requirements must be
identified and systems must be planned and built. They
are the product of human imagination and human
development processes.
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INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to buildINFORMATION
SYSTEMS
Payroll
System
InventorySystem
Marketing
System
Customer
Service
System
IS VS IT
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EXPANDING ROLES OF IS1. Data Processing: 1950s-1960s
2. Management Reporting: 1960s-1970s
3. Decision support: 1970s-1980s4. Strategic and End User Support: 1980s-1990s
5. Global Internetworking: 1990s-2000s
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1. Operations support systems process data generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and support needed for
effective decision making by managers
Major categories arei) Management Information System
ii) Decision Support Systems
iii) Executive Information System
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2. Management support systems provide information and support needed foreffective decision making by managers
Major categories are:
i) Management information systems
Routine information for routine decisions
Operational efficiency
Use transaction data as main input
Databases integrate MIS in different functional areas
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ii) Decision Support System
Interactive support for non-routine decisions or problems
End-users are more involved in creating a DSS than an MIS
iii) Executive information systems
provide critical information tailored to the information needs of executives
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Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems
a) Expert Systems are knowledge-based systems that provides expert advice and
act as expert consultants to the users
b) End user computing systems support the direct, hands on use of computers
by end users for operational and managerial applications
c) Business information systems support the operational and managerial
applications of the basic business functions of a firm
d) Strategic information systems provide a firm with strategic products, services,and capabilities for competitive advantage
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ENTERPRISE RESOURCE PLANNING
(ERP)
Integrated programs that can manage a companys entireset of business operations
Often coordinate planning, inventory control, production
and ordering
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INFORMATION SYSTEMS DEVELOPMENT
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IS AS DISCIPLINE
IS is an interdisciplinary field influenced by Computer Science, Political
Science, Psychology, Operations Research, Linguistics, Sociology, and
Organizational Theory.
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CHALLENGES
1. Workforce downsizing
2. Information overload
3. Employee mistrust
4. Difficult to built
5. Security breaches
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OPPORTUNITIES
1. Enhanced global competitiveness
2. Capture market opportunities
3. Support corporate strategy
4. Enhance worker productivity5. Improve quality of goods and services
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DSS
DECISION SUPPORT SYSTEMS
Supplements an MISPulls information from variety of databases
Interactive
Nonroutine decision-makingModel mathematical representation of real-life
system
Simulation using a computer model to reach adecision about a real-life situation
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MIS VS. DSS
MIS
Planned reporting
Standard, scheduled, structured, and routine
Constrained by the organizational system
DSS
Decision making
Unstructured and by request
Immediate and friendly
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EIS
EXECUTIVE INFORMATION
SYSTEMS
DSS for top-level managers
How decisions effect entire organization
Overall vision; company goals
Long-term objectives
Organizational structure
Staffing and labor relations
Crisis management Control of overall operations
Access to information from external sources
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Corporatedatabases
of
internal
data
Databases
of
external
data
Databases
of
valid
transactions
Operationaldatabases
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 dayDemand report
Gives certain information at a managers request
Exception reportAutomatically produced when a situation is unusual or
requires management action
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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/xx
Sales 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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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 SYSTEMSFOR COMPETITIVE ADVANTAGE
Provides support to managers as they work to achievecorporate 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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Organization as a System
A system is an assembly of elements arranged in a local
order to achieve certain objectives. The individuals in the organization are selected in terms
of number, quality and ability and are placed in
hierarchical order to plan and execute business activities.
Leavitt identified task, technology and structure as the
key elements that are dependent on each other.
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Modified model of organization system
Tasks
People Structure
Technology Culture
Goal
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Types of Information Systems
Computer-based information systems (CBIS) use
computer technology to perform some or all of their
tasks and are composed of:
Hardware
Software
A Database A Network
Procedures
People
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Information Systems Inside Your Organization
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Information Technology Outside Your Organization
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Breadth of Support of Information Systems
Functional area information systems
Enterprise resource planning systems
Transaction processing systems
Inter-organizational information systems
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Why are Information Systems Important to
Organizations & Society
IT will reduce the number of middle managers.
IT will change the managers job.
IT impacts employees at work.
IT provides quality-of-life improvements.
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Enabling People with Disabilities to Work with
Computers
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The Robot Revolution
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The Robot Revolution
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The Robot Revolution(continued)
Hondas ASIMO robot
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Improvements in Health Care
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Improvements in Health Care(continued)
The Pill Cam: Wireless endoscopy
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The daVinci Surgical Robot
The robot
The surgeons console
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Medical Simulation
Two physiciansperform aprocedure on a
simulated human(mannequin)
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Traditional Major IS Functions
Managing systems development and systems project
management
Managing computer operations
Staffing, training, developing IS skills
Providing technical services
Infrastructure planning, development, control
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New (Consultative) IS Functions
Initiating and designing strategic information systems
Incorporating the Internet and e-commerce into thebusiness
Managing system integration
Educating non-IS managers about IT
Educating IS staff about the business
Supporting end-user computing
Partnering with executives
Managing outsourcing
Innovate
Ally with vendors and IS departments in other
organizations
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